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COMPANY REGISTRATION NUMBER: 10175155

Aerial Exposure LTD

Financial Statements

28 February 2025

Aerial Exposure LTD

Financial Statements

Period from 1 September 2023 to 28 February 2025

Contents | Page

Officers and professional advisers | 1

Strategic report | 2

Directors' report | 4

Independent auditor's report to the members | 6

Profit and loss account | 10

Balance sheet | 11

Statement of changes in equity | 12

Statement of cash flows | 13

Notes to the financial statements | 14

Aerial Exposure LTD

Officers and Professional Advisers

The board of directors | Mr B Wilkinson
| Mr I Wilkinson (Resigned 11 April 2025)
| Mrs I Wilkinson (Appointed 11 April 2025)

Registered office | Mercury Road
| Gallowfields Trading Estate
| Richmond
| North Yorkshire
| England
| DL10 4TQ

Auditor | Chipchase Manners
| Chartered accountants & statutory auditors
| 384 Linthorpe Road
| Middlesbrough
| TS5 6HA

Bankers | Barclays Plc
| Leicester
| Leicestershire
| LE87 2BB

Solicitors | Hunton & Garget Solicitors
| Burgage House
| 1 Millgate
| Richmond
| North Yorkshire
| DL10 4JL

Aerial Exposure LTD

Strategic Report

Period from 1 September 2023 to 28 February 2025
Principle activities Aerial Exposure Limited is a company operating within the aerospace engineering sector, specialising in unmanned aerial systems, providing both off the shelf and custom projects to clients globally. Aerial exposure trades under both the 3DXR and Drone Authority names providing equipment, software, consultancy and support to clients. Key markets include hobbyists, construction, design, and specialised development projects and contracts.
Review of the business and future developments Acting on professional advice, the Board of Directors authorised a change to the company's accounting reference date, establishing a long period of account from 1 September 2023 to 28 February 2025. This decision was proactively taken to align financial reporting cycles with the transition to a new external audit firm and to ensure full compliance with the statutory requirement for the company's first-ever financial statement audit. The period of account shows the rapid progression of the company through both its retail operations and the custom project work. Turnover for the 18 month period exceeded £73M (turnover for the previous 12 month period was just over £17m) and net profit after tax increased by £28.6m. Aerial Exposure is furthering its expansion with plans to restructure the company into a group, as well as continuing with its current UK growth. During the period the company assisted a connected a connected company with the construction of three new workshop buildings to consolidate operations of Aerial Exposure Limited into a singular location, with the units expected to be in full operational use by Spring/Summer 2026.
Principle risks and uncertainties Supply chain risks The director has identified risk mitigation measures and implemented these to enhance the company's procurement supply chain specifically for overseas suppliers. The diversification of suppliers will create a more dynamic supply chain that will strengthen procurement supply and timeframes. Key personnel The director has been responsible for all day-to-day operations including financial. This year there has been the appointment of a Finance Director to support the business as it continues to grow and develop. The company has good employee retention rates ensuring consistent operations. Market risk This industry has high barriers to entry in terms of the commitment to working capital and supply chain timing and therefore the risk of losing market share to new competitors is deemed to be low risk. Currently the major competitors are based overseas and do not have the capability to supply the developmental needs on specialist projects consistently. A key contract customer has announced continued growth within the sector that Aerial Exposure operates, enhancing consistent growth opportunity. Financial risk The directors use a combination of foreign currency denominated bank accounts to mitigate the risk of unfavourable foreign currency rate changes. The company maintains robust level of cash reserves which the director believes is sufficient to maintain the working capital requirements of the company. Although the company carries a significant amount of stock, the established internal controls in place ensure that the risk of stock becoming obsolete is reasonable. Implementing the new Finance Director role is essential for deploying a robust series of internal controls aimed at reducing the vulnerability to internal fraud.
This report was approved by the board of directors on 6 February 2026 and signed on behalf of the board by:

Mr B Wilkinson
Director

Registered office:
Mercury Road
Gallowfields Trading Estate
Richmond
North Yorkshire
England
DL10 4TQ

Aerial Exposure LTD

Directors' Report

Period from 1 September 2023 to 28 February 2025
The directors present their report and the financial statements of the company for the period ended 28 February 2025 .
Directors
The directors who served the company during the period were as follows:

Mr B Wilkinson |
Mr I Wilkinson |

Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
Information with regard to future developments is disclosed within the strategic report.
Financial instruments
Information with regard to financial instruments is disclosed within the strategic report. The company did not use any non-basic financial instruments in the period.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial period. 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 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 judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 6 February 2026 and signed on behalf of the board by:

Mr B Wilkinson
Director

Registered office:
Mercury Road
Gallowfields Trading Estate
Richmond
North Yorkshire
England
DL10 4TQ

Aerial Exposure LTD

Independent Auditor's Report to the Members of Aerial Exposure LTD

Period from 1 September 2023 to 28 February 2025
Opinion
We have audited the financial statements of Aerial Exposure LTD (the 'company') for the period ended 28 February 2025 which comprise the profit and loss account, balance sheet, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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 28 February 2025 and of its profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial period 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.
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 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' exemptions in preparing the directors' report and from the requirement to prepare a strategic report. The prior year figures were not audited and a such our audit opinion does not cover the comparative figures.
Responsibilities of directors
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.
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 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. 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: The objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud or error. It is also our objective to obtain sufficient appropriate audit evidence regarding the risks we have assessed and respond as appropriate to them. Even though an audit is planned and performed in accordance with the ISAs (UK), an audit has an unavoidable risk that material misstatements in the financial statements may not be detected. In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, our audit procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the environment in which they operate. - We obtained an understanding of how the company ensures their compliance with the applicable legal and regulatory frameworks through inquiries to the management and those charged with ensuring such compliance within the company. We corroborated our inquiries through a review of transactions within the financial statements that were linked to compliance with laws and regulations. We also reviewed any available board minutes. - We assessed the susceptibility of the company's financial statements to material misstatement with regards to how fraud might occur. Audit procedures performed by the team included: - Identifying and assessing the effectiveness of controls the management of the company has in place to detect and prevent possible fraud; - Understanding how those involved with ensuring compliance considered and addressed the potential override of controls or undue influence over the financial reports; - Challenging any major assumptions and judgements that the management used in any significant accounting estimates; - Reviewing journal entries made with emphasis placed on those with unusual combinations and those around the accounting year end: and - Assessing the extent of compliance with applicable laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

Christopher Gorman FCA FCCA
(Senior Statutory Auditor)

For and on behalf of
Chipchase Manners
Chartered accountants & statutory auditors
384 Linthorpe Road
Middlesbrough
TS5 6HA

6 February 2026

Aerial Exposure LTD

Profit and Loss Account

Period from 1 September 2023 to 28 February 2025

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
Note | £ | £
Turnover | 4 | 73,512,617 | 17,286,915

Cost of sales | ( 31,683,305) | ( 15,027,331)
| ------------- | -------------
Gross profit | 41,829,312 | 2,259,584

Administrative expenses | ( 1,848,700) | ( 529,106)
|  | ------------- | ------------
Operating profit | 5 | 39,980,612 | 1,730,478

Other interest receivable and similar income | 9 | 98,027 | 4,075
Interest payable and similar expenses | 10 | ( 34,322) | 6,455
| ------------- | ------------
Profit before taxation | 40,044,317 | 1,741,008

Tax on profit | 11 | ( 10,054,094) | ( 358,434)
| ------------- | ------------
Profit for the financial period and total comprehensive income | 29,990,223 | 1,382,574
| ------------- | ------------

All the activities of the company are from continuing operations.

Aerial Exposure LTD

Balance Sheet

28 February 2025

| 28 Feb 25 | 31 Aug 23
Note | £ | £

Fixed assets

Tangible assets | 14 | 1,291,039 | 738,796

Current assets

Stocks | 15 | 14,176,830 | 1,224,362
Debtors | 16 | 23,461,670 | 1,785,356
Cash at bank and in hand | 12,880,582 | 2,855,388
| ------------- | ------------
| 50,519,082 | 5,865,106

Creditors: amounts falling due within one year | 17 | ( 22,324,641) | ( 4,593,796)
| ------------- | ------------
Net current assets | 28,194,441 | 1,271,310
| ------------- | ------------
Total assets less current liabilities | 29,485,480 | 2,010,106

Creditors: amounts falling due after more than one year | 18 | ( 8,877) | ( 96,684)

Provisions | 20 | ( 226,878) | –
| ------------- | ------------
Net assets | 29,249,725 | 1,913,422
| ------------- | ------------

Capital and reserves

Called up share capital | 24 | 200 | 120
Profit and loss account | 29,249,525 | 1,913,302
| ------------- | ------------
Shareholders funds | 29,249,725 | 1,913,422
| ------------- | ------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 6 February 2026 , and are signed on behalf of the board by:

