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REGISTERED NUMBER: 13161231 (England and Wales)

| Audited Financial Statements |

| for the Year Ended 31 December 2024 |

| for |

| Skywheels Ltd |

| Skywheels Ltd (Registered number: 13161231) |

Contents of the Financial Statements

for the year ended 31 December 2024

Page |

| Company Information | 1 |

| Balance Sheet | 2 |

| Notes to the Financial Statements | 3 |

| Skywheels Ltd |

Company Information

for the year ended 31 December 2024

| DIRECTORS: | D M Bell

| P E Severin

| A Cohn

| B Thomas

| J Cuomo

| REGISTERED OFFICE: | Mead Lane Warehouse

| Mead Lane

| Lydney

| Gloucestershire

| GL15 5EL

| REGISTERED NUMBER: | 13161231 (England and Wales)

| AUDITORS: | Bennett Brooks & Co Limited

| Chartered Accountants

| & Statutory Auditors

| St George's Court

| Winnington Avenue

| Northwich

| Cheshire

| CW8 4EE

| Skywheels Ltd (Registered number: 13161231) |

Balance Sheet

31 December 2024

2024 | 2023 |

(Unaudited) |

| Notes | £ | £

FIXED ASSETS

Intangible assets | 4 | 36,292 |  | 69,792 |  |

Tangible assets | 5 | 114,726 |  | 103,319 |  |

151,018 |  | 173,111 |  |

CURRENT ASSETS

Stocks | 565,499 |  | 11,975 |  |

Debtors | 6 | 989,892 |  | 430,037 |  |

Cash at bank | 43,908 |  | 70,458 |  |

1,599,299 |  | 512,470 |  |

CREDITORS

Amounts falling due within one year | 7 | (2,999,465 | ) | (1,160,080 | ) |

NET CURRENT LIABILITIES | (1,400,166 | ) | (647,610 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | (1,249,148 | ) | (474,499 | ) |

PROVISIONS FOR LIABILITIES | (28,682 | ) | (23,737 | ) |

NET LIABILITIES | (1,277,830 | ) | (498,236 | ) |

CAPITAL AND RESERVES

Called up share capital | 9 | 3,360 |  | 3,360 |  |

Retained earnings | (1,281,190 | ) | (501,596 | ) |

SHAREHOLDERS' FUNDS | (1,277,830 | ) | (498,236 | ) |

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7 August 2026 and were signed on its behalf by:

D M Bell - Director

| Skywheels Ltd (Registered number: 13161231) |

Notes to the Financial Statements

for the year ended 31 December 2024

1. | STATUTORY INFORMATION

| Skywheels Ltd is a private company, limited by shares, incorporated and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. The principal activity of the Company in the year under review was that of airplane wheel repairs.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

| Going concern

| At 31 December 2024, the company had net liabilities and net current liabilities. The company has received confirmation from its parent company that the intercompany balance owed will not be recalled and financial support will be made available for the company to meet their financial obligations for a period of at least 12 months from the date of approval of the financial statements.

| After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

| Significant judgements and estimates

| The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, revenue and expenses. Actual results may differ from these estimates.

| Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are reviewed and in any future periods affected.

| Stock provision

| The requirement for a stock provision is sensitive to changes in the trading market, condition of the stock and estimates relating to future net realisable values. The requirement for a stock provision is re-assessed annually by the directors. The provision is amended where necessary to reflect current estimates. A 3% provision on the value of the stock has been determined using historical stock write-off experience and represents management's best estimate of the reduction in value required to reflect obsolete, slow-moving and damaged stock. The provision is reviewed annually and adjusted where necessary to reflect current trading conditions and historical trends.

| Turnover

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

| Goodwill

| Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of four years.

| Tangible fixed assets

| Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

| Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

| Plant and machinery |  | - | 25% on reducing balance |

| Computer equipment |  | - | 33% on cost |

| Skywheels Ltd (Registered number: 13161231) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

2. | ACCOUNTING POLICIES - continued

| Stocks

| Stocks are valued at the lower of cost and estimated selling price less costs to sell. Stocks are recognised as an expense in the period in which the related turnover is recognised. Cost is determined on the first-in, first-out (FIFO) method. At the end of each reporting period stocks are assessed for impairment using current trading conditions and historical trends. If an item of stock is impaired, the stock is reduced to its selling price less costs to sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

| Foreign currencies

| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

| 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.

| Share capital

| Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from proceeds.

| Cash and cash equivalents

| Cash and cash equivalents includes cash in hand, cash held with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

| Short term debtors and creditors

| Short term debtors and creditors with no interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the income statement.

