OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Vulcan To The Sky Trust

2023-10-31-accounts

Charity Registration No. 1101948

Company Registration No. 04478686 (England and Wales)

VULCAN TO THE SKY TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

VULCAN TO THE SKY TRUST

CONTENTS

Page
Trustees' report 1 – 17
Independent auditors' report 18 – 20
Consolidated statement of financial activities 21
Group and charity balance sheet 22 – 23
Group statement of cash flows 24
Notes to the financial statements 25 – 44

VULCAN TO THE SKY TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 OCTOBER 2023

1. OBJECTIVES AND ACTIVITIES OF THE TRUST

The principal objects of the Vulcan to the Sky Trust (“VTST”, “the Trust”) are to:

The Trust provides these services throughout the United Kingdom.

Ensuring that VTST delivers on its objects

The Trust reviews its objectives and activities regularly throughout the year, looking at the success of its activities and the benefits that the Trust has brought to the public. The Trustees refer to the advice contained in the Charity Commission’s general guidance on public benefit when deciding on its plans and activities. The particular public benefits generated from our work are detailed later in this report.

Background

Following a ten-year restoration project, Avro Vulcan XH558 (“XH558”) returned to flight on 18[th] October 2007, having previously been grounded on 23[rd] March 1993 at the end of its RAF career. The Trust was granted approval by the Civil Aviation Authority (“CAA”) to operate Vulcan XH558 under UK Civil Regulations on 2[nd] July 2008. The aircraft was granted a CAA Permit to Fly on 3[rd] July 2008, a condition of which was the continuing contractual support from the aircraft’s Engineering Authority, Marshall Aerospace. This was a first for a complex category ex-military aircraft on the UK Civil Register, and marked the successful completion of the world’s most complex aircraft restoration project.

Subsequently, Vulcan XH558 was presented by the Trust to the public at air shows and events around the UK in each year following, supported by educational and interpretational activities.

In April 2011, XH558 flew in to Robin Hood Doncaster Sheffield Airport (“DSA”), and Hangar 3 there became its home operating base.

In January 2015, the Trust received notice from Marshall Aerospace, BAE Systems and Rolls-Royce that at the end of 2015, they would collectively be withdrawing the Engineering and Design Authority support required as a condition of the aircraft’s Permit to Fly, thereby consequently bringing to the end the flying life of Vulcan XH558. The aircraft’s final flight took place on Wednesday 28[th] October 2015 at Doncaster Sheffield Airport.

Future planning and its context

Grounded at DSA since autumn 2015, nevertheless Vulcan XH558 has been maintained in a safe ground-running and taxying condition, and continues to attract much enthusiastic support from the public.

Until the beginning of 2017, the public were able to come to see XH558 in Hangar 3 at DSA on a pre-booked basis, receive educational guided tours of the aircraft, hear talks about the Vulcan and its history, and buy merchandise from

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

an in-hangar shop. Much publicity was gained by offering the large space in the hangar for both private and corporate events “under the wings” of the Vulcan.

However, from the beginning of 2017, the Trust was forced to stop public visits because the airport required the hangar space for other uses. This effectively stopped the major revenue-earning activities of the Trust, and severely curtailed its main public benefit delivery activities. As a result of this forced cessation of public tours and events, the Trust had to rapidly restructure to match its costs with the much lower revenues expected.

In discussions with DSA, their management team were made aware of the impact the loss of Hangar 3 had on the VTST’s business model and the loss of an appropriate environment to preserve an asset of significant heritage value. They decided to purchase land specifically to provide a site for a new hangar for this purpose from Anglian Water in April 2018. This was on the basis that the VTST would raise the necessary capital funding for the build.

Plans for a New Hangar were drawn up with significant help from local companies, Doncaster Municipal Borough Council and the Airport. In December 2017, the Trust received full planning approval for the new hangar from the council. DSA offered the Trust a lease on a site to build a new hangar specifically designed for its tour, event and engineering activities. Capital quotations were sought and an initial outline build cost of £4 million was set as a target, which due to the passage of time as set out below rose to £4.6million.

A comprehensive business plan for the New Hangar was developed using the experience gained from the Trust’s visitor and event activities in Hangar 3. This showed that the facility would be financially viable and could be an exciting new visitor attraction for South Yorkshire. The plan was independently tested and indeed re-visited with respect to likely visitor number impact in a post Covid-19 world.

The VTST Board then engaged in April 2019 with a commercial property developer based in Yorkshire who worked with investors who were looking to support a project with “Green” credentials and skills with education objectives. A draft lease was provided by DSA but unfortunately the developer withdrew and 18 months had elapsed since the purchase of the land by DSA.

As DSA had no return on their investment, it was now vital that a new approach was found and with the assistance of interested parties, the VTST developed a modified funding model for the hangar. £2.4 million (52%) of the capital funding for the hangar build would be via a commercial mortgage (subject to negotiation) and the balance (£2.2 million) via a public appeal, “Operation Safeguard”, and this was launched in October 2020. DSA instructed their lawyers to draw up an “Agreement for Lease” (AfL) in November 2020 that would form the full lease once funding was in place; and it was signed on the 19[th] October 2021. A condition of the AfL was a deadline that stated the funds needed to be in place by the 31[st] December 2021 or significant progress towards those funds being secured had been demonstrated.

Following a review into the progress of raising the necessary funds with DSA after 31[st] December 2021, the charity was informed that the deadline would not be extended, and the AfL had been terminated. All fund raising was stopped as, from this point, the VTST could not demonstrate tenure to the land.

In June 2022 the VTST signed a “parking lease” with DSA where the aircraft’s tenure on site was secured until the end of June 2023; the original lease stated that “both aircraft will need to be taken off the airfield and removed from DSA by 30th June 2023”.

In July 2022 we were informed that the Board of Doncaster Sheffield Airport had begun a review of strategic options for the Airport. The review followed lengthy deliberations by Peel Land & Property and the management at DSA which reluctantly concluded that aviation activity on the site may no longer be commercially viable. This was subsequently publicly confirmed and DSA closed as a live airfield in November 2022.

Since the announcement of the closure of the airport, the VTST maintained discussions with Peel L&P and in March 2023, preliminary talks were held to explore any opportunities for the iconic aircraft to remain in Doncaster for a longer period. Following these discussions with Peel L&P, the lease was extended.

The discussions with Peel L&P led to an ongoing feasibility study of using one of the extant hangars at DSA as a longer-term home for XH558. By the end of July 2023, the explorations on the hangar could no longer progress due to the uncertain future of ownership. The City of Doncaster Council were in negotiations with Peel Group to lease the airport site. These negotiations were concluded in March 2024 with the agreement of a lease for 125 years and the City of Doncaster Council will be reopening the airport.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

At the time of this report both aircraft remain on site under a “Tenancy at Will”.

Initially, when it became apparent that our future was likely to be away from DSA, we began the process of finding a safe and permanent home for XH558. The Trust reviewed options that included;

In the event of having to dismantle and move the aircraft though, VTST have interested landlords for both options and the potential sites would all include excellent public access to the aircraft as a static exhibit in a New Hangar with as much functionality as possible. However, we fully understand that dismantling XH558 would end her days as a “live” airframe as defined by full engine functionality.

We are also mindful the English Electric Canberra WK163 will still need to be moved to a site where restoration is possible – i.e., a live airfield with maintenance facilities and this restoration project is still a core objective for the Board of Trustees; there are currently two potential sites under consideration.

As explained in note 23 of the financial statements, VTST may be required to repay some or all of a grant from the National Heritage Lottery Fund (“NHLF”) in the event of the sale, disposal or mortgage charge of XH558 without prior approval of the NHLF.

VTST met with the NHLF in May 2023 who were fully briefed on our options and future plans at that moment in time. They continue to be supportive, but given our current agreement with them, they advised us to submit a project enquiry form that will enable them to support the VTST in assessing the options for relocation in the best interest of preserving the asset. Following the submission project enquiry form we were invited to submit a funding application to request support from the NHLF in respect of governance and business plan development. This bid was successful and work on governance development and business planning is progressing. At the time of drafting this report, the NHLF liaison is still in progress and we expect a meeting in the near future to update the team on the development of the City of Doncaster Council now being landlords of the site.

The Heritage Lottery Fund (HLF), in the form of its legal entity the National Heritage Lottery Fund (NHLF), maintains a charge over the Avro Vulcan XH558 on a reducing amount based on the HLF grant and the flying life of the aircraft, which is covered by the aircraft’s Hull insurance. The contract between the VTST and the NHLF is for 80 years from 2005, requiring the Trust to deliver its public benefits based on the aircraft over this time. When XH558 finally ended its flying life, it had completed 346 hours flying since its return to flight in 2007, successfully exceeding its flying commitment to the NHLF of 250 flying hours.

Operation Safeguard

As noted in the Trustees Report for the years ending 2021 and 2022, income donated for “Operation Safeguard”, in accordance with the terms and conditions of the appeal, was restricted for the purpose of building The Vulcan Experience at DSA. Following the termination of the AfL, the original planned Vulcan Experience at DSA could no longer be built, which therefore resulted in the Operation Safeguard appeal failing. We have taken legal advice from specialist lawyers in respect of this and followed their advice. We declared a “serious incident” with the Charity Commission, a statutory requirement in the event of a “failed appeal”. Protocols have been followed where the failed appeal was publicly advertised and all donors were contacted and offered either a full refund or the opportunity to allow VTST to “retain” their donation.

