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2023-03-31-accounts

Registered number: 02689238 Charity number: 1010632

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

BRISTOL AERO COLLECTION TRUST

CONTENTS

Page
Trustees' Report 1 - 11
Independent Auditors' Report on the Financial Statements 12 - 15
Consolidated Statement of Financial Activities 16
Consolidated Balance Sheet 17 - 18
Charity Balance Sheet 19 - 20
Consolidated Statement of Cash Flows 21
Notes to the Financial Statements 22 - 44

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The Board of Trustees ("the Board") has pleasure in presenting its annual report together with the audited financial statements for the Trust for the year ended 31 March 2023. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS102) (effective 1 January 2019).

Since the group and the Charity qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Our Vision

An aerospace industrial museum and learning centre that inspires and entertains today’s and future generations through the stories and achievements of Bristol’s aerospace industry - past, present and future.

Page 2

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Reference and administrative details of the Charity, its trustees and advisers

Trustees I Gray CBE, Chair
J Body CBE, Vice Chair
R Pettit, Secretary
A Gregg
L Brodie (resigned 21 March 2023)
P Craig
J Finch
N Philippidis (resigned 24 March 2023)
M Sanders
S Smith
L Burnell (appointed 4 May 2021, resigned 13 May 2022)
S Cordwell (appointed 13 May 2022)
Company registered
number
02689238
Charity registered
number
1010632
Registered office
Aerospace Bristol
Hayes Way
Patchway
Bristol
BS34 5BZ
Patron
HRH The Princess Royal
Vice Patrons
Sir George White Bt.
Mr. Jack Lopresti MP
Independent auditors
Randall & Payne LLP
Chartered Accountants & Statutory Auditors
Shurdington Road
Cheltenham
Gloucestershire
GL51 4GA
Bankers
Lloyds Bank
Canons House
Canons Way
Bristol
BS99 7LB

Page 3

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Objectives and activities

a. Policies and objectives

The Trustees have had due regard, as required by the Charities Act 2011, to the Charity Commission's general guidance on public benefit when reviewing its aims and objectives and in planning its activities.The Objects of the Trust, as stated in its Memorandum of Association are:

1) To advance public education in all matters concerning aircraft and the aircraft and aerospace industries, in particular by the provision of a museum for the public display, restoration and conservation of aircraft, flying boats, missiles, rockets, satellites, other flying aerial or space devices or machines and the component parts of them and drawings or archives and other products of, or relating to the aircraft and aerospace industries; and

2) To promote or undertake research into the history of aircraft design manufacture and operation including the history of the persons and companies involved in these activities and to publish and disseminate the useful results of that research.

The specific public benefits that flow from our Vision and Objects are:

Achievements and performance

a. Main achievements of the Charity

Following a difficult period where the impacts of the global covid pandemic affected the whole museum and charity sector, 2022 was the year that everyone hoped would see visitor return to pre-pandemic levels. Unfortunately this wasn’t quite the case and Aerospace Bristol found itself experiencing a much slower and more cautious return than expected. However, visitor numbers did improve with 77,433 people visiting the museum in the financial period, an increase from 47,228 the previous year.

A significant amount of time and attention was given to completing a staff restructure and a general review of finances and operations, due to a new CEO joining at the start of the financial year and in response to the lower than anticipated visitor numbers. A new strategic management team was established with the CEO and four heads of department, while changes to department structures and visitor operations were also implemented.

Visitor highlights included Summer of Rockets activities running throughout the summer holidays with daily rocket shows, and a programme for the 2023 calendar year being confirmed in plenty of time so that the Mother’s Day lunch under Concorde sold out and the helicopter half term in February was a great success. For Father’s Day a number of classic cars, including a number of Bristol cars, to park up on site for visitors to look at. The day was one of the busiest of the year and the event ran again in 2023 and there are plans to develop it.

There has been a greater focus on commercial targets and an improved retail offer. This has included an expanded range of branded products and unique items, such as a range of Concorde t-shirts designed in-house.

Page 4

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

The Concorde Experience - an exclusive tour of the aircraft and glass of champagne on board - has proved popular and there is an opportunity to introduce more of these experiences.

A new Marketing and Communications Officer has focused on social media, increasing the Trust’s followers by 25%, to 43,000, since October and growing the reach to 435,000 people per month. More targeted marketing to the local community, including a quarterly What’s On leaflet for local residents has had positive results.

In October stakeholders, volunteers and members were invited to celebrate the museum’s fifth birthday at an evening event in the museum gallery. The Engineering Futures appeal was launched during this event with a target to reach £500,000 over five years. This campaign has got off to a good start with South Gloucestershire Council generously committing £120,000 over three years to help increase and support school visits to the museum.

Almost 9000 school visitors were welcomed to the museum in this financial year, more than double the number in the previous year. Feedback regarding the workshops and museum experience has remained consistently excellent.

The Quartet Foundation provided funding for work with local care homes, supporting their residents by providing reminiscence sessions using archive materials and objects to spark memories and good feelings and allow people to access the collection.

A strong and successful partnership with the Air League and University of West of England (UWE) has resulted in a funded aerospace experience day for key stage two pupils allowing them to visit the museum and the UWE Engineering department and discover the career opportunities available in aerospace.

