Registration number:
Light Aircraft Association Limited
for the Year Ended 31 December 2025
Light Aircraft Association Limited
Contents
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Company Information |
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Directors' Report |
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Balance Sheet |
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Notes to the Financial Statements |
Light Aircraft Association Limited
Company Information
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Chairman |
Mr E M Smith |
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Directors |
Mr D J Millin Mr C W A Holliday Mr I A Sweetland Mr S Tilling Miss C Dadswell Mr A Crutcher Mr P Kirkham Mr P Pengilly Mr A Seymour Mr C Shipley |
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Registered office |
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Auditors |
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Light Aircraft Association Limited
Directors' Report for the Year Ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is that of a membership organisation, which is not for profit.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Light Aircraft Association Limited
Directors' Report for the Year Ended 31 December 2025
Chairman’s Statement
2025 was again a challenging year for the Association. Financially, exceptional items resulted in a overall deficit of £58k but underlying reserves remain robust. Operationally the LAA fleet numbers remain strong though membership numbers continue to decline. Refresh of the Permit Renewal process delivered significant member benefit and we returned to a full elected Board of Directors.
Financially, turnover declined slightly in 2025 by 1% to £1.643m (2024, £1.663m) whilst cost of sales and administrative expenses rose by 7% to £1.747m (£1.634m) delivering an operating deficit of £103k against an operating surplus of £28.1k in 2025. Income from interest and investments delivered a further £45k reducing the deficit for the year to £57.7k against a surplus of £76.1k in 2025. The deficit was primarily due to three exceptional in year items against the budget for the year approved by the Board in November 2024. These consisted in a one-off income receipt in respect of the recovery of business rates of £45k and two exceptional items of expenditure; £85k for additional premium for the Associations insurance liability cover and the legal costs of £46k incurred in respect of defending the Association against actions and claims by former member Mr Colin Hales. The net impact of these three charges amounts to an increase in costs of £86k without which the Association would have been in surplus for the year. Reserves declined to £905.6k, of which £209.4k are held in restricted use, against the previous year (£963.3k). The Board considers the reserves to be sufficient to meet the future needs of the Association.
The increase in insurance premium reflected the difficulties within the sector resulting from the withdrawal of some underwriters from the market and a sector wide uplift in premiums which will need to be reflected in future budgets. Further legal costs in respect of the Association’s defence against Mr Hales actions will arise in the 2026 accounts.
Behind the financial figures membership numbers have continued to decline (a 16% decline in membership since 2022) reflecting the demographic of the Association and the widespread reduction in membership across many member associations. Despite this the size of the Permit fleet remains stable, which would imply that the loss in membership is largely through age and those non-aircraft owning members for whom membership of the LAA is largely discretionary. CEO and HQ team demonstrated tight control on costs with 2025 sales and administrative costs below 2024 in real terms. The 2025 Rally recorded a loss of some £25k which is not sustainable. This was driven by reduced attendance due to poor weather and the recruitment of a part-time project manager to supplement volunteer and office resource in the planning and delivery of the event.
Operationally the most significant initiative was the delivery of the Permit Renewal project. With the support of an Inspector/ Owner working group the permit renewal process was overhauled by the Airworthiness team, greatly simplifying the process and significantly reducing permit turn round times. We are now extending the learning from this process to address the MOD approval process with the aim of significantly improving that process for members.
At the AGM we welcomed six new directors, returning to a full elected Board, adding experience and wider geographical representation. I am pleased to report that the Board is displaying an energy and a willingness to challenge and promote issues on behalf of members as we look to the future of the Association. At the same time it must be acknowledged that the 2025 AGM was overshadowed by the Board’s decision to expel a member on grounds of Conduct Prejudicial to the Association. The issues have been well documented but the Board were clear that the member conduct was unacceptable, that it has duties of care to members of staff and that legal threats made by a member against officers of the LAA and the Association itself will be robustly defended. It is regrettable that the actions have necessitated legal costs being incurred.
As we move into our 80th year we have much to celebrate as the largest member organisation for powered recreational aviation outside North America. Nevertheless we continue to face challenges both in terms of an aging demographic of membership, the economic pressures and time constraints which have seen a significant reduction in the registration of new projects and the wider challenge of attracting the next generation of young people into our sport. These issues will be at the heart of the Directors’ consideration of future strategy of the Association to ensure our ongoing success and viability in meeting members’ needs.
In closing this report I express the grateful thanks of the Board to the HQ staff team, inspectors, the many volunteers and the support of members without whom the Association could not function.
Light Aircraft Association Limited
Directors' Report for the Year Ended 31 December 2025
Chairman’s Statement
2025 was again a challenging year for the Association. Financially, exceptional items resulted in a overall deficit of £58k but underlying reserves remain robust. Operationally the LAA fleet numbers remain strong though membership numbers continue to decline. Refresh of the Permit Renewal process delivered significant member benefit and we returned to a full elected Board of Directors.
Financially, turnover declined slightly in 2025 by 1% to £1.643m (2024, £1.663m) whilst cost of sales and administrative expenses rose by 7% to £1.747m (£1.634m) delivering an operating deficit of £103k against an operating surplus of £28.1k in 2025. Income from interest and investments delivered a further £45k reducing the deficit for the year to £57.7k against a surplus of £76.1k in 2025. The deficit was primarily due to three exceptional in year items against the budget for the year approved by the Board in November 2024. These consisted in a one-off income receipt in respect of the recovery of business rates of £45k and two exceptional items of expenditure; £85k for additional premium for the Associations insurance liability cover and the legal costs of £46k incurred in respect of defending the Association against actions and claims by former member Mr Colin Hales. The net impact of these three charges amounts to an increase in costs of £86k without which the Association would have been in surplus for the year. Reserves declined to £905.6k, of which £209.4k are held in restricted use, against the previous year (£963.3k). The Board considers the reserves to be sufficient to meet the future needs of the Association.
