(lo￿$lgn Envelope ID.. 267F2E8C-E58C444E-8B65-2EEB1FEF2043 Charlty Registration No. 1101948 Company Registratlon No. 04478686 (England and Wales) VULCAN TO THE SKY TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 VULCAN TO THE SKf TRUST HONOURING THE PAST. INSPIRING THE FUTURE DO￿$1gn Enve￿pe ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST CONTENTS Page Trustees, report 1- 17 Independent audFtors' report 18-20 Consolidatèd statement of financial activities 21 Group and charity balance sheet 22-23 Group statement of cash flows 24 Notes to Ihe financial statements 25-41 Do¢US￿n Envelope ID.. 267F2E8C-E58C444E-BB65-2EEB1FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 OCTOBER 2024 OBJECTIVES AND ACTIVITIES OF THE TRUST The prin¢ipal objects of the Vulcan to the Sky Trust {'VTST, 'the Trust.) are to: (1) Preserve and protect Avro Vulcan XH558 and return her lo full working order for the benefit of the public and lo demonstrate and display her to the public and lo conserve and return to full working order other aircraft and engineering artefacts in general which are of significant heritage inlerest and to maintain such in a purpose-buill facility. (2) Advance the education of the general public in Avro Vulcan XH558, in aviation and engineering heritage, in its asso¢iated provenance, historical and social context and in the strategy of deterrence, for the benefit of British heritage, and historical knowledge. (3) Advance the education of the general public in Avro Vulcan XH558 and other aircraft and engineering artefacts in general of significant heritage interest. in their design, engineering and technologies, operational and maintenance processes and procedures.. for the benefit of British heritage, and technical knowledge and conservation, by providing access to engineering demonstrations and practical activities. {4) To advance the education of the general public in the causes of climate change, in particular by aviation, and in the solutions being devised to mitigate these causes, by providing explanations and demonstrations. {5) To advance the education of the general public in the subj8ds of science, technology, engineering and malhemalics ('STEM' subjects). The Trust provides these sepiices throughout the United Kingdom. rin The Trust reviews ils objectives and activities regularly throughout the year, looking at the success of its activities and the benefits that the Trust has brought lo 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. Following a18n-year restoration project, Avro Vulcan XH558 {'XH558') returned to flight on 181h October 2007, having previously been grounded on 23Td March 1993 at Ihe end of ils RAF career. The Trust was granted approval by the Civil Aviation Authority I'CAA.) to operate Vulcan XH558 under UK Civil Regulalions on 2nd July 2008. The aircraft was granted a CAA Permit to Fly on 3rd July 2008. a condition of which was Ihe continuing contractual support from the aircrafl'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 restorallon project. Subsequenlly, Vulcan XH558 was presented by the Trust lo 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 rosA'), and Hangar3 there became its home operating base. In January 2015, the Trust re¢eived 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 Permil lo Fly, thereby consequently bringing to the end the flying life of Vulcan XH558. The aircraft's final flight took place on Wednesday 28th October 2015 al Doncaster Sheffield Airport. ure annin an Grounded at DSA sin¢e 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 publi¢. DOcus￿n Envelope10: 267F2E8C-E58C444E-886>2EEBIFEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 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 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 Vul¢an. However, from the beginning of 2017, the Trust was forced to stop public visits because the airport required the hangar space for other uses and Vulcan XH558 moved lo a parking location outside. 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 the large volume of public lours and events that the Trust Carried out while inside a building, the Trust had lo rapidly restructure lo match tts 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 signifi¢anl heritage value. They decided lo purchase land specifically lo provide a site for a new hangar for this purpose from Anglian Water in April 2018. This was on the b8SlS that the WST would raise the necessary capital funding for the build. Plans fora new hangarwere drawn upwith significant helpfrom local companies, City of Doncaster Council (Fomerly Doncaster Metropolitan Borough Council) and the Airport. In December 2017, the Trust received full planning approval for the new hangar from the council. DSA offered the Trusl a lease on a 51te to build a new hangar specifically designed for its tour, event and engineering activities. Capilal quotations were sought and an initial outline build cost of £4 million was set as a target, which due to the passage of lime as set oul 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, was a sustainable business model, 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 vfsT Board then engaged in April 2019 with a commercial property developer based in Yorkshire who worked with investors who were looking to support a projecl wilh 'Green" credentials and ski115 Wlth edu¢alion objectives. Over the course of a few months positive conversations were had over the Trust's business plan. A draft lease was provided by DSA bul unfortunately at this stage the developer withdrew as the lease caused concerns and was considered not investable. 18 months had now elapsed sin¢e the pU￿hase of the land by DSA. It should be noted that the Covid-19 pandemic gripped the UK in early 2020 causing major disruption to businesses, and the pandemic Continued through to early 2022. 