Vintage_Legends_Group_Lim - Accounts

I am pleased to present the financial statements for the Vintage Legends Group for the year ended 31st March 2020.

My thanks are extended to our customers and all of our employees and volunteers that have supported the business this year and enable us to deliver very special experiences and products.

It was a strong performance from the Group particularly allowing for the impact of the Covid pandemic which affected many aspects of our business in the first quarter of 2020 as the UK entered a lockdown. For example, we experienced much lower flight sales in the latter part of the financial year driven by uncertainty as to what customers were allowed to do combined with general health concerns related to the pandemic.

We are following our strategy of limited diversification to ensure that we have a balanced business portfolio where the Group has resilience to economic and environmental impacts.

Business sector highlights:

- Flight Experiences and aircraft hire

Aero Legends is the operating company that delivers vintage flight experiences using aircraft owned by Aero Legends Leasing but also hiring in aircraft from partner companies. The aircraft are charged to Aero Legends at commercial rates and taking the combined results of Aero Legends and Aero Legends Leasing profits have increased by 28% over 2019.

Our flight experience business’s growth is attributed to a large extent to repeat business from our customers and their recommendations to others rather than advertising.

Despite the uncertainty caused by the pandemic, all types of flight experience sales recovered well in the financial year 2021 and shows no signs of levelling off. Headcorn Aerodrome in Kent continues to be a key operating location with it’s unspoilt wartime ambience and close proximity to The White Cliffs of Dover making it a key operating location.

- Aircraft Engineering

We welcomed Vintage Aero Ltd into the Group this year as part of our strategy to be more self reliant in key areas. Vintage Aero has employees with key skills that enable us to become a leader in aircraft maintenance and to be able to service and repair our own aircraft more efficiently.

The following year will see the integration of the aircraft engineering element of North Weald Flying Services into one larger engineering operation under Vintage Aero together with investment in people, processes and technical infrastructure. This integration gives us scale with two operating locations, one of which has a hard runway for all year round use.

- Motor Vehicle engineering

Motor Legends re-engineers classic cars. The company has developed a thoroughly upgraded version of the iconic Jaguar E Type and also offers the fitment of modern multi speed electronic automatic gearboxes into classic cars which improves their driving dynamics.

The company has been focused on the research and development side of the above which is substantially completed whilst also undertaking a number of bespoke car builds at the top end of the market.

The companies’ new products were debuted at the London Classic Car Show in February 2020. The interest level was very high with many serious enquiries but the Covid lockdown has delayed our ability to provide test drives in our demonstrator vehicles. A number of key classic motoring journals are keen to road test our Jaguar E Type V12 fitted with a 6 speed automatic gearbox which will happen as part of a product launch in the spring of 2021.

The first public viewing of the Motor Legends Super E Type will also be in 2021.

- Operating and retail locations

North Weald Flying Services was acquired just before the start of this financial period. The company is based at Historic North Weald airfield which was established in 1916 and played a key role in the Battle of Britain. It is located just North of London next to the M25 and M11. By acquiring this company Vintage Legends Group has secured a long lease on the site at very attractive terms. With so many airfields under threat of housing development this is a strategic acquisition to protect the Group’s ability to continue to grow it’s flight experiences.

The business trades as “The Squadron” and offers food and beverage, fuel sales, hangarage and aircraft engineering. It was a heavily frequented destination in the 1990s. However, the business had experienced trading difficulties and was heavily indebted when Vintage Legends Group acquired it on 21st February 2019.

Substantial progress has been made in this financial year in achieving a positive trading result and reducing the historical debts. In addition we have been investing in renovating the buildings and upgrading the restaurant so that North Weald is fit for Aero Legends to operate its Flight Experiences from there from 2021.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Vintage Legends Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Carriage House, Mill Street, Maidstone, Kent, ME15 6YE.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

During the year the reporting entity purchased 100% of the ordinary share capital of Vintage Aero Ltd.

Details of the company's subsidiaries at 31 March 2020 are as follows:

The consolidated amount loaned by the director to the group entities is £5,038,060.

Interest free loans have been granted by the directors to the company as follows: