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

The Company is currently serving as a distributor of software solutions and provider of related services to the mobile telecommunications industry, with product offerings mainly for the Radio Access Network (RAN) and Service Assurance market segments of the telecommunications industry. Until 1 December 2015, Company was a developer of its own software, and its software solutions were sold around the world by using its subsidiaries located in different geographical locations. Current business strategy is based on selling software licenses, providing a variety of consulting services to the clients, and additionally serving the clients with post-sale maintenance and support services.

The Company was acquired by TEOCO Corporation ('TEOCO'), a company incorporated in the State of Delaware in the United States of America, on 29 November 2013. TEOCO is a leading provider of Engineering, Assurance and Analytics solutions to communication service providers (CSPs) worldwide. Since the time of acquisition the Company's activities have been aligned into TEOCO's product and solutions offerings.

During 2024, the Company achieved total turnover of £7.7m (2023: £6.5m)

During 2024, the Company has continued to sell maintenance renewals and product implementations into the existing customer base and has made use of the wider TEOCO Group sales structure and sales model. Due to the sale of the Service Assurance line of business in June 2023 overall income is down - a direct consequence of these discontinued activities.

Financial position

The results of the Company's operations for the year are set out on pages 9,10 and 11. The Company operates in limited risk distributor model which increased its dependency on TEOCO for its day to day activities but also de-risked its business model.

The management of the business and the execution of the company's strategy are subject to a number of risks. Risks are reviewed by the board of directors and managers of the wider TEOCO enterprise, and appropriate processes put in place to monitor and mitigate them. If more than one event were to occur it is possible that the overall effect of such events would compound the possible adverse effects on the company.

The key business risks affecting the company's subsidiaries are set out below:

Growth of sales

The company remains confident that there are opportunities in the markets in which it operates to enable an increase in sales. The company is however exposed to market conditions outside its control that impact the customer base.

CSP Environment

CSPs are under intense pressure as the disconnection between network capacity and service revenue continues to widen. Mobile data traffic is exploding, but network capacity and wireless spectrum are limited. Increasing competitive threats and pressuring CSPs to introduce new services, while optimising the customer experience. Theses factors contribute to a delay in investment decisions and a reluctance to upgrade existing technology.

Business environment

The Company is now fully integrated into the TEOCO group structure. TEOCO's solutions provide CSPs with unique insights into business, customer, and network and device metrics by harnessing big data analytics. TEOCO is a trusted partner to many of the world's leading CSPs who rely on its mission-critical solutions. The TEOCO solutions model and measure network and non-network related data from various perspectives to:

• Quickly identify and resolve service and networks faults;

• Automate business processes;

• Smoothly integrate new technologies from multiple vendors;

• Significantly improve service quality and availability, while reducing operating expenses; and

• Enhance customer experience and exploit monetisation opportunities.

These solutions have been selected by leading CSPs based on scalability and flexibility advantages, have innovative correlation, problem detection and analytics algorithms and have the opportunity to displace ageing, home-grown solutions.

The TEOCO RAN Solutions include an extensive planning and optimisation portfolio. The planning products cover radio, backhaul and capacity planning across a wide range of technologies, and provide dedicated functionality for Wi-Fi and small cells. The optimisation products are multi-technology and multi-vendor, delivering best-in-class gee-location algorithms with automation and Self-Organizing Network (SON) capabilities to enhance operational efficiencies.

Strategy

The key elements of the company's strategy include:

• Maintaining market leadership and innovation through development and exploiting synergies within company products to enhance product offerings.

• Striving to generate strong operating cash flows to support working capital growth requirements.

• Exploiting the growth opportunities arising from a quality and unrivalled international customer base spanning all major geographic territories, working within a matrix organization with executive sponsored lines of business.

The key financial performance indicators during the year were as follows:

Equal opportunities

The company is an equal opportunity employer and does not discriminate in its employment practices against otherwise qualified applicants or employees on the basis of race, colour, creed, religion, ancestry, age, sex, marital status, national origin, disability or handicap, veteran status, or any other status protected by law.

Ethical values

The core ethical values that were adopted when TEOCO was founded have reinforced AIRCOM's guiding principles and are upheld throughout the company today. The company actively encourages ownership of TEOCO stock through participation in a share option scheme available to all employees and recognize that helping our employee-owners achieve a healthy work-life balance and grow meaningful careers will motivate them to continue their career path at TEOCO and foster strong customer relationships, thereby driving our business success.

The core values are:

• Alignment with employers, clients and community - We act in the best interest of our employees, clients, and community, consistently seeking partnership and mutual benefit.

• Integrity, honesty and respect - We value our reputation and conduct our business with integrity, honesty and respect for each individual.

• Acting with courage - We demonstrate a willingness to take risks, while conducting our business in a responsible manner.

• Driving for progress through ownership - We are committed to a relentless pursuit of excellence, never being satisfied with the status quo.

We are proud of our diverse work environment, which includes employee-owners representing different countries and cultures. We also have team members at every stage of their life and career. We consciously strive to create an environment and offer programs to benefit all employee-owners from varying backgrounds.

On behalf of the board

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

The company is developing and selling the following products:

• Business Analytics - Provides a granular view of network and business transactions, enabling CSPs to increase revenues, expand margins and maximise profitability. TEOCO touches all aspects of CSP business operations, and provide insights into profitability, margins, roaming, costs, traffic, usage, subscribers, routes and partners.

