REGISTERED NUMBER: 08009507 (England and Wales)

CAERDAV LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST AUGUST 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

DIRECTORS:

Mr C J Coleman

Mr B Dickinson

Mr L J Reynolds

Mr A J Taylor

REGISTERED OFFICE:

Building 282 Scott Way

Bro Tathan West

St Athan

Vale of Glamorgan

CF62 4AL

REGISTERED NUMBER:

08009507 (England and Wales)

AUDITORS:

Carston ETL

Tudor House

16 Cathedral Road

Cardiff

CF11 9LJ

The directors present their strategic report for the year ended 31st August 2025.

REVIEW OF BUSINESS

The Company has increased its turnover by £7m / £50% against the previous year as capacity was increased from 2 to 3 lines of maintenance.

In 2026, Caerdav have brought its 4th line of maintenance on stream and are exploring opportunities for site development to add additional services to add to the in-house capabilities that can be provided for its customer.

PRINCIPAL RISKS AND UNCERTAINTIES

The Company faces the industry wide challenges in recruiting the skilled individuals to meet its growth plans. Our location allows the business the advantage of avoiding the competitive regions of London, Manchester and Birmingham to name a few where salaries are under constant pressure due to the scarcity of qualified aircraft individuals.

Caerdav continue to invest in our resource in terms of remuneration and benefits package to attract and retain to best individuals. Further, the business continues to invest within its apprenticeship scheme in partnership with local education establishments. In addition, Caerdav is continually investing in the training and development of its current workforce at all levels with the aim of promotion from within to lessen its requirement for external applicants.

FUTURE DEVELOPMENTS AND PERFORMANCE

The company continues to grow and in 2026 will expand to 4 lines of maintenance. The forecast turnover for the forthcoming year is expected to exceed £30m as additional aircraft will be accepted for maintenance.

The company also continues to explore expansion plans on its existing site to develop ancillary services it can offer to customers.

In addition, the Company will also look to expanding its capabilities in terms of aircraft type, exploring both Max and Neo approvals along with the training and tooling requirements necessary to accept these aircraft types.

ON BEHALF OF THE BOARD:

Mr L J Reynolds - Director

10th February 2026

The directors present their report with the financial statements of the company for the year ended 31st August 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31st August 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st September 2024 to the date of this report.

Mr C J Coleman

Mr B Dickinson

Mr L J Reynolds

Mr A J Taylor

Other changes in directors holding office are as follows:

Mr R A J Pitts-Robinson - resigned 31st March 2025

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Carston ETL, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr L J Reynolds - Director

10th February 2026

Opinion

We have audited the financial statements of Caerdav Limited (the 'company') for the year ended 31st August 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st August 2025 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud or error.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the Directors.

Based on our understanding of the Company and industry, discussions with management and directors we identified financial reporting standards and Companies Act 2006 as having a direct effect on the amounts and disclosures in the financial statements.

As part of the engagement team discussion about how and where the Company's financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud.

Our audit procedures included:

- completing a risk-assessment process during our planning for this audit that specifically considered the risk of fraud;

- enquiry of management about the Company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;

- examining supporting documents for all material balances, transactions and disclosures;

- enquiry of management, about litigations and claims and inspection of relevant correspondence;

- analytical procedures to identify any unusual or unexpected relationships;

- specific audit testing on and review of areas that could be subject to management override of controls and potential bias, most notably around the key judgments and estimates, including the carrying value of accruals, provisions, investments, recoverability of trade debtors and revenue recognition;

- considering management override of controls outside of the normal operating cycles including testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements including evaluating the business rationale of significant transactions, outside the normal

course of business;

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organised schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Davies (Senior Statutory Auditor)

for and on behalf of Carston ETL

Tudor House

16 Cathedral Road

Cardiff

CF11 9LJ

10th February 2026

TURNOVER

3

22,808,515

15,266,372

Cost of sales

16,719,938

9,729,436

GROSS PROFIT

6,088,577

5,536,936

Distribution costs

52,276

63,045

Administrative expenses

6,874,951

5,678,526

6,927,227

5,741,571

OPERATING LOSS

5

(838,650

)

(204,635

)

Exceptional items

6

571,708

-

(1,410,358

)

(204,635

)

Interest payable and similar expenses

7

716,668

553,117

LOSS BEFORE TAXATION

(2,127,026

)

(757,752

)

Tax on loss

8

-

-

LOSS FOR THE FINANCIAL YEAR

(2,127,026

)

(757,752

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,127,026

)

(757,752

)

FIXED ASSETS

Tangible assets

9

822,270

742,905

CURRENT ASSETS

Stocks

10

746,045

358,481

Debtors

11

353,599

1,794,667

Cash at bank

883,483

267,981

1,983,127

2,421,129

CREDITORS

Amounts falling due within one year

12

3,121,493

6,098,945

NET CURRENT LIABILITIES

(1,138,366

)

(3,677,816

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(316,096

)

(2,934,911

)

CREDITORS

Amounts falling due after more than one year

13

26,880,413

22,134,572

NET LIABILITIES

(27,196,509

)

(25,069,483

)

CAPITAL AND RESERVES

Called up share capital

17

6,667

6,667

Retained earnings

18

(27,203,176

)

(25,076,150

)

SHAREHOLDERS' FUNDS

(27,196,509

)

(25,069,483

)

The financial statements were approved by the Board of Directors and authorised for issue on 10th February 2026 and were signed on its behalf by:

Mr L J Reynolds - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st September 2023

6,667

(24,318,398

)

(24,311,731

)

Changes in equity

Total comprehensive income

-

(757,752

)

(757,752

)

Balance at 31st August 2024

6,667

(25,076,150

)

(25,069,483

)

Changes in equity

Total comprehensive income

-

(2,127,026

)