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 WST developed a modified funding model for the hangar. £2.4 million (52'h) of the capital funding for the hangar build would be via a commercial mortgage (subjecl to negolialion) and the balance {£2.2 million) via a public appeal, "Operalion Safeguard., and this was launched in October 2020. DSA instructed their lawyers to draw up an-Agreemenl for Lease, (AfL) in November 2020 Ihat would form the full lease once funding was in place. The AfL was completed and signed the following year, on the 19th October 2021. A condition of the AfL was a deadline that stated the funds needed to be in place by the 31st December 2021 or significant progress towards those funds being secured had been demonstrated. Following a review into the progress of ralsing the necessary fvnds with DSA after 31 st December 2021, the charity was informed that the deadline would not be extended. and the AfL had been lerminated. All fund raising was stopped as, from this point, the VTST could not demonslrate tenure to the land. All income donated for'operation Safeguard" in accordance with the lerms and conditions of the appeal. was restricted for the purpose of building The Vulcan Experience at OSA. Following the temiination of the AfL, the original planned VulGan Experience at DSA could no longer be built, which therefore resulted in the Operation Safeguard appeal failing. VTST took legal advice from specialist lawyers in respect of this and followed their advi￿, declaring a "serious incident. with the Charity Commission, a statutory requirement in the event of a Yailed appeal". Protocols were followed and all donors were contacted and offered either a full refund or the opportunity to allow IThST to 'retain' their donation. In June 2022 the WST signed a 'parking lease. with DSA where the aircraft's tenure on site was se¢ured 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°. Docuslgn Envelope ID.. 267F2E8C-E58C444E-8B65-2EE81 FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 In July 2022 we were infomied that the Board of Doncaster Sheffield Airport had begun a review of strategic options for the Airport. Thè review folkiwed lengthy deliberations by Peel Land & Property and the management al DSA which reluctantly concluded that aviation activity on the site may no longer be commercially viable. This was subsequently publicly confirmed and DSA ¢losed as a live airfield in November 2022. Initially, when it became apparent that our future was likely to be away from DSA, we began the process of finding Safe and permanent home for XH558. The Trust reviewed options that induded,. (1) Exploring with the relevant authorities the potential of a short ferry flight to a new home notwithslanding the fact thal in 2017 this was deemed not possible by the CAA given the complex category ofour Permit to Fly. The ferry flight option after much research was deemed not possible as we could not se¢ure the requisite Design Authority support central lo the CAA considerations of a 'P8miit to Fly. a formal legal requlrement. (2) Dismantling the aircraft, relocating by road and then rebuilding her with as much fvnctionality as possible and a mmercial quotation for this work was secured. VTST had secured interest to move the aircraft to two potential sites, which would both 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 be costty and end her days as a 'live' airframe as defined by full engine functionality. In discussion with the National Lottery Heritage Fund (NLHF) in July 2022. VTST were advised to submit a project enquiry form to enable them to support the ￿ST in assessing the Options for relocation in the best inlerest of preserving the asset. Following ihe submission of the project enquiry form we were inviled to submit a funding application to request support from the NLHF in respect ofgovernance and business plan development. In December 2022 the grant was awarded and the NLHF authorised our appointment of Focus Consultants to carry oul the work. Since the announcement of the closure of the airport, the WST maintained discussions with Pe81 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 and the immediate need to dismantle and move the aircraft was removed. The NLHF was updated and the grant-funded project work effectively paused. Disappolntingly, March 2023 was the last engine ground run that was allowed to be carried out. Peel L&P, while open to discussions on XH558 remaining onsite, had Concerns over operating a live aircraft on a closed airport especially as their insurance levels had been drastically reduced in line with the new status of the si18. While the charity has been able lo display a static Vulcan XH558 to the public, the loss of engine ground wn events meanl a loss of a vital revenue stream and impaded on the public benefit delivery of the Trust. The discussions with Peel L&P led lo an ongoing feasibility study of using one of the extant hangars at DSA as 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 Doncasler Council (CDC) were in negotiations wilh Peel Group to lease the airport site. These negotiations were ¢on¢luded in March 2024 with the agreement of a lease for 125 years. CDC will be reopening Ihe airport under the operation of FlyDoncaster Lld. a 100% owned council company Our discussions with CDC and latterly FlyDoncaster Ltd. have been incredibly positive. In December 2024 the Trust received confirmation from CDC of ils long-lerm future at Doncaster Sheffield Airport. Christian Foster. Programme D1￿ctor for South Yorkshire Airport City, the name of the programme dedicated to reopening ihe airport. said al Ihe lime: 'We are looking forward lo working with the WST lo put a lease in place that gives them some long-tem) security. Vulcan XH558 made Doncaster Sheffield Airport its home back in 2011 and has welcomed thousands of visitors to Doncaster. People flocked lo the site lo see her fly and when she was located in a hangar, thousands came to find out more about this extraordinary piece of aviation history. 