By May 2022 63% of donors had responded with 89% agreeing to the VTST’s retention of the donated funds. The charity applied to the Charity Commission to make a “scheme” to widen the scope of these funds and allow these donations to be used in pursuance of its charitable objects. On the 21st June 2022 the Charity Commission authorised a scheme which allows the Trustees to use £323,400 of disclaimed / retained funds to preserve and protect Avro Vulcan XH558 and return her to full working order for the benefit of the public and to demonstrate and display her to the public and to conserve and return to full working order. On the 5th December 2022 the Charity Commission

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

authorised a second scheme which allows the Trustees to use £197,530 of disclaimed / retained funds to preserve and protect Avro Vulcan XH558 and return her to full working order for the benefit of the public and to conserve, demonstrate and display her to the public. The second scheme also stipulated that if a donor requests that their donation(s) to the appeal be returned to them by the charity, the Commission may authorise the return of such donation(s) in writing. Where a donation has been returned in accordance with this provision, this scheme will not be applicable to such donation(s) and the Commission’s written authorisation to return donation(s) will have no effect on the continuing validity of this scheme. On the 18th January 2023 the Charity Commission authorised a third scheme which allows the Trustees to use £8,370 of disclaimed / retained funds to preserve and protect Avro Vulcan XH558 and return her to full working order for the benefit of the public and to conserve, demonstrate and display her to the public. The Charity Commission confirmed that the third and final scheme effectively and successfully concluded all the legal protocols on the failed appeal procedure. The Charity Commission specifically excluded education costs in the scheme and we have stayed within that remit.

Due to the failed appeal highlighting that education – specifically STEM education – wasn’t listed as one of our charitable objects, we undertook the process of an Object Clause Change. The Trust submitted an application for consent to the Charity Commission in January 2024. On Thursday 6 June 2024 we received an email from the Charity Commission advising that our request has been successful and we now have the formal consent from the Charity Commission under s.198(2)(a) of the Charities Act 2011 to amend the charity's objects. It is now necessary to pass a members’ resolution to adopt the changes and once all due process is complete object no. 5 will be; To advance the education of the general public in the subjects of science, technology, engineering and mathematics (‘STEM’ subjects).

Other Activities

The Trust, continues to plan for its future activity taking into account the current status. In accordance with its objects, the Trust broadened its scope and interests by the acquisition of another aircraft in May 2016; an important English Electric Canberra aircraft that broke the world altitude record in 1957.

The Trust’s activities include charitable fundraising in many different ways to ensure that sufficient funds are available to allow the continuation of the Trust’s public benefit delivery.

The Trust has become much more reliant on volunteer support. A team of appropriately-skilled volunteers has been trained as the Vulcan ground support team, to permit demonstrations of the aircraft with its engines and systems running, and slow taxying under its own power while this still remains an option.

The Trust continues to carry out limited public benefit delivery activities at sites remote from the airport, including talks and presentations, and a presence at events such as air shows.

The Trust rents an industrial unit at DSA that also is the registered Head Office of the VTST – 4 Delta Court, Third Avenue, Doncaster Sheffield Airport, Doncaster DN9 3GN. This building is used for VTS Enterprises, the VTST’s wholly owned retail subsidiary for merchandise stores, order fulfilment and also the management of all VTST fundraising fulfilment including donor and customer queries. It also houses small engineering bays, spares and stores required to keep Vulcan XH558 in full working order. Stores for Canberra WK163’s restoration to flight and nonessential XH558 spares are managed in a separate location near to Stratford-upon-Avon. At the end of December 2022, the administrative finance and HR functions were consolidated into the Delta Court Head Office and the small serviced office space in Hinckley was closed down.

VTST’s subsidiary, The Vulcan Operating Company Ltd (“VOC”), relinquished its CAA Maintenance Approvals in 2018, but is maintaining its safety management and quality procedures for heritage aircraft to ensure that XH558 can be operated safely.

VTST also has undertaken activities to provide interpretation of the aircraft under its care, and to educate a broad range of audiences on the Cold War: the Avro Vulcan and the English Electric Canberra including their history, design & engineering. These activities have included giving educational talks, and planning and providing school activities in line with the National Curriculum.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

2. ACHIEVEMENTS AND PERFORMANCE OF THE TRUST

The move from Hangar 3 in February 2017 to a location which does not allow public access caused the suspension of much of the Trust’s public benefit delivery activities. This has effectively put the Trust’s future at risk because of the financial impact of the cessation of revenue earning tours and events.

Following this event, a significant restructure of the charity was undertaken, so that going forward the much-reduced cost structure can be sustained by the forecast level of income. The support of our current donors is fundamental to the charity’s future until our new trading model is established in our planned new and permanent home especially as, inevitably securing a hangar at DSA or dismantling and move will bring significant incremental costs.

Public Benefit Delivery: Conservation of Avro Vulcan XH558 in full working order, and of other heritage aircraft and engineering artefacts

Maintenance on Vulcan XH558 is carried out following the original RAF maintenance procedures. For safety, the explosives associated with the ejection seats and canopy gun have been removed, but in all other aspects, Vulcan XH558 remains serviceable. For avoidance of doubt – moving XH558 to a new site may involve dismantling and rebuilding the airframe and the functionality will be much reduced with no live engines.

In May 2016 the Trust acquired an important English Electric Canberra aircraft, serial number WK163, together with a large amount of spare equipment including engines. An initial survey showed that the aircraft is in generally good shape, however there are some areas of corrosion on the fuselage, and the cockpit requires a complete rebuild (or possibly replacement with another complete cockpit). Also, the five Avon 100-series engines acquired at the same time need a full service, and the completion of a series of Mandatory Permit Directives required on these engines by the CAA.

In November 2020, the Trust purchased a second Canberra, WT327, at auction in the USA that included WK163’s original cockpit which brings both a significant technical benefit and a very fortuitous heritage provenance. The Trust plans to repatriate this aircraft to the UK when funding allows and to store it until the restoration of WK163 begins. Of note, this restoration will not begin until the new hangar and permanent home for XH558 is secured.

This project will be the subject of a separate specific targeted fundraising campaign specifically to achieve the series of milestones that will result in a return to flight for WK163.

The Trustees are very grateful for the continuing support from the following:

Public Benefit Delivery: Presentation of Avro Vulcan XH558 at air displays and other outside events

The Vulcan was seen by many millions of people during the eight years that the aircraft was flying, and by the end of its flying life XH558 had become quite famous. The Trustees remain pleased at the positive effect of the aircraft on spectators, especially on the young, and are delighted that so many happy memories have been laid down.

Following the end of flying, the Trust has worked with the Airport to establish an agreed method and risk assessment for ground-running the Vulcan with spectators present.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

Over the period, the Trust marketed and delivered opportunities for paying visitors to experience the sights and sounds of the Vulcan during its monthly ground runs in the summer months, and latterly at her parking site.

The Trust used the opportunities presented by the regular monthly anti-deterioration engine ground runs of the Vulcan to offer close-up demonstrations of the aircraft as she exercises her engines and systems to supporters. The Trust was also able to demonstrate the aircraft taxying at low speed during this event. Beyond March 2023, after we had completed all previously planned and sold-out events, this activity was placed on hold as the site landlords were negotiating with The City of Doncaster Council on a lease for the airport. We are now in discussions with the local authority to explore reinstatement of the engine ground runs for the public. The sights and sounds of the running Vulcan are highly valued and much in demand, and represent an important revenue stream.

Below is a summary of our outreach and events managed by our volunteers who, as ever, worked hard to give their time so as many supporters as possible could access the aircraft. Engine Ground-Runs and Airside Tours were carried out and at each event supporters were able to stand beneath the aircraft to view their names under the Vulcan’s massive delta-wing, discuss the work being carried out on the aircraft on the day, listen to the history of the Vulcan’s design, development and service life, and engage with the team and fellow Vulcan fans.

2022/23

Airside Tours 28 sessions with 1,023 guests
Special Tours (including 4 school visits) 5 sessions with 135 guests
Engine Ground Runs (EGR) 6 sessions with 230 guests
Special EGR 1 session with 50 guests.

At the time of drafting this report a full schedule of events for 2024 are planned and have been submitted to the site’s new landlord, the City of Doncaster Council. The Airside Tours have been approved, but engine runs remain on hold due to insurance requirements on the site. In ongoing discussions with the Council, the Trust has been advised “as progression is made on site this may change”.

Air shows

We attended three air shows during the year; Abingdon; Cosford; and RIAT.

We plan to attend the same three air shows in 2024.

Stratford Open Days and Presentations

There were no Open Days during the year to the end of October owing to activity constraints.

The following presentations were conducted:

On 28 October 2023 a workshop was held for 150 Squadron Oxford Air Cadets. They were able to be involved in taking apart a jet engine.

Education

The VTST has always worked on the two key themes that are defined in our objects, namely, Honouring the Past and Inspiring the future. With the former, we continue via our regular communications, to put the Vulcan aircraft type in to context historically.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

2023 showed a continual development of our education activity where our programmes have engaged with youngsters in the region in creative ways to show that there are meaningful and well-paid careers in engineering. The Trust’s volunteers continue to play absolutely key roles in delivering educational and inspirational outcomes.

The Avro Vulcan XH558 with its impressive technical innovations helped place Britain at the forefront of aircraft design over seventy years ago. We are now using the spirit of this innovative thinking to help young people consider some of the current and future questions in aviation, aerospace and more broadly around future technologies and sustainability, learning the lessons from the past and using these to inspire the future.