(2,127,026

)

Balance at 31st August 2025

6,667

(27,203,176

)

(27,196,509

)

Cash flows from operating activities

Cash generated from operations

1

(2,542,896

)

1,372,046

Interest paid

(705,319

)

(552,831

)

Interest element of hire purchase payments paid

(3,480

)

(286

)

Net cash from operating activities

(3,251,695

)

818,929

Cash flows from investing activities

Purchase of tangible fixed assets

(209,325

)

(352,318

)

Net cash from investing activities

(209,325

)

(352,318

)

Cash flows from financing activities

New loans in year

6,000,000

-

Loan repayments in year

(2,847,625

)

(879,161

)

Capital repayments in year

(75,853

)

(7,322

)

Amount introduced by directors

1,000,000

500,000

Net cash from financing activities

4,076,522

(386,483

)

Increase in cash and cash equivalents

615,502

80,128

Cash and cash equivalents at beginning of year

2

267,981

187,853

Cash and cash equivalents at end of year

2

883,483

267,981

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Loss before taxation

(2,127,026

)

(757,752

)

Depreciation charges

292,726

180,040

Finance costs

716,668

553,117

(1,117,632

)

(24,595

)

(Increase)/decrease in stocks

(387,564

)

91,519

Decrease/(increase) in trade and other debtors

1,441,068

(1,334,241

)

(Decrease)/increase in trade and other creditors

(2,478,768

)

2,639,363

Cash generated from operations

(2,542,896

)

1,372,046

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st August 2025

31/8/25

1/9/24

£

£

Cash and cash equivalents

883,483

267,981

Year ended 31st August 2024

31/8/24

1/9/23

£

£

Cash and cash equivalents

267,981

187,853

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1/9/24

Cash flow

changes

At 31/8/25

£

£

£

£

Net cash

Cash at bank

267,981

615,502

883,483

267,981

615,502

883,483

Debt

Finance leases

(80,542

)

67,984

-

(175,324

)

Debts falling due

within 1 year

(976,047

)

779,875

-

(196,172

)

Debts falling due

after 1 year

(1,871,578

)

(3,932,250

)

-

(5,803,828

)

(2,928,167

)

(3,084,391

)

-

(6,175,324

)

Total

(2,660,186

)

(2,468,889

)

-

(5,291,841

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going Concern

The financial statements have been prepared on a going concern basis. As part of its regular assessment of the prospects for the company, the directors have reviewed future trading, projects and cash flow. These show the company to be improving and forecasts are showing profits for the next two financial periods. However as a result of the current financial position the company continues to rely on support of the

ultimate owner.

The company recorded a net loss of £2,127,026 (after exceptional costs of £571,708) for the year ended 31 July 2025 (2024: loss of £757,752) and as at the balance sheet date, the company had excess net liabilities of £27,196,509 (2024: £25,069,483).

The directors have prepared cash flow forecasts for a period of 12 months from the date of approval of these financial statements. The forecasts indicate the company will have sufficient funds to meet its liabilities as they fall due for a period of at least 12 months from the approval of the accounts.

The directors have confirmed that they have received a Letter of support from it's primary investor to support the Company for at least 12 months.

As with any company placing reliance on a letter of support, the directors acknowledge that there can be no certainty that this support will continue, although at the date of approval of these financial statements they have no reason to believe that it will not do so.

Significant judgements and estimates

Preparation of the financial statements require management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Depreciation

The company exercises judgement to determine useful lives and residual values of tangible assets. The assets are depreciated down to their residual values over their useful economic lives.

Turnover

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

Tangible fixed assets

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Improvements to property

5 years

Plant and machinery

3-5 years

Motor vehicles

3 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Care and maintenance income

15,262,640

11,114,360

Fuel income

226,893

146,226

Material income

7,046,928

3,479,303

Other services

41,353

176,158

Other income

230,701

350,325

22,808,515

15,266,372

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

10,808,442

7,411,622

Social security costs

74,326

62,297

Other pension costs

210,368

111,430

11,093,136

7,585,349

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

2025

2024

Directors

3

3

Direct

155

98

Indirect

69

68

227

169

2025

2024

£

£

Directors' remuneration

619,120

483,693

Directors' pension contributions to money purchase schemes

58,163

21,484

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

275,440

205,440

Pension contributions to money purchase schemes

11,522

2,201

5.	OPERATING LOSS

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

2025

2024

£

£

Hire of plant and machinery

52,276

63,045

Other operating leases

396,000

396,000

Depreciation - owned assets

292,726

180,040

Foreign exchange differences

(49,002

)

(10,759

)

Auditors' remuneration - audit

15,000

-

Auditors' remuneration - non audit services

-

5,000

6.	EXCEPTIONAL ITEMS

2025

2024

£

£

Exceptional items

(571,708

)

-

The exceptional item relates to a debtor balance for costs incurred on behalf of Caerdav Flight Training Limited. These costs were no longer expected to be recovered, and written off in full during the year.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

609,319

456,831

Loan

96,000

96,000

Hire purchase

11,349

286

716,668

553,117

8.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31st August 2025 nor for the year ended 31st August 2024.

9.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

COST

At 1st September 2024

295,133

2,691,828

33,390

3,020,351

Additions

39,114

332,977

-

372,091

At 31st August 2025

334,247

3,024,805

33,390

3,392,442

DEPRECIATION

At 1st September 2024

112,743

2,142,414

22,289

2,277,446

Charge for year

58,245

230,185

4,296

292,726

At 31st August 2025

170,988

2,372,599

26,585

2,570,172

NET BOOK VALUE

At 31st August 2025

163,259

652,206

6,805

822,270

At 31st August 2024

182,390

549,414

11,101

742,905

10.

STOCKS

2025

2024

£

£

Raw materials

746,045

358,481