ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

12 month ended 30 September
2025

6 month ended 30 September
2024

Registered number: 04185647

CARLISLE LAKE DISTRICT AIRPORT LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025


CARLISLE LAKE DISTRICT AIRPORT LIMITED

COMPANY INFORMATION

Directors	D A Lindop
	R A Jenkinson (appointed 31 March 2025)


Registered number	04185647


Registered office	The Terminal Aviation Way
	Carlisle Lake District Airport
	Carlisle
	Cumbria
	CA6 4NZ


Independent auditors	WR Partners
	Chartered Accountants & Statutory Auditors
	Belmont House
	Shrewsbury Business Park
	Shrewsbury
	Shropshire
	SY2 6LG


Bankers	Barclays Bank
	Leicester
	LE87 2BB


CARLISLE LAKE DISTRICT AIRPORT LIMITED

CONTENTS

	Page
Directors' report	1 - 2
Independent auditors' report	3 - 6
Statement of comprehensive income	7
Balance sheet	8 - 9
Statement of changes in equity	10
Notes to the financial statements	11 - 29


CARLISLE LAKE DISTRICT AIRPORT LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2025

The directors present their report and the financial statements for the year ended 30 September 2025.

Directors' responsibilities statement

The directors are responsible for preparing the 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 year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 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 to 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.

Directors

The directors who served during the year were:

D A Lindop

R A Jenkinson (appointed 31 March 2025)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 1


CARLISLE LAKE DISTRICT AIRPORT LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

D A Lindop

Director

Date: 15 May 2026

Page 2


CARLISLE LAKE DISTRICT AIRPORT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARLISLE LAKE DISTRICT AIRPORT LIMITED

Opinion

We have audited the financial statements of Carlisle Lake District Airport Limited (the 'Company') for the year ended 30 September 12 month year ended 30 September 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity 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 Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (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 30 September 12 month year ended 30 September 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council'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.

Page 3


CARLISLE LAKE DISTRICT AIRPORT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARLISLE LAKE DISTRICT AIRPORT LIMITED (CONTINUED)

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.

We have nothing to report in this regard.

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' report has 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.

Page 4


CARLISLE LAKE DISTRICT AIRPORT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARLISLE LAKE DISTRICT AIRPORT LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 1, 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.

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 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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).

We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.

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 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 Auditors' report.

Page 5


CARLISLE LAKE DISTRICT AIRPORT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARLISLE LAKE DISTRICT AIRPORT LIMITED (CONTINUED)

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 Auditors' 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.

Alex Riley FCCA (Senior statutory auditor)

for and on behalf of

WR Partners

Chartered Accountants

Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG

15 May 2026

Page 6


CARLISLE LAKE DISTRICT AIRPORT LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2025

	30 September	30 September
	12 month year ended 30 September 2025	6 month period ended 30 September 2024
Note	£	£


Turnover	4	2,245,593	1,277,540
Cost of sales		(928,179)	(624,740)
Gross profit		1,317,414	652,800
Administrative expenses		(1,556,598)	(4,392,431)
Exceptional administrative expenses		3,151,580	1,532,009
Other operating income		-	3,066,422
Operating profit	5	2,912,396	858,800
Interest payable and similar expenses	9	(5,337)	(109,081)
Profit before tax		2,907,059	749,719
Tax on profit	10	-	574,675
Profit for the financial year		2,907,059	1,324,394

There were no recognised gains and losses for 12 month year ended 30 September 2025 or 6 month period ended 30 September 2024 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 12 month year ended 30 September 2025 (6 month period ended 30 September 2024:£NIL).

The notes on pages 11 to 29 form part of these financial statements.