By involving children and young people from a young age, we hope to broaden their experiences and open up the world of engineering, design and creative problem solving to them.

Vulcan to the Sky Trust has been working in partnership with The Work-wise Foundation and engineering company CBE+ to deliver outreach bespoke education programmes to schools in the South Yorkshire Region and beyond, managed and led by The Work-wise Foundation. A summary of the programmes delivered in 2022/23 and being developed for the future is outlined below.

Activity to October 2023:

Dr Pleming’s Delta Wings Challenge – Primary Schools Dates: April 2022 - March 2023

Project Summary: Year 5 children from the Delta Academy Primary Schools experienced a fun hands-on launch day where they learnt about the history and theory of flight and the story of the Vulcan. During the day of fun, the children designed their very own school airport, and even got the chance to build and fly an aircraft!

The children were set the challenge back in school to design and build their own mini-Vulcans from sustainable materials, which were then presented to a panel of judges at a celebration day. The squadron of Vulcans was then displayed at the Get up to Speed with STEM 2023 showcase event, attended by over 5,000 visitors.

As a prize for all of their hard work, children from the winning schools, Macauley Academy and Rycroft Delta Primary Academy, got to visit the Vulcan XH558 and experience her scale and beauty in person!

IMPACT: 181 Year 5 Students | 38 Staff

Flying Futures Dates: June 2022 - July 2023

Project Summary: Partnering with Maker {Futures} from the University of Sheffield and funded by The Royal Academy of Engineering Ingenious Award, we brought together local individuals from industry and academia to work with primary schools to strengthen perceptions of engineering as an attractive, valuable and accessible future career option.

The Flying Futures Roadshow visited fifteen local primary schools and three public engagement events, giving children taste of Aerospace Engineering. Young people aged 7-11 took part in activities which challenged their problem solving, creativity and collaboration skills to address some of the big questions facing the aviation industry. Each activity, developed by engineers, required pupils to use the ‘Maker{Cycle}’: a process where children look for problems, think how they can make improvements, make a model and test their ideas.

IMPACT: 15 Roadshows | 5,000+ Students | 3 Public Engagement Events

Dr Pleming’s Delta Wings Challenge – Secondary Schools Dates: April 2022 – March 2023

Project Summary: Building on the success of Operation Vulcan in 2022, Delta Academy Secondary Schools were provided with the opportunity to enter this challenge. At a launch event, they learnt about the theory of flight, the history and heritage of the Vulcan and got hands-on, building their own models. Following the launch, the schools

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

were challenged to design a sculpture which incorporated the Vulcan XH558 wing tips, to be displayed alongside Vulcan XH558.

These designs were then judged by an expert panel, with the team from Vale Academy impressing our experts the most with their design. The students subsequently worked with The Work-wise Foundation, Vulcan to the Sky Trust and CBE+ to turn their design into reality, supported by Chartered Engineer Steve Wainwright CEng FIMechE from DN4 Innovation Management Ltd. A 1:10th scale model was built and displayed again at Get up to Speed with STEM in 2023 along with other entries and the actual Vulcan wing tips.

IMPACT: 8 Schools Participated | 78 Students Directly Involved

Get up to Speed with STEM

Date: 29 March 2023

Project Summary: Get up to Speed with STEM is a live, annual, one-day showcase event at Magna Science Adventure Centre, which aims to introduce, inform and inspire students, parents and teachers about the world of work in the Science, Technology, Engineering and Manufacturing (STEM).

Now attracting over 5,000 people each year, we have been a regular at this Showcase event for the past 10 years.

Vulcan to the Sky Trust again had a significant presence at this annual Showcase event. The Vulcan presence included flight simulator, the bomb bay fuel tank, wing tips and engine plus other display materials and showcasing the entries and winning designs from Operation Vulcan and the Delta Wings challenges, plus a flight of 20 sustainable mini-Vulcans created by primary school children.

IMPACT: 74 Schools | 3,990 students, home educated young people, educators and families/carers | 91 Businesses and Organisations exhibiting

North Star

Dates: November 2023

Project Summary: North Star Science School brings young people, educators, scientists and businesses together to explore the future of Science, Technology, Engineering, Art and Mathematics (STEAM) in the South Yorkshire Region.

Working with Doncaster University Technical College (UTC), a team of their students designed and delivered a workshop that demonstrated the effectiveness of three different designs of a brake parachute. Three runways were set up with three different chute designs attached to three Vulcans. Each Vulcan was propelled down the runway with the speed/drag being digitally recorded at intervals along the runway. The workshop effectively showed the difference that design makes in the stopping ability of each of the brake parachutes attached to the Vulcans.

The UTC students also produced a wind tunnel display. This contained a Vulcan with a brake parachute attached and when air was pumped into the tunnel it showed the flow and how much ended up in the chute, so demonstrating how the brake parachute works in slowing down the aircraft.

IMPACT: 40 Schools Participated | 492 Students

Doncaster University Technical College (UTC) Programme

Dates: 2023/24 Academic Year

Project Summary: The latest project with Doncaster UTC involves the Vulcan’s ejector seats. Students are cosmetically refurbishing a Vulcan ejector seat, whilst a second seat is providing hands-on learning opportunities including scanning, 3D printing, CAD design, prototyping, additive manufacturing and reverse engineering.

This is all being mapped to, and enhancing curriculum delivery. In a truly collaborative approach, this project is also being supported by Doncaster-based engineering company Agemaspark and their Managing Director, Paul Stockhill.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

Future Development

The Vulcan Education programme continues to gain momentum and traction with successful programmes indicated above to be run again and offered to further schools and young people, expanding Vulcan XH558’s reach even further to help Inspire the Future. As this report is being drafted, we are moving our education offering into schools in West Yorkshire.

The Work-wise Foundation is currently running two exciting programs on our behalf, aimed at cultivating creativity, innovation, and a passion for STEM subjects among students.

1. Get in the Spirit Challenges: Unleashing Creativity Across Schools

The first initiative is an exciting competition tailored for both Primary and Secondary schools. This competition invites students to embark on two creative challenges that can be undertaken within the school setting or as engaging homework assignments. The challenges revolve around celebrating the rich history and envisioning possible futures of the iconic Vulcan XH558.

Primary schools brief: Create a Vulcan inspired Superhero character. Come up with a name for your Superhero and think about their superpowers linked to Vulcan Technology, and what great things they can do to help save the future of the planet.

Secondary schools brief: Create a graphic story using a storyboard, or a short film that tells the story of Vulcan XH558 and its contribution to British engineering from its initial design through to the modern day and explore what its future could be.

  1. Dr Pleming's Operation Vulcan Design Projects: Fostering Innovation in Education

The second program offers students a deeper and more immersive experience. Tailored for specific year groups in both primary and secondary schools, this competition involves two longer projects.

Primary schools brief: Create sustainable models of Vulcan XH558 to be displayed as part of an Operation Vulcan Squadron. These models can be created individually or as a team. We would like all models to meet the following criteria; use as many recycled materials as possible; have a wing-span of no more than 50cm; be sturdy enough to form part of a display; include a story book telling us about their aircraft, what materials were used, how they designed it and what’s special about it.

Secondary schools brief: Ever wondered how an ejector seat works? Well, now is your chance to find out! We would like students from Years 8, 9 or 10 to get to grips with the science and engineering behind this. They should then design and build a scale model of their own ejector seat, to be explained and demonstrated to our expert panel of judges. Students should base their ideas on the Vulcan’s own ejector seats, and devise a mechanism that allows it to operate in a safe, environmentally friendly and secure manner. Students will be given the opportunity to learn about and see an ejector seat from Vulcan XH558 at the launch day.

Both programs have been launched.

Reach – Newsletter and social media

In January 2023 we had an emailable audience of 45,473. By the end of 2023 that number increased to 45,587. We currently have an audience of 46,561 emailable addresses with an audience predicted demographic of 35.4% female / 50.4% male / <0.01% Another Identity / 14.1% unknown. The ages of subscribers range from 18 to 65+.

Age range split:

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

The monthly newsletters contain updates on the ongoing care and protection of XH558, news of educational outreach and articles on the history of the Vulcan, the RAF and the Cold War. Our newsletters were opened 199,992 times during 2023, with an average ‘open rate’ of 36.2%.

Social media

Articles that appear in the newsletter are hosted on our website – www.vulcantothesky.org so that educational content can be further shared on social media, where we have a possible reach of 356,837 people. The majority of our social media posts are broadcast on all of our social channels.

Social media followers/likes:

Guardians of Vulcan XH558

The Guardians scheme was used as an incentive to donate to the Operation Safeguard appeal as it demonstrates core support and regular giving. This scheme has since been developed and is now a regular scheme that is offered.

We also have Founding Guardians who were members of the now-disbanded Vulcan to the Sky Club. Originally joining as 'Club members' during the early restoration days of VTST, this group migrated to the Founding Guardians scheme when the Club was wound up.

All Guardian types receive a high-quality magazine twice a year. The Winter 2022 magazine was distributed to 2,021 members.

For the avoidance of doubt, neither are members of the Trust.

Revenue generation and public relations

Following the forced move from Hangar 3, the Trust has found itself under very significant cash constraints, but with the help of the on-going public donation stream, continuing merchandise revenues especially in high profit lines, monthly donations, a lottery and annual five-figure philanthropic donations, the Trust has been able to continue its operations.