Mr B Wilkinson
Director

Company registration number: 10175155

Aerial Exposure LTD

Statement of Changes in Equity

Period from 1 September 2023 to 28 February 2025

| Called up share capital | Profit and loss account | Total
| £ | £ | £
At 1 September 2022 | 120 | 570,728 | 570,848
Profit for the period |  | 1,382,574 | 1,382,574
| ---- | ------------ | ------------
Total comprehensive income for the period | – | 1,382,574 | 1,382,574
Dividends paid and payable | 12 | – | ( 40,000) | ( 40,000)
| ---- | ------------ | ------------
Total investments by and distributions to owners | – | ( 40,000) | ( 40,000)
At 31 August 2023 | 120 | 1,913,302 | 1,913,422
Profit for the period |  | 29,990,223 | 29,990,223
| ---- | ------------- | -------------
Total comprehensive income for the period | – | 29,990,223 | 29,990,223
Issue of shares | 80 | – | 80
Dividends paid and payable | 12 | – | ( 2,654,000) | ( 2,654,000)
| ---- | ------------ | ------------
Total investments by and distributions to owners | 80 | ( 2,654,000) | ( 2,653,920)
| ---- | ------------- | -------------
At 28 February 2025 | 200 | 29,249,525 | 29,249,725
| ---- | ------------- | -------------

Aerial Exposure LTD

Statement of Cash Flows

Period from 1 September 2023 to 28 February 2025

| 28 Feb 25 | 31 Aug 23
| £ | £

Cash flows from operating activities

Profit for the financial period | 29,990,223 | 1,382,574

Adjustments for: |  |
Depreciation of tangible assets | 307,066 | 123,877
Amortisation of intangible assets | 9,741 | –
Other interest receivable and similar income | ( 98,027) | ( 4,075)
Interest payable and similar expenses | 34,322 | ( 6,455)
Tax on profit | 10,054,094 | 358,434
Accrued income | ( 2,437,744) | ( 1,300)

Changes in: |  |
Stocks | ( 12,952,468) | ( 524,362)
Trade and other debtors | ( 19,205,570) | ( 1,708,767)
Trade and other creditors | 8,338,397 | 3,995,916
| ------------- | ------------
Cash generated from operations | 14,040,034 | 3,615,842

Interest paid | ( 34,322) | 6,455
Interest received | 98,027 | 4,075
Tax paid | ( 381,958) | ( 132,659)
| ------------- | ------------
Net cash from operating activities | 13,721,781 | 3,493,713
| ------------- | ------------

Cash flows from investing activities

Purchase of tangible assets | ( 989,149) | ( 568,919)
Proceeds from sale of tangible assets | 129,840 | –
Purchase of intangible assets | ( 9,741) | –
| ------------- | ------------
Net cash used in investing activities | ( 869,050) | ( 568,919)
| ------------- | ------------

Cash flows from financing activities

Proceeds from issue of ordinary shares | 80 | –
Proceeds from borrowings | ( 217,704) | ( 201,931)
Payments of finance lease liabilities | 44,087 | –
Dividends paid | ( 2,654,000) | ( 40,000)
| ------------- | ------------
Net cash used in financing activities | ( 2,827,537) | ( 241,931)
| ------------- | ------------

Net increase in cash and cash equivalents | 10,025,194 | 2,682,863
Cash and cash equivalents at beginning of period | 2,855,388 | 172,525
| ------------- | ------------
Cash and cash equivalents at end of period | 12,880,582 | 2,855,388
| ------------- | ------------

Aerial Exposure LTD

Notes to the Financial Statements

Period from 1 September 2023 to 28 February 2025
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Mercury Road, Gallowfields Trading Estate, Richmond, North Yorkshire, DL10 4TQ, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

| Drone Authority domain | - | Amortised to nil

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

| Freehold property | - | 2% straight line
| Plant and machinery | - | 20% straight line
| Motor vehicles | - | 25% straight line
| Equipment | - | 20% straight line

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
Sale of goods | 73,512,617 | 17,286,915
| ------------- | -------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
United Kingdom | 71,723,784 | 17,286,915
Overseas | 1,788,833 | –
| ------------- | -------------
| 73,512,617 | 17,286,915
| ------------- | -------------