'The team behind the charity have ambitious plans to create The Vulcan Experience, we now hope this comes lo fruition. What is important for now is that her wel¢ome in Doncaster is extended and supporters are once again given the opportunity to see thi5 feat of engineering up close.. Following this news. VTST updated the NLHF and recommenced the grant-funded work, with a completion date of the end of April 2025 being agreed by the NLHF. The NLHF continue to be supportive and understanding of the challenges ￿ST has faced in recent years to protect a national heritage asset. Docusign En￿lope ID.. 267F2E8C-E58C444E-8B6&2EE81FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 At the time of this report both aircraft remain on site under a 'Tenancy at Will.. and the Trust are having positive discussions with FlyDoncaster Ltd. regarding a location that has been identified as a site for ￿ST to lease and build The Vulcan Experience. A request to recommence engine ground runs is also being Considered by FlyDon¢asler. We are mindful that English Electric Canberra WK163 will need to be based at a site where restoration is possible - i.e. a live aitheld with maintenance facilities and this restoration project remains under continued review by the Board of Trustees. As explained in note 22 of the financial statements, VTST may be required to repay some or all of a grant from the National Lottery Heritage Fund ("NLHF"), formerly the Heritage Lottery Fund (HLF), in the event of the sale, disposal or mortgage charge of XH558 without prior approval of the NLHF. The Heritage Lottery Fund (HLF), In the form of its legal entity the Natlonal Lottery Heritage Fund (NLHF), maintains a charge overthe Avro Vulcan XH558 on a reducing amount based on the HLF granl and the flying life ofthe aircraft, which is covered by the aircraft's Hull insurance. The contract betsveen the WST and the NLHF 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, il had completed 346 hours flying since its return to flight in 2007, successfully exceeding its flying commitment to the NLHF of250 flying hours. rn The 'Operation Safeguard, failed appeal, in early 2022, highlighted that education - specifically STEM 8ducation wasn't listed as one of our charitable objects. Owing to this, and with guidance and support from Stone King LLP, the charity undertook the process of an Objecl Clause Change. The Trust submitted an application for consent lo the Charity Commission in January 2024. On 6 June 2024 we received the formal consent from the Charity Commission under $.198{2){a) of the Charities Act 2011 to amend the charity's objects. Further lo the Charity Commission's consenl, the Board of Trustees met on 18 October 2024 and agreed by Special Resolution to adopl the new object - To advance the education of the general public in the subjects of science, lechnology, engineering and malhematics ('STEM' subje¢ls). - The charity's amended Memorandum and Articles of Association were registered al Companies House on 20 November 2024. While working on th8 Object Clause Change, VTST also instructed Stone Klng LLP to Cary out a full review of the charity's Memorandum and Articles of Association. Having reviewed the Memorandum and Articles, Stone King advised they would benefit from being updated due to the changes in company law brought about by the Companies Act 2006 and that we should consolidate the Memorandum and Articles of Associalion as one document, as Ihe provisions of the Memorandum are, in the main, now deemed lo form part of the Articles. Following the review, the amendments lo be submitted to the ChaTily Commission for Consent wlll include.. Removal of the requirement for AGMS. As there are no 'Members' olher than the Trustees this is no longer statutory requ1￿Ment. In light of Covid, provision for virtual I hybrid Trustees, meetings will be indud8d. Provision will be included lo allow the Members to make decisions by written resolution instead of at a formally arranged meeting. This reflects Ihe position in the Companies Acl 2006. Removal of the retirement by rotalion provisions which were previously linked to the AGM, wilh a change to TTUStees being appointed for three-year terms with a maximum consecutive term of 9 years. The recommendation of a greater rolation of Trustees on the board was also made in the report by Focus Consultants on governance and business plan development. In the review of the Memorandum and Articles of Association, it was also noted that John Sharman was listed at Companies House as a person with significant control. The nature of control was staled as "Has significant influence or control over the truslees of a trust" which Stone King LLP advised was not correct and needed to be rectified. The PSC07 (Notice of ceasing to be a person wtth significant control (PSC)) and PSC 08 (Notification of PSC slalemenls= "The company knows or has reasonable cause to believe that there is no registrable person or registrable relevant legal entity in relation to the company.) were filed with Companies House on 15 April 2025. Docuswn Envelope ID.. 267F2E8C-E58C444E4B65-2EEB1 FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 her Activities The Trust, continues to plan for its future activty taking into account the current status. In accordance with its objects. the Trust broadened its scope and interests by the aGquisition of another aircraft in May 2016. an important English Electric Canberra aircraft that broke the world altitude record in 1957. The Trust's activities in¢lude charitable fundraising in many different ways to ensure that sufficient fvnds are available to allow th8 continuation of the Trust's public benefit delivery. The Trust has become mu¢h more reliant on volunt8er support. A team of appropriately-skilled volunteers have been trained as the Vulcan ground support team. This team demonstrates the funclionals (rudders, elevons, air-brakes and bomb-bay doors) of the aircraft with engine running and slow taxying under the aircraft's own power a possibillty with agreement of the sile landlord. The Trust continues lo carry