The Trust has continued to invest in marketing, advertising and social media streaming aimed at both the general public and potential sponsors. The focus has been on small to mid-range giving and appeals for specific needs. Incentives have included opportunities for donors to have their names on XH558’s wing and a dynamic merchandise strategy.

The Names Under the Wing campaign launched in the autumn of 2019 was the most successful single funding appeal of recent years raising circa £1.2 million net of marketing costs.

The funding strategy is under constant review and will evolve given the challenges we face in a potential new home on the DSA site or relocating the Vulcan as detailed in the Section 1 Future Planning and its Context. However, the planned new and permanent home through whatever route is chosen will deliver a return to our full trading model, not available to us since leaving Hangar 3 at DSA in January 2017.

It should be noted when the VTST CEO, Dr Robert Pleming, passed away in February 2021 he was not replaced. Michael Trotter managed the business in the interim, stepping down from a formal role with VTST at the end of December 2022. At that time the Board of Trustees appointed Marc Walters as CEO, stepping up from his role of Commercial Director. Michael Trotter was retained as an advisor in the short term to help manage the transition and support the much smaller team. In May 2023 Andrew Edmondson, VTST Engineering Director, left his role with the Trust.

The continuity provided through Michael, and now Marc, has been vital to the Trust’s ongoing work. When a clear decision can be made on the location of the permanent new home it will enable the restructure work to continue, increasing the level of personnel in the right roles to continue the evolution of the Trust.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

Key fundraising initiatives for the future are;

The Trust’s ability to email a large database and lead them to our website - www.vulcantothesky.org - is the one of the Trust’s primary communications vehicles. The website is updated on a regular basis and continues to provide news and pictorial evidence of the Trust’s progress for supporters. The website also hosts the Trust’s donation page, Guardian Scheme sign-ups and the online shop.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

Fundraising policy

The Trust undertakes charitable fundraising in a variety of ways including through regular newsletters via email and twice-yearly postal mail, and at events. Funding contributions come mainly from the Trust’s loyal supporter base, currently 48,441 people. Without their valued contributions, the Trust would not be able to continue delivering its public benefits.

Supporters are able to make regular donations through appeals, and customers can add a donation at the online checkout. The Trust also receives one-off donations, and supporters engage in annual raffles. The Trust also offers speaker events throughout the country for which tickets are sold and merchandise is available.

On major public fundraising initiatives in recent years, the VTST, mindful of the changing environment has also invested in paid advertising via social media. Returns on investment in this area can be and are measured on a daily basis to ensure the activity is worthwhile.

Fundraising activities are carried out by the employees and volunteers of the Trust; the Trust does not carry out any fundraising through professional fundraising agencies. The Board of Trustees regularly reviews the Trust’s fundraising activities and outcomes.

Furthermore, the Trust does not carry out any fundraising through cold contact, whether unsolicited mailing, face-toface fundraising or telemarketing. The Trust has never received a complaint about its fundraising activities. The Trust is registered with the Fundraising Regulator, and is aware of and follows its Code of Fundraising Practice and the Charity Commission's fundraising guidance. The Trust has had the benefit of advice from a consultant who is a member of the Institute of Fundraising. The Trust itself is a member of the Association of Independent Museums.

Vulcan to the Sky Enterprises Limited

Vulcan to the Sky Enterprises Limited (“VTSE”) is the merchandise trading arm of the charity, and has enabled the Trust to receive funds through the sale of merchandise, memorabilia and services at events and through an ‘online’ shop, a revenue stream which is continuing to trade albeit down on the previous year. We believe that is due to increased online sales during the pandemic and difficult retail conditions in the current economic uncertainty. Performance is expected to improve once we have secured a hangar experience with a permanent physical shop. The financial results for the year ended 31[st] October 2023 are summarised in note 17 to the accounts. VTSE covenants any taxable profits to VTST under the Gift Aid scheme.

3. FINANCIAL REVIEW

Total income of the group for the 12 months ended 31[st] October 2023 amounted to £469,085 (2022: £726,618). The Trust’s principal funding comes from several sources such as donations, fundraising draws and lotteries, and merchandise sales. Total expenditure for the 12 months ended 31[st] October 2023 was £822,688 (2022: £1,113,700).

Expenditure on raising funds for the year totalled £508,625 (2022: £780,449) which generated income of £420,643 (2022: £661,599), being income from donations (note 3) and other trading activities (note 5).

The expenditure on raising funds represents the day-to-day management of the charity and includes tasks such as, managing volunteers, operating the online retail business, managing events, carrying out charitable fund-raising, promoting the Trust's activities, liaising with supporters and administrating the database of supporters, supporting the maintenance of XH558, and complying with mandatory governance requirements. We have invested in future plans and this includes negotiations with potential new landlords and business planning to underwrite a secure future, along with ensuring day to day costs of the business and maintaining the aircraft are covered.

Once the future plans become formally agreed, focussed fundraising may begin to secure that future, investing in a permanent home and the associated revenue streams (visitor tickets, physical retail store, corporate events).

The net assets of the group as at 31[st] October 2023 were £953,787 (2022: £1,307,390).

The group’s fixed assets comprise the Avro Vulcan XH558, its associated spare parts, ground equipment and tools, together with miscellaneous items, and are valued as at 31[st] October 2023 at £732,306 (2022: £745,073).

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

There is a charge over the aircraft in favour of the National Heritage Lottery Fund in the amount of £427,000 reducing on a straight-line basis from 31[st] October 2016 until 2085. The amount repayable is currently limited to £383,684.

The Trustees believe that income in the form of donation streams, the Guardian scheme, and merchandise revenues will allow the Trust to continue its activities for the foreseeable future. Central to the future plans will be to secure funding through sponsorship to build a new home for the Vulcan at the current site in Doncaster, or to relocate the aircraft to a new permanent site.

Reserves Policy

The Trust’s reserves policy has been to aim to build up, over time, free reserves (unrestricted funds less fixed assets) to a level equivalent to 6 months of core expenditure, being approximately £360,000. As at 31st October 2023 the Group’s funds totalled £953,787, of which £16,600 is restricted and £937,187 is unrestricted. The group’s free reserves (unrestricted funds less fixed assets) totalled £204,881 (2022: £134,542), the equivalent to 3-4 months of expenditure. The trustees retain the 6-month policy as an important target, and, subject to the success of future fundraising appeals, intend to use any surplus to assist with the Trust’s running costs whilst discussions with the City of Doncaster Council over possibilities at the current site take place, or whilst the aircraft are being relocated.

4. PLANS FOR FUTURE PERIODS

The Vulcan to the Sky Trust’s objectives for future periods are to:

5. ORGANISATIONAL STRUCTURE, GOVERNANCE AND MANAGEMENT

Vulcan to the Sky Trust was granted charitable status on 6 February 2004, and is registered with the Charity Commission under number 1101948.

Vulcan to the Sky Trust is constituted as an incorporated company limited by guarantee, its governing document comprising its memorandum and articles of association.

The Trustees (who are also the Trust’s Directors) who have served since 1 November 2022 are as detailed in section 6.

The Board of Trustees met twice via Zoom between 1st November 2022 and 31st October 2023, with regular email communications throughout the period. The Trustees are the only Members of the Trust. None of the Trustees received any remuneration or benefits apart from receipted expenses.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

In January 2024, after nearly 20 years as a Trustee of Vulcan to the Sky, Ken Smart CBE FRAeS retired from his role. Sadly, on 3 April 2024 Ken passed away. It should be put on record, Ken’s impact on the project to return Vulcan XH558 to flight.

Ken played an instrumental part in returning Vulcan XH558 to flight. In the early days at Bruntingthorpe Ken worked with the team to convince a very sceptical Civil Aviation Authority (CAA) that the Trust had Safety Management Systems embedded that would allow safe operation of XH558 at public displays. It’s in no small part, because of Ken’s skills and knowledge on airworthiness and air safety that the CAA awarded Vulcan XH558 her Permit to Fly on 3 July 2008. Two days later she performed her first display for an enthralled British public at the RAF Waddington Airshow and went on to fly for many more years before making her final landing on 28 October 2015.

“The Trust owes a great debt of gratitude to two of its longest-serving Trustees, whose particular skills and wise judgement over a long period were invaluable in the work to return XH558 to flight and its subsequent support within the wider community.” – Edward Jarron, Vice Chairman of the Board of Trustees.

Recruitment and training of Trustees

Given the nature of its past activities, the recruitment of new Trustees had been primarily from the aviation community. However, as the Trust’s activities broaden, Trustees are now being sought from the wider engineering, industry and education sectors, and the South Yorkshire region. New Trustees are appointed in accordance with the articles of association. Any new Trustees are provided with a one-on-one induction by the Company Secretary, including briefings on the workings of the Trust, its formal documentation, the Trustee’s role, the financial status of the Trust and its future plans. As can be demonstrated in the recruitment of Marie Cooper.

The activities of the Board

The Board is responsible for policy and overall management of the charity, but has delegated necessary operating powers and decision-making to an Executive Committee, which comprised of Robert Pleming (Company Secretary) until February 2021, Michael Trotter (Commercial and Business Development) and Andrew Edmondson (Engineering Director). The Executive is now managed by Marc Walters (CEO and VTST Company Secretary) and he is aided by Michael Trotter in an advisory role in the short term. This will evolve as the Trust recruits a team to manage The Vulcan Experience when the permanent home is secured. Andrew Edmondson left the VTST in May 2023. The Executive Committee meets on approximately a monthly basis. The remuneration of key management is approved by the Chairman of Trustees and is set against established pay scales, benchmarked in comparison with similar sized charities.