The WWI aircraft exhibition in the museum has been improved, with the Bristol Fighter now suspended from the ceiling, updated interpretation panels and pilot outfits for visitors to try on. It was launched as part of the fifth birthday celebrations in October and has been popular with visitors since then.

Since September 2022 a new church, Concorde Church, set up by the Diocese of Bristol, has been holding their services in the theatre space in the Concorde Hangar. This has worked well and is a great way to invite new and different audiences into the museum buildings. Over 500 people attended a community Christmas service, held under Concorde and there are plans to do it again.

In addition to this, the museum has made spaces available for local community groups to use at a reduced rate and church groups, an English language class and a council support group have all taken advantage of this. It is all part of the aim to be a positive part of the local community and to develop better local links.

The museum was a finalist in the Group Leisure & Travel awards and received a TripAdvisor Travellers' Choice Award (top 10% of attractions) again.

Our Visit England Assessment score was 91% with some very positive feedback and helpful suggestions from reviewers

Staff attended the Group Leisure & Travel Show, and the British Tourism and Travel Show. The organisation continues to be members of Visit West and The Great West Way.

This year the Trust established a number of partnerships with third-party ticket sellers, enabling visitors to buy tickets to Aerospace Bristol through websites such as Get Your Guide, Love to Visit, Tiqets, Musement, Visit Bristol, and the Visit Britain Shop. The partnership with Visit Britain, meant the Trust could take part in Visit Britain marketing campaigns and National Lottery campaigns. In February and March 2023, Visit Britain promoted a fully-funded £20 discount voucher to a closed domestic audience (their UK newsletter subscribers), which resulted in an additional 542 ticket sales. These campaigns run regularly and reach a variety of domestic and international audiences.

Page 5

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

Staff at the museum are pleased to exchange their knowledge and contribute to the wider community through Bristol Heritage Education Forum; Bristol Cultural Education Partnership; ABTEM (Association of British Transport and Engineering Museums) and the Aviation and Aerospace Archives Initiative. Specifically, staff members chair the South Gloucestershire Museums Group.

The Trust is very grateful for the hard work, commitment and loyalty of its staff and volunteers during what has been an exceptionally challenging time. There is a continuing process of recruiting new volunteers and a drive towards increasing diversity, with some 170 volunteers currently contributing to the work of the Trust. The Trust thanks all its members, individual donors, government-backed funders, companies and grant–giving Trusts and Foundations that have supported the museum throughout the year and allowed it to survive and thrive into the future.

b. Fundraising activities and income generation

Aerospace Bristol does all its fundraising work in-house.

The Trust is registered with the Fundraising Regulator for which the voluntary levy is paid. Fundraising activity adheres to the Fundraising Code relating to ethical matters, fundraising standards and best practice. The Trust has received no complaints through the Fundraising Preference Service.

The Trust works hard to ensure that money is managed responsibly and that a good reputation is maintained by being transparent and trustworthy. Feedback is welcomed from donors, supporters and others who are approached for funds and is always taken seriously, serving to develop and improve activities and communications.

The Trust takes very seriously its responsibility towards supporters who may be considered to be in vulnerable circumstances. In line with being a Dementia Friendly Organisation, the Trust will carefully consider donations given by vulnerable adults and when appropriate consider the return of the donation. The team will comply with the donations policy which has been approved by the Board of Trustees.

The Trust is a company limited by guarantee, incorporated on 19 February 1992 with number 02689238 and registered as a charity on 24 April 1992 with number 1010632.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

a. Going concern

Since the 2022 financial year end, discussions and negotiations have been successfully completed to provide the following new financial arrangements:

The Charity held a £1 million loan agreement with the South Gloucestershire Council and during the year has benefitted from a portion of the loan interest and capital due being written off to the value of £315,888. The support package is broken down as follows: £202,438 reducing the capital and £55,850.11 towards the interest accrued 2022-23, £258,288.11 in 2022-23 and the balance £57,599.89 to be applied in 2023-24 to interest accruing in 2023-24.

An overdraft facility of £1.35 million obtained from Lloyds Bank is secured by a guarantee provided by BAE Systems. The current annual overdraft extends to 30th November 2023 but, supported by BAE System’s guarantee, the Trust is due to agree a new 12 months overdraft facility to 30th November 2024 in the coming weeks.

The Trust’s need for the above financial facilities is the result of a shortfall in funding for capital expenditure incurred in the implementation period prior to the opening of the museum in October 2017. This creates a level of uncertainty as the free fund is in deficit, and part of the deficit has to be funded by way of an overdraft facility. Legally an overdraft facility can be withdrawn at short notice even though a new facility has been granted until 30th November 2023 and is secured by BAE Systems’ guarantee.

The Trustees believe that the accounts should continue to be prepared on a “going concern” basis as: They remain confident that the current overdraft arrangements will continue to be made available, thanks to the ongoing support and guarantee provided by BAE Systems.

The results for the year ended 31 March 2023 are positive and visitor admissions have been steadily increasing. School and group bookings are encouraging and there is a cautious return of the museum’s events and hospitality business. Overall income levels are expected to return to near pre-pandemic levels through 2023 and 2024, coupled with reduced operating costs which have been driven over the last eighteen months.