out limited public benefit delivery activilles at sites remote from the airport, including talks and presenlalions, and a presence at events such as air shows. The Trust rents an Industrial unil al DSA that also Is the registered Head Office of the wfsT - 4 Delta Court, Third Avenu8, 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 vfsT 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 flighl and non- essential XH558 spares are managed in a separate location near to Slrafford-upon-Avon. VTST'S subsidiary, The Vulcan Operatlng Company Ltd {'VOC'), relinqulshed its CAA Malntenance Approvals in 2018, but is maintalning its safety management and quality procedures for heritage aircraft to ensure that XH558 e2n be operated safely. VTST also has undertaken activities to provide Inlerprelation of the aircraft under its care. and to educat8 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 increasing amounts of educational talks, and planning and providing school activities in line with the National Curriculum. 2. ACHIEVEMENTS AND PERFORMANCE OF THE TRUST The move from Hangar 3 in February 2017 to a location outside, which means limited publlc access, caused Ihe suspension of much of the Trust's public b8nefit delivery activities. This effectively put the Trust's future at risk because of the financial impact of the cessation of revenue earning tours and events. As a consequence, a significant restructure of the charity was undertaken, so that golng forward the much-reduced cost structure can be sustained by the forecast level of income. The 5UPPOrt of our current donors and the tours and evenls Ihat the Trusl is able to carry out while operating outside, are fundamental to the charity's future until our new trading model is established in our planned new and permanent home,. The Vulcan Experience. The Trust has a fully costed business plan, which has been stress tested in the event of a repeat event such as the Covid-19 pandemic. The business plan delivers a robust business model to operate The Vulcan Experience. Public Benefit Delive '. Con ineerin arlefacts of Avr Vulc n XH558 in kin order nd other heril Maintenance on Vulcan XH558 is carried out following the original RAF maintenance procedure5. For safety, the explosives associated with the ejection seats and canopy gun have been removed, but in all other aspects, Vulcan XH558 remains serviceable. The positive news of XH558's long-term future being in Doncaster removes the necessity of dismantling, moving by road and rebuilding the airframe at a new location. which would result in much reduced functionality with no live engines. The charity's discussions with landlords and decision making during the difficult period of 2023124 have resLSlted in XH558 being able to remain at the current location, which is important to keep this important heritage asset intact. 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 Docusign Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 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 lime need a full servi￿, 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, wr327, at auction in the USA that induded WK163'$ original cockpit which brings both a significant technical benefit and a very fortuilous 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 restoralion will not begin until Ihe new hangar and pennanent home for XH558 is secured. This project will be the subject of a separate specific targeted fundraising ¢ampalgn Specifical￿ to achieve th8 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- All the Trust's volunteers, who continue to perfomi important roles in support ofthe tours ofXH558, merchandising activities and online order fulfilment, engineering and logistics, and in promoting the Trust and ils activities - such as airshows - around the country, including fundraising. The public, who have consistently supported the project as evidenced in the volume of donations lo place a name under XH558. Some 100,000 people have a name attached to Vulcan XH558. City of Doncaster Council, The Doncaster Chamber of Commerce, our education partner, The Work-wise Foundation and the many local and regional businesses who have offered 8UPPOrt, The Founding Guardians, who were members of Ihe now-disbanded Vulcan to the Sky Club, and the Vulcan XH558 Guardians, all of who have given freely their tim8, effort and Commitment al air shows and other fvndraising events, and the 'Friends" of the Trust and members of the gen8ral public, whose support has been vital. ta Avr 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 Twstees 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 worked with the Airport to establish an agreed method and risk assessment for ground-running the Vulcan with spectators present. Since March 2023, the charity has only been able to ¢arry out tours to a static and silent XH558. After we had ¢ompleted all previously planned and sold-oul events, engine ground runs were placed on hold due to the site landlords, concerns over operating a heritage aircraft on a now closed airport, and they were negotiating with the City of Doncaster Council on a lease for the airport. CDC are now the leaseholders for the sile and their 1000/0 owned company FlyDoncaster are working towards reopening the airport. At the time of drafting this report a request to recommence engine ground runs is being considered by FlyDoncaster. The sights and sounds ofthe running Vulcan are highly valued and much In demand, and represent an important revenue stream for the charity. Over the period, the Trust marketed and delivered opportunities for paying visitors to experience being up close to Vulcan XH558 on an Airside Tour and engross themselves in the cockpit surroundings. There were also events held for Classic Cars to visit and have photos laken with the iconic aircraft. Al all lours to see XH558, supporters were able to stand beneath the aircraft to view their names under the Vulcan's massive della-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. The charity also held a number of speaker evenls lo share the story of the Vulcan. its part in Ihe Falkland's Conflict, XH558's story and other interesting talks for Vulcan and aviation enthusiasts. With no facility available to the Trust on site, these events were held at locations away from the airport. Similar speaker-type events will be held in The Vulcan Experience. Docusign Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Below is a summary of our OUt￿a¢h 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. 