Flydocs Systems (Topco) Limited

Contents

Flydocs Systems (Topco) Limited

Company Information

Flydocs Systems (Topco) Limited

Strategic Report

Year Ended 31 December 2024

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

Principal activity

The principal activity of the company is that of a holding company.

The principal activity of the Group is the supply of Software as a Service (SaaS) and software services pertaining to digitisation, storage, and management of aviation records, for airlines, aircraft and engine leasing companies, Maintenance, Repair and Overhaul (MRO) organisations and Original Equipment Manufacturers (OEM). The business continues to offer technical services to clients in support of aviation records management and in particular Aircraft Transition Management (ATM).

Review of the business

These financial statements present the financial performance for the Group for the year ended 31 December 2024.

Performance for the period, saw Group turnover improve around 6% to £12m, compared to £11.4m (2023) with underlying gross margins increased to 76% versus 69.5% (2023). The Group continued to expand its client base through the period and exited the year investing in further product innovation with a particular focus on user interface and experience to cement its strong position in the market, investing for future product launches through 2025 and 2026 by increasing product development focus and resource allocation. Work has been focussed on the development of an updated version of DRM which benefits from a more refined user interface and user experience as well as being built on more future proof technology.

The Group delivered a profit after tax for the period of £0.8m compared to £0.5m for 2023 due to stronger gross margins. The Group has invested in its staff to recruit and retain talent to drive The Group forward resulting in an additional £0.4m spent on staff costs in 2024.

The Directors are satisfied with the results for the period, providing a strong foundation to increase growth in 2025 and beyond. A dividend of £1.3m was issued to Lufthansa Technik (LHT) during the year. The Directors are confident in the long-term strategic vision and direction of the Group.

The KPIs of the business are turnover, gross margin, and EBIT. Turnover has increased by £0.6m, up by 6% from 2023, due to an increase annual recurring revenue from SaaS. EBIT has also increased by £0.5m due to the higher in year revenue and also strong control of the operational expenses of the business. The underlying gross margin increased to 76% versus 69.5% in 2023, benefiting from the higher margins achieved with SaaS compared to Engineering Services.

Principal risks and uncertainties

The Group trades in Sterling, US Dollars, Australian Dollars, Euro and Indian Rupee. As such the Group is at risk from exchange rate fluctuations. Currently the Group holds bank accounts in each currency and endeavours to make payments in those currencies. Where required, the Group trades currency at spot rates using the purchasing power of the shareholder’s (LHT) treasury function, converting foreign currency to its functional currency Sterling.

Flydocs Systems (Topco) Limited

Strategic Report

Year Ended 31 December 2024

In order to minimise cash flow / liquidity risk, cash flow forecasts are prepared and reviewed by the Board of Directors and the Group reviews its cash flow needs and financing arrangements regularly. The Group’s policy has been to ensure continuity of funding through the generation of cashflow from operating activities, which has been enhanced by introducing prepayment terms for one-off projects, aligned to prompt invoice raising and follow-up to terms. The financial strength of the LHT / Lufthansa Group (DLH AG), provides opportunities to access further working capital and the business retains access to commercial loan funding through its banking partners if required.

Competitor risk is managed by providing high quality software, technical services aligned to value added mid-term and end of lease services on a cloud based “Software as a Service” (SaaS) platform, differentiating The Group from competitors. Its continued investment in the software platform and new products for launch in 2025-26, is aimed at ensuring significant differentiation exists to provide a market advantage in the aviation records management space, whilst continuing to develop innovative and complementary products. The Group continues to invest in technology and infrastructure to enhance its service offering, alongside utilising innovative technology to improve the user experience and automate system functionality.

The Group’s principal financial assets are trade and other debtors. The Group continually monitors its credit exposure with all customers and has strong credit control procedures. The Directors are satisfied that any bad debt risks are low and have been partially protected by the continued use of prepayment terms for new projects.

Environmental and macro-economic factors continue to be monitored by the business. The ongoing disruption to the global economy and supply chains caused by the wars in Ukraine and in Israel, continue to have an effect across the aviation industry, impacting travel routes and flight scheduling adding to operator cost constraints. In addition, the upheaval of global import tariffs have significantly affected the aviation industry increasing the costs of imported aircraft, engines and parts. Airlines may also face procurement delays as a result of the tariffs. Flydocs is not directly impacted by the tariffs currently but the impact on our customers and how that affects The Group is being monitored.

The Group has continued to leverage our long term contracted client base and continues to see a strong pipeline for software and technical services growth, and provide solutions to clients for their short-term operational and cashflow issues. The Group has successfully retained clients and added a number of new relationships through 2024, being successful in a tough market. Client feedback is utilised to focus business priorities, drive enhancements to existing solutions, whilst creating the development environment for new software solutions for launch in 2025-26.