Moving forward, due to increased profitability, the Trust may be able to either reduce its bank overdraft limit or convert the short term overdraft facility into a long term loan arrangement, similar to that agreed with South Gloucestershire Council.

A Covid Insurance Claim of £100k was successfully achieved for loss of income due to Government Restrictions and the museum being closed.

There are adequate resources available to fund the normal on-going activities of the Trust as well as pay down debt.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

b. Principal risks and uncertainties

The Executive Management Committee, Audit Committee, and Board of Trustees monitor the risk management plan on a regular basis. The Audit Committee is specifically responsible for regularly reviewing the risks that the Trust may face, and for ensuring that there are adequate procedures to manage the identified risks. The main risks faced by the Trust are:

Structure, governance and management

a. Constitution

The Trust is a company limited by guarantee, incorporated on 19 February 1992 with number 02689238 and registered as a charity on 24 April 1992 with number 1010632.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management (continued)

b. Organisational structure and decision-making policies

New Articles of Association were adopted in May 2018 to bring them into line with current legislation and best practice, and to provide a suitable corporate governance framework for the future. Members of the Trust are required to renew annually and a register of members is maintained by the Trust.

The Board met formally 10 times during the financial year. Board is responsible for policy, setting strategic objectives and the overall direction of the Trust.

The Trust’s Nominations and Governance Committee remains engaged in a review process to ensure that the Board has the necessary skills, experience and diversity to successfully direct and manage the charity into the future. There is a continual process of improvement in the governance of the charity, with the planned introduction of a Code of Conduct for Trustees, and new Trustees recruited through public advertisement.

The Trust’s Audit Committee meets regularly and has responsibility for reviewing, monitoring and reporting to the Board on financial performance, budgets and forecasts, policies and procedures, risk management, internal controls, external audit and the Annual Accounts.

An Executive Management Team, headed by a CEO, is responsible for the day-to-day operational management of the Trust’s activities.

The Board and its Management are supported by a Heritage & Collections Advisory Group which operates under formal terms of reference and are chaired by experienced Trustees.

Annual accounts are prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Trust's Memorandum and Articles of Association, the Companies Act 2006 and the Statement of Recommended Practice, 'Accounting and Reporting by Charities' (FRS 102 SORP).

Page 9

BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

The Trust’s new Forward Plan sets out its strategic goals and plan of action for the period until 2024 in order to achieve its charitable purposes and maintain its financial sustainability.

To successfully, sustainably and safely operate a nationally-recognised and fully accredited museum

The Trust will aim to:

• Achieve an operating surplus in each year of operations and become debt-free over the next 10 years

• Make improvements against the standards set by Museum Accreditation, maintain a score of 90% or above under the Visit Britain’s Visitor Attraction Quality Scheme and achieve Archive Accreditation.

• Maintain a minimum of 170 volunteers to support the museum’s activities and improve the diversity of our staff, including volunteers, to reflect the community served by the museum.

• Continue to work towards achieving net zero greenhouse gas emissions by 2050 to meet the goal for the UK, as well as aligning with South Gloucestershire’s 2030 Zero Carbon target.

To advance learning, training and skills particularly history and heritage, and in science, technology and engineering, its past, present and future applications.

The Trust will build on its learning and outreach programmes, developing its partnership with local universities, colleges, schools, industry and community organisations. The museum will aim to offer more volunteering opportunities, especially for young people as a means of providing pathways into training and employment and engage with hard to reach audiences.

The Trust will aim to:

• Attract a minimum of 10,000 student visits in each year of operations, with an emphasis on those from disadvantaged backgrounds

• Deliver 200 formal and informal learning events

• Host/lead c.10 major events or projects each year with STEM, community and heritage partners such as universities, industry and professional bodies

• Participate in or attend 5 major learning and/or community projects or events a year

To conserve heritage and enhance the collections for present and future generation to experience, appreciate and enjoy

The Trust will continue the major review of its reserve collection, digitise and catalogue the museum’s nationally significant archive and make our collections increasingly accessible to the public.

The Trust will aim to:

• Make the collections more accessible by documenting objects and archives to SPECTRUM/archive standards, and increase visibility of collections through community outreach, display, social media, digital platforms and engagement with specialist networks.

• Maintain a program of preventative conservation and deliver progress on large scale conservation and restoration projects: Bolingbroke, Fighter, and Freighter.

• Complete a collections review of the reserve collection to ensure the collections are appropriate; dispose of objects if required and identify gaps in the current collection.

• Prepare plans for the development of the next phase of exhibitions, storage and facilities for Building 16R and the ‘Futures’ gallery in Hangar 16S.

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BRISTOL AERO COLLECTION TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees 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 Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity 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 Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, Randall & Payne LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ I Gray CBE Trustee Date:

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BRISTOL AERO COLLECTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRISTOL AERO COLLECTION TRUST

Opinion

We have audited the financial statements of Bristol Aero Collection Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Material uncertainty related to going concern

We draw attention to note 1.2 in the financial statements, which indicates that there is a material uncertainty in respect of going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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BRISTOL AERO COLLECTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRISTOL AERO COLLECTION TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Page 13

BRISTOL AERO COLLECTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRISTOL AERO COLLECTION TRUST (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 Trustees 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 Trustees are responsible for assessing the Group's and the parent charitable 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 Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit planning process gave consideration to the risk of material misstatement in the financial statements, using the calculated materiality level which itself factored in the nature of the Charity’s operations and the interpreted levels of inherent and control risk.

In assessing the risk of fraud we reviewed management’s own assessment of potential for fraud within the entity and reviewed judgements made by management to identify possible bias, in addition to any opportunity and incentive for fraud that are in inherent in the nature of the Charity’s operations. Our detailed testing included review of accounting estimates and judgements and validation of prime ledger entries.

We confirmed our knowledge of the legal and regulatory environment of the entity through discussions with management. We analysed all information available to us in respect of relevant laws and regulations, including the Companies Act 2006, Charities Act 2011 and relevant UK tax legislation and enquired with management as to any possible breached in the aforementioned.

We agreed the accuracy of the financial statements to the supporting management information provided by the client and tested individually on a sample basis the income and expenditure in the financial statements to consider the business rationale behind the transactions and the accuracy of the financial records.

Our audit testing did not identify any issues in respect of the matters listed above, including fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

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BRISTOL AERO COLLECTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRISTOL AERO COLLECTION TRUST (CONTINUED)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Ryan Moore, CA (Senior Statutory Auditor)

for and on behalf of Randall & Payne LLP Chartered Accountants & Statutory Auditors Shurdington Road Cheltenham Gloucestershire GL51 4GA

Date: 29 November 2023

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BRISTOL AERO COLLECTION TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
Total income
Expenditure on:
Raising funds
4
Charitable activities
5
Total expenditure
Net expenditure
Transfers between funds
18
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2023
£
36,515
-
-
36,515
1,839
43,533
45,372
(8,857)
(54,522)
(63,379)
121,882
(63,379)
58,503		 Unrestricted
funds
2023
£
194,063
780,580
2,034,003
3,008,646
1,194,304
2,008,618
3,202,922
(194,276)
54,522
(139,754)
14,460,401
(139,754)
14,320,647		 Total
funds
2023
£
230,578
780,580
2,034,003
3,045,161
1,196,143
2,052,151
3,248,294
(203,133)
-
(203,133)
14,582,282
(203,133)
14,379,150		 Total
funds
2022
£
1,112,600
564,621
535,249
2,212,470
419,185
1,964,428
2,383,613
(171,143)
-
(171,143)
14,753,426
(171,143)
14,582,283

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 22 to 44 form part of these financial statements.

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BRISTOL AERO COLLECTION TRUST REGISTERED NUMBER: 02689238

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
10
Heritage assets
11
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
16
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 42,395
1,514,774
178,942
1,736,111
(3,015,253)		 2023
£
16,094,131
234,992
16,329,123
(1,279,142)
15,049,981
(670,832)
14,379,149
14,379,149
58,503
14,320,646
14,379,149		 41,496
569,368
524,973
1,135,837
(2,284,548)		 2022
£
16,426,835
234,992
16,661,827
(1,148,711)
15,513,116
(930,833)
14,582,283
14,582,283
121,882
14,460,401
14,582,283

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

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

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BRISTOL AERO COLLECTION TRUST REGISTERED NUMBER: 02689238

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ I Gray GBE Trustee Date:

The notes on pages 22 to 44 form part of these financial statements.

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BRISTOL AERO COLLECTION TRUST REGISTERED NUMBER: 02689238

CHARITY BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
10
Heritage assets
11
Investments
12
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
16
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 1,078,156
67,924
1,146,080
(2,491,874)		 2023
£
16,090,934
234,992
1
16,325,927
(1,345,794)
14,980,133
(670,832)
14,309,301
14,309,301
58,503
14,250,798
14,309,301		 536,286
254,445
790,731
(1,975,497)		 2022
£
16,422,785
234,992
1
16,657,778
(1,184,766)
15,473,012
(930,833)
14,542,179
14,542,179
121,882
14,420,297
14,542,179

The Charity's net movement in funds for the year was £ (232,878) (2022 - £(210,399)) .

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 151 of the Charities Act 2011.

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

Page 19

BRISTOL AERO COLLECTION TRUST REGISTERED NUMBER: 02689238

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ I Gray CBE

Date:

The notes on pages 22 to 44 form part of these financial statements.

Page 20

BRISTOL AERO COLLECTION TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Increase/(repaid) on bank overdraft
Increase / (repayments) of borrowing
Release of South Gloucestershire Council Loan (Note 16)
Dividend received from BAC Trading Limited
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 22 to 44 form part of these financial statements		 2023
£
(30,738)
(56,190)
(56,190)
(34,738)
(35,000)
(224,998)
35,633
(259,103)
(346,031)
524,973
178,942		 2022
£
247,746
(311,977)
(311,977)
86,474
130,067
-
-
216,541
152,310
372,663
524,973

Page 21

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK (FRS 102) and the Companies Act 2006.

Bristol Aero Collection Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

Page 22

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

1.2 Going concern

Since the 2022 financial year end, discussions and negotiations have been successfully completed to provide the following new financial arrangements:

The Charity held a £1 million loan agreement with the South Gloucestershire Council and during the year has benefitted from a portion of the loan interest and capital due being written off to the value of £315,888. The support package is broken down as follows: £202,438 reducing the capital and £55,850.11 towards the interest accrued 2022-23, £258,288.11 in 2022-23 and the balance £57,599.89 to be applied in 2023-24 to interest accruing in 2023-24.

An overdraft facility of £1.35 million obtained from Lloyds Bank is secured by a guarantee provided by BAE Systems. The current annual overdraft extends to 30th November 2023 but, supported by BAE System’s guarantee, the Trust is due to agree a new 12 months overdraft facility to 30th November 2024 in the coming weeks.

The Trust’s need for the above financial facilities is the result of a shortfall in funding for capital expenditure incurred in the implementation period prior to the opening of the museum in October 2017. This creates a level of uncertainty as the free fund is in deficit, and part of the deficit has to be funded by way of an overdraft facility. Legally an overdraft facility can be withdrawn at short notice even though a new facility has been granted until 30th November 2023 and is secured by BAE Systems’ guarantee.

The Trustees believe that the accounts should continue to be prepared on a “going concern” basis as:

They remain confident that the current overdraft arrangements will continue to be made available, thanks to the ongoing support and guarantee provided by BAE Systems.

The results for the year ended 31 March 2023 are positive and visitor admissions have been steadily increasing. School and group bookings are encouraging and there is a cautious return of the museum’s events and hospitality business. Overall income levels are expected to return to near prepandemic levels through 2023 and 2024, coupled with reduced operating costs which have been driven over the last eighteen months.

Moving forward, due to increased profitability, the Trust may be able to either reduce its bank overdraft limit or convert the short term overdraft facility into a long term loan arrangement, similar to that agreed with South Gloucestershire Council.

A Covid Insurance Claim of £100k was successfully achieved for loss of income due to Government Restrictions and the museum being closed.

There are adequate resources available to fund the normal on-going activities of the Trust as well as pay down debt.

Page 23

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

1.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 24

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

1.5 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.#KWbU#54@AAd

Depreciation is provided on the following bases:

The lease of the site is for 150 years ending December 2166. Leasehold land and buildings are reviewed annually by the Trustees for any indication of impairment.

Only assets costing more than £1,000 are capitalised.

1.6 Heritage assets

Where heritage assets have been acquired and there are records available, these are recognised at cost together with direct restoration costs. Where no such records are available, the heritage assets are not recognised on the balance sheet on the grounds that the cost of obtaining this information would outweigh the benefit in doing so.

The heritage assets acquired are considered to have indefinite lives by the Trustees and therefore are not depreciated. Annually at the reporting date, the heritage assets are reviewed by the Trustees for indications of impairment.

Conservation costs are written off each year as an expense.

1.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 25

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. Accounting policies (continued)

1.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

1.12 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.13 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

1.14 Fund accounting

General funds (free funds) are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 26

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Income from donations and legacies

Donations and grants
Sponsorship
3.
Income from charitable activities
Visitor admissions
Filming
Total 2023
4.
Expenditure on raising funds
Costs of raising voluntary income		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
36,515
186,563
-
7,500
36,515
194,063
Unrestricted
funds
2023
£
749,256
31,324
780,580		 Total
funds
2023
£
223,078
7,500
230,578
Total
funds
2023
£
749,256
31,324
780,580		 Total
funds
2022
£
1,033,926
78,674
1,112,600
Total
funds
2022
£
561,443
3,178
564,621
Cost of generating donated income
Costs of raising voluntary income - wages and
salaries
Costs of raising voluntary income - NI
Costs of raising voluntary income - pension
costs		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
931
34,292
908
45,472
-
4,161
-
946
1,839
84,871		 Total
funds
2023
£
35,223
46,380
4,161
946
86,710		 Total
funds
2022
£
40,910
61,381
5,153
1,210
108,654

Page 27

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

4. Expenditure on raising funds (continued)

Other trading expenses

Unrestricted
funds
2023
£
Cost of sales - operations of BAC Trading Limited
1,558,515
Intergroup activity
(450,657)
Cost of sales - operations of BAC Trading Limited
1,575
1,109,433		 Total
funds
2023
£
1,558,515
(450,657)
1,575
1,109,433		 Total
funds
2022
£
455,789
(145,258)
-
310,531

5. Analysis of expenditure on charitable activities

Summary by fund type

Visitor services
Learning and volunteering
Museum facilities management and
development costs
Collection conservation and management		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
9,640
444,801
3,944
181,957
27,088
1,249,859
2,861
132,001
43,533
2,008,618		 Total
2023
£
454,441
185,901
1,276,947
134,862
2,052,151		 Total
2022
£
522,113
135,368
1,103,126
203,821
1,964,428

Page 28

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Analysis of expenditure by activities

Visitor services
Learning and volunteering
Museum and facilities management and
development costs
Collection conservation and management		 Activities
undertaken
directly
2023
£
239,473
97,963
672,903
71,067
1,081,406		 Support
costs
2023
£
214,968
87,938
604,045
63,794
970,745		 Total
funds
2023
£
454,441
185,901
1,276,948
134,861
2,052,151		 Total
funds
2022
£
522,113
135,368
1,103,126
203,821
1,964,428

Page 29

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Other direct
costs		 Visitor
services
2023
£
223,456
16,017
239,473		 Learning and
volunteering
2023
£
90,240
7,723
97,963		 Museum and
facilities
management and
developent costs
2023
£
142,253
530,650
672,903		 Collection
conservation and
management
2023
£
61,741
9,326
71,067		 Total
funds
2023
£
517,690
563,716
1,081,406

Prior year analysis of Direct Costs

Total staff costs for 2022 were £558,459 Other direct costs for 2022 were £488,424

Analysis of support costs

Staff costs
Other support
costs
Governance
costs		 Visitor
services
2023
£
66,423
141,319
7,226
214,968		 Learning and
volunteering
2023
£
27,172
60,766
-
87,938		 Museum and
facilities
management and
development costs
2023
£
186,645
417,400
-
604,045		 Collection
conservation and
management
2023
£
19,712
44,083
-
63,795		 Total
funds
2023
£
299,952
663,568
7,226
970,746

Prior year analysis of Support Costs

Total staff costs for 2022 were £282,550 Other direct costs for 2022 were £618,991 Governance costs for 2022 were £16,004

Page 30

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. Auditors' remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts (all services) 8,750 8,770
Fees payable to the Charity's auditor in respect of:
Audit of the subsidiary financial statements 3,000 -
All non-audit services not included above 4,200 4,870

8. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2023
£
793,245
61,837
14,048
869,130		 Group
2022
£
830,209
63,501
15,045
908,755		 Charity
2023
£
793,245
61,837
14,048
869,130		 Charity
2022
£
830,209
63,501
15,045
908,755

No redundancy payments were made during the year ended 31 March 2022 (2021: £11,548 relating to 3 employees). All amounts were recognised within expenditure during the year with no amounts outstanding at the year end.

The average number of persons employed by the Charity during the year was as follows:

Group Group
2023 2022
No. No.
Employees 47 48

The average number of employees (headcount) during the year was 47 (2022 - 48). The employees of the Group are employed by the Charity, a charge of employee time that is utilised by the trading subsidiary is invoiced to BAC Trading Limted as a management charge.

Page 31

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 1 -

The total aggregate employment benefits, including employer pension costs and employer's national insurance contributions, received by key management personnel were £334,774 (2022 - £359,561).

9. Trustees' remuneration and expenses

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity for their work as Trustees. However, the CEO, Sally Cordwell, who was also a Trustee during the year, did receive remuneration and out of pocket expenses in fulfilling her full time management role. Remuneration of a Trustee is permitted under the governing document and with an order from the Charity Commission. The value of Trustees' remuneration and other benefits was as follows:

2023 2022
£ £
S Cordwell Remuneration 84,006 -
Pension contributions paid 991 -

During the year ended 31 March 2023, no Trustee expenses have been incurred (2022 - £NIL) .

Page 32

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. Tangible fixed assets

Group

Cost or valuation
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Long-term
leasehold
property
£
13,814,688
53,409
13,868,097
395,345
92,227
487,572
13,380,525
13,419,343		 Plant and
machinery
£
34,776
-
34,776
21,732
4,968
26,700
8,076
13,044		 Fixtures and
fittings
£
691,347
-
691,347
456,443
98,764
555,207
136,140
234,904		 Office
equipment
£
1,011
198
1,209
576
146
722
487
435		 Computer
equipment
£
144,215
2,583
146,798
30,097
22,199
52,296
94,502
114,118		 Other fixed
assets
£
3,411,847
-
3,411,847
766,855
170,592
937,447
2,474,400
2,644,992		 Total
£
18,097,884
56,190
18,154,074
1,671,048
388,896
2,059,944
16,094,130
16,426,836

Page 33

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Long-term
leasehold
property
£
13,814,688
53,409
13,868,097
395,345
92,227
487,572
13,380,525
13,419,343		 Plant and
machinery
£
34,776
-
34,776
21,732
4,968
26,700
8,076
13,044		 Fixtures and
fittings
£
686,454
-
686,454
454,721
98,065
552,786
133,668
231,733		 Office
equipment
£
1,011
198
1,209
576
146
722
487
435		 Computer
equipment
£
143,129
2,583
145,712
29,890
22,044
51,934
93,778
113,238		 Other fixed
assets
£
3,411,847
-
3,411,847
766,855
170,592
937,447
2,474,400
2,644,992		 Total
£
18,091,905
56,190
18,148,095
1,669,119
388,042
2,057,161
16,090,934
16,422,785

Page 34

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10. Tangible fixed assets (continued)

Charity (continued)

The National Heritage Memorial Fund has a £4,682,000 legal charge over the assets in the event of a sale. See note 20 for additional details.

South Gloucestershire Council has a £1 million floating legal charge over the assets of the Trust in relation to their outstanding loan.

