Dragonfly Aviation Services Limited - Accounts to registrar (filleted) - small 23.1.2

Dragonfly Aviation Services Limited

Financial Statements for the Year Ended 31 October 2022

DIRECTORS:

N Palser

H R Palser

REGISTERED OFFICE:

The White Building Southside

Cardiff International Airport

Rhoose

Barry

CF62 3BD

REGISTERED NUMBER:

07948303 (England and Wales)

ACCOUNTANTS:

BPU Limited

Chartered Accountants

Radnor House

Greenwood Close

Cardiff Gate Business Park

Cardiff

CF23 8AA

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Dragonfly Aviation Services Limited for the year ended 31 October 2022 which comprise the Profit & Loss Account, 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 in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Dragonfly Aviation Services 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 Dragonfly Aviation Services Limited and state those matters that we have agreed to state to the Board of Directors of Dragonfly Aviation Services Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Dragonfly Aviation Services Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Dragonfly Aviation Services 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 profit of Dragonfly Aviation Services Limited. You consider that Dragonfly Aviation Services Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Dragonfly Aviation Services 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.

BPU Limited

Chartered Accountants

25 July 2023

FIXED ASSETS

Intangible assets

3

331,915

370,710

Tangible assets

4

700,181

843,723

1,032,096

1,214,433

CURRENT ASSETS

Stocks

1,970

1,305

Debtors

5

716,961

514,128

Cash at bank and in hand

492,492

700,954

1,211,423

1,216,387

CREDITORS

Amounts falling due within one year

6

1,354,347

1,770,831

NET CURRENT LIABILITIES

(142,924

)

(554,444

)

TOTAL ASSETS LESS CURRENT LIABILITIES

889,172

659,989

CREDITORS

Amounts falling due after more than one year

7

245,529

1,044,533

NET ASSETS/(LIABILITIES)

643,643

(384,544

)

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

643,543

(384,644

)

SHAREHOLDERS' FUNDS

643,643

(384,544

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2022 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 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 Profit & Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25 July 2023 and were signed on its behalf by:

H R Palser - Director

1.	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.

The company posted its best ever trading year as the addition to the fleet of a Cessna Bravo C550 Jet in December 2021 allowed the company to take full advantage of the surge in charter activity following the ending of the lockdown travel restrictions. The company's overall financial position was further enhanced during the year as a result of a debt release settlement agreed with its main funding provider.

Since the year end the Directors have been successful in securing the renewal on improved terms of the company's flagship AOG contract with easyJet, which will again become the company's primary income generator following a return to lower charter activity levels and the sale of the Cessna Bravo Jet by its third party owners.

The Directors fully support the company and accordingly consider it appropriate to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is the amount derived from the provision of aircraft chartering services, net of value added tax, and falls within the company's ordinary activities. Revenue is recognised in the period in which the services are provided. All turnover arises in the United Kingdom.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2012, is being amortised evenly over its estimated useful life of twenty years.

Licences

The licence held will be amortised on a straight line basis for 10 years, starting in 2016.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Aircraft

-

5 - 33% straight line

Fixtures and fittings

-

33% reducing balance

Office equipment

-

33% reducing balance

A substantial element of the value of an aircraft is related to the life remaining of its engines, before overhaul or replacement is required. The time remaining before overhaul is known, and the proportion of the value of the aircraft attributable to the remaining life of its engines is amortised over this known period of time. Other costs incurred which provide enhancement of the aircrafts' value are capitalised and amortised over the length of time for which the benefit of the enhancement subsists.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit & Loss Account, 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.

Grant income

Grant income is recognised on a systematic basis over the periods to which the entity recognises the related costs for which the grant is intended.

2.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2021 - 8 ) .

3.	INTANGIBLE FIXED ASSETS

Goodwill

Licences

Totals

£

£

£

COST

At 1 November 2021

and 31 October 2022

635,818

70,038

705,856

AMORTISATION

At 1 November 2021

286,118

49,028

335,146

Amortisation for year

31,791

7,004

38,795

At 31 October 2022

317,909

56,032

373,941

NET BOOK VALUE

At 31 October 2022

317,909

14,006

331,915

At 31 October 2021

349,700

21,010

370,710

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Office

Aircraft

fittings

equipment

Totals

£

£

£

£

COST

At 1 November 2021

1,572,054

1,079

37,786

1,610,919

Additions

-

-

7,592

7,592

Disposals

-

-

(2,389

)

(2,389

)

At 31 October 2022

1,572,054

1,079

42,989

1,616,122

DEPRECIATION

At 1 November 2021

735,358

1,079

30,759

767,196

Charge for year

146,971

-

3,730

150,701

Eliminated on disposal

-

-

(1,956

)

(1,956

)

At 31 October 2022

882,329

1,079

32,533

915,941

NET BOOK VALUE

At 31 October 2022

689,725

-

10,456

700,181

At 31 October 2021

836,696

-

7,027

843,723

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

527,204

388,488

Other debtors

69,711

32,446

Prepayments and accrued income

120,046

93,194

716,961

514,128

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

72,786

73,862

Trade creditors

174,093

341,454

Taxes & social security costs

343,011

138,095

Other creditors & accruals

764,457

1,217,420

1,354,347

1,770,831

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Other creditors

245,529

1,044,533

8.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Other loans

266,683

1,331,260

An element of the other loan is secured by a fixed charge over the aircraft to which it relates, whilst the other element is secured by a fixed and floating charge over the undertaking and all its assets.

9.	OTHER FINANCIAL COMMITMENTS

The company had total commitments in respect of operating leases of £21,939 at the year end.