The Directors and Leadership Team, continue to take prudent and decisive action to strengthen the business in the long-term interests of employees, clients and the wider Group. Revenue has grown year on year, particularly in software. This gave the directors and leadership team the confidence to continue to invest in software solutions, increasing focus, capacity and investment in new product development, as well as leveraging new technology to supplement business processes.

The Group completed the year with strong cash reserves, and will continue to focus on increasing investment in people and technology, to continue to support, fund and implement its digitisation strategy, investing in software and software support services worldwide. The Group continues to focus on expanding its worldwide client portfolio and remains well placed to respond quickly to changing market and customer requirements, and the Directors remain confident in delivering profitable growth.

The Directors are satisfied with the results for the period and The Group’s financial position as at the balance sheet date and remain convinced of the long-term strategic vision and direction of The Group.
 

Flydocs Systems (Topco) Limited

Strategic Report

Year Ended 31 December 2024

In order to minimise cash flow / liquidity risk, cash flow forecasts are prepared and reviewed by the Board of Directors and the Group reviews its cash flow needs and financing arrangements regularly. The Group’s policy has been to ensure continuity of funding through the generation of cashflow from operating activities, which has been enhanced by introducing prepayment terms for one-off projects, aligned to prompt invoice raising and follow-up to terms. The financial strength of the LHT / Lufthansa Group (DLH AG), provides opportunities to access further working capital and the business retains access to commercial loan funding through its banking partners if required.

Competitor risk is managed by providing high quality software, technical services aligned to value added mid-term and end of lease services on a cloud based “Software as a Service” (SaaS) platform, differentiating The Group from competitors. Its continued investment in the software platform and new products for launch in 2025-26, is aimed at ensuring significant differentiation exists to provide a market advantage in the aviation records management space, whilst continuing to develop innovative and complementary products. The Group continues to invest in technology and infrastructure to enhance its service offering, alongside utilising innovative technology to improve the user experience and automate system functionality.

The Group’s principal financial assets are trade and other debtors. The Group continually monitors its credit exposure with all customers and has strong credit control procedures. The Directors are satisfied that any bad debt risks are low and have been partially protected by the continued use of prepayment terms for new projects.

Environmental and macro-economic factors continue to be monitored by the business. The ongoing disruption to the global economy and supply chains caused by the wars in Ukraine and in Israel, continue to have an effect across the aviation industry, impacting travel routes and flight scheduling adding to operator cost constraints. In addition, the upheaval of global import tariffs have significantly affected the aviation industry increasing the costs of imported aircraft, engines and parts. Airlines may also face procurement delays as a result of the tariffs. Flydocs is not directly impacted by the tariffs currently but the impact on our customers and how that affects The Group is being monitored.

The Group has continued to leverage our long term contracted client base and continues to see a strong pipeline for software and technical services growth, and provide solutions to clients for their short-term operational and cashflow issues. The Group has successfully retained clients and added a number of new relationships through 2024, being successful in a tough market. Client feedback is utilised to focus business priorities, drive enhancements to existing solutions, whilst creating the development environment for new software solutions for launch in 2025-26.

The Directors and Leadership Team, continue to take prudent and decisive action to strengthen the business in the long-term interests of employees, clients and the wider Group. Revenue has grown year on year, particularly in software. This gave the directors and leadership team the confidence to continue to invest in software solutions, increasing focus, capacity and investment in new product development, as well as leveraging new technology to supplement business processes.

The Group completed the year with strong cash reserves, and will continue to focus on increasing investment in people and technology, to continue to support, fund and implement its digitisation strategy, investing in software and software support services worldwide. The Group continues to focus on expanding its worldwide client portfolio and remains well placed to respond quickly to changing market and customer requirements, and the Directors remain confident in delivering profitable growth.

The Directors are satisfied with the results for the period and The Group’s financial position as at the balance sheet date and remain convinced of the long-term strategic vision and direction of The Group.
 

Approved by the Board on 30 September 2025 and signed on its behalf by:

Flydocs Systems (Topco) Limited

Directors' Report

Year Ended 31 December 2024

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

Directors of the group

The directors who held office during the year were as follows:

Mr P Mende

Mr D Kubera

Mr C Bauer

Mr N Koerner

Mr T Spriesterbach

Financial instruments

Objectives and policies

The group uses a range of basic financial instruments to fund its working capital position including cash, short-term trade receivables and payables, and intercompany loan accounts.

Finance is provided by short-term and long term intra-group loans.

The group did not participate in any form of foreign currency or other hedging transactions during the current financial year.

Price risk, credit risk, liquidity risk and cash flow risk

There are no material exposures of the group relating to price risk, credit risk, liquidity risk and cash flow risk which are material for the assessment of the assets, liabilities, financial position and profit of the company or group as a whole.