11. Heritage assets

Group and Charity

Assets recognised at cost

Heritage assets Total 2023 2023 £ £ Carrying value at 1 April 2021 and 31 March 2022 234,992 234,992 234,992 234,992

Page 35

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

12. Fixed asset investments

Charity
Cost or valuation
At 1 April 2022
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Investments
in
subsidiary
companies
£
1
1
1
1

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Country Principal activity Class of Holding
shares
BAC Trading Limited England and To carry out retail, Ordinary 100%
Wales events and catering
activities within
facilities provided by
Bristol Aero Collection
Trust.

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ for the year £
£
BAC Trading Limited 1,625,467 (1,560,090) 65,377 69,847

Page 36

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. Stocks

Group Group
2023 2022
£ £
Goods for resale 42,395 41,496

14. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Group
2023
£
456,869
942,657
115,248
1,514,774		 Group
2022
£
106,041
339,385
123,942
569,368		 Charity
2023
£
39,744
927,026
111,386
1,078,156		 Charity
2022
£
91,022
333,972
111,292
536,286
15.
Creditors: Amounts falling due within one year
Group
2023
£
Bank overdrafts
1,161,722
Covid 19 'Bounce Back' loan
10,000
Council loan
50,000
Trade creditors
314,781
Other taxation and social security
957,838
Other creditors
94,393
Accruals and deferred income
426,519
3,015,253		 Group
2022
£
1,196,460
10,000
50,000
257,424
341,760
93,658
335,246
2,284,548		 Charity
2023
£
1,161,722
10,000
50,000
118,069
957,838
94,393
99,852
2,491,874		 Charity
2022
£
1,196,460
10,000
50,000
171,457
341,760
93,659
112,161
1,975,497

16. Creditors: Amounts falling due after more than one year

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Covid 19 'Bounce Back' loan 20,833 30,833 20,833 30,833
Council loan 649,999 900,000 649,999 900,000

Page 37

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

16. Creditors: Amounts falling due after more than one year (continued)

Group
2023
£
670,832		 Group
2022
£
930,833		 Charity
2023
£
670,832		 Charity
2022
£
930,833

A bank loan with capital totalling £1,000,000 from Lloyds Bank was due for repayments on 30 April 2019 but was converted to an overdraft by the bank. The overdraft is guaranteed by BAE Systems who have an indemnity agreement with the Charity. This facility is extended until 30 November 2024 and, as an overdraft, is repayable on demand. The total facility available as at 31 March 2023 is £1,350,000.

The council loan from South Gloucestershire Council is secured by a floating legal charge on the Charity's assets and was originally due for repayment on 30 March 2019. During the year the South Gloucestershire Council waived repayment of a portion of the loan totalling £315,888. Of which, £258,288 in 2022-23 and the balance of £57,599.89 is to be applied to interest accruing in 2023-24. In accordance with FRS 102 and the SORP, this release of the liability has been accounted for as donation income in the period. The total amount remaining on the Council Loan as at 31 March 2023 is £789,234.

17. Financial instruments

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 178,942 524,973 67,924 254,445

Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand.

Page 38

BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General Funds - all funds
Share capital
Reserves (BAC Trading
Limited)
Total Unrestricted funds
Restricted funds
Aerospace Bristol fund
Restoration fund
Physcial and Digital
Infrastructure fund
Other restricted funds
Total of funds		 Balance at 1
April 2022
£
16,657,777
(2,237,481)
1
40,104
(2,197,376)
14,460,401
24,727
19,288
18,802
59,065
121,882
14,582,283		 Income
£
-
1,383,178
-
1,625,467
3,008,645
3,008,645
-
-
-
36,515
36,515
3,045,160		 Expenditure
£
(388,041)
(1,254,791)
-
(1,560,090)
(2,814,881)
(3,202,922)
(2,336)
(2,406)
(18,801)
(21,829)
(45,372)
(3,248,294)		 Transfers
in/out
£
56,190
33,964
-
(35,632)
(1,668)
54,522
(22,105)
-
-
(32,417)
(54,522)
-		 Balance at
31 March
2023
£
16,325,926
(2,075,130)
1
69,849
(2,005,280)
14,320,646
286
16,882
1
41,334
58,503
14,379,149

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BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General Funds
Share capital
Reserves (BAC Trading
Limited)
Total Unrestricted funds
Restricted funds
Aerospace Bristol fund
Restoration fund
Physcial and Digital
Infrastructure fund
Other restricted funds
Total of funds		 Balance at
1 April 2021
£
16,722,015
(2,408,546)
1
846
(2,407,699)
14,314,316
132,660
22,083
244,000
40,367
439,110
14,753,426		 Income
£
-
1,624,851
-
495,046
2,119,897
2,119,897
-
-
-
92,572
92,572
2,212,469		 Expenditure
£
(374,814)
(1,430,458)
-
(455,788)
(1,886,246)
(2,261,060)
(10,128)
(2,795)
(50,685)
(58,944)
(122,552)
(2,383,612)		 Transfers
in/out
£
310,576
(23,328)
-
-
(23,328)
287,248
(97,805)
-
(174,513)
(14,930)
(287,248)
-		 Balance at
31 March
2022
£
16,657,777
(2,237,481)
1
40,104
(2,197,376)
14,460,401
24,727
19,288
18,802
59,065
121,882
14,582,283

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BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds		 Balance at 1
April 2022
£
16,657,777
(2,197,376)
121,882
14,582,283		 Income
£
-
3,008,645
36,515
3,045,160		 Expenditure
£
(388,041)
(2,814,881)
(45,372)
(3,248,294)		 Transfers
in/out
£
56,190
(1,668)
(54,522)
-		 Balance at
31 March
2023
£
16,325,926
(2,005,280)
58,503
14,379,149

Free funds (General Funds)

The free funds of the Charity are used in line with its purposes at the discretion of the Trustees. The free funds of the Charity are in deficit at the year-end. Usually the creation of a designated fund cannot result in a negative general funds position. However, the Trustees have chosen to show the net book value of the tangible fixed assets and heritage assets as a designated fund in order to clearly show the negative free reserves position of the Charity.

