REGISTERED NUMBER: 13082439 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

SKYBORNE AVIATION GROUP LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mr M Bettelli

Mr L J Woodward

REGISTERED OFFICE:

Skypark Flight Centre

Gloucestershire Airport

Staverton

Cheltenham

GL51 6SR

REGISTERED NUMBER:

13082439 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Mark Nicholas Winks FCCA

AUDITORS:

Bronsens Accountants Limited

Chartered Certified Accountants

Statutory Auditors

Eden House

Two Rivers Business Park

Witney

Oxfordshire

OX28 4BL

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

Skyborne Aviation Training Limited uses its unique and innovative approach to train airline pilots in its world class facilities in Gloucestershire and Bournemouth Airports, UK and Vero Beach Airport, Florida, USA.

The Bournemouth site in the UK was opened in Q3 2025 and is fully operational with students in both the Ground School and ME/IR phases of training utilising this base.

In the US, there has been some over-indexing with regards to manpower in the post Covid consumer demand for travel, which has settled to a more normal position. In addition, there continues to be challenges with regards to supply of B737 MAX and A320 NEO/CEO aircraft in the US, which is curtailing airline growth in the short-term. That said, airline yields are at record levels in certain businesses as consumer demand for air travel remains very strong.

We continue to see month-on-month growth in student enrolments and revenues. Skyborne has secured long-term contracts with British Airways, Jet 2, Ryanair, FlyDubai, EasyJet and IndiGo. Over the past year, there has been an increase in the British Airways funded pilot numbers and Skyborne is the preferred supplier to British Airways for this programme. The scale, robustness, and diverse nature of these contracts alone, offer a high degree of safeguarding of our business.

In the Directors' opinion the group's key performance indicators are as follows:

31.12.25

31.12.24

Turnover

41,600,125

27,057,192

Net (loss) / profit before taxation

4,918,771

(752,881

)

The Group's long term strategy continues to be to grow the business through both organic growth of its existing sites and the acquisition and development of further sites as opportunities present themselves. In 2026, Skyborne will commence ATPCTP training for those pilots leaving the light aircraft environment to transition to airline operations. The Group is also planning to launch a Part 147 Aircraft Maintenance Training academy at the Vero Beach facility.

PRINCIPAL RISKS AND UNCERTAINTIES

The board regularly reviews the risk facing the business and takes mitigation measures where appropriate.

The main external risks, over which the board and management have no control, includes the recovery of the aviation market post COVID-19 pandemic, a decline in the economy following Russia's invasion of Ukraine, resulting in a reduction in customer spending and significant further increases in interest rates (affecting potential customers).

The most important internal risks, over which the board and management have some control, includes the safety of training (for which there is a robust safety management system in place), the loss of key staff and cyber security risks. In these and other risks, the board have established mitigating controls which are regularly reviewed.

SECTION 172(1) STATEMENT

The Board of Directors considers that the decisions they have made during the financial year and the way they have acted have promoted the success of the Group for the benefit of its members as a whole (having regard for the stakeholders and matters set out in s172(1)(a-f) of the act).

We are committed to delivering a high standard of airline pilot training and we will continue to operate our business within tight budgetary controls and in line with our targets.

Our employees are fundamental to our future. We aim to be a responsible employer in our approach to the

pay and benefits our employees receive. The health, safety and well-being of our employees and students is one of our primary considerations in the way we do business.

Our duty is to provide high quality pilot training in our first class facilities, here in the UK and Florida, USA. We regularly engage with students, airline companies and suppliers to give us an understanding of their views and priorities and ensuring we are delivering a first class service. We aim to act responsibly and fairly in how we engage with our suppliers, students and employees all of whom are integral to the future of our business.

As the Board of Directors, our intention is to behave responsibly towards our shareholders and ensure that

management operate the business in a responsible manner, operating within the high standards of business

conduct and good governance expected for a business.