Following its restructure, the Trust had 3 full-time employees and 3 part-time employees as at 31st October 2023. The Trust also benefits significantly from a large amount of volunteer support, including specifically assisting with public relations, events, merchandise fulfilment and the Trust’s air show presence.

Subsidiaries

Vulcan to the Sky Enterprises Limited is the wholly-owned retail trading subsidiary of VTST. VTSE covenants its taxable profits to VTST under the Gift Aid scheme.

There are three additional wholly-owned subsidiaries of the Trust, which were incorporated to enable the Trust to undertake certain activities aimed at creating a sustainable business model during its occupation Hangar 3 at Doncaster Sheffield Airport. These subsidiaries, the Vulcan Marketing Company, The Vulcan Operating Company and the Vulcan Property Management Company are now dormant.

Andrew Edmondson and Michael Trotter resigned as directors of the Trust’s subsidiaries on 31 December 2022 and Marc Walters became director for all subsidiary companies from 1 January 2023.

Risk Management

The Trust, through its management team, continues to identify and review the major risks that the charity faces. Procedures, including a Safety Management System, have been put in place to mitigate and monitor these risks. Health and Safety are included as topics at every Executive Meeting.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

The Trust’s public liabilities arising from operation of the Vulcan aircraft are insured through K M Dastur and Company Ltd Aviation Insurance Brokers. Additional aviation insurance policies include cover for damage to the aircraft, for war and terrorism risks, and for personal injury insurance for the aircrew.

6. REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS

Trustees

Mr John Sharman FRAeS (Chairman) Air Commodore Ed Jarron (Vice Chairman) Mr Richard Clarke Sir Gerald Howarth

Sir Donald Spiers CB TD FRAeS (resigned 22 June 2024) Mr Phillip Spiers

Mrs Marie Cooper (appointed 16 August 2023) Mr Ken Smart CBE (resigned 19 January 2024)

Company secretary

Mr Michael Trotter (resigned 31 December 2022) Mr Marc Walters (appointed 1 January 2023)

Charity number

1101948

Company number

04478686

Principal address

Unit 4, Delta Court Third Avenue Doncaster Sheffield Airport Doncaster DN9 3GN

Registered office

Unit 4, Delta Court

Third Avenue Doncaster Sheffield Airport Doncaster DN9 3GN

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

Auditors Newby Castleman LLP West Walk Building 110 Regent Road Leicester LE1 7LT Bankers HSBC Bank Plc 58 High Street Winchester Hampshire SO23 9BZ Solicitors Stone King LLP Offices at: Bath | Birmingham | Cambridge | Leeds | London | Manchester www.stoneking.co.uk

7. STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Vulcan to the Sky Trust 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 for the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

VULCAN TO THE SKY TRUST

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

8. SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

Signed on behalf of the Trustees

Air Commodore Ed Jarron Vice Chairman of Trustees

Approved by the Board of Trustees on 28 July 2024

VULCAN TO THE SKY TRUST

INDEPENDENT AUDITORS' REPORT

TO THE TRUSTEES OF VULCAN TO THE SKY TRUST

Opinion

We have audited the financial statements of Vulcan to the Sky Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 October 2023 which comprise the Group Consolidated Statement of Financial Activities, the Group and Charity Balance Sheet, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Material uncertainty related to going concern

We draw attention to note 1.3 of the financial statements, concerning the group’s ability to continue as a going concern. This indicates that the group is reliant on the continued support of the National Heritage Lottery Fund, the City of Doncaster Council and the future airport operator, or, future support from new landlords and the future financial support from its donors to relocate and be able to continue operating. These conditions, along with the other matters as set forth in note 1.3, indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information included in the trustees’ report. The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

VULCAN TO THE SKY TRUST

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF VULCAN TO THE SKY TRUST

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 17, 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 groups and 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under section 151 of the Charities Act 2011 and report in accordance with this Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the charity.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

VULCAN TO THE SKY TRUST

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE TRUSTEES OF VULCAN TO THE SKY TRUST

Audit response to risks of irregularities identified

Our procedures to respond to risks identified included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Newby Castleman LLP Chartered Accountants Statutory Auditor West Walk Building 110 Regent Road Leicester LE1 7LT

Date: 29 July 2024

Newby Castleman LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

VULCAN TO THE SKY TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 OCTOBER 2023

Unrestricted Restricted Total Total
funds funds 2023 2022
Notes £ £ £ £
Income from
Donations and legacies 3 203,016 27,600 230,616 434,806
Charitable activities 4 46,581 - 46,581 64,807
Other trading activities 5 190,027 - 190,027 226,793
Investments 6 1,251 - 1,251 212
Other 7 610 - 610 -
──────── ──────── ──────── ────────
Total 441,485 27,600 469,085 726,618
──────── ──────── ──────── ────────
Expenditure on
Raising funds 8 298,924 209,701 508,625 780,449
Charitable activities 9 84,989 229,074 314,063 315,383
Other expenditure 14 - - - 17,868
──────── ──────── ──────── ────────
Total 383,913 438,775 822,688 1,113,700
──────── ──────── ──────── ────────
Net income / (expenditure) for the year / 57,572 (411,175) (353,603) (387,082)
Net movement in funds
Reconciliation of funds
Total funds brought forward 879,615 427,775 1,307,390 1,694,472
──────── ──────── ──────── ────────
Total funds carried forward 937,187 16,600 953,787 1,307,390
════════ ════════ ════════ ════════

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

VULCAN TO THE SKY TRUST

GROUP AND CHARITY BALANCE SHEET

AS AT 31 OCTOBER 2023

Group Charity Group Charity
2023 2023 2022 2022
Notes £ £ £ £
Fixed assets
Tangible assets 15 7,159 6,937 9,212 8,789
Heritage assets 16 725,147 725,147 735,861 735,861
Investments 17 - 5 - 5
───────── ───────── ───────── ─────────
Total fixed assets 732,306 732,089 745,073 744,655
───────── ───────── ───────── ─────────
Current assets
Stocks 18 76,841 - 78,439 -
Debtors 19 100,521 299,603 229,265 401,743
Cash at bank and in hand 174,009 164,344 356,078 347,567
───────── ───────── ───────── ─────────
Total current assets 351,371 463,947 663,782 749,310
Liabilities:
Creditors: Amounts falling
due within one year 20 (129,890) (130,553) (101,465) (106,372)
───────── ───────── ───────── ─────────
Net current assets 221,481 333,394 562,317 642,938
───────── ───────── ───────── ─────────
Total assets less current liabilities 953,787 1,065,483 1,307,390 1,387,593
───────── ───────── ───────── ─────────
Total net assets 22 953,787 1,065,483 1,307,390 1,387,593
════════ ════════ ════════ ════════
The funds of the charity
Restricted funds 21 16,600 16,600 427,775 427,775
Unrestricted funds 937,187 1,048,883 879,615 959,818
───────── ───────── ───────── ─────────
Total charity funds 953,787 1,065,483 1,307,390 1,387,593
════════ ════════ ════════ ════════

These financial statements have been prepared in accordance with the provision applicable to companies subject to the small companies’ regime.

As permitted by s408 Companies Act 2006, the charity has not presented its own statement of financial activities and related notes. The charity’s deficit for the year was £322,111 (2022 - £378,053).

For the year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as the company is a charity, it is subject to audit under the Charities Act 2011.

Directors’ responsibilities:

VULCAN TO THE SKY TRUST

BALANCE SHEETS (CONTINUED)

AS AT 31 OCTOBER 2023

The financial statements were approved and authorised for issue by the board of trustees on 28 July 2024 and are signed on its behalf by:

Air Commodore Ed Jarron Vice Chairman of Trustees

Company Registration No. 04478686

The notes on pages 25 - 44 form part of these financial statements.

VULCAN TO THE SKY TRUST

GROUP STATEMENT OF CASHFLOWS

FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £ £ £ £
Net cash (outflow) / inflow from
operating activities 28 (183,320) (340,939)
Cash flow from investing activities
Purchase of tangible fixed assets - (4,507)
Interest received 1,251 212
───────── ─────────
Net cash (outflow) / inflow from investing activities 1,251 (4,295)
───────── ─────────
Net (decrease) in cash of cash equivalents (182,069) (345,234)
Cash or cash equivalents at 1 November 2022 356,078 701,312
───────── ─────────
Cash or cash equivalents at 31 October 2023 174,009 356,078
════════ ════════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

1 Accounting policies

Charity information

Vulcan to the Sky Trust (“the charity”) is a private company limited by guarantee, incorporated in England and Wales. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the reference and administration section of the trustees’ report.

The group consists of Vulcan to the Sky Trust and all of its subsidiaries (“the group”), being Vulcan to the Sky Enterprises Limited, The Vulcan Operating Company Limited, The Vulcan Property Management Company Limited, and The Vulcan Marketing Company Limited.

1.1 Basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102. These financial statements have been prepared in accordance with: the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (“FRS 102”), Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities applying FRS 102 (2019), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

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

These financial statements are prepared under the historical cost convention, modified to include the revaluation of certain heritage assets. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The charity is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this charity, which are intended to give a true and fair view of the assets, liabilities, financial position and net movement in funds of the group. The charity has taken advantage of the exemption from preparing a statement of financial activities and a statement of cash flows on the basis that these are incorporated into the group statement of financial activities and statement of cash flows.