Page 7


CARLISLE LAKE DISTRICT AIRPORT LIMITED REGISTERED NUMBER:04185647

BALANCE SHEET

AS AT 30 SEPTEMBER 2025

		12 month year ended 30 September 2025		6 month period ended 30 September 2024
Note		£		£


Fixed assets
Tangible assets	12		8,400,296		9,678,226
			8,400,296		9,678,226
Current assets
Stocks	13	15,483		26,737
Debtors: amounts falling due within one year	14	286,167		528,048
Cash at bank and in hand	15	99,688		5,769
		401,338		560,554
Creditors: amounts falling due within one year	16	(1,237,026)		(1,416,677)
Net current liabilities			(835,688)		(856,123)
Total assets less current liabilities			7,564,608		8,822,103

Creditors: amounts falling due after more than one year	17		(7,088)		(4,171,642)
			7,557,520		4,650,461


Net assets			7,557,520		4,650,461

Page 8


CARLISLE LAKE DISTRICT AIRPORT LIMITED REGISTERED NUMBER:04185647

BALANCE SHEET (CONTINUED)

AS AT 30 SEPTEMBER 2025

		12 month year ended 30 September 2025		6 month period ended 30 September 2024
Note		£		£

Capital and reserves
Called up share capital	20	1,000,000	1,000,000
Profit and loss account	21	6,557,520	3,650,461
		7,557,520	4,650,461

The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

D A Lindop

Director

Date: 15 May 2026

The notes on pages 11 to 29 form part of these financial statements.

Page 9


CARLISLE LAKE DISTRICT AIRPORT LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 March 2024	1,000,000	2,326,067	3,326,067
Comprehensive income for the period
Profit for the period	-	1,324,394	1,324,394
Total comprehensive income for the period	-	1,324,394	1,324,394

At 1 October 2024	1,000,000	3,650,461	4,650,461
Comprehensive income for the year
Profit for the year	-	2,907,059	2,907,059
Total comprehensive income for the year	-	2,907,059	2,907,059
At 30 September 12 month year ended 30 September 2025	1,000,000	6,557,520	7,557,520

The notes on pages 11 to 29 form part of these financial statements.

Page 10


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

1.	General information

Carlisle Lake District Airport Limited is a private company, limited by shares, incorporated and domiciled in England and Wales with its registered office and principal place of business at The Terminal Aviation Way, Carlisle Lake District Airport, Carlisle, Cumbria, England, CA6 4NZ.

The current year of financial statements relate to the 12 month period ended 30 September 2025. The comparative figures relate to a 6 month period ended 30 September 2024, therefore the figures are not entirely comparable.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:

∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:

- paragraph 73(e) of IAS 16 Property, Plant and Equipment;

∙the requirements of IAS 7 Statement of Cash Flows

∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures

∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member

This information is included in the consolidated financial statements of Smith & Co (Holdings) Limited as at 30 September 2025 and these financial statements may be obtained from Companies House.

Page 11


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.3

Going concern

The Company's forecasts and projections, taking account of reasonable possible changes in trading
performance, show that the Company is expected to operate within the levels of its current facilities.

After making enquiries, the Directors have a reasonable expectation that the Company has adequate
resources to continue in operation existence for the foreseeable future.

The company has net current liabilities of £835,688 (2024: £856,123). This includes amounts owed to group companies of £500,000 (2024: £555,000) which if excluded gives adjusted net current liabilities of £335,688 (2024: £301,123).

Smith & Co (Holdings) Limited (the Company's parent), have confirmed that they will provide financial support to the Company for the foreseeable future, including a period of at least one year from the date of approval of these financial statements.

The Company therefore continues to adopt the going concern basis in preparing its financial statements.

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

The Company has contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company adjusts the transaction prices of these contracts for the time value of money.

Sale of goods

Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Rendering of services

Revenue from providing services is recognised in the accounting period in which the services are rendered.

For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.

Page 12


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.5

Leases

The Company as a lessee

The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

The incramental borrowing rate is the rate of interest the company would have to pay to borrow over a smiliar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

Lease payments included in the measurement of the lease liability comprise:

∙fixed lease payments (including in-substance fixed payments), less any lease incentives;

The lease liability is included in 'Creditors' on the Balance sheet.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company did not make any such adjustments during the periods presented.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in the 'Intangible Assets', 'Tangible Fixed Assets' and 'Investment Property' lines, as applicable, in the Balance sheet.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.12.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

Page 13


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.6

Government grants

Government grants received on capital expenditure are initially recognised within deferred income on the Company's Balance sheet and are subsequently recognised in profit or loss on a systematic basis over the useful life of the related capital expenditure.

