Newcastle Aviation Limited - Limited company accounts 18.2

REGISTERED NUMBER: 06784522 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2018 TO 28 FEBRUARY 2019

FOR

NEWCASTLE AVIATION LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Accountants

3

Income Statement

4

Balance Sheet

5

Statement of Changes in Equity

6

Notes to the Financial Statements

7

DIRECTORS:

C M Mcleod

Mrs J Purewal

REGISTERED OFFICE:

Signature Flight Support

T1 Percival Way

London Luton Airport

Luton

LU2 9PA

REGISTERED NUMBER:

06784522 (England and Wales)

ACCOUNTANTS:

Consilium Chartered Accountants

169 West George Street

Glasgow

G2 2LB

The directors present their report with the financial statements of the company for the period 1 April 2018 to 28 February 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of commercial aircraft charter.

On 1 March 2019 the Company was acquired by Air Charter Scotland (Holdings) Limited.

DIRECTORS

C M Mcleod has held office during the whole of the period from 1 April 2018 to the date of this report.

Other changes in directors holding office are as follows:

N F Lyons - resigned 5 April 2018

Mrs J Purewal was appointed as a director after 28 February 2019 but prior to the date of this report.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mrs J Purewal - Director

15 August 2019

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial

statements of Newcastle Aviation Limited for the period ended 28 February 2019 which comprise the Income Statement, the

Balance Sheet, and the related notes from the Company's accounting records and from information and explanations you have

given us.

As a practising member firm of the Institute of Chartered Accountants of Scotland, we are subject to its ethical and other

professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of Newcastle Aviation Limited, as a body, in accordance with our terms of

engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Newcastle Aviation

Limited and state those matters that we have agreed to state to the Board of Directors of Newcastle Aviation Limited, as a body, in

this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at

http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than Newcastle Aviation Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Newcastle Aviation Limited has kept adequate accounting records and to prepare statutory financial

statements that give a true and fair view of the assets, liabilities, financial position and result of Newcastle Aviation Limited. You

consider that Newcastle Aviation Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit of the financial statements of Newcastle Aviation Limited. For this reason, we

have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and

we do not, therefore, express any opinion on the statutory financial statements.

Consilium Chartered Accountants

169 West George Street

Glasgow

G2 2LB

15 August 2019

TURNOVER

1,742,495

2,967,383

Cost of sales

1,554,259

2,645,731

GROSS PROFIT

188,236

321,652

Administrative expenses

(205,103

)

751,213

OPERATING PROFIT/(LOSS) and

PROFIT/(LOSS) BEFORE TAXATION

393,339

(429,561

)

Tax on profit/(loss)

5

413

1,240

PROFIT/(LOSS) FOR THE FINANCIAL PERIOD

392,926

(430,801

)

FIXED ASSETS

Intangible assets

6

291

942

CURRENT ASSETS

Debtors

7

134,919

13,051

Cash in hand

53,754

130,585

188,673

143,636

CREDITORS

Amounts falling due within one year

8

196,263

544,803

NET CURRENT LIABILITIES

(7,590

)

(401,167

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(7,299

)

(400,225

)

CAPITAL AND RESERVES

Called up share capital

9

99

99

Retained earnings

(7,398

)

(400,324

)

SHAREHOLDERS' FUNDS

(7,299

)

(400,225

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 28 February 2019.

The members have not required the company to obtain an audit of its financial statements for the period ended 28 February 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 15 August 2019 and were signed on its behalf by:

Mrs J Purewal - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

99

35,477

35,576

Changes in equity

Total comprehensive income

-

(430,801

)

(430,801

)

Dividends

-

(5,000

)

(5,000

)

Balance at 31 March 2018

99

(400,324

)

(400,225

)

Changes in equity

Total comprehensive income

-

392,926

392,926

Balance at 28 February 2019

99

(7,398

)

(7,299

)

1.	STATUTORY INFORMATION

Newcastle Aviation Limited 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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 28 February 2019 the Company had net liabilities of £7,299. The Company is reliant on its ultimate parent company, Air

Charter Scotland (Holdings) Limited, for the provision of ongoing support. Air Charter Scotland (Holdings) Limited have

confirmed their intention to provide funding as is required to enable the Company to meet its financial obligations as they

fall due over a period of 12 months from the date of signing these financial statements.

The directors therefore believe it is appropriate to prepare these financial statements on a going concern basis. The

financial statements do not include the adjustments that would result if the Company was unable to continue as a going

concern.

Turnover

The turnover shown in the Income Statement represents the value of services delivered at a selling price exclusive of Value

Added Tax. Sales are recognised at the point at which the Company has fulfilled its contractual obligations.

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.

Patents and licences are being amortised evenly over their estimated useful life of five years.

Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial instruments are classified and accounted for as financial assets, financial liabilities or equity instruments,

according to the substance of the contractual arrangement.

Financial instruments which are assets are stated at cost less any provision for impairment. Financial liabilities are stated at

principal capital amounts outstanding at the period end. Issue costs relating to financial liabilities are deducted from the

outstanding balance and are amortised over the period to the due date for repayment of the financial liability.

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of

its liabilities. A financial liability is any contractual arrangement for an entity to deliver cash to the holder of the associated

financial instrument.

Taxation

Taxation for the period 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

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 period 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.

3.	OPERATING PROFIT/(LOSS)

The operating profit (2018 - operating loss) is stated after charging:

Period

1/4/18

to

Year Ended

28/2/19

31/3/18

£

£

Patents and licences amortisation

651

710

4.	EXCEPTIONAL ITEMS

Period

1/4/18

to

Year Ended

28/2/19

31/3/18

£

£

Related company loan write off

391,164

-

Prior to the acquisition of the Company by Air Charter Scotland (Holdings) Limited, a related company waived their claim to

repayment of £391,164 of the loan due to them. This amount is included as a credit within administrative expenses.

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

1/4/18

to

Year Ended

28/2/19

31/3/18

£

£

Current tax:

UK corporation tax

413

1,240

Tax on profit/(loss)

413

1,240

6.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 April 2018

and 28 February 2019

3,550

AMORTISATION

At 1 April 2018

2,608

Charge for period

651

At 28 February 2019

3,259

NET BOOK VALUE

At 28 February 2019

291

At 31 March 2018

942

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

53,021

13,051

Other debtors

81,898

-

134,919

13,051

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

-

86,913

Taxation and social security

413

1,258

Other creditors

195,850

456,632

196,263

544,803

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

99

Ordinary

£1

99

99

10.	RELATED PARTY DISCLOSURES

Transactions with related parties in the period ending 28 February 2019:

2019

2018

£

£

Loan from director

-

5,458

The above balances were unsecured, interest free with no fixed terms of repayment.

No further transactions with related parties were undertaken such as are required to be disclosed under Financial

Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party throughout the period and prior year was C M McLeod.

On 1 March 2019, the Company's ordinary shares were purchased by Air Charter Scotland (Holdings) Limited. From 1 March

the ultimate controlling party is G E McFarlane by virtue of his interest in the allotted shares of the ultimate parent

company.