The Chairman presents his comments on the progress made by the Company during the year ended 31 January 2025.

Summary

The Company delivered a resilient performance in a challenging environment. While global passenger volumes returned to pre-pandemic levels in 2024, growth in some of the Company’s core markets remained subdued. Competitive pressures and lingering inflationary effects increased operational costs. Despite these headwinds, the Company maintained margin discipline and posted a solid set of results.

Markets

The Company remained focused on supplying flight crew, aircraft engineers, and aviation professionals to airlines and aviation businesses worldwide. Globally, the airline sector performed well, with inflation easing and consumer confidence improving. However, growth in the European market—central to the Company’s operations—lagged behind Asia-Pacific, the Middle East, and Africa. The Company faced intense competition from international agencies and clients shifting to in-house recruitment, requiring it to compete vigorously for every opportunity.

Finance

Turnover for the year was £7.17m, a 16% decrease from the prior period, resulting in a 14% drop in Net Fee Income (NFI). Notably, NFI as a proportion of turnover rose from 27% to 28%, reflecting the Company’s ability to preserve margins under pressure. Administrative expenses increased by 5%, driven primarily by inflation. Operating profit declined, but the Company still achieved a healthy pre-tax profit and strengthened its balance sheet by 19% year-on-year.

People & Management

During the year, the Company promoted a second Associate Director to lead the Delivery function, a key component of its high-volume capability. Overall headcount remained stable, and there were no changes to the Executive Board. The Company continued to refine its operating model, with a strong emphasis on performance measurement and individual contribution, ensuring both efficiency and recognition across teams.

The Year Ahead

The Company enters the new financial year with a robust opportunity pipeline and a positive outlook for NFI recovery. It remains vigilant to global developments, including political transitions and ongoing conflicts, which may present economic challenges requiring strategic agility. Despite competitive pressures, the Board is confident that the Company’s strong brand and reputation position it well for further growth. Significant RFP opportunities with major international airlines are within reach and targeted for conversion in the coming year.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Aeroprofessional Limited for the year ended 31 January 2025 set out on pages 3 to 12 from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the board of directors of Aeroprofessional Limited, as a body, in accordance with the terms of our engagement letter dated 19 September 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Aeroprofessional Limited and state those matters that we have agreed to state to the board of directors of Aeroprofessional Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Aeroprofessional Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Aeroprofessional Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Aeroprofessional Limited. You consider that Aeroprofessional Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Aeroprofessional Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 January 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Aeroprofessional Limited is a private company limited by shares incorporated in England and Wales. The registered office is Athenia House, 10-14 Andover Road, Winchester, Hampshire, SO23 7BS.

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.

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

Tangible fixed assets are recorded at cost, 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 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.

At each reporting 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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.

Financial instruments are recognised in the company's statement of financial position 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 , cash and bank balances, and amounts owed by group undertakings and related parties, 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.

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 and bank loans, 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.

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 taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred taxation balance has not been discounted.

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.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

The long-term loans are secured by fixed and floating charges over all assets.

Only A, B and C share classes are eligible to receive dividends. Ordinary A and B shares confer full voting rights while C and D shares hold no voting rights. All shares have varying rights to distribution of capital.

During the year, the company bought back 6 D shares which were then cancelled on 02 August 2024.

There is a multilateral bank guarantee in place with the parent company, Six Six (Holdings) Limited, relating to a mortgage liability of the parent company. The liability of the parent company at year end was £19,017 (2024: £52,217).

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

The directors are considered to be the only key management personnel. The remuneration of the directors is given in note 3.

During the year dividends totalling £26,769 (2024: £43,230) were paid to the directors.

During the year the company entered into the following transactions with related parties:

Aeroprofessional Recruitment Limited

Aeroprofessional Recruitment Limited is a fellow subsidiary of Six Six (Holdings) Limited incorporated in Ireland during 2019.

In prior years the company loaned Aeroprofessional Recruitment Limited £760,778. No repayments have taken place in the current year (2024: £263,242 repaid). As at the year end, £497,536 (2024: £497,536 ) remains outstanding.

GATSCO Limited

GATSCO Limited is a related party by virtue of the fact that it is under the common control of the directors and shareholders of Aeroprofessional Limited. The company started trading on 1 January 2022.

In prior years the company loaned GATSCO Limited £85,000. No repayments have taken place in the current year (2024: £35,000 repaid). As at the year end, £50,000 (2024: £50,000) remains outstanding.

Reef Global

Reef Global is a 100% owned subsidiary of Aeroprofessional Limited based in Denmark.

During the year, the company loaned Reef Global a further £2,501 (2024: £5,192). As at the year end £8,525 (2024: £6,024) remains outstanding.

Flight Level 100 Limited

Flight Level 100 Limited is a related party by virtue of the fact that it is under the common control of the directors and shareholders of Aeroprofessional Limited. The company was incorporated in November 2021.

In prior years the company loaned Flight Level 100 Limited £500. As at the year end £500 (2024: £500) remains outstanding.

The controlling party is the parent company, Six Six (Holdings) Limited, by virtue of its 95% voting rights in Aeroprofessional Limited. There is no ultimate controlling party.