European Aviation Limited

Strategic Report for the Year Ended 31 December 2025

The Directors present their strategic report for the year ended 31 December 2025.

Business Overview and Principal Activities

European Aviation Limited continued to operate within the global aviation aftermarket sector during 2025 through its core activities:

• The sale and trading of aircraft spare parts and rotable components.
• CFM56 engine sales, repair and asset management services.
• Aircraft storage and inventory support services.
• The sale of aircraft cabin interior components and related aviation products.

The Company's business model combines aircraft and engine asset trading with technical expertise, refurbishment capability and inventory management to create value throughout the aviation asset lifecycle.

Trading Conditions During 2025

European Aviation Limited continued to operate within the global aviation aftermarket during 2025, providing spares support, storage solutions, engine trading and repair services, and aircraft interior products to customers worldwide. During the year, the Company supported a cargo airline customer with its aircraft spares requirements and storage programmes, whilst continuing to develop its presence in the engine and aircraft component markets.

The Company completed a number of CFM56 engine sales and repair projects during the year, benefiting from continued demand for mature engine platforms and associated maintenance services. The cabin interiors division also supplied aircraft interior components and refurbishment products to a range of aviation customers.

Market conditions remained challenging, with ongoing constraints in the availability of certain aircraft and engine components, extended repair turnaround times and supply chain disruptions affecting parts of the aviation sector. Despite these challenges, the Company utilised its inventory holdings, technical expertise and industry relationships to continue supporting customer requirements and delivering aviation aftermarket solutions.

Supply Chain and Market Conditions

The aviation aftermarket continued to experience supply chain challenges during 2025, particularly in relation to engine materials, life-limited parts ("LLPs") and specialist repair capabilities. Extended lead times for the repair and procurement of certain components continued to affect availability across the market and increased demand for serviceable material and inventory held by independent suppliers.

Engine Trading and Repair Services

Demand for CFM56 engines and associated repair services remained strong throughout the year. The Company successfully completed a number of engine sales and repair transactions, benefiting from continued market demand for serviceable engine assets, spare parts and maintenance support.

Spares Support and Storage Services

During 2025, the Company continued to provide comprehensive spares support and storage solutions to a cargo airline customer. This activity generated recurring business opportunities whilst supporting the customer's operational and maintenance requirements.

European Aviation Limited

Strategic Report for the Year Ended 31 December 2025

Cabin Interiors

The Company continued to supply aircraft cabin interior products and components to customers within the aviation sector. Demand remained steady throughout the year, supporting revenue diversification across the Company's aftermarket activities.

Operational Focus

Management remained focused on maintaining inventory availability, supporting customer requirements and maximising the value of the Company's aviation assets. Strong industry relationships and technical expertise enabled the Company to respond effectively to market opportunities and customer demand.

Business Strategy

The Company's strategy remains focused on maximising value from aviation assets and aftermarket services through disciplined inventory management, engine trading and repair activities, aircraft spares support and cabin interior sales. The Company will continue to leverage its industry expertise and established customer relationships to support sustainable long-term growth.

Key Performance Indicators

KPI	Unit	2025	2024
Turnover	£	24,985,956	14,599,202
Operating profit/(loss)	£	(2,902,793)	5,002,160
Operating profit margin	%	(12)	34
Stock held	£	26,452,197	13,057,015
Loans	£	392,117	3,130,517
Net assets	£	79,382,196	81,008,249

Stakeholders and Section 172 Considerations

The Directors have had regard to their duties under Section 172 of the Companies Act 2006 and have acted in the way they consider would most likely promote the success of the Company for the benefit of its members as a whole.

Key stakeholders include:
• Employees.
• Customers.
• Suppliers and maintenance providers.
• Lenders and financing partners.
• Aviation regulators.
• Local communities.

The Board continued to engage with these stakeholders through regular communication, operational reviews, commercial meetings and compliance programmes.

European Aviation Limited

Strategic Report for the Year Ended 31 December 2025

Principal Risks and Uncertainties

Risk Area	Mitigation Strategy
Supply chain disruption	Strategic inventory holdings and diversified sourcing arrangements.
Asset valuation risk	Conservative purchasing policies and ongoing review of carrying values.
Customer credit risk	Credit checks, monitored exposures and controlled payment terms.
Foreign exchange risk	Monitoring USD exposure and managing currency risks where appropriate.
Regulatory compliance	Established compliance procedures and ongoing regulatory oversight.
Liquidity risk	Cash flow forecasting and working capital management.
Operational risk	Strong internal controls, experienced personnel and defined operational procedures.

Going Concern

The Directors have reviewed the Company's forecasts, available facilities, working capital requirements and trading outlook.

After considering current business performance, anticipated trading activity and available financial resources, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

Approved and authorised by the Board on 1 October 2026 and signed on its behalf by:
 

......................................... P G Stoddart Director

European Aviation 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.

Principal Activities

The principal activities of the Company during the year remained:

• Aircraft spare parts and component sales.
• CFM56 engine sales, repair and asset management services.
• Aircraft storage and inventory support services.
• Sale of aircraft cabin interior products.