FUTURE DEVELOPMENTS

In order to facilitate the growth of student enrolments and the associated training, there will be a requirement in the next 2 years to purchase 32 more aircrafts (15 Piper 100i and 4 DA 42's), as well as 2 more simulators.

It is likely that the airlines are going to require more pilots in the coming years. There is the beginning of airline programmes for student pilots, some of which may well be fully sponsored. Skyborne continues to work with the airlines to develop innovative training solutions and to ensure that we retain the trust of the airlines and our customers.

ON BEHALF OF THE BOARD:

Mr L J Woodward - Director

29 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

DIVIDENDS

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

Mr M Bettelli

Mr L J Woodward

ENGAGEMENT WITH EMPLOYEES

The Group policy regarding the employment of disabled persons ensures that the same opportunities for employment and career progression are extended to able bodied and disabled employees equally. If limitations on the ability of a disabled employee to carry out their duties occur because of their disability, the group in collaboration with the employee, will make all necessary practical changes to the working environment to ensure that the disabled employee can carry out their duties effectively.

The Group provides all necessary training and support to able bodied and disabled persons to ensure that they are able to carry out their duties efficiently.

In the unforeseen event of an able bodied employee becoming disabled the Group would undertake an appropriate evaluation of the needs of the employee to enable, where practicable, the disability to be overcome in the work place.

EMPLOYEE INVOLVEMENT

During the year, the policy of providing employees with information about the group has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the group's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.

STREAMLINED ENERGY AND CARBON REPORTING

This report was undertaken in accordance with the Streamlined Energy and Carbon ("SECR") Reporting requirements outlined in the Companies Act (2006) for large quoted and unlisted companies which requires Skyborne Aviation Group Ltd, Skyborne, to report on its Greenhouse Gas (GHG) emissions.

This report contains details on annual GHG emissions and total energy consumption for Skyborne covering our branches, offices, transport assets, and energy efficiency and environmental management actions implemented during the reporting period. This report contains our SECR disclosure for the 2025 reporting year.

Energy Consumption

Energy Type

KWh

Electricity

1,637,864

Gas

76,452

Transport fuel (aviation and vehicles)

20,816,664

Total energy consumption

22,530,980

Greenhouse Gas Emissions

Scope

Source

tCO2e

Scope 1

Aviation fuel and vehicle fuel

5,335.9

Scope 2

Purchased electricity

381.9

Total

5,717.8

Emissions Intensity

Metric

Value

Total flight hours

82,144

Emissions intensity (tCO2e per hour)

0.070

Methodology

Energy use has been calculated by converting fuel and electricity consumption into kilowatt hours using standard conversion factors. Greenhouse gas emissions have been calculated using the UK Government's published greenhouse gas conversion factors. Scope 1 emissions include aviation fuel and vehicle fuel. Scope 2 emissions relate to purchased electricity. The Group has applied the operational control approach to define organisational boundaries.

Scope of Reporting

The reported figures include all entities within the consolidated Group, including overseas subsidiaries. The majority of the Group's emissions arise from its US-based flight training operations, which form a significant part of its overall activity.

Energy Efficiency Actions

The Group continually reviews opportunities to improve energy efficiency and reduce emissions, including optimisation of flight training schedules and aircraft utilisation, monitoring and management of fuel consumption across the fleet, and evaluation of lower-emission technologies and operational practices.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr L J Woodward - Director

29 July 2026

Opinion

We have audited the financial statements of Skyborne Aviation Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2025 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 five, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

Mr Mark Nicholas Winks FCCA (Senior Statutory Auditor)

for and on behalf of Bronsens Accountants Limited

Chartered Certified Accountants

Statutory Auditors

Eden House

Two Rivers Business Park

Witney

Oxfordshire

OX28 4BL

29 July 2026

TURNOVER

3

41,600,125

27,057,192

Cost of sales

22,274,176

16,778,229

GROSS PROFIT

19,325,949

10,278,963

Distribution costs

717,482

772,392

Administrative expenses

12,862,235

9,657,758

13,579,717

10,430,150

OPERATING PROFIT/(LOSS)

