REGISTERED NUMBER: 11891849 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

FLIGHTSAFETY TEXTRON AVIATION TRAINING

UK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

Mr D F Deacon

Ms B G Telek

Mr J A Downing

Ms A Vertanen

SECRETARY:

CSC CLS (UK) Limited

REGISTERED OFFICE:

C/O Csc Cls (Uk) Limited

5 Churchill Place

10th Floor

London

E14 5HU

BUSINESS ADDRESS:

Farnborough Airport

Farnborough

Hampshire

GU14 6XA

REGISTERED NUMBER:

11891849 (England and Wales)

AUDITORS:

FKCA Limited

Statutory Auditor

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

The directors present their strategic report for the year ended 31 December 2024.

REVIEW AND ANALYSIS OF THE BUSINESS DURING THE CURRENT YEAR

The Company continued its principal activities of the supply of aviation training and the provision of facilities for aviation training throughout the current year.

Key performance indicators

Management use a range of performance measures to monitor and manage the business. The performance measures are split into financial and non-financial, with the key financial performance indicators as set out below.

Financial Ratios:

Profit Ratios

- Gross profit margin 89.3% (2023 - 86.0%)

- Net profit margin 13.7% (2023 - 15.3 %)

- Return on capital employed 27.4% (2023- 44.2 %)

Liquidity ratios

- Current ratio 0.8 times (2023 - 0.9 times)

Development and financial performance during the year

As reported in the Company's profit and loss account, revenue has shown an increase of 10.5% from £15,086,691 to £16,668,621. Operating expenses has increased by £2,242,432 to £13,084,946. Profit after tax has increased from £1,724,752 to £1,779,106. The balance sheet shows net assets have increased from £4,620,722 to £6,399,828.

PRINCIPAL RISKS AND UNCERTAINTIES FACING THE BUSINESS

Management continually monitor the key risks facing the Company, together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually. The principal risks and uncertainties facing the Company are as follows:-

Economic downturn

The Company acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties. Sales trends in its major markets are constantly reviewed to enable early action to be taken in the event of sales declining.

Competitor pressure

The market in which the Company operates is considered to be relatively competitive and therefore competitor pressure could result in losing sales to key competitors. The Company manages this risk by providing quality services and maintaining strong relationships with its key customers.

Loss of key personnel

This would present significant operational difficulties for the Company. Management seek to ensure that key personnel are appropriately remunerated and sufficiently trained to ensure that good performance is recognised.

Customer credit risk

The Company has implemented policies that require appropriate credit checks on potential customers and to ensure that exposure to customer debt is maintained within agreed limits.

Operational risk

The Company ensures that the necessary training and other operational requirements are maintained to the highest levels in order to significantly exceed the levels set to maintain the Company's authorisation to provide flight simulator training.

ON BEHALF OF THE BOARD:

Mr J A Downing - Director

22 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activities of the company in the period under review were that of the supply of aviation training and the provision of facilities for aviation training.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

Mr D F Deacon has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

Mr D B Thress - resigned 12 July 2024

Mr D R Meikle - resigned 13 September 2024

Mr D A May - resigned 18 September 2024

Ms B G Telek - appointed 7 March 2024

Mr J A Downing - appointed 7 March 2024

Ms A Vertanen was appointed as a director after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr J A Downing - Director

22 September 2025

Opinion

We have audited the financial statements of FlightSafety Textron Aviation Training UK Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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 United Kingdom Generally Accepted Accounting Practice; 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

-

enquiry of management and those charged with governance around actual and potential litigation and claims;

-

enquiry of entity staff and the board of directors to identify any instances of non-compliance with laws and regulations; and

-

reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition, the override of controls by management, the valuation of fixed either through incorrect capitalisation methodology or depreciation of simulators, and the completeness and accuracy of tax provisions.

To address the risk of fraud or error in relation to revenue recognition, we:

-

Performed detailed substantive testing to address completeness and accuracy of sales; and

-

Assessed the appropriateness and application of the accounting policy concerning income recognition;and

-

Assessed the risk period surrounding cut-off of sales and performed detailed testing either side of the balance sheet date.