Grants for revenue expenditure are presented as part of the profit or loss in the periods in which the expenditure is recognised.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Page 14


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

Depreciation is provided on the following basis:

Long-term leasehold property	-	5 to 50 years - Straight-line
Plant and machinery	-	3-10 years - Straight-line
Motor vehicles	-	20% - Straight-line
Fixtures and fittings	-	10-20% - Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 15


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.16

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

2.17

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value.

Financial assets

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Fair value through profit or loss

All of the Company's financial assets are subsequently measured at fair value at the end of each reporting period, with any fair value gains or losses being recognised in profit or loss to the extent they are not part of a designated hedging relationship. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.

Impairment of financial assets

The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

Financial liabilities

Fair value through profit or loss

Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.

Page 16


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

2.Accounting policies (continued)

2.17

Financial instruments (continued)

At amortised cost

Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the Directors there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Sale of goods	731,973	585,512
Rendering of services	1,417,076	686,149
Property rentals	96,544	5,879
	2,245,593	1,277,540

All turnover arose within the United Kingdom.

Page 17


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Depreciation of tangible fixed assets	(391,238)	(262,658)
Defined contribution pension cost	(13,795)	(5,863)
Government grants	-	3,066,422

On the 17th May 2024 the Company entered into an agreement with Cumberland Council to terminate an existing grant Agreement between the Company and Cumberland Council. The net financial impact of terminating the Grant was to recognise in the prior year profit or loss account previously deferred income held in the balance sheet of £3,066,422.

The amount recognised in the profit or loss for the year is £nil (2024: £3,066,422).

Fees payable to the Company's auditors for the audit of the Company's financial statements

5,000

6,700

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 18


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Employees

The average monthly number of employees, including the directors, during the year was as follows:

	30 September	30 September
	2025	2024
	No.	No.

Operational and administrative	6	6

8.	Directors' remuneration

During the period no directors (2024 - 0) recieved remuneration.

During the period retirement benefits were accruing to no directors (2024 - 0) in repsect of defined contribution pension schemes.

Bank interest payable	2,508	-
Interest on lease liabilities	2,829	109,081
	5,337	109,081

Page 19


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Deferred tax
Origination and reversal of timing differences	-	(14,656)
Recognition of deferred tax on losses	-	(560,019)
Total deferred tax	-	(574,675)


	Profit for the financial year	-	(574,675)

Page 20


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

10.Taxation (continued)

Profit on ordinary activities before tax

2,907,059

749,719

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	726,765	187,430
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	34,578	-
Utilisation of tax losses	(706,011)	(1,099,734)
Permanent differences	-	907,515
Short-term timing difference leading to an increase (decrease) in taxation	351	(574,675)
Book profit on chargeable assets	-	(26)
Depreciation in excess of capital allowances	(55,683)	4,815
Total tax charge for the year/period	-	(574,675)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Intercompany Debt write off	-	(1,532,009)
Derecognition of right-of-use asset and lease liability	(3,151,580)	-
	(3,151,580)	(1,532,009)

In accordance with IFRS 16 as applied under FRS 101, the Company derecognised both the right-of-use asset and the associated lease liability on termination of the lease. The resulting gain has been presented as an exceptional item.

Page 22


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

12.	Tangible fixed assets

	Long-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 October 2024	24,834,810	918,265	14,200	1,291,320	27,058,595
Additions	299,243	3,011	19,250	57,446	378,950
Disposals	(4,794,905)	-	-	-	(4,794,905)
At 30 September 2025	20,339,148	921,276	33,450	1,348,766	22,642,640
Depreciation
At 1 October 2024	15,334,810	826,357	14,200	1,205,002	17,380,369
Charge for the year on owned assets	214,967	4,509	2,246	28,464	250,186
Charge for the year on right-of-use assets	-	46,127	-	-	46,127
Disposals	(3,434,338)	-	-	-	(3,434,338)
At 30 September 2025	12,115,439	876,993	16,446	1,233,466	14,242,344
Net book value
At 30 September 2025	8,223,709	44,283	17,004	115,300	8,400,296
At 30 September 2024	9,500,000	91,908	-	86,318	9,678,226

The net book value of owned and leased assets included as "Tangible fixed assets" in the Balance sheet is as follows:
	2025	2024
	£	£


Tangible fixed assets owned	8,369,030	8,240,266
Right-of-use tangible fixed assets	31,266	1,437,960
	8,400,296	9,678,226

Page 23


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

12.Tangible fixed assets (continued)

Information about right-of-use assets is summarised below:
Net book value
	2025	2024
	£	£

Property	-	1,360,567
Plant and machinery	31,266	77,393
	31,266	1,437,960

Depreciation charge for the year ended
	2025	2024
	£	£

Property	-	55,696
Plant and machinery	46,127	26,908
	46,127	82,604

Page 24


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

13.	Stocks
		12 month year ended 30 September 2025	6 month period ended 30 September 2024
		£	£

Raw materials and consumables	15,483	26,737
	15,483	26,737

The difference between purchase price or production cost of stocks and their replacement cost is not material.

14.

Debtors

					12 month year ended 30 September 2025	6 month period ended 30 September 2024
					£	£


Trade debtors	68,193	159,309
Other debtors	20,916	-
Prepayments and accrued income	197,058	368,739
	286,167	528,048

15.	Cash and cash equivalents
		12 month year ended 30 September 2025	6 month period ended 30 September 2024
		£	£

Cash at bank and in hand	99,688	5,769
	99,688	5,769

Page 25


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

16.	Creditors: Amounts falling due within one year
		12 month year ended 30 September 2025	6 month period ended 30 September 2024
		£	£

Other loans	43,735	-
Trade creditors	398,708	242,662
Amounts owed to group undertakings	500,000	555,000
Other taxation and social security	6,439	7,813
Lease liabilities	37,261	248,963
Other creditors	1,407	180,461
Accruals and deferred income	249,476	181,778
	1,237,026	1,416,677

The amounts owed to group undertaking are unsecured, do not accrue interest and are repayable on demand.

17.	Creditors: Amounts falling due after more than one year
		12 month year ended 30 September 2025	6 month period ended 30 September 2024
		£	£

Lease liabilities	7,088	4,171,642
	7,088	4,171,642

Page 26


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

18.	Leases
	Company as a lessee
	The Company leases plant and machinery which under IFRS16 is presented as a right-of-use asset (see note 12) and a lease liability.
	Lease liabilities are due as follows:

		2025	2024
		£	£

Not later than one year	37,261	248,963
Between one year and five years	7,088	4,171,642
	44,349	4,420,605

The following amounts in respect of leases, where the Company is a lessee, have been recognised in profit or loss:

	2025	2024
	£	£

Interest expense on lease liabilities

2,829

109,081

Page 27


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

19.	Deferred taxation

Deferred taxation
The deferred taxation balance is made up as follows:

	12 month year ended 30 September 2025	6 month period ended 30 September 2024
	£	£

Accelerated capital allowances	(688,955)	(560,019)
Tax losses carried forward	688,955	560,019

Taxable losses carried forward have a value of £13,885,880. Of this amount £3,815,283 has been recognised to offset against accelerated capital allowances. The remaining £10,069,797 has not been recognised as an asset and is held to offset against future taxable profits.

20.	Share capital
		12 month year ended 30 September 2025	6 month period ended 30 September 2024
		£	£

Allotted, called up and fully paid

1,000,000 (2024 - 1,000,000) Ordinary shares of £1.00 each	1,000,000	1,000,000

21.

Reserves

Profit and loss account

The profit and loss account represents the cumulative profits of the Company since incorporation less any distributions made.

22.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £13,795 (2024: £5,863). Contributions totalling £1,405 (2024: £Nil) were payable to the fund at the balance sheet date and are included in creditors.

Page 28


CARLISLE LAKE DISTRICT AIRPORT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

23.	Related party transactions
	The Company has taken advantage of the FRS101 paragraph 8(k) exemption not to disclose related party transactions with wholly owned group companies. During the period purchases were made from companies under common control of £205,870 (2024: £25,765). The amounts outstanding at year end are £47,817 (2024: £25,154).

24.	Controlling party

The ultimate and immediate parent company was Smith & Co (Holdings) Limited. This is the parent of the smallest and largest group to draw up consolidated accounts which include this entity. The registered office of this company is Clifton Moor Farm, Clifton, Penrith, Cumbria, CA10 2EY.

Page 29