Fixed asset fund (Designated Funds)

This fund, designated by the Trustees, is set aside at the net book value of the charitable fixed assets and heritage assets.

Restricted Funds

Aerospace Bristol fund

The fund incorporates all the restricted funds received specifically relating to creating Aerospace Bristol less related overhead costs and capital transfers to the Fixed asset fund. The remaining restricted funds are held to complete outstanding building work relating to building 16M.

Restoration fund

Previously, individual funds were established for the restoration of a Bolingbroke aircraft, a Bristol Fighter F2B aircraft and additionally, in 2017, funds were established for the acquisition of the Bristol Freighter. The funds relating to the Bristol Fighter and Bristol Freighter were fully utilised in 2018 and prior years. This, therefore leaves funds specifically restricted for the restoration of the Bolingbroke aircraft.

Physical and Digital Infrastructure fund

This fund is to ensure that the charity can react and make critical adaptations to the museum space and digital infrastructure. It has enabled the charity to reopen the museum safely in May 2021 and restart its charitable activities with added breadth.

Other Restricted funds

This includes a number of grants received for specific short term projects and activities.

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BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

19. Summary of funds (continued)

Summary of funds - prior year

Balance at
Balance at Transfers 31 March
1 April 2021 Income Expenditure in/out 2022
£ £ £ £ £
Designated funds 16,722,015 - (374,814) 310,576 16,657,777
General funds (2,407,699) 2,119,897 (1,886,246) (23,328) (2,197,376)
Restricted funds 439,110 92,572 (122,552) (287,248) 121,882
14,753,426 2,212,469 (2,383,612) - 14,582,283
Analysis of net assets between funds
Analysis of net assets between funds - current year
Restricted Unrestricted Total
funds funds funds
2023 2023 2023
£ £ £
Tangible fixed assets - 16,094,131 16,094,131
Heritage assets - 234,992 234,992
Current assets 58,503 1,677,608 1,736,111
Creditors due within one year - (3,015,253) (3,015,253)
Creditors due in more than one year - (670,832) (670,832)
Difference - (1) 1
Total 58,503 14,320,645 14,379,148

20. Analysis of net assets between funds

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BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Heritage assets
Current assets
Creditors due within one year
Creditors due in more than one year
Other unallocated
Total		 Restricted
funds
2022
£
-
-
121,882
-
-
-
121,882		 Unrestricted
funds
2022
£
16,426,836
234,992
1,013,955
(2,284,548)
(930,833)
(1)
14,460,401		 Total
funds
2022
£
16,426,836
234,992
1,135,837
(2,284,548)
(930,833)
(1)
14,582,283

21. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Decrease/(increase) in stocks
Increase in debtors
Increase in creditors
Net cash provided by/(used in) operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2023
£
(203,133)
388,896
(899)
(945,406)
729,804
(30,738)
Group
2023
£
178,942
178,942		 Group
2022
£
(171,143)
375,568
20,509
(300,502)
419,719
344,151
Group
2022
£
524,973
524,973

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BRISTOL AERO COLLECTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

23. Analysis of changes in net debt

Cash at bank and in hand
Bank overdrafts repayable on demand
Debt due within 1 year
Debt due after 1 year		 At 1 April
2022
£
524,973
(1,196,460)
(60,000)
(930,833)
(1,662,320)		 Cash flows
£
(346,031)
34,738
-
260,001
(51,292)		 At 31 March
2023
£
178,942
(1,161,722)
(60,000)
(670,832)
(1,713,612)

24. Contingent liabilities

In the event of the sale of the property, the National Lottery Heritage Fund have the right to receive £4,682,000 for a period of 20 years from the completion and opening of the museum which occured in October 2017. No provision has been made in respect of the grant as the conditions are deemed unlikely to occur.

25. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £14,048 (2022 - £15,045).

26. Operating lease commitments

The Group and the Charity had no commitments under non-cancellable operating leases at 31 March 2023.

27. Related party transactions

BAC Trading Limited is the trading subsdiary of Bristol Aero Collection Trust. In the financial year ended 31 March 2022 BAC Trading Limited made a gift aid donation of £35,633 (2022 : £nil) to Bristol Aero Collection Trust. In addition to this, BAC Trading Limited paid management charges of £450,657 (2022: £145,258) to the Charity in respect of rent and overheads. At the year end, £nil was due to the Charity (2022: £93,145) from the subsidiary in respect of short-term intercompany loans. There were no other related party transactions other than those disclosed in the accounts.

Page 44