1.2 Basis of consolidation

The consolidated financial statements incorporate those of Vulcan to the Sky Trust and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

1.3 Going concern

These financial statements are prepared on the going concern basis. The trustees have a reasonable expectation that the group will continue in operational existence for the foreseeable future.

As explained more fully in the trustees’ report set out specifically on pages 2 and 3, the trust entered into a parking lease with Doncaster Sheffield Airport (“DSA”) in June 2022 where the aircraft’s tenure on site was secured until the end of June 2023; the original lease stated that “both aircraft will need to be taken off the airfield and removed from DSA by 30th June 2023”. Following the discussions with Peel L&P in March 2023, this was extended.

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

1 Accounting Policies (continued)

The discussions with Peel L&P also have led to an ongoing feasibility study of using one of the extant hangars at DSA as a longer-term home for XH558 airport site. By the end of July 2023, the explorations on the hangar could no longer progress due to the uncertain future of ownership. The City of Doncaster Council were in negotiations with Peel Group to lease the airport site. These negotiations were concluded in March 2024 with the agreement of a lease for 125 years and the City of Doncaster Council will be reopening the airport.

At the time of this report both aircraft remain on site under a “Tenancy at Will”. The trust also has potential options to dismantle and move the aircraft if the longer-term home at DSA proves untenable, rebuilding the aircraft with as much functionality as possible at a different location. Once a decision has been made the trust will launch a fundraising appeal to raise the necessary funds to build in the current location or relocate the aircraft.

Based on all of the information that is currently available, the trustees have a reasonable expectation that they will be able to remain onsite at Doncaster and begin fundraising for the project to build a new home for the aircraft. Should the need arise, to dismantle and rebuild XH558, the trustees will continue to liaise with the National Heritage Memorial Fund (“NHMF”) to approve their application. Whilst the trust is conscious of the need to bring the permanent home project to a resolution it is also important to keep this important heritage asset intact. As soon as is possible, the Trust will begin discussions with the new airport operator to secure a position onsite and begin securing the necessary funds to build a new home. Until that is possible, it will continue its on-going fundraising activities to maintain Avro Vulcan XH558 to the usual high standards and to deliver public access through the team of dedicated volunteers and staff. However, the failure to raise the necessary funds, and / or the withdrawal of support from NHMF, the City of Doncaster Council or the new airport operator, would cast a significant doubt over the charity’s going concern status.

The trustees have prepared forecasts for the period ended 31 August 2025 which incorporate the above plans. Based on these forecasts, and the voluntary income that has been received since the year end date, the trustees are of the opinion that the group will receive sufficient donations for a period of at least 12 months from the date of approval of these financial statements to relocate and continue operating. However, donations are intrinsically uncertain and the ongoing support of the charity’s current donors and supporters will be fundamental until the new trading model has been established.

On this basis, the trustees consider it appropriate to prepare the financial statements on the going concern basis.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost 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.

1.5 Income recognition

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Legacies are recognised at the earlier of the charity being notified of an impending distribution or the legacy being received. Where legacies have been notified to the charity but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

1 Accounting Policies (continued)

Government grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured with reliability. If entitlement is not met, then the amounts are deferred.

Income from charitable activities includes hangar tour, engine ground-run and educational visit income.

Hangar tour income is recognised when the tour takes place. Income from ticket sales received in advance of the tour are deferred.

Engine ground-run income is recognised when the ground-run takes place. Income from ticket sales received in advance of the ground-run are deferred.

Income from trading activities primarily includes income earned from the sale of merchandise and raffles.

Sale of merchandise represents all goods sold during the period, less returns received, at selling price exclusive of Value Added Tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product, have been transferred to the customer.

Investment income is earned through holding assets for investment purposes. It comprises bank interest and is recognised on an accruals basis.

1.6 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to the category. Expenditure is recognised when there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It is recognised under the following headings:

1.7 Support costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and costs of raising funds and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objectives of the charity. Support costs are allocated to costs of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

The analysis of these costs is included in note 11.

1.8 Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment 20% straight line Motor vehicles 20% straight line

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

1 Accounting Policies (continued) 1.9 Heritage assets Heritage assets comprise the Avro Vulcan G-VLCN (XH558) and the English Canberra (WK163). The Vulcan is stated at valuation less depreciation, whilst the Canberra is stated at cost. Depreciation is provided on the Vulcan at a rate calculated to write off the valuation less estimated residual value over its useful economic life, being 70 years from the date which the Vulcan ceased to fly. Depreciation is not yet provided for the Canberra because the asset is not yet available for display.

The trustees have estimated the remaining useful economic life of the Vulcan to be to October 2085 and the residual value of the aircraft to be £Nil. The charity’s current policy is to maintain the aircraft in full working order and associated maintenance costs are charged to the Statement of Financial Activities.

1.10 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the Statement of Financial Activities (SOFA) unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. 1.11 Investments in subsidiaries Investments are stated at cost less any provision for diminution in value. 1.12 Stock Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Stock cost is recorded as invoice price net of any discounts received. Calculation of provisions for slow moving and obsolete stocks requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment, on the expectation that the group will continue in operational existence for the foreseeable future. 1.13 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. 1.14 Financial instruments Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument. Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the SOFA.

1.15 Employee benefits When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. 1.16 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.17 Leases Rentals payable under operating leases, including any lease incentives received, are charged to the SOFA on a straight-line basis over the term of the relevant lease.

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

1 Accounting Policies (continued)

1.18 Taxation

Vulcan to the Sky Trust is a registered charity and no taxation provision is required as its income from charitable activities falls within the various exemptions available to registered charities.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of stock

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items. Calculation of provisions for slow moving and obsolete stocks requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment, on the expectation that the group will continue in operational existence for the foreseeable future.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of heritage asset (Vulcan)

The valuation of the Vulcan is reassessed annually by the trustees and, when necessary, amended to reflect current estimates.

Allocation of support costs

The allocation of support costs is sensitive to changes in the level of work undertaken on each activity by the charity. The allocation is reassessed annually and amended when necessary to reflect current estimates.

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

3 Income from donations and legacies
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Regular donations 66,227 - 66,227 72,988
One-off donations 5,212 - 5,212 21,948
Other donations 101,747 - 101,747 81,691
Gift aid recovered 9,830 - 9,830 48,663
Legacies 20,000 - 20,000 6,171
Operation Safeguard campaign - - - 203,345
Government grants - 27,600 27,600 -
──────── ──────── ──────── ───────
203,016 27,600 230,616 434,806
════════ ════════ ════════ ═══════
Unrestricted funds 186,463
Restricted funds 248,343
───────
434,806
═══════
4 Income from charitable activities
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Exhibition and display 46,581 - 46,581 64,807
──────── ──────── ──────── ────────
46,581 - 46,581 64,807
════════ ════════ ════════ ════════
Unrestricted funds 64,807
Restricted funds -
────────
64,807
════════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

5 Income from other trading activities
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Sale of merchandise 153,805 - 153,805 203,034
Raffle income 33,678 - 33,678 19,931
Commission income 2,544 - 2,544 3,828
──────── ──────── ──────── ────────
190,027 - 190,027 226,793
════════ ════════ ════════ ════════
Unrestricted funds 226,793
Restricted funds -
────────
226,793
════════
6 Income from investments
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Interest receivable 1,251 - 1,251 212
──────── ──────── ──────── ────────
1,251 - 1,251 212
════════ ════════ ════════ ════════
Unrestricted funds 212
Restricted funds -
────────
212
════════
7 Other income
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Miscellaneous income 610 - 610 -
──────── ──────── ──────── ────────
610 - 610 -
════════ ════════ ════════ ════════
Unrestricted funds -
Restricted funds -
────────
-
════════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

8 Expenditure on raising funds
Unrestricted
funds
Restricted
funds
Total
2023
Total
2022
£
£
£
£
Fundraising and publicity
Staff costs
42,545
110,878
153,423
162,542
Purchase of merchandise
83,968
-
83,968
111,057
Consultancy costs
-
14,660
14,660
17,514
Carriage and packaging
25,399
-
25,399
46,542
Advertising and promotion
63,309
21,191
84,500
239,218
Other costs
10,548
-
10,548
11,366
────────
────────
────────
────────
225,769
146,729
372,498
588,239
Share of support costs (note 11)
73,155
62,972
136,127
192,210
────────
────────
────────
────────
298,924
209,701
508,625
780,449
════════
════════
════════
════════
Unrestricted funds
645,080
Restricted funds
135,369
────────
780,449
════════

The expenditure on raising funds represents the day-to-day management of the charity and includes tasks such as, managing volunteers, operating the online retail business, managing events, carrying out charitable fund-raising, promoting the Trust's activities, liaising with supporters and administrating the database of supporters, supporting the maintenance of XH558, and complying with mandatory governance requirements. We have invested in future plans and this includes negotiations with potential new landlords and business planning to underwrite a secure future, along with ensuring day to day costs of the business and maintaining the aircraft are covered.

Once the future plans become formally agreed, focussed fundraising may begin to secure that future, investing in a permanent home and the associated revenue streams (visitor tickets, physical retail store, corporate events).