There were no significant changes to the nature of the Company's activities during the year.

Directors of the Company

The Directors who held office during the year were as follows:

P G Stoddart

S E Aston - Company secretary and director

T S Whetter

S B Penton

Results and Dividends

The profit or loss for the year is set out in the financial statements.

The Directors do not recommend the payment of a dividend in respect of the year ended 31 December 2025.

Future Developments

The Directors remain optimistic regarding opportunities within the aviation aftermarket sector.

The Company intends to continue developing its aircraft spares, engine trading, repair and storage activities whilst maintaining a disciplined approach to cost control, working capital management and investment decisions.

The Directors will continue to focus on maximising value from inventory holdings, expanding customer relationships and identifying opportunities within the engine, aircraft component and cabin interiors markets.

The Company will also continue to evaluate strategic opportunities that support sustainable long-term growth and enhance operational efficiency.

Financial Risk Management

The Company is exposed to a number of financial risks including foreign currency risk, credit risk, liquidity risk and interest rate risk. The Board regularly reviews these exposures and has implemented procedures designed to mitigate their impact on the Company's financial performance and financial position.

European Aviation Limited

Directors' Report for the Year Ended 31 December 2025

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.

Reappointment of Auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Wenn Townsend as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 1 October 2026 and signed on its behalf by:
 

......................................... P G Stoddart Director

European Aviation Limited

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

•	select suitable accounting policies and apply them consistently;

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

•	state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

European Aviation Limited

Independent Auditor's Report to the Members of European Aviation Limited

Opinion

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

In our opinion the financial statements:

•	give a true and fair view of the state of the Company's affairs as at 31 December 2025 and of its loss for the year then ended;
•	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.

European Aviation Limited

Independent Auditor's Report to the Members of European Aviation Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter prescribed by the Companies Act 2006

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

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

•	the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of Directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], 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.

European Aviation Limited

Independent Auditor's Report to the Members of European Aviation Limited

Auditor 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 auditor’s 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 specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud are detailed below:

• Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;
• Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
• Reviewing minutes of meetings of those charged with governance;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 auditor’s 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.

European Aviation Limited

Independent Auditor's Report to the Members of European Aviation Limited

......................................
Benjamin Hayes BSc FCA (Senior Statutory Auditor)
For and on behalf of Wenn Townsend, Statutory Auditor
 30 St Giles'
Oxford
OX1 3LE

1 October 2026

European Aviation Limited

Profit and Loss Account for the Year Ended 31 December 2025

	Note	2025 £	2024 £
Turnover	3	24,985,956	14,599,202
Cost of sales		(20,629,300)	(7,778,717)
Gross profit		4,356,656	6,820,485
Administrative expenses		(7,259,449)	(1,818,325)
Operating (loss)/profit	4	(2,902,793)	5,002,160
Other gains/losses	5	-	12,006,959
Other interest receivable and similar income	6	1,637,668	298,070
Interest payable and similar expenses	7	(189,170)	(148,338)
(Loss)/profit before tax		(1,454,295)	17,158,851
Taxation	11	(171,758)	-
(Loss)/profit for the financial year		(1,626,053)	17,158,851

The above results were derived from continuing operations.

The Company has no recognised gains or losses for the year other than the results above.

European Aviation Limited

Statement of Comprehensive Income for the Year Ended 31 December 2025

	2025 £	2024 £
(Loss)/profit for the year	(1,626,053)	17,158,851
Total comprehensive income for the year	(1,626,053)	17,158,851

European Aviation Limited

(Registration number: 02496662)
Balance Sheet as at 31 December 2025

	Note	2025 £	2024 £
Fixed assets
Tangible assets	12	14,517,370	12,012,245
Current assets
Stocks	13	26,452,197	13,057,015
Debtors	14	21,002,745	18,077,048
Cash at bank and in hand		22,376,622	43,944,735
		69,831,564	75,078,798
Creditors: Amounts falling due within one year	16	(3,586,195)	(4,506,628)
Net current assets		66,245,369	70,572,170
Total assets less current liabilities		80,762,739	82,584,415
Creditors: Amounts falling due after more than one year	16	(280,543)	(476,166)
Provisions for liabilities	17	(1,100,000)	(1,100,000)
Net assets		79,382,196	81,008,249
Capital and reserves
Called up share capital		750,020	750,020
Revaluation reserve		2,959,965	2,959,965
Profit and loss account		75,672,211	77,298,264
Shareholders' funds		79,382,196	81,008,249

Approved and authorised by the Board on 1 October 2026 and signed on its behalf by:
 

......................................... P G Stoddart Director

European Aviation Limited

Statement of Changes in Equity for the Year Ended 31 December 2025

	Share capital £	Revaluation reserve £	Profit and loss account £	Total £
At 1 January 2025	750,020	2,959,965	77,298,264	81,008,249
Loss for the year	-	-	(1,626,053)	(1,626,053)
At 31 December 2025	750,020	2,959,965	75,672,211	79,382,196