5. Operating profit
Operating profit or loss is stated after charging:

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
Amortisation of intangible assets | 9,741 | –
Depreciation of tangible assets | 307,066 | 123,877
Impairment of trade debtors | 9,519 | –
Foreign exchange differences | 127,499 | 983
| --------- | ---------

6. Auditor's remuneration

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
Fees payable for the audit of the financial statements | 20,000 | –
| -------- | ----

7. Staff costs
The average number of persons employed by the company during the period, including the directors, amounted to:

| 28 Feb 25 | 31 Aug 23
| No. | No.
Production staff | 5 | 2
Administrative staff | 6 | 1
Management staff | 2 | 2
| ---- | ----
| 13 | 5
| ---- | ----

The aggregate payroll costs incurred during the period, relating to the above, were:

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
Wages and salaries | 529,647 | 112,340
Social security costs | 42,692 | 494
Other pension costs | 73,070 | 14,367
| --------- | ---------
| 645,409 | 127,201
| --------- | ---------

8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
Remuneration | 55,107 | 12,994
Company contributions to defined contribution pension plans | 40,640 | 3,370
| -------- | --------
| 95,747 | 16,364
| -------- | --------

9. Other interest receivable and similar income

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
Interest on bank deposits | 98,027 | 4,075
| -------- | -------

10. Interest payable and similar expenses

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
Interest on banks loans and overdrafts | 32,792 | ( 6,455)
Other interest payable and similar charges | 1,530 | –
| -------- | -------
| 34,322 | ( 6,455)
| -------- | -------

11. Tax on profit
Major components of tax expense

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £

Current tax:

UK current tax expense | 9,857,226 | 328,365
Adjustments in respect of prior periods | ( 30,010) | 30,069
| ------------ | ---------
Total current tax | 9,827,216 | 358,434
| ------------ | ---------

Deferred tax:

Origination and reversal of timing differences | 226,878 | –
| ------------- | ---------
Tax on profit | 10,054,094 | 358,434
| ------------- | ---------

Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the period is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 21.52 %).

| Period from |
| 1 Sep 23 to | Year to
| 28 Feb 25 | 31 Aug 23
| £ | £
Profit on ordinary activities before taxation | 40,044,317 | 1,741,008
| ------------- | ------------
Profit on ordinary activities by rate of tax | 10,011,079 | 374,665
Adjustment to tax charge in respect of prior periods | ( 30,010) | 30,069
Effect of expenses not deductible for tax purposes | 8,898 | 26,658
Effect of capital allowances and depreciation | ( 162,751) | ( 72,883)
Rounding on tax charge | – | ( 75)
Deferred tax movement | 226,878 | –
| ------------- | ------------
Tax on profit | 10,054,094 | 358,434
| ------------- | ------------

12. Dividends

| 28 Feb 25 | 31 Aug 23
| £ | £
Dividends paid during the period (excluding those for which a liability existed at the end of the prior period ) | 2,654,000 | 40,000
| ------------ | --------

13. Intangible assets

| Drone Authority domain
| £
Cost |
Additions | 9,741
| -------
At 28 February 2025 | 9,741
| -------
Amortisation |
Charge for the period | 9,741
| -------
At 28 February 2025 | 9,741
| -------
Carrying amount |
At 28 February 2025 | –
| -------
At 31 August 2023 | –
| -------

During the period the company purchased the website and domain name Drone Authority, which it continues to use for a portion of its website-based sales. At the period end, the intangible asset has been amortised to nil.
14. Tangible assets

| Freehold property | Plant and machinery | Motor vehicles | Equipment | Total
| £ | £ | £ | £ | £
Cost |  |  |  |  |
At 1 September 2023 | 427,801 | – | 325,660 | 169,533 | 922,994
Additions | – | 155,499 | 349,674 | 483,976 | 989,149
Disposals | ( 104,300) | – | ( 73,669) | – | ( 177,969)
| --------- | --------- | --------- | --------- | ------------
At 28 February 2025 | 323,501 | 155,499 | 601,665 | 653,509 | 1,734,174
| --------- | --------- | --------- | --------- | ------------
Depreciation |  |  |  |  |
At 1 September 2023 | 11,091 | – | 92,103 | 81,004 | 184,198
Charge for the period | 9,705 | 34,784 | 163,286 | 99,291 | 307,066
Disposals | ( 2,086) | – | ( 46,043) | – | ( 48,129)
| --------- | --------- | --------- | --------- | ------------
At 28 February 2025 | 18,710 | 34,784 | 209,346 | 180,295 | 443,135
| --------- | --------- | --------- | --------- | ------------
Carrying amount |  |  |  |  |
At 28 February 2025 | 304,791 | 120,715 | 392,319 | 473,214 | 1,291,039
| --------- | --------- | --------- | --------- | ------------
At 31 August 2023 | 416,710 | – | 233,557 | 88,529 | 738,796
| --------- | --------- | --------- | --------- | ------------