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

9 Expenditure on charitable Activities Support Total Total
activities undertaken costs 2023 2022
directly
(note 10) (note 11)
£ £ £ £
Restoration and maintenance 171,290 38,529 209,819 201,445
Exhibition and display 94,287 9,957 104,244 113,938
──────── ──────── ──────── ────────
265,577 48,486 314,063 315,383
════════ ════════ ════════ ════════
Unrestricted funds 84,989 208,438
Restricted funds 229,074 106,945
──────── ────────
314,063 315,383
════════ ════════
10 Expenditure on activities undertaken
directly		 Restoration
and		 Exhibition Total Total
maintenance and display 2023 2022
£ £ £ £
Staff costs 51,141 - 51,141 54,182
Depreciation 10,714 - 10,714 10,714
Aircraft costs 18,915 69,434 88,349 89,250
Hangar costs 86,591 - 86,591 72,343
Air show events - 22,629 22,629 23,021
Travel costs 3,929 - 3,929 3,905
Printing, postage and stationery - 2,224 2,224 1,478
──────── ──────── ──────── ────────
171,290 94,287 265,577 254,893
════════ ════════ ════════ ════════
11 Expenditure on support
costs		 Raising Restoration
and		 Exhibition Total Total
funds maintenance and display 2023 2022
£ £ £ £ £
Staff costs 47,697 - 5,299 52,996 80,312
Depreciation 1,590 463 - 2,053 3,497
Computer costs 17,755 6,341 1,268 25,364 26,725
Bank charges 6,865 - - 6,865 9,553
Other costs 62,220 31,725 3,390 97,335 132,613
──────── ──────── ──────── ──────── ────────
136,127 38,529 9,957 184,613 252,700
════════ ════════ ════════ ════════ ════════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

Support costs have been allocated to activities on a relevant basis to the nature of the underlying costs in proportion to resources used. Other costs include governance costs totalling £29,563 (2022 - £45,404). Governance costs include auditor’s remuneration totalling £12,026 (2022 - £23,275).

12 Trustees’ remuneration

None of the trustees received any remuneration or benefits from the charity during the year, or the previous year.

One trustee was reimbursed a total of £89 for travel expenses.

13 Employees

Number of employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Management and administration 6 9
Aircraft crew 1 1
─────── ───────
7 10
═══════ ═══════
Employment costs 2023 2022
£ £
Wages and salaries 236,529 268,623
Social security costs 14,309 20,454
Pension costs 6,722 7,959
─────── ───────
257,560 297,036
═══════ ═══════

There were no employees whose annual remuneration was £60,000 or more during the year.

Remuneration of key management personnel

The remuneration of key management personnel is as follows:

2023 2022
£ £
Aggregate compensation 100,290 92,088
═══════ ═══════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

14 Other expenditure
Unrestricted Restricted Total Total
funds funds 2023 2022
£ £ £ £
Loss on disposal of tangible fixed assets - - - 2,384
New Hangar Development - - - 15,484
──────── ──────── ──────── ────────
- - - 17,868
════════ ════════ ════════ ════════
Unrestricted funds 17,868
Restricted funds -
────────
17,868
════════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

15 Tangible fixed assets
Fixtures, Motor Total
fittings & vehicles
equipment
£ £ £
(a) Group
Cost
At 1 November 2022 30,515 13,592 44,107
─────── ─────── ───────
At 31 October 2023 30,515 13,592 44,107
─────── ─────── ───────
Depreciation
At 1 November 2022 26,508 8,387 34,895
Charge for the year 530 1,523 2,053
─────── ─────── ───────
At 31 October 2023 27,038 9,910 36,948
─────── ─────── ───────
Net book value
At 31 October 2023 3,477 3,682 7,159
═══════ ═══════ ═══════
At 31 October 2022 4,007 5,205 9,212
═══════ ═══════ ═══════
(b) Charity
Cost
At 1 November 2022 12,540 13,592 26,132
─────── ─────── ───────
At 31 October 2023 12,540 13,592 26,132
─────── ─────── ───────
Depreciation
At 1 November 2022 8,955 8,388 17,343
Charge for the year 329 1,523 1,852
─────── ─────── ───────
At 31 October 2023 9,284 9,911 19,195
─────── ─────── ───────
Net book value
At 31 October 2023 3,256 3,681 6,937
═══════ ═══════ ═══════
At 31 October 2022 3,585 5,204 8,789
═══════ ═══════ ═══════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

16 Heritage assets

Heritage assets
Vulcan Canberra
(valuation) (cost) Total
£ £ £
Group and Charity
Carrying amount at 1 November 2022 675,002 60,859 735,861
Depreciation / impairment (10,714) - (10,714)
─────── ─────── ───────
Carrying amount at 31 October 2023 664,288 60,859 725,147
─────── ─────── ───────

At 31 October 2023 the charity held two heritage assets:

The Avro Vulcan B.MK2 G-VLCN (XH558)

XH558 was the last Vulcan to leave RAF service, flying on from 1986 to 1993 as the single RAF Display Vulcan, a career of 33 years. In 1997, a small team headed by Dr Robert Pleming started an audacious plan to return her to flight at Bruntingthorpe Aerodrome in Leicestershire. In 1999 Marshall of Cambridge Aerospace was appointed Engineering Authority for the restoration project. In December 2003, the Heritage Lottery Fund announced a grant of £2.7million for XH558’s restoration. After extensive restoration work and tests, the Vulcan returned to the sky in October 2007.

However, the CAA Permit to Fly was withdrawn at the end of the 2015 calendar year, and so despite being technically able to fly, the aircraft was not permitted to fly. As a result, the trust’s business model changed, from flying a globally-unique heritage asset to having the aircraft as the still-serviceable centrepiece of a new visitor attraction and education facility. This change in the status of the asset has had an impact on its residual valuation. As at 31 October 2015, the board valued the aircraft at £750,000. The nature of the asset means it is not possible to derive a market valuation. The trustees therefore valued the aircraft, based on their knowledge and experience of working in the aviation industry. As at 31 October 2023, the board have reassessed their valuation of the aircraft and still consider it to be reasonable.

The aircraft has developed a loyal following of many thousands of supporters. She is and will remain the best preserved all-British four-engined jet aircraft anywhere in the world still capable of powered ground runs.

XH558 is maintained in the current working state, albeit not flying, under the terms of the trust’s contract with the National Heritage Memorial Fund (NHMF) until 6 February 2085. The aircraft is subject to a first charge by the Trustees of The National Heritage Memorial Fund (see note 23 for further details).

English Electric Canberra B.2 (WK163)

The English Electric Canberra aircraft was the Royal Air Force's first jet bomber, and entered service in January 1951. The design was very successful and the type was in service for more than 50 years. Many aircraft were sold around the world to the air forces of 17 countries. The trust's example, Canberra WK163 (G-CTTS) captured the world altitude record of over 70,000 feet in August 1957, and is a very important national aviation heritage asset.

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

16 Heritage assets (continued)

Five-year financial summary of heritage asset transactions (group and charity)

2023 2022 2021 2020 2019
£ £ £ £ £
Purchases
Vulcan - - - - -
Canberra - - 9,033 - -
──────── ──────── ──────── ──────── ────────
- - 9,033 - -
──────── ──────── ──────── ──────── ────────
Charge for impairment
Vulcan - - - - -
Canberra - - - - -
──────── ──────── ──────── ──────── ────────
- - - - -
──────── ──────── ──────── ──────── ────────

17 Fixed asset investments

(a) Group

The group holds no investments

(b) Charity

(b) Charity
Shares in
group
undertakings
£
Carrying amount
At 1 November 2022 5
───────
At 31 October 2023 5
═══════

Holdings of more than 20%

The charity holds 100% of the ordinary share capital in the following companies registered in England and Wales:

Wales:
Subsidiary undertakings Principle Activities
Vulcan to the Sky Enterprises Limited VTSE That of selling merchandise through its
(04899710) website store and at air shows.
The Vulcan Operating Company Limited TVOC Dormant.
(03787161)
The Vulcan Property Management TVPMC Dormant.
Company Limited (09924223)
The Vulcan Marketing Company Limited TVMC Dormant.
(09906368)

Where applicable, the subsidiaries covenant all available profits to Vulcan to the Sky Trust.

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

17 Fixed asset investments (continued)

The trading results for the period and the aggregate amount of capital and reserves, as extracted from the financial statements of the subsidiary companies, are summarised below:

Total Total
TVOC TVMC TVPMC VTSE 2023 2022
£ £ £ £ £ £
Turnover - - - 156,351 156,351 206,862
Cost of sales - - - (106,325) (106,325) (156,280)
─────── ─────── ─────── ─────── ─────── ───────
Gross profit - - - 50,026 50,026 50,582
Administrative expenses - - - (81,519) (81,519) (59,610)
─────── ─────── ─────── ─────── ─────── ───────
Profit/(loss) before
taxation - - - (31,493) (31,493) (9,028)
Tax charge - - - - - -
─────── ─────── ─────── ─────── ─────── ───────
Profit/loss for the year - - - (31,493) (31,493) (9,028)
═══════ ═══════ ═══════ ═══════ ═══════ ═══════
Assets and liabilities:
Assets 11,636 16,003 19,095 93,011 139,745 146,341
Liabilities (13,805) (6,612) (12,566) (218,452) (251,435) (226,538)
─────── ─────── ─────── ─────── ─────── ───────
Total net assets (2,169) 9,391 6,529 (125,441) (111,690) (80,197)
═══════ ═══════ ═══════ ═══════ ═══════ ═══════
Capital and reserves:
Called up share capital 2 1 1 1 5 5
Profit and loss account (2,171) 9,390 6,528 (125,442) (111,695) (80,202)
─────── ─────── ─────── ─────── ─────── ───────
(2,169) 9,391 6,529 (125,441) (111,690) (80,197)
═══════ ═══════ ═══════ ═══════ ═══════ ═══════
Statement of movement
on profit and loss:
Balance at 1 November
2022 (2,171) 9,390 6,528 (93,949) (80,202) (71,174)
Profit/(loss) for the year - - - (31,493) (31,493) (9,028)
Donations paid to parent
charity - - - - - -
─────── ─────── ─────── ─────── ─────── ───────
Balance at 31 October
2023 (2,171) 9,390 6,528 (125,442) (111,695) (80,202)
═══════ ═══════ ═══════ ═══════ ═══════ ═══════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