2023124 Airside Tours 24 sessions with 742 guests Special Tours (including 5 education visits) Classic Car visit to XH558 10 sessions with 90 guests 6 sessions with 184 guests Speaker Events 8 sessions with 603 guests. Alr shows We attended three air shows during the year,. Abingdon,. CosfoTd; and RIAT. We plan to attend two air shows in 2025. Stratford Central Stor08 - Open Days and Pro8entstlon8 Open Days were held on.. 4 November 2023 2 December 2023 The following presenlalion was conducted.. 18 November 2023- Sorpe Dam Film Pres8ntallon On 28 October 2023 a hands-on engineering workshop was held for 150 {City of Oxford) Squadron Air Cadets. Followed by further workshops on 25th November 2023 and 9th December 2023. Strafford Central Stores - External Actlvltlos 14 December 2023 a SoTpe Dam Film presentation lo 150 (City of Oxford) Squadron Alr Cadets was held on sile at their Cadet Hut. 25 January 2024 a Sorpe Dam Film presentation to 1017 (Malvem) Squadron Air Cadels was held on site al their Cadet Hut. 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. The Avro Vulcan XH558 with ils impressive technical innovations helped place Britain at the forefront of aircraft design over seventy years ago. We are now usin9 the spirit of this innovative thinking to help young people consider some of the cu￿ent and future queslions in aviation, aerospace and more broadly around future technologies and sustainabilily, leaming 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 worfd of engineering, design and creative problem solving to them. The charity continues to work in partnetship with The Work-wise Foundation to deliver outreach bespoke education programmes to s¢hoo15 in the South Yorkshire Region and beyond. The year November 2023 to October 2024 has seen the partnership build upon the previous yearfs programmes and extend our reach, helping in our mission lo engage the next generation to learn about, be inspired by and find future careers in scien￿, technology, engineering or manufacturing. Do¢uslgn Envelope ID.. 267F2E8C-E58C444E-8B65-2EE81 FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Aclivity to October 2024: North Star Science School - November 2023 Dates.. 8 November 2023 VTST delivered a workshop on the day in collaboration wrth Doncaster UTC. Working with a group of 15 Students over a 3-month period the workshop was co-created and delivered to those attending. The workshop was designed and developed by the students, supported by the VTST and demonstrated the aerodynamics in a wind tunnel exploring different pafachule materials and the effect it had on the drag of an alrcraft. It has also provided a legacy activity that can be delivered to other groups of Students. IMPACT: 40 Schools1412 Students180 Edu¢ators Get up to Speed wlth STEM Dates: 20 March 2024 ST have attended and exhibited at this showcase event at Magna Science Adventure Centre for a number of years. The day is a highly interactive event which highlights and showcases the range and breadth of opportunities available within the sector. Alongside the great team of Vulcan Volunteers, we were joined and supported by students from Doncaster UTC demonstrating aerodynamics in a wind tunnel and their workshop exploring different parachute materia18 and the effect it had on the drag of an aircraft. This was another great opportunity for them to display this co-cr8ated Workshop first present8d at the North Slar Science School event in November 2023. 11 was impressive to See the UTC students interacting with other young people sharing their learning and enthusiasm and sparking curiosily, creativity and hopefully inspiring those attending to find out more and consider futUTe options. IMPACT: 86 8¢hool814,499 Young poople l 580 Educators Dr Plemlng'$ Operaloon Vulcan Deslgn Projects: Fo8terlng Innovatlon In Edueatlon Dates.. January lo March 2024 At the end ofJanuary 2024, the "Dr Pleming's Operation Vulcan Design Projects was launched to bolh Primary and Secondary schools. Attended by 259 students over the two days from 11 schools, the programmes provide schools and students with a deeper and more immersive experience over a longer period of time, igniting curiosity, fostering teamwork, and providing students with the tools to turn their ideas into reality. Held at The Magna Science Adventure Centre which also provided an immersive environment for students to delve further into the world of STEM. After leaming about the Theory of Flighl and participaling in a range of hands-on flight related activities the Primary Schools challenge was to design and build models of a Vulcan created out of recycled materials to be show¢ased and displayed at Get up to Speed, where the winning teams were announced. The winners, prizes being a chance for them and their class mates lo visit Vulcan XH558 and experience this iconic piece of British engineering up close. The Secondary schools challenge involved leaming about the science, technology and engineering behind ejector seats, getting the ¢hance to examine and sit in one from the aircraft. Then taking this learning back into s¢hool, and design their own safe and environmentally friendly working ejector seat. Support was on hand throughout from the Vulcan and Work-wise teams to lest out their ideas and ask further questions. Participating teams from Springs Academy, Oasis Don Valley Academy, Goole Academy, Ash Hill Academy. Doncaster UTC and Garforth Academy. The entries were presented and demonstrated to a panel of Indusiry experts with the winning design team then working alongside The Work-wise Team and with engineers from CBE+ DN4 Innovation and P1 Technology and are now developing Iheir winning entry to be displayed as a working model at Get up to Speed 2025. IMPACT: 11 s¢hool81259 Students Docusign Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1 FEF2043 VULCAN TO THE SKY TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Dr Pleming's Operation Vulcan Challenges - West Yorkshlre Dates." 