The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of the provision of flight training on aircraft simulators

The results for the year are set out on page 6.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

• make an assessment of the company's ability to continue as a going concern.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each director in office at the date of approval of this annual report confirms that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

• the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

We have audited the financial statements of Quadrant Systems Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

• have been properly prepared in accordance with UK adopted international accounting standards; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of risk management software services and consultants. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 

• understanding the design of the company’s remuneration policies. 

To address the risk of fraud through management bias and override of controls, we: 

• performed analytical procedures to identify any unusual or unexpected relationships; 

• tested journal entries to identify unusual transactions; 

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

• agreeing financial statement disclosures to underlying supporting documentation; 

• reading the minutes of meetings of those charged with governance; 

• enquiring of management as to actual and potential litigation and claims; and 

• reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Quadrant Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Victoria Gardens, Burgess Hill, West Sussex, RH15 9NB. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The company has adopted UK-adopted International Financial Reporting Standards ("IFRS") for the year ended 31 December 2024. These financial statements are the Company's first prepared in accordance with IFRS.

The date of transition to IFRS was 1 October 2022. An explanation of how the transition from "FRS 102" The Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102)" to IFRS has affected the Company's financial position, performance and cash flows is set out on note 27.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention subject to the revaluation of simulator assets at fair value. The principal accounting policies adopted are set out below.

Transition to IFRS

These financial statements have been prepared in accordance with IFRS 1, which requires;

• Consistent accounting policies across all periods presented;

• Preparation of an opening IFRS balance sheet at the at date of transition; and

• Recognition of adjustments from the transition in retained earnings unless otherwise required.

The following IFRS 1 exemptions have been applied :

• In accordance with the optional exemption available under IFRS 1 First time Adoption to IFRS, the Company has elected to reset cumulative transition differences to zero at the date of transition (1 January 2024).

The financial statements have been prepared under the going concern basis. The company made a profit of £630,792 (2023: £62,543) during the period ended 31 December 2024 and as of that date the company's net assets were £3,987,631 (2023: £3,556,211) and net current liabilities of £3,408,939 (2023: £4,449,211). true

The Company's ability to continue to trade is dependent on continued support from its parent company, Air One Aviation Limited, which has confirmed that it is willing and able to provide such support for the foreseeable future. These financial statements do not include any adjustments which might be necessary should the support of the parent company be withdrawn.

Revenue is recognised in accordance with IFRS 15 Revenue from Contracts with Customers, which establishes a five-step model:

1. Identify the contract with a customer

2. Identify the performance obligations

3. Determine the transaction price

4. Allocate the transaction price to performance obligations

5. Recognise revenue when (or as) performance obligations are satisfied

Revenue is disaggregated by geography in note 4.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discount, settlement discounts and volume rebates.

Turnover includes the proportion of sales value of long-term contracts relevant to their stage of completion.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

• Software- Amortised evenly over its estimated useful life of three years.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Inventories are comprised of parts for use by the company in maintaining its simulator equipment.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The Company classifies its financial instruments in accordance with IFRS 9 Financial Instruments.

Financial assets are classified as amortised cost, fair value through other comprehensive income, or fair value through profit and loss. The Company's financial assets (primarily trade receivables) are held at amortised cost.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when,and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The Company applies IFRS 16 Leases, recognising a right-of-use asset and corresponding lease liability at the lease commencement date.

Lease liabilities are initially measured at the present value of lease payments, discounted using the Company’s incremental borrowing rate. Right-of-use assets are initially measured at cost and depreciated over the shorter of the asset's useful life and the lease term.

Short-term leases (less than 12 months) and low-value leases are not capitalised. Payments under such leases are expensed on a straight-line basis.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is reassessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:

• Amendments to IAS 1 ‘Classification of Liabilities as Current or Non-Current’ (effective for annual reporting periods beginning on or after 1 January 2024).

• Amendments to IAS 1 ‘Non-Current Liabilities with Covenants’ (effective for annual reporting periods beginning on or after 1 January 2024).

• Amendments to IAS 16 'Lease Liability in a Sale and Leaseback’ (effective for annual reporting periods beginning on or after 1 January 2024).

There are no standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

Standards which are in issue but not yet effective

At the date of authorisation of these financial statements, the following standards and interpretations, which

have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases

had not yet been adopted by the EU):

• Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments (effective on or after 1 January 2026);

• Annual Improvements to IFRS Accounting Standards — Volume 11 (effective on or after 1 January 2026);

• IFRS 18 Presentation and Disclosure in Financial Statements (effective on or after 1 January 2027);

IFRS 18 Presentation and Disclosure in Financial Statements, which was issued by the IASB in April 2024

supersedes IAS 1 and will result in major consequential amendments to IFRS Accounting Standards including

IAS 8 Basis of Preparation of Financial Statements (renamed from Accounting Policies, Changes in

Accounting Estimates and Errors). Even though IFRS 18 will not have any effect on the recognition and

measurement of items in the consolidated financial statements, it is expected to have a significant effect on

the presentation and disclosure of certain items. These changes include categorisation and sub-totals in the

statement of profit or loss, aggregation/disaggregation and labelling of information, and disclosure of

management defined performance measures.