18 Stock Group Charity Group Charity
2023 2023 2022 2022
£ £ £ £
Goods for resale 76,841 - 78,439 -
─────── ─────── ─────── ───────
76,841 - 78,439 -
═══════ ═══════ ═══════ ═══════
19 Debtors Group Charity Group Charity
2023 2023 2022 2022
£ £ £ £
Amounts falling due within one year:
Trade debtors 2,273 - 667 -
Amounts due from subsidiary undertakings - 198,742 - 184,745
Other debtors 41,287 47,906 174,426 166,832
Prepayments and accrued income 56,961 52,955 54,172 50,166
─────── ─────── ─────── ───────
100,521 299,603 229,265 401,743
═══════ ═══════ ═══════ ═══════
20 Creditors: Amounts falling due within one Group Charity Group Charity
year 2023 2023 2022 2022
£ £ £ £
Trade creditors 73,968 64,821 46,017 43,068
Amounts due to subsidiary undertakings - 11,621 - 11,621
Other creditors 699 699 1,495 775
Accruals and deferred income 50,936 49,125 46,837 44,759
Taxes and social security costs 4,287 4,287 7,116 6,149
─────── ─────── ───────
───────
129,890 130,553 101,465 106,372
═══════ ═══════ ═══════
═══════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

21 Restricted funds Balance at Balance at
1 Nov 2022 Income Expenditure 31 Oct 2023
Group and Charity £ £ £ £
Operation Safeguard 427,775 - (427,775) -
National Lottery Heritage Fund - 27,600 (11,000) 16,600
─────── ───────
───────		 ───────
427,775 27,600 (438,775) 16,600
═══════ ═══════
═══════		 ═══════
Balance at Balance at
1 Nov 2021 Income Expenditure 31 Oct 2022
Group and Charity £ £ £ £
Operation Safeguard 421,746 248,343 (242,314) 427,775
─────── ───────
───────		 ───────
421,746 248,343 (242,314) 427,775
═══════ ═══════
═══════		 ═══════

Operation Safeguard

This represents amounts received through the Operation Safeguard appeal for the purpose of building The Vulcan Experience at DSA. As explained in note 1.5 of the financial statements, all income received in respect of Operation Safeguard up to 31 October 2022, has been recognised in these accounts (note 3) as restricted income, and includes income where donors have not responded to the charity’s offer of a full refund or the opportunity to allow VTST to “retain” their donation. Donations which were refunded after the 2021-year end, due to the failed appeal, were recognised in creditors (note 20).

By May 2022 63% of donors had responded with 89% agreeing to the VTST’s retention of the donated funds. The charity applied to the Charity Commission to make a “scheme” to widen the scope of these funds and allow these donations to be used in pursuance of its charitable objects. On the 21st June 2022 the Charity Commission authorised a scheme which allows the trustees to use £323,400 of disclaimed / retained funds to preserve and protect Avro Vulcan XH558 and return her to full working order for the benefit of the public and to demonstrate and display her to the public and to conserve and return to full working order. On the 5th December 2022 the Charity Commission authorised a second scheme which allows the trustees to use £197,530 of disclaimed / retained funds to preserve and protect Avro Vulcan XH558 and return her to full working order for the benefit of the public and to conserve, demonstrate and display her to the public. The second scheme also stipulated that if a donor requests that their donation(s) to the appeal be returned to them by the charity, the Commission may authorise the return of such donation(s) in writing. Where a donation has been returned in accordance with this provision, this scheme will not be applicable to such donation(s) and the Commission’s written authorisation to return donation(s) will have no effect on the continuing validity of this scheme. On the 18th January 2023 the Charity Commission authorised a third scheme which allows the trustees to use £8,370 of disclaimed / retained funds to preserve and protect Avro Vulcan XH558 and return her to full working order for the benefit of the public and to conserve, demonstrate and display her to the public. The Charity Commission confirmed that the third and final scheme effectively and successfully concluded all the legal protocols on the failed appeal procedure.

National Lottery Heritage Fund

With news in June 2022 that the Trust’s aircraft were required to “be taken off the airfield and removed from DSA by 30th June 2023”, the Trust began planning for the relocating of the aircraft and ensuring that the business plan for The Vulcan Experience in a new location was feasible. To aid the costs of the work to assess the business plan, the Trust applied for grant funding from the National Lottery Heritage Fund (NLHF) and in December 2022 the Trust were informed that they were successful in that bid. The grant award of £27,600 was for the purpose of reviewing the Trust’s Business Planning and Governance. A Skills Audit was also part of the work required and would identify what skills, knowledge and expertise is already present on the Vulcan to the Sky Board of Trustees and if any gaps exist that need filling in order to deliver a

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

21 Restricted funds (continued)

successful project – The Vulcan Experience. Focus Consultants were appointed to carry out this work.

In March 2023, preliminary talks were held with the landowners, Peel L&P, to explore any opportunities for the iconic aircraft to remain in Doncaster for a longer period. Following these discussions, the parking lease for the Trust’s aircraft was extended to enable conversations to continue. At this point, work by Focus Consultants was slowed to a stop until certainty the location which they were assessing the business model against became clear.

The City of Doncaster Council took control of the airport site in March 2024 and the Trust is currently waiting for an airport operator/investor to be chosen so that the Trust can have deeper discussions on the future and remaining on site.

22 Analysis of net assets between funds

Unrestricted Restricted Total Unrestricted Restricted Total
(a) Group funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Funds balances are
represented by:
Tangible fixed assets 7,159 - 7,159 9,212 - 9,212
Heritage assets 725,147 - 725,147 735,861 - 735,861
Current assets 334,771 16,600 351,371 236,007 427,775 663,782
Creditors: amounts
falling due within one
year (129,890) - (129,890) (101,465) - (101,465)
─────── ─────── ─────── ─────── ─────── ───────
937,187 16,600 953,787 879,615 427,775 1,307,390
═══════ ═══════ ═══════ ═══════ ═══════ ═══════
Unrestricted Restricted Total Unrestricted Restricted Total
(b) Charity funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Funds balances are
represented by:
Tangible fixed assets 6,937 - 6,937 8,789 - 8,789
Heritage assets 725,147 - 725,147 735,861 - 735,861
Investments 5 - 5 5 - 5
Current assets 447,347 16,600 463,947 321,535 427,775 749,310
Creditors: amounts
falling due within one
year (130,553) - (130,553) (106,372) - (106,372)
─────── ─────── ─────── ─────── ─────── ───────
1,048,883 16,600 1,065,483 959,818 427,775 1,387,593
═══════ ═══════ ═══════ ═══════ ═══════ ═══════

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2023

23 Contingent liabilities

In previous years the trust received funding from the National Heritage Memorial Fund (NHMF) in the sum of £2,734,000. The trust may be required to repay some or all of this grant in the event of the sale, disposal or mortgage charge of the plane without prior approval of the NHMF. The amount repayable is currently limited to £383,684.

The trust will also require an interest in the plane or right to the exclusive use and possession of the aircraft to 6 February 2085.

24 Operating lease commitments

At 31 October 2023 the group and charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group Charity Group Charity
2023 2023 2022 2022
£ £ £ £
Within one year 32,867 29,000 43,187 39,321
Between two and five years 7,250 7,250 36,250 36,250
─────── ─────── ─────── ───────
40,117 36,250 79,437 75,571
═══════ ═══════ ═══════ ═══════

Lease payments totalling £73,818 (2022 – £63,807) have been recognised as an expense during the year.

25 Ultimate controlling party

The charity is controlled by its trustees acting in accordance with the terms of the memorandum and articles of association.

26 Related parties

The charity has taken advantage of the exemption given by FRS 102, from disclosing transactions with its wholly owned subsidiaries.

During the year, Angela Trotter (the spouse of Michael Trotter, a member of key management personnel), invoiced the company £1,035 (2022 – £3,405) for accountancy services from Greenways Business Services, a partnership in which Michael Trotter is a member. The amount due to be paid at the year-end amounts to £Nil (2022 – £763).

VULCAN TO THE SKY TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2023

27 Net cash flow from operating activities
2023 2022
£ £
Net income/(expenditure) for the year (353,603) (387,082)
Investment income (1,251) (212)
Loss / (gain) on disposal of tangible fixed - 2,384
assets
Depreciation of heritage assets 10,714 10,714
Depreciation of tangible assets 2,053 3,497
Movements in working capital:
(Increase)/decrease in stocks 1,598 13,555
(Increase)/decrease in debtors 128,744 34,494
Increase/(decrease) in creditors 28,425 (18,289)
─────── ───────
Net cash flow from operating activities (183,320) (340,939)
═══════ ═══════
29 Analysis of changes in net funds

During the year the group had no borrowings or obligations under finance leases. The changes in net funds of the charity therefore solely comprise of cash and cash equivalents.