2023124 Academic Year This year saw the first extension of activities more widely beyond South Yorkshire with the Operation Vulcan project being offered as a pilot lo West Yorkshire s¢hools. The pilot involved a visit to Delta Court and students got thè opportunity to see Vulcan XH558 up close at the launch day. They were then set a Conlroller Design Project to work on back in school, which was developed over sevèral weeks and then presented at a Judging Day at De Puy Synthes in October 2024. The winning design coming from Tong Leadership Academy from Bradford. The project also engaged 12 additional STEM Volunteers and has helped extend connections for further work In the wider region. IMPACT: 4 8chools184 Students112 STEM Voluntoers Get In tho Splrlt Challenges: Unlea8hlng Crnatlvlty Acro$8 Schools Dates.. 2023124 A¢ademi¢ Year Running alongside the Operation Vulcan Challenges we ran the first "Get in the Spirit Challenges,, a competition tailored for both Primary and Secondary schools. This competition invited students to embark on creative challenges that could be undertaken within the school selting or at home. The Primary Challenge was to design Vulcan Superhero and secondary to create a short graphic story or film to tell the story of XH558. Visits were then arranged for the winners and their Classmates to visit XH558 as the prize. Two vlsits have been hosted and a third is planned for early 2025. Collaboration ProJe¢ts wlth Don¢•ster UTC Dates.. 2023124 Academic Year The lalest challenge sel with Doncaster UTC was an Aircraft Controller 'Yoke Design Concept" challenge. The challenge was set to design and prototype a concept for a new aircraft controller. Students were asked lo research and explore current and previous designs through history lo the present day. The design concept being based on P￿vIouS developments of both steering wheel yoke and joystick controllers. But also, be innovative and ensuring focus on both ergonomics and new technologies. The concepts were then tested and presented lo employers lo showcase their feasibility. The employers were suitably impressed by the range of designs, the creativity and thought that had gone into these. We hope in future to engage more UTCS and schools in these bespoke projects. Summary The Vulcan XH558 Education Programme this year has reached and supported.. 144 Schools 5,344 Students 696 Teachers and other educators Such activilies demonstrate the continued importance of Vulcan XH558 and the work of the charity to inspire future generations. embracing innovation. fostering creativity and supporting diversity in STEM fields. Future Development wrsT has taken a position at Skills Street in Rothertlam, South Yorkshire, where we are expanding the delivery of our education programme. Skills Street is an immersive and innovative WOTld-of-work experience developed lo widen career aspirations for children, young people, and adults across the region and inspire the next generation to work. The Trust is based in the aviation zone and we use the innovativè design of the Vulcan, and XH558's remarkable story. as the centrepiece of our education work to inspire young people inlo engineering, technology, aviation and design related roles. Docuslgn Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 In this space the charity will be delivering a range of interactive hands-on science, technology, engineering, arts and maths learning activities themed around Aviation, Aerospace and the Theory of Flight, using the iconic Vulcan XH558 as the inspiration. It is expected that some 16,000 young peoplè will pass through the facility each year whi¢h hugely increases the charity's engagement for our education activities. In July 2021, the Royal Aeronautical Society published a research paper on Vulcan aerodynamics in their Journal of Aeronauti¢al History. The paper was written by VTS Trustee, Dr Stephen Liddle CEng MRAes. The Joumal of Aeronautical History Covers all aspects of aerospace history and the d8v8lopment of aircraft and aeronautical engineering. Steve's paper, 'Pearcey, Newby and the Vulcan., tells the story of how very advanced aerodynamic technology was incorporated into the Vulcan design, after problems were found in early flight tests. In turn. thè Vul¢an demonstration Meant there was confidence in using this new flow physics in the next generation of airfines in the 1960s. This positioned the UK companies well for the start of the Airbus project, and all of Ihe benefits Ihat followed from that. It should be noted thal Ihe charity's historical research work is receiving cltations in Current academic resear¢h on fijture aircraft. The Trust is using ils expertise lo interpret the Vulcan story and its engineering al a level thal inspires investment at university research level In January 2024 we had an emailable audience of45,364. By the end of 2024 that number increased to 52,701. We currently have an audience of 46,583 emailable addresses after a housecleaning exercise, with an audience predicted demographic of 26.60/0 female 149.99/r* male l <0.1OA Another Identity 123.5ts/o unknown. The ages of subscribers range from 18 to 65+. Age range split.. 