The increase in insurance premium reflected the difficulties within the sector resulting from the withdrawal of some underwriters from the market and a sector wide uplift in premiums which will need to be reflected in future budgets. Further legal costs in respect of the Association’s defence against Mr Hales actions will arise in the 2026 accounts.
Behind the financial figures membership numbers have continued to decline (a 16% decline in membership since 2022) reflecting the demographic of the Association and the widespread reduction in membership across many member associations. Despite this the size of the Permit fleet remains stable, which would imply that the loss in membership is largely through age and those non-aircraft owning members for whom membership of the LAA is largely discretionary. CEO and HQ team demonstrated tight control on costs with 2025 sales and administrative costs below 2024 in real terms. The 2025 Rally recorded a loss of some £25k which is not sustainable. This was driven by reduced attendance due to poor weather and the recruitment of a part-time project manager to supplement volunteer and office resource in the planning and delivery of the event.
Operationally the most significant initiative was the delivery of the Permit Renewal project. With the support of an Inspector/ Owner working group the permit renewal process was overhauled by the Airworthiness team, greatly simplifying the process and significantly reducing permit turn round times. We are now extending the learning from this process to address the MOD approval process with the aim of significantly improving that process for members.
At the AGM we welcomed six new directors, returning to a full elected Board, adding experience and wider geographical representation. I am pleased to report that the Board is displaying an energy and a willingness to challenge and promote issues on behalf of members as we look to the future of the Association. At the same time it must be acknowledged that the 2025 AGM was overshadowed by the Board’s decision to expel a member on grounds of Conduct Prejudicial to the Association. The issues have been well documented but the Board were clear that the member conduct was unacceptable, that it has duties of care to members of staff and that legal threats made by a member against officers of the LAA and the Association itself will be robustly defended. It is regrettable that the actions have necessitated legal costs being incurred.
As we move into our 80th year we have much to celebrate as the largest member organisation for powered recreational aviation outside North America. Nevertheless we continue to face challenges both in terms of an aging demographic of membership, the economic pressures and time constraints which have seen a significant reduction in the registration of new projects and the wider challenge of attracting the next generation of young people into our sport. These issues will be at the heart of the Directors’ consideration of future strategy of the Association to ensure our ongoing success and viability in meeting members’ needs.
In closing this report I express the grateful thanks of the Board to the HQ staff team, inspectors, the many volunteers and the support of members without whom the Association could not function.
Approved and authorised by the
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Light Aircraft Association Limited
(Registration number: 00606312)
Balance Sheet as at 31 December 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Investments |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
100 |
100 |
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Other reserves |
287,361 |
287,430 |
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Retained earnings |
618,128 |
675,827 |
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Shareholders' funds |
905,589 |
963,357 |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
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Light Aircraft Association Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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General information |
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Audit report
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Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Light Aircraft Association Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Office equipment |
15% reducing balance / 33% straight line |
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Other equipment |
25% straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the average cost method.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.
Light Aircraft Association Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Staff numbers |
The average number of persons employed by the company (not including unpaid directors) during the year, was
Light Aircraft Association Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Tangible assets |
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Furniture, fittings and equipment |
Other property, plant and equipment |
Total |
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Cost or valuation |
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At 1 January 2025 |
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Additions |
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At 31 December 2025 |
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Depreciation |
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At 1 January 2025 |
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Charge for the year |
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At 31 December 2025 |
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Carrying amount |
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At 31 December 2025 |
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At 31 December 2024 |
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Stocks |
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2025 |
2024 |
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Other inventories |
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Debtors |
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Current |
2025 |
2024 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Current asset investments |
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2025 |
2024 |
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Other investments |
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Light Aircraft Association Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Operating leases |
The total future minimum lease payments under non-cancellable operating leases are as follows:
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2025 |
2024 |
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< 1 year |
54,660 |
54,660 |
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1 - 5 years |
- |
54,660 |
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54,660 |
109,320 |
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Related party transactions |
The company was controlled by its members throughout the year. There is no ultimate controlling party.
Light Aircraft Association Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Directors' remuneration
The directors' remuneration for the year was as follows:
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2025 |
2024 |
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Remuneration |
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Contributions paid to money purchase schemes |
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95,421 |
92,650 |
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Other reserves |
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Fund |
At 01/01/2025 |
Donations received in year |
Funds used |
At 31/12/2025 |
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£ |
£ |
£ |
£ |
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HQ & Buildings Fund |
144,305 |
- |
- |
144,305 |
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Trophy Fund |
9,087 |
- |
- |
9,087 |
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Armstrong Isaac Fund |
53,107 |
5,875 |
(2,969) |
56,013 |
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I Brewster Legacy Fund |
80,931 |
- |
(2,975) |
77,956 |
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287,430 |
5,875 |
(5,944) |
287,361 |
Description of Funds
HQ & Buildings Fund
Funds raised 2005-2008 including 'Buy a Brick' and other schemes to contribute to new LAA HQ building.
Trophy Fund
Funds allocated for maintenance and preparation of Club awards and Trophies.
Armstrong Isaac Fund
Funds initially allocated for pilot training scholarships, today used to fund up to five bursaries per annum.
Ian Brewster
Legacy of Dr Ian Brewster. No restriction on use.
Light Aircraft Association Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Creditors |
Creditors: amounts falling due within one year
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2025 |
2024 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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