The Directors do not expect the adoption of these standards to have a material impact in future periods

Background and Nature of Change

Effective 1 January 2024, the company changed its accounting policy for the treatment of spare parts used in the maintenance and operation of its fleet and flight simulators. Previously, such items were expensed as incurred under the assumption that they were consumed immediately upon purchase.

Under the revised policy, spare parts that are not consumed immediately and are expected to be used in the ordinary course of operations are now recognised as inventory in accordance with IAS 2 – Inventories. These items are measured initially at cost and subsequently at the lower of cost and net realisable value.

This change provides more reliable and relevant information by better matching the cost of parts with the periods in which they are consumed and aligns the Group’s accounting treatment with industry practices.

Impact of the Change

The change in accounting policy has been applied prospectively from 1 January 2024, as the impact on prior periods is considered immaterial to the financial statements and does not warrant restatement.

No adjustment has been made to comparative figures for the year ended 31 December 2023.

Justification and Compliance

This change is in accordance with IAS 8.14(b) as it results in financial statements providing more relevant and reliable information. The classification aligns with IAS 2, which defines inventories as assets held for consumption in the production process or in rendering of services.

Revised Accounting Policy (Effective 1 January 2024)

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Inventories are comprised of parts for use by the company in maintaining its simulator equipment.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

- Determining the lease term for IFRS 16 leases (e.g. extension or break options)

- Assessment of control in related party relationships

Key sources of estimation uncertainty include:

• Useful lives of right-of-use assets

• Measurement of deferred tax assets and liabilities

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

The charge for the year can be reconciled to the profit per the income statement as follows:

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

Property, plant and equipment includes right-of-use assets, as follows:

The simulator equipment was valued on an open market basis on by Aircraft Simulator Services Limited. The assets were valued on July 2023, and subsequently revalued on September 2024. All other classes of Tangible Fixed Assets are held at cost.

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

There were outstanding contributions at the reporting date of £4,996 (2023: £6,564).

The company is not subject to any externally imposed capital requirements.

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

At the end of the year the company owed the immediate parent company £3,535,814 (2023: £4,401,628).

Key management personnel compensation in the year was short-term employee benefits of £90,270 (2023 - £106,440) and post-employment benefits of £6,319 (2023: £4,838).

The ultimate parent company is Air One International Holdings Limited, a company registered in England and Wales.

The immediate parent undertaking is Air One Aviation Limited, a company registered in England and Wales.

Until 17th June 2024 the ultimate parent company was Air One Holdings Limited, a company registered in United Arab Emirates. On 17th June 2024 the shares in the immediate parent were transferred from Air One Holdings Limited to Air One International Holdings Limited.

As of 17th June 2024 Air One Aviation Limited is owned by Air One International Holdings Limited. Prior to 17th June 2024 Air One Aviation Limited was owned by Air One Holdings Limited. The ultimate controlling party is G. Mirchandani.

The largest and smallest group of undertakings for which consolidated accounts will be drawn up is that headed by Air One International Holdings Limited. The registered address of Air One International Holdings Limited is 1 Becketts Place, Hampton Wick, Kingston-Upon-Thames, Surrey, KT1 4EQ. Copies of these financial statements may be requested from The Registrar of Companies, Companies House, Crown Way, Maindy, Gardiff, CF14 3UZ.

This is the first year that the Company has presented its results under UK adopted IFRS's. The last financial statements were for the period ended 31 December 2023.

The date of transition to IFRS was 1 October 2022.

The following narrative explains the material differences arising from the transition from FRS 102 to UK-adopted IFRS in the financial statements of Quadrant Limited for the year ended 31 December 2024.

1. Leases (IFRS 16)

Under FRS 102, leases classified as operating were not capitalised. On transition to IFRS, operating leases were brought onto the balance sheet as right-of-use assets and corresponding lease liabilities. This resulted in an increase in both assets and liabilities at the date of transition. Lease expenses previously recognised in operating costs have been replaced by depreciation and interest expense. The Company applied the practical expedient under IFRS 1 not to reassess lease contracts.

2. Deferred Tax (IAS 12)

Deferred tax is now recognised on temporary differences rather than timing differences. This led to the recognition of deferred tax liabilities related to IFRS 16 adjustments and other differences that were not previously provided for under FRS 102.

3. Revenue Recognition (IFRS 15)

The principles of IFRS 15 require revenue to be recognised when control passes to the customer. While this did not significantly change the timing or amount of revenue recognised, the Company is now required to provide expanded disclosures, including performance obligations and disaggregation of revenue.

4. Presentation and Disclosure (IAS 1)

The financial statements have been reformatted in line with IFRS requirements. This includes updated primary statements and more comprehensive note disclosures.

5. Financial Instruments (IFRS 9)

The Company adopted IFRS 9 at the transition date. However, there was no material impact as the Company’s financial instruments (primarily trade receivables and payables) continued to be measured at amortised cost. No reclassifications or adjustments were necessary.

5. Cashflow statement (IAS 7)

There were no material differences beween the cashflow statements under FRS102 and IFRS, other than classification adjustments to align with IFRS requirments.