18-24-10 2&34- 2.60 3544- 6.8° 45-54- 16.6•/0 5M4- 24.10 65+_ 25.40/9 Unknown- 23.50 The monthly newsletters contain updates on the ongoing care and protection of XH558, news of educalional outreach and articles on the history of the Vulcan, the RAF and the Cold War. Our newsletters were opened 199,701 times during 2024, wilh an average'open rate, of 33.30A. Social media Articles that appear in the newsletter are hosted on our website- www.vulcanlothesky.org so that educational content Can be further shared on social media, where we have a possible reach of 361,127 people. The majority of our social media posts are broadcast on all of our social channels. Social media followersllikes.. Facebook = 266,716 TwFtter = 73,747 Inslagram = 11,080 Linkedln = 2.741 YouTube = 6,843 10- Docusign Envelope ID.. 267F2E8C-E58C444E-8B6&2EEBIFEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Guardians of Vulc n XH558 Founding Guardians were members of the now-disbanded Vulcan to the Sky Club. Originally joining as 'Club members, during Ihe early restoration days of VTST, this group migrated lo the Founding Guardians scheme when the Club was wound up. As it's not possible to add rn0￿ 'Founding' members, the Guardians scheme was introduced during the Operation Safeguard appeal and is now a regular scheme that is offered. The Guardians scheme demonstrates core support and regular giving. All Guardian types receive a high-quality magazine ￿1c8 a year. The Winter 2023 magazine was distributed to 1,999 members. Made up of.. Founding Guardians- 1060 Guardians = 939 For th8 avoidance of doubt, neither are members of the Trust. nue re ion Afierlhe forced move from Hangar 3, and the Challenging years that followed which induded the Covid-19 pandemic, the Trust being asked to move Vulcan XH558 and Canberra WK163 from the DSA site, and the subsequent Closure of the airport which resulted in Ihe cessation of engine ground runs, the Trust has found itself under very significant cash constraints. With the help of the on-going public donation stream, continuing merchandise revenues especially In high profit lines, monthly donations, raffles and regular five-figure philanthropic donations, the Trust has been able lo ¢ontlnue its operations. The Trusl has continued lo invesl in marketing, adv8rti$ing and social media advertising campaigns aimed at both the general publi¢ and potential sponsors. The focus has been on small to mid-range giving and appeals for specifi¢ needs. Incentives have included opportunities for donors to have their names on XH558's wing and bOm￿baY doors. The Namas Underthe Wing and Names Underthe Bomb-Bay campaigns be￿e&n 2017 and 2025, along with'Names' campaigns during the tlying years, have seen more than 100,000 people donale towards the care and protection of XH558 and, as a thank you for their donation towards those specific campaigns, have their names attached to the air¢raft in perpetuity. The funding strategy is under constant review and will evolve as the Trust moves towards building The Vul¢an Experience. This new and permanent home will deliver a return to our full Irading model, not available lo us sln¢e leaving Hangar 3 at DSA in January 2017. Key fundraising initiatives for the future are,. A new 'Names° campaign is being planned. The names for this campaign will be pla￿d inside the cockpit, on the rear crew panel. The equipment was removed from this area during the restoration, as the kit was unnecessary for a ¢ivilian operated display aircraft. The area is currently a blank panel with only a few pieces of equipment in place which are required for when the aircraft is live. The charity plans to put in place a visual of how the area looked during the aircraft's RAF service. A Perspex screen will sit in front of this much improved area, displaying names of donors as a thank you for their donation towards the ¢are and protection ofXH558. A new monthly lollery- The 558 Monthly Draw. The previous lottery was called the Flying Fund Draw. This was stopped in November 2023 and participants were contacted to advise that past that date the draw would not be made. The Flying Fund Draw by the nature of its name was not able lo be promoted beyond the supporters who had continued participating after the final flight of Vulcan XH558. A new monlhly draw, suitably named, enables the charity to continually promote the new lottery and gain new entrants, so increasing the revenue available to support XH558. Gift Aid will continue to be daimed on all eligible donations. Raffles will continue with a planned Summer and Wnler version of the raffle. Docusign Envelope 10.. 267F2E8C-E58C444E4B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 The Guardian scheme will continue. This will become more attractive as a permanent home is secured. For the avoidan¢e of doubl, Founding Guardians and Guardians are not Members of the Trust. The sale of Vulcan spa￿$ and other aircraft spares that will never be required for use in XH558 or other Trust owned al￿ raft are still being sold via our own websile. Enterprises tumover for the year was £142,023, down £14,328 on the previous year. After the loss of Dr Robert Pleming, and then Michael Trotter stepping down from the Executive role, albeit still supporting in an advisory ¢apa¢ily, Marc Walters was appointed to the role of CEO. Due to the uncertain future at the time, with plans being made to dismantle, move by road, and rebuild XH558 in a new location. the decision was taken not to fill the vacant roles. Now there is certainty thal XH558 will remain in Doncaster, in April 2025 a new Commercial Operations Manager was recruited with the responslbllity of increasing online revenue. Promoting of legacy giving will continue in conjunction with the Free Wills Network. Research shows that legacy giving is vital to a charity's ongoing revenue. Promotion of the Free Wills offer will take place throughout the year, particularly during National Free Wills Month in March and October each year. lthen a laase for The Vulcan Experien¢e is secured a new and focused approach will be made lo secure corporate sponsorship, targeting aerospace and the engineering industry and retaillFMCG companies. Commercial sponsorship will have a key role as we develop The Vulcan Experience with the twin objectives of promoting a