• RAN Solutions - Enables CSPs to efficiently and accurately plan, optimise and manage their heterogeneous macro and small cell radio networks and backhaul. TEOCO products and solutions are multi-technology and multi-vendor, delivering best-in-class planning, geo-location algorithms and SON capabilities to improve operational efficiencies and reduce total cost of ownership.

• Device and (Internet of Things (1oT) - Provides device manufactures with lab and field testing services to ensure mobile and 1oT devices meet minimum performance requirements. For network operators, device certification is essential to ensuring subscriber satisfaction. TEOCO operates a state-of-the-art-lab to assist manufactures in the increasingly complex and time-consuming task of device certification.

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

The company has a normal level of response to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling. The company does not enter into any formally designated hedging arrangements. The company's operations are financed by a mixture of equity funding and group company short term borrowings. Working capital requirements are met out of operational cash flows. In addition, various financial instruments such as trade debtors and trade creditors arise directly from the company's operations.

The company's future strategy and developments are shown in the strategic report.

The auditor, Hampden, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

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

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 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; and

• 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.

We have audited the financial statements of Aircom International Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity 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 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 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have 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 strategic report and 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; or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;

• 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.

• we identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of this business sector.

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence. and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance through 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; and

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

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;

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

• reviewing correspondence with HM Revenue and Customs, relevant regulators and company legal advisors.

There are inherent limitations in our audit procedures described above. The more removed those 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 misstatement 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Aircom International Limited is a private company limited by shares incorporated in England and Wales. The registered office is Wesley House, Bull Hill, Leatherhead, Surrey, KT22 7AH.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Aircom International Limited is a wholly owned subsidiary of Teoco UK Limited and the results of Aircom International Limited are included in the consolidated financial statements of the ultimate parent company, Teoco Corporation, which are available from its registered office at 12150 Monument Drive, Suite 700 Fairfax VA 22033, USA.

The financial statements have been prepared on a going concern basis. The directors have considered the company’s current financial position, cash flow forecasts, and future trading prospects for a period of at least twelve months from the date of approval of these financial statements.

In forming this view, the directors have taken into account:

• Current trading performance and the impact of known commitments;

• Forecast cash flows.

• Potential risks and uncertainties affecting the business; and

• The ongoing financial support from its ultimate parent company, which has confirmed its intention to continue to provide such support for the foreseeable future.

On the basis of this review, and having made appropriate enquiries, the directors have a reasonable expectation that the company has adequate resources, together with the committed support from its ultimate parent company, to continue in operational existence for the foreseeable future and, therefore, the going concern basis of preparation is considered appropriate.

Turnover is recognised at the fair value of the consideration received or receivable for sales, integration and implementation of telecommunication software and subsequent provision of maintenance of 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 discounts, settlement discounts and volume rebates.

Turnover from the sale of software licences is recognised in full:

• when persuasive evidence of an agreement exists,

• when delivery and acceptance of the software by the customer has occurred,

• when the fee is fixed and determinable,

• when collectability is considered probable.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The percentage-to-completion is measured by monitoring progress using records of actual time incurred to date on the project compared with the total estimated project requirement.

Turnover from maintenance services is recognised on a straight-line-basis over the term of the maintenance agreement once the licence acceptance conditions have been met. Turnover not recognised in the profit and loss account under this policy is classified as deferred income in the balance sheet.

The company recognises revenue from the following major sources:

• Software support & maintenance

• Managed services

• Leased SW

• Non custom products

• Other services

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Support & maintenance of our software (SW) solutions – usually on an annual basis, recognized ratably over the period.

Managed services – managing SW solution with ongoing customer engagement with our technical team and SW modifications/updates/reporting. Recognised ratably across the scope period.

Leased software - provides the customer with access to the Company's software for a specified contractual term. Revenue is recognised on a straight-line basis over the period in which the access is provided, consistent with the pattern of performance obligation fulfilment.

Non-Custom Products - Software solutions that do not require customer-specific customisation. These are sold as perpetual licences, with revenue recognised at the point in time when control is transferred to the customer, typically upon acceptance.

Other services – Fixed-scope services typically involving the use of the Company's software. Revenue is recognised over time based on the percentage of completion method, reflecting progress toward satisfying the performance obligation.

Tangible fixed assets 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 credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.

Cash and cash equivalents are basic financial assets and 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 has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

Short term benefits

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 stock or fixed 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.

Defined contribution pension plans

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Share based payments

The company participates in a share based payment arrangement established by the ultimate parent company. The company recognises the share based payments expenses on the basis of the relative remuneration cost of the relevant employees. The corresponding credit is recognised as a component of equity.

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

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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 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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Determine whether there are any indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

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

Tangible fixed assets are depreciated over their useful lives taking account of residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycle and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of an asset and projected disposal values.

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

Details of the company's subsidiaries at 31 December 2024 are as follows:

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax asset set out above is expected to reverse within the next few years and relates to the utilisation of tax losses against future expected profits of the same period.

The company terminated the lease associated with the office premises in March 2025 and settled the corresponding early termination payment.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

In accordance with FRS102 paragraph 33.1A, the company is exempt from reporting related party transactions as it is a wholly owned subsidiary of Teoco Corporation (the ultimate parent company).

The immediate parent company of Aircom International Limited is Teoco UK Limited, a company incorporated in the United Kingdom.

In the opinion of the directors, the company's ultimate parent company and controlling party is Teoco Corporation, a company incorporated in the USA.

The largest group in which the company's results are consolidated is headed by Teoco Corporation. Copies of their consolidated financial statements can be obtained from 12150 Monument Drive, Suite 700 Fairfax VA 22033, USA.