15. Stocks

| 28 Feb 25 | 31 Aug 23
| £ | £
Stock of parts and finished goods | 14,176,830 | 1,224,362
| ------------- | ------------

16. Debtors

| 28 Feb 25 | 31 Aug 23
| £ | £
Trade debtors | 8,180,528 | 134,173
Amounts owed by connected companies | 12,796,836 | 1,651,183
Prepayments and accrued income | 2,484,306 | –
| ------------- | ------------
| 23,461,670 | 1,785,356
| ------------- | ------------

17. Creditors: amounts falling due within one year

| 28 Feb 25 | 31 Aug 23
| £ | £
Bank loans and overdrafts | – | 85,143
Trade creditors | 10,384,613 | 3,513,005
Accruals and deferred income | 202,867 | 3,200
Corporation tax | 9,804,123 | 358,865
Social security and other taxes | 1,863,868 | 597,538
Obligations under finance leases and hire purchase contracts | 35,210 | –
Director loan accounts | 168 | 36,045
Other creditors | 33,792 | –
| ------------- | ------------
| 22,324,641 | 4,593,796
| ------------- | ------------

18. Creditors: amounts falling due after more than one year

| 28 Feb 25 | 31 Aug 23
| £ | £
Bank loans and overdrafts | – | 96,684
Obligations under finance leases and hire purchase contracts | 8,877 | –
| ------- | --------
| 8,877 | 96,684
| ------- | --------

19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

| 28 Feb 25 | 31 Aug 23
| £ | £
Not later than 1 year | 35,210 | –
Later than 1 year and not later than 5 years | 8,877 | –
| -------- | ----
| 44,087 | –
| -------- | ----

20. Provisions

| Deferred tax (note 21)
| £
At 1 September 2023 | –
Additions | 226,878
| ---------
At 28 February 2025 | 226,878
| ---------

21. Deferred tax
The deferred tax included in the balance sheet is as follows:

| 28 Feb 25 | 31 Aug 23
| £ | £
Included in provisions (note 20) | 226,878 | –
| --------- | ----

The deferred tax account consists of the tax effect of timing differences in respect of:

| 28 Feb 25 | 31 Aug 23
| £ | £
Accelerated capital allowances | 226,878 | –
| --------- | ----

22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 32,430 (2023: £ 10,997 ).
23. Financial instruments
The company did not use any non-basic financial instruments in the period. Therefore the significance of financial instruments on the financial position and performance of the company in the period is not material.
24. Called up share capital
Issued, called up and fully paid

| 28 Feb 25 | 31 Aug 23
| No. | £ | No. | £
Ordinary shares of £ 1 each | 200 | 200 | 120 | 120
| ---- | ---- | ---- | ----

On 31 March 2024, 70 Ordinary Shares of £1 each were issued at par, and 10 Ordinary A shares of £1 each were issued at par.
25. Analysis of changes in net debt

| At 1 Sep 2023 | Cash flows | At 28 Feb 2025
| £ | £ | £
Cash at bank and in hand | 2,855,388 | 10,025,194 | 12,880,582
Debt due within one year | (121,188) | 85,810 | (35,378)
Debt due after one year | (96,684) | 87,807 | (8,877)
| ------------ | ------------- | -------------
| 2,637,516 | 10,198,811 | 12,836,327
| ------------ | ------------- | -------------

26. Directors' advances, credits and guarantees
There were no directors advances, credits or guarantees in the period.
27. Related party transactions
The company is connected through shared ownership with Benira Limited. During the period the company incurred costs totalling £102,000 for rental of properties from this related party company, as well as lending funds for investment. At the period end the company was owed £11,861,331 (2023: £1,651,183) by this related party. The company is connected through shared ownership with The Fleece (North Yorkshire) Limited. During the period the company incurred costs totalling £30,918 for use of the related parties' facilities, as well as lending funds for investment. At the period end the company was owed £935,505 (2023: Nil) by this related party.
28. Controlling party
The ultimate controlling party of the company is Mr B Wilkinson (Director) by virtue of his majority shareholding.