significant heritage asset {XH558) and our excitlng education plans., "Honourin9 the Past, Inspiring the Future.. When a lease is in place for the new vlsltor attraction, the Trust will also begin a structured approach to securing funds from local and regional government bodies, grant making foundations and High Net Worth Individuals {HNWI's). As part of the evolution and the necessary growth of Ihe Trust's operations team when we're definitively working towards the new build, we plan to invest In resource wlth a skill set that Includes bid writing. Fundraising for the resloration of English Electric Canbèrra WK163 will be the subjecl of a separate and dedicated campaign when time allows and after a permanent home for XH558 is secured. The Trust's monthly email newsletters enable further fundraising opportunities. The Trust's ability lo email a large database and18ad thèm to our websile - www.vulcantolhesky.org is the Trust's primary communications vehicle. The website is updated on a ￿gUlar basis and continues lo 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. The Trust undertakes charitable fundraising in a variety of ways ir)cluding through regular newsletters via email and hyice-yearly postal mail, and at events. Funding contributions come mainly from the Trust's loyal supporter base, currently 46,583 people. Without their valued contributions, the Trusl would not be able to continue delivering its public benefits. Supporters are able to make regular donations through appeals, and customers ¢an 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 ti¢kets are sold and merchandise is available. On major public fundraising initiatives in recent years, the WST, mindful of the changing environment has also invested in paid advertising via social media. Retums on inveslmenl 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 lh8 Trust., the Trust does not carry out any fundraising through professional fundraising agencies. The Board of Trustees regularfy reviews the Trust's fundraising activities and outcomes. Furthermore, the Trust does not carry out any fundraising through cold contact, whether unsolicited mailing, face-lo- face fundraising or telemarketing. The Trust has never received a complaint about its fundraising activities. The Trust is registered wrth the Fundraising Regulator, and is aware of and follows its Code of Fundraising Practice and the 12- Docusign Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Chartty 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. Vul an er Limited Vulcan to the Sky Enterprises Limited (.￿SE.) is the merchandise trading arm of the charily, and has enabled the Trust to receive funds through the sale of merchandise, memorabilia and services at events and through an 'online' shop. The online revenue is expected lo increase with a new focus from the recently recruited Commercial Operations Manager. Also, The Vulcan Experience will provide incremental revenue through a permanent physical shop. The financial results for the year ended 31 st October 2024 are summarised in note 16 to the accounts. VTSE covenants any taxable profits to VTST under the Gift Aid scheme. 3. FINANCIAL REVIEW Total incom8 of the group for the 12 months ended 3161 October 2024 amounted lo £998.474 (2023.. £469,085). The Trust's principal funding ¢omes from several sources such as donations, in particular the Names Under th8 Bomb Bay campaign, Founding Guardian membership, and merchandise sales. Total expenditure forthe 12 months ended 31•1 October 2024 was £908,45412023'. £822.6881. Expenditure on raising funds for the year lolalled £613,555 {2023'. £508,625) which generated income of £989,517 12023.. £420,643), being income from donations (note 3) and other trading adivilies (note 5). The expenditure on raising funds represents the day-lo-day management of the ¢harily and includes tasks such as, managing volunteers, operating the online retail business, managing events. carrying out charitable fund-raising, promoling the Trust's activities, liaising with supporters and administrating the database of supporters, supporting the maintènan¢e ofXH558, and complyin9 Wlth mandatory govemance requirements. We have invested in future plans and this indudes negotiations with potential new landlords and business planning to undeNrite a secure future, along with ensuring day to day ¢osts of the business and maintaining the aircraft are covered. Once the future plans become fonnally agreed, focussed fundraising may begin to secure that future, investing in permanent home and the associated revenue streams (visitor tickets, physical retail store, Corporate evenls). The net assets of the group as at 3111 October 2024 were £1,043,807 {2023: £953,787). The group's fixed assets comprise the Avro Vulcan XH558. its associaled spare parts, ground equipment and tools, together with miscellaneous items, and are valued as at 3111 October 2024 at £719,926 {2023'. £732,306). There is a charge over the aircraft in favour of the National Heritage Lottery Fund in the amount of £427,000 reducing on a straighl-line basis from 31. October 2016 until 2085. The amount repayable is currently limited to £377,496. The Trustees believe that income in the form of donation streams, the Guardian scheme, and me￿handise 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 currenl site in Doncaster. The Trust's reserves policy has been lo aim to build up, over time, free reserves {unreslrided funds less fixed assets) to a level equivalent to 6 months of core expenditure, being approximately £360,000. As at 31 st October 2024 the Group's funds totalled £1,043,807, of which £16,600 is restricted and £1,027,207 is unrestricted. The group's free reserves {unrestricted funds less fixed assets} totalled £307,281 (2023.. £204,881), the equivalent to 5-6 months of expenditure. The trustees retain the 6-monlh policy as an important targel, and, subject to the success of future fundraising appeals, intend to use any surplus to assist with the Trust's