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

-

Performed analytical procedures to identify any unusual or unexpected relationships; and

-

Tested journal entries to identify unusual transactions; and

-

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.

To address the risk of fraud or error through the valuation of fixed either through incorrect capitalisation methodology or depreciation of simulators, we:

-

Reviewed the capitalisation methodology and sampled a list of additions to ensure they have been reported in accordance with FRS 102; and

-

Sampled a number of simulators to ensure each simulator had been depreciated in accordance with the accounting policies. Any deviations were reviewed for reasonableness; and

-

Reviewed the accounting policies against similar entities to see if the policy is similar and reasonable; and

-

Reviewed managements impairment calculation and assessed whether this is reasonable.

To address the risk of fraud or error through the completeness and accuracy of tax liabilities, we:

-

Reviewed the tax and deferred tax provision for reasonableness; and

-

Recalculated the tax and deferred tax provision

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Mr Stephen Mason BSc FCA (Senior Statutory Auditor)

for and on behalf of FKCA Limited

Statutory Auditor

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

24 September 2025

TURNOVER

16,668,621

15,086,691

Cost of sales

1,783,151

2,119,442

GROSS PROFIT

14,885,470

12,967,249

Administrative expenses

13,084,945

10,842,514

OPERATING PROFIT

6

1,800,525

2,124,735

Interest receivable and similar income

484,795

184,274

PROFIT BEFORE TAXATION

2,285,320

2,309,009

Tax on profit

7

506,214

584,257

PROFIT FOR THE FINANCIAL YEAR

1,779,106

1,724,752

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,779,106

1,724,752

FIXED ASSETS

Tangible assets

8

13,028,381

6,267,185

CURRENT ASSETS

Debtors

9

3,235,353

4,368,544

Investments

10

10,049,716

3,255,733

Cash at bank

7,391,932

6,311,015

20,677,001

13,935,292

CREDITORS

Amounts falling due within one year

11

27,122,910

15,399,111

NET CURRENT LIABILITIES

(6,445,909

)

(1,463,819

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,582,472

4,803,366

PROVISIONS FOR LIABILITIES

12

182,644

182,644

NET ASSETS

6,399,828

4,620,722

CAPITAL AND RESERVES

Called up share capital

13

4,218

4,218

Share premium

3,730,389

3,730,389

Retained earnings

2,665,221

886,115

SHAREHOLDERS' FUNDS

6,399,828

4,620,722

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2025 and were signed on its behalf by:

Mr J A Downing - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

4,218

(838,637

)

3,730,389

2,895,970

Changes in equity

Total comprehensive income

-

1,724,752

-

1,724,752

Balance at 31 December 2023

4,218

886,115

3,730,389

4,620,722

Changes in equity

Total comprehensive income

-

1,779,106

-

1,779,106

Balance at 31 December 2024

4,218

2,665,221

3,730,389

6,399,828

1.	STATUTORY INFORMATION

FlightSafety Textron Aviation Training UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Going concern

The directors believe that preparing the financial statements on the going concern basis is appropriate due to the continued financial support of it's parent company, FlightSafety International Inc. The directors have received confirmation that FlightSafety International Inc intends to support the company for at least one year from the date of approval of the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d).

In taking advantage of these exemptions as a subsidiary undertaking the company has provided details of its parent undertaking in Note 14.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

In respect of contracts for on-going services, turnover represents the value of services provided in the year, recognised by reference to the proportion of the training completed.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation.

All capital assets purchased must be authorized by the appropriate personnel in accordance with the Company’s Delegation of Authority and Authorization for expenditure processes.

All assets capitalised prior to 1 January 2023 are depreciated at the following annual rates in order to write off each asset over its estimated useful life.

Flight simulators

-

transfers from group companies are depreciated in equal instalments over the original remaining useful life.

The group policy:

-

flight simulators 90% of costs over 12 years with remaining 10% over following 8 years

-

flight simulator upgrades 90% of costs over 8 years with remaining 10% over following 12 years.

-

As of 2021, the cost of new simulators are depreciated straight-line over 20 years.

Plant and machinery

-

12½% per annum on the straight line basis.