5

5,746,232

(151,187

)

Interest receivable and similar income

6

54,743

41,848

5,800,975

(109,339

)

Interest payable and similar expenses

7

882,204

643,542

PROFIT/(LOSS) BEFORE TAXATION

4,918,771

(752,881

)

Tax on profit/(loss)

8

985,430

(369,864

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

3,933,341

(383,017

)

OTHER COMPREHENSIVE INCOME

Disposal of revalued aircraft

-

(29,336

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(29,336

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,933,341

(412,353

)

Profit/(loss) attributable to:

Owners of the parent

3,933,341

(383,017

)

Total comprehensive income attributable to:

Owners of the parent

3,933,341

(412,353

)

FIXED ASSETS

Owned

Intangible assets

10

(830,958

)

(1,268,689

)

Tangible assets

11

30,992,012

30,052,324

Right-of-use

Tangible assets

11, 18

4,795,014

-

Investments

12

-

-

34,956,068

28,783,635

CURRENT ASSETS

Stocks

13

993,030

690,638

Debtors

14

10,804,839

6,486,169

Cash at bank and in hand

5,692,237

3,925,882

17,490,106

11,102,689

CREDITORS

Amounts falling due within one year

15

38,195,338

24,229,010

NET CURRENT LIABILITIES

(20,705,232

)

(13,126,321

)

TOTAL ASSETS LESS CURRENT LIABILITIES

14,250,836

15,657,314

CREDITORS

Amounts falling due after more than one year

16

(8,744,244

)

(15,069,493

)

PROVISIONS FOR LIABILITIES

20

(1,212,627

)

(227,197

)

NET ASSETS

4,293,965

360,624

CAPITAL AND RESERVES

Called up share capital

21

200

200

Fair value reserve

8,085,423

8,085,423

Retained earnings

(3,791,658

)

(7,724,999

)

SHAREHOLDERS' FUNDS

4,293,965

360,624

The financial statements were approved by the Board of Directors and authorised for issue on 29 July 2026 and were signed on its behalf by:

Mr L J Woodward - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

200

201

200

201

CURRENT ASSETS

Debtors

14

200

200

CREDITORS

Amounts falling due within one year

15

200

201

NET CURRENT LIABILITIES

-

(1

)

TOTAL ASSETS LESS CURRENT LIABILITIES

200

200

CAPITAL AND RESERVES

Called up share capital

21

200

200

SHAREHOLDERS' FUNDS

200

200

Company's profit for the financial year

-

-

The financial statements were approved by the Board of Directors and authorised for issue on 29 July 2026 and were signed on its behalf by:

Mr L J Woodward - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2024

200

(7,341,982

)

8,114,759

772,977

Changes in equity

Total comprehensive income

-

(383,017

)

(29,336

)

(412,353

)

Balance at 31 December 2024

200

(7,724,999

)

8,085,423

360,624

Changes in equity

Total comprehensive income

-

3,933,341

-

3,933,341

Balance at 31 December 2025

200

(3,791,658

)

8,085,423

4,293,965

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

200

-

200

Changes in equity

Balance at 31 December 2024

200

-

200

Changes in equity

Balance at 31 December 2025

200

-

200

Cash flows from operating activities

Cash generated from operations

1

9,736,833

5,077,335

Interest paid

(634,621

)

(643,542

)

Tax paid

(251

)

-

Net cash from operating activities

9,101,961

4,433,793

Cash flows from investing activities

Purchase of intangible fixed assets

(205,486

)

(275,968

)

Purchase of tangible fixed assets

(6,826,906

)

(5,493,974

)

Sale of tangible fixed assets

-

68,970

Interest received

54,743

41,848

Additions on transition net of impairmen

(2,836,353

)

-

Net cash from investing activities

(9,814,002

)

(5,659,124

)

Cash flows from financing activities

New loans in year

4,795,822

-

Loan repayments in year

(3,650,560

)

2,612,609

Net cash from financing activities

1,145,262

2,612,609

Increase in cash and cash equivalents

433,221

1,387,278

Cash and cash equivalents at beginning of year

2

3,925,882

2,538,604

Effect of foreign exchange rate changes

1,333,134

-

Cash and cash equivalents at end of year

2

5,692,237

3,925,882

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.25

31.12.24

£

£

Profit/(loss) before taxation

4,918,771

(752,881

)

Depreciation charges

2,361,069

1,310,463

Loss/(profit) on disposal of fixed assets

2,109

(16,218

)

Finance costs

882,204

643,542

Finance income

(54,743

)

(41,848

)

8,109,410

1,143,058

Increase in stocks

(302,392

)

(118,807

)

Increase in trade and other debtors

(4,318,670

)

(2,024,260

)

Increase in trade and other creditors

6,248,485

6,077,344

Cash generated from operations

9,736,833

5,077,335

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 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

5,692,237

3,925,882

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

3,925,882

2,538,604

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

3,925,882

1,766,355

5,692,237

3,925,882

1,766,355

5,692,237

Debt

Debts falling due within 1 year

(88,081

)

(9,156,222

)

(9,244,303

)

Debts falling due after 1 year

(12,163,274

)

7,763,377

(4,399,897

)

(12,251,355

)

(1,392,845

)

(13,644,200

)

Total

(8,325,473

)

373,510

(7,951,963

)

1.	STATUTORY INFORMATION

Skyborne Aviation Group Ltd 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 General Information page.

The principal activity of the Company throughout the period was to act as a holding company for its subsidiaries. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

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 as modified by the revaluation of certain assets.

Adoption of new accounting standards, amendments and interpretations and impact on disclosures

During the financial year the Group early adopted the following new or amended standards:

Amendments to FRS102 Periodic Review 2024, (effective for periods commencing on or after 1 January 2026).

- Leases (section 20)

- Revenue Recognition (Section 23).

These amendments have not had a material impact on the reported financial position or performance of the Group.

Basis of consolidation

The consolidated financial statements incorporate those of Skyborne Aviation Group Ltd and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefit). Subsidiaries are included within the consolidated financial statements from the date on which the group obtains control and excluded from the date on which that control ceases.

All financial statements are made up to 31 December 2025. The accounting policies of subsidiaries are in line with the Group accounting policies as disclosed within these financial statements.

All intra-group transactions, balances and unrealised gains on transactions between companies are eliminated on consolidation.

Turnover

Revenue arises from the provision of aviation training. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 amount of revenue can be measured reliably;

-

it is probable that the Group will receive the consideration due under the contract;

-

the stage of completion of the contract at the end of the reporting period can be measured reliably; and

-

the costs incurred and the costs to complete the contract can be measured reliably.

For each contract with a client, the Group:

-

Identifies the contract with a client.

-

Identifies the performance obligations in the contract.

-

Determines the transaction price which takes into account estimates of variable consideration and the time value of money.

-

Allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered.

-

Recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the client of the goods or services promised.

For the purposes of internal reporting and monitoring, the Group's revenue is segregated by class of business (service line) and as a result, the directors consider that disaggregating revenue by classes of business is most relevant to depict the nature, amount, timing and uncertainty of revenue and cash flows as impacted by business activities and the economic environment in which the Group operates.

The Group's revenue is derived from its operations in the United Kingdom and the USA.

Revenue is recognised over time when, under the terms of engagement between Skyborne Aviation Training Ltd or Skyborne Airline Academy Inc. and the client, the Group has an enforceable right to payment for performance completed to date. Fees for this revenue are fixed, based on the contract price and spread evenly over the period of the contract.

Payment terms are set out in the contract and required at set intervals before and during the contract period. In all contracts payment is received in advance of the stage of training been provided. Payments received in advance of training are deferred and revenue released once the contract has started.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

Goodwill on acquisition is subject to an impairment review by the directors and any adjustment is reflected in the profit and loss account.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of four years.