Flydocs Systems (Topco) Limited

Directors' Report

Year Ended 31 December 2024

Going concern

The Group is exposed to various risks outlined in the strategic report, “principal risks” section, and whilst crystallisation of such risks, where not fully mitigated, would have a detrimental impact on the Group’s financial results, none are deemed sufficiently material to prevent the Group (and therefore the Company) continuing as a going concern. The Directors believe the Group has adequate resources to continue operationally for the foreseeable future, being no less than 12 months from the date of approval of these financial statements, and continues to adopt the going-concern basis for preparation of its financial statements.

The Directors expect the Group to continue to promote its current software and technical services and believe that the Group (and therefore the Company) is very well placed to benefit from long-term
growth. The Group continues to strengthen its people resource, recruiting key commercial and product hires to maintain momentum into FY25, whilst also adding significant technical capability (and capacity) in both its Indian and UK operations.

The Directors recognise the challenges currently being experienced across the aviation sector, with the War in Ukraine, rise in cyber crime and macro-economic pressures increasing operational costs for many of our customers and influencing the timing of their decisions on digitisation.

The situation in aviation remains fluid, and the Directors recognise the need to act fast and be agile, to respond quickly to changes in demand. This uncertainty across our major markets means the Directors believe in a balanced approach, being both prudent whilst recognising the need to continue to invest in new products and capture the right talent and skills to support the medium-term strategy.

The Directors and Leadership team continue to monitor the strength of the business, and aligned to the current product portfolio, the business is ready to support outsourced digitisation in key markets, leaving the Directors confident that the Group is well positioned to manage overall risks successfully.
 

Flydocs Systems (Topco) Limited

Directors' Report

Year Ended 31 December 2024

Future developments

The group has taken advantage of Section 414C (11) of the Companies Act 2006 and included details of future developments in the Strategic Report.

Research and development

The group undertakes the development of its own software which is licenced for use to clients. The cost of this development is expensed to the profit and loss account in the year it is incurred.

Employee involvement

We recognise that organisations are most successful where management and staff share a common purpose, work in partnership and communicate openly. The group operates under the framework of Objectives and Key Results (OKRs) with regular (at least monthly) communication of business results and consultation and meetings are held where all colleagues have the opportunity to engage with leadership. There is a strong connection to colleagues where leadership provide information about the group and all relevant policies.

Employment of disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. Where members of staff become disabled, every effort is made to ensure their employment within the Group continues and appropriate training is arranged. It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Disclosure of information to the auditor

Approved by the Board on 30 September 2025 and signed on its behalf by:

Flydocs Systems (Topco) Limited

Statement of Directors' Responsibilities

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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Flydocs Systems (Topco) Limited

Independent Auditor's Report to the Members of Flydocs Systems (Topco) Limited

Opinion

We have audited the financial statements of Flydocs Systems (Topco) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, the Consolidated Statement of Cash Flows 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:

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 responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Councils 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 Group’s or the parent 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 Auditors' 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.

Flydocs Systems (Topco) Limited

Independent Auditor's Report to the Members of Flydocs Systems (Topco) Limited

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report and the Directors' Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (set out on page 8), 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Flydocs Systems (Topco) Limited

Independent Auditor's Report to the Members of Flydocs Systems (Topco) Limited

Auditor’s 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 an Auditors' 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.

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

Based on our understanding of the Group, parent Company and industry, key laws and regulations that we identified included:

We identified that the principal risk of fraud and non compliance with laws and regulations related to:

We focussed on those areas that could give rise to a material misstatement in the Group’s and parent Company's financial statements.

Our procedures included, but were not limited to:

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Flydocs Systems (Topco) Limited

Independent Auditor's Report to the Members of Flydocs Systems (Topco) Limited

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Richard Haydon (Senior Statutory Auditor)
PKF Smith Cooper Audit Limited, Statutory Auditor

Cornerblock
2 Cornwall Street
Birmingham
B3 2DX

30 September 2025

Flydocs Systems (Topco) Limited

Consolidated Profit and Loss Account

Year Ended 31 December 2024

Flydocs Systems (Topco) Limited

Consolidated Statement of Comprehensive Income

Year Ended 31 December 2024

Flydocs Systems (Topco) Limited

Consolidated Balance Sheet

31 December 2024

Approved and authorised by the Board on 30 September 2025 and signed on its behalf by:
 

Company Registration Number: 09304098

Flydocs Systems (Topco) Limited

Balance Sheet

31 December 2024

The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £1,742,570 (2023 - loss of £1,585).

Approved and authorised by the Board on 30 September 2025 and signed on its behalf by:
 

Company Registration Number: 09304098