3. | EMPLOYEES AND DIRECTORS

| The average number of employees during the year was 30 (2023 - 27 ) .

| Skywheels Ltd (Registered number: 13161231) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

4. | INTANGIBLE FIXED ASSETS

Goodwill |

| £

| COST

| At 1 January 2024

| and 31 December 2024 | 134,000 |  |

| AMORTISATION

| At 1 January 2024 | 64,208 |  |

| Charge for year | 33,500 |  |

| At 31 December 2024 | 97,708 |  |

| NET BOOK VALUE

| At 31 December 2024 | 36,292 |  |

| At 31 December 2023 | 69,792 |  |

5. | TANGIBLE FIXED ASSETS

Plant and | Computer |

machinery | equipment | Totals |

| £ | £ | £

| COST

| At 1 January 2024 | 170,186 |  | - |  | 170,186 |  |

| Additions | 33,992 |  | 17,526 |  | 51,518 |  |

| At 31 December 2024 | 204,178 |  | 17,526 |  | 221,704 |  |

| DEPRECIATION

| At 1 January 2024 | 66,867 |  | - |  | 66,867 |  |

| Charge for year | 34,328 |  | 5,783 |  | 40,111 |  |

| At 31 December 2024 | 101,195 |  | 5,783 |  | 106,978 |  |

| NET BOOK VALUE

| At 31 December 2024 | 102,983 |  | 11,743 |  | 114,726 |  |

| At 31 December 2023 | 103,319 |  | - |  | 103,319 |  |

6. | DEBTORS

2024 | 2023 |

(Unaudited) |

| £ | £

| Amounts falling due within one year:

| Trade debtors | 663,088 |  | 295,857 |  |

| Amounts owed by group undertakings | 137,486 |  | - |  |

| Other debtors | 143,218 |  | 134,180 |  |

943,792 |  | 430,037 |  |

| Amounts falling due after more than one year:

| Other debtors | 46,100 |  | - |  |

| Aggregate amounts | 989,892 |  | 430,037 |  |

| Amounts owed by group undertakings are unsecured and interest free.

| Skywheels Ltd (Registered number: 13161231) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2024 | 2023 |

(Unaudited) |

| £ | £

| Trade creditors | 62,459 |  | 176,216 |  |

| Amounts owed to group undertakings | 2,516,391 |  | - |  |

| Taxation and social security | 24,655 |  | 38,342 |  |

| Other creditors | 395,960 |  | 945,522 |  |

2,999,465 |  | 1,160,080 |  |

| Amounts owed to group undertakings are unsecured and interest free.

8. | LEASING AGREEMENTS

| Minimum lease payments under non-cancellable operating leases fall due as follows:

2024 | 2023 |

(Unaudited) |

| £ | £

| Within one year | 184,400 |  | 184,400 |  |

| Between one and five years | 414,900 |  | 605,236 |  |

599,300 |  | 789,636 |  |

9. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2024 | 2023 |

value: |  | £ | £

| 3,360 | Ordinary | £1 | 3,360 |  | 3,360 |  |

| There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

| The Report of the Auditors was qualified on the following basis:

| Basis for qualified opinion

| We were not appointed as auditors of the company until after 31 December 2024 and thus did not observe the counting of physical stocks at the end of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 December 2024, which are included in the balance sheet at £565,499, by using other audit procedures. Consequently, we were unable to determine whether any adjustments to stock were necessary.

| 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 obtained is sufficient and appropriate to provide a basis for our qualified opinion.

| Matthew Bailey BSc (Hons) FCA (Senior Statutory Auditor)

| for and on behalf of Bennett Brooks & Co Limited

| Skywheels Ltd (Registered number: 13161231) |

Notes to the Financial Statements - continued

for the year ended 31 December 2024

11. | ULTIMATE CONTROLLING PARTY

| At the balance sheet date, the Company's ultimate controlling party was Aero 3, Inc. Aero 3 Inc's registered address is 10 Commerce Park N., Bedford, NH 03110, USA. Aero 3 Inc heads up the smallest group which these financial statements are consolidated into.

| Post year end on 23 December 2025, The VSE Corporation acquired the company's immediate parent, Aero 3, Inc. and therefore was the company's ultimate controlling party from this date.