The assets represent the rotable inventory of simulator spare parts which need to be maintained in order to ensure the constant use of a flight simulator owned or held under an operating lease, which is essential to the company's main activity of the provision of aviation training.

All assets capitalised after 1 January 2023 are depreciated at the following annual rates in order to write off each asset over its estimated useful life.

Flight Simulators

-

straight line over 20 years

Visuals

-

straight line over 20 years

Furniture, Fixtures and Fittings

-

straight line over 10 years

GFS and Training Devices

-

straight line over 8 years

Rotable Inventory

-

straight line over 8 years

Telephones

-

straight line over 7 years

Computer, Hardware & Software

-

straight line over 5 years

Copiers

-

straight line over 4 years

Assets are reviewed annually for impairment and their value reduced once the economic benefit of expected revenue falls below the asset's net book value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments

Other investments are measured at fair value through profit or loss, with changes in fair value and interest income recognised in the profit and loss account as they arise. Management's intention is to hold the investment for a period shorter than 12 months and therefore recognise as a current asset.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, the director is 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

In the opinion of the directors the follow judgements and estimates have had the most significant effect on amounts recognised in the financial statements

Depreciation of simulators

Depreciation rates and the useful life of simulators are regularly monitored by management based on the age of the simulator and utilisation of the simulator. Management, on a quarterly basis, perform an assessment of the useful life and revise the policies accordingly.

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

4,177,797

4,353,110

Social security costs

461,065

465,753

Other pension costs

226,791

217,051

4,865,653

5,035,914

The average number of employees during the year was as follows:

2024

2023

Instructors

36

42

Administration & Customer Support

5

2

41

44

2024

2023

£

£

Directors' remuneration

-

-

Directors remuneration paid by other group undertakings are not recharged to the company. The directors are considered to be key management.

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Simulator hire

31,806

-

Depreciation - owned assets

956,728

1,186,493

Foreign exchange differences

532,477

(146,573

)

Auditors remuneration

15,750

15,000

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

468,540

-

Other taxes

37,674

11,306

Total current tax

506,214

11,306

Deferred tax

-

572,951

Tax on profit

506,214

584,257

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

2,285,320

2,309,009

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.500%)

571,330

542,617

Effects of:

Expenses not deductible for tax purposes

(9,415

)

4,945

Capital allowances in excess of depreciation

(118,871

)

(3,706

)

Utilisation of tax losses

-

(540,223

)

Tax deductible capitalised costs

(99,151

)

-

Deferred tax

-

572,951

Taxation not provided for

-

(3,633

)

Other taxes

37,837

11,306

Over provision in respect of prior year

124,484

-

Total tax charge

506,214

584,257

8.	TANGIBLE FIXED ASSETS

Fixtures

Flight

Plant and

and

simulators

machinery

fittings

£

£

£

COST

At 1 January 2024

9,587,382

652,594

37,286

Additions

2,212,571

102,875

16,403

Disposals

(1,698,452

)

(9,713

)

(2,657

)

At 31 December 2024

10,101,501

745,756

51,032

DEPRECIATION

At 1 January 2024

3,769,657

242,637

1,409

Charge for year

866,816

82,121

4,165

Eliminated on disposal

(1,698,452

)

(9,713

)

-

At 31 December 2024

2,938,021

315,045

5,574

NET BOOK VALUE

At 31 December 2024

7,163,480

430,711

45,458

At 31 December 2023

5,817,725

409,957

35,877

Asset

under

Computer

construction

equipment

Totals

£

£

£

COST

At 1 January 2024

-

19,338

10,296,600

Additions

5,388,732

-

7,720,581

Disposals

-

-

(1,710,822

)

At 31 December 2024

5,388,732

19,338

16,306,359

DEPRECIATION

At 1 January 2024

-

15,712

4,029,415

Charge for year

-

3,626

956,728

Eliminated on disposal

-

-

(1,708,165

)

At 31 December 2024

-

19,338

3,277,978

NET BOOK VALUE

At 31 December 2024

5,388,732

-

13,028,381

At 31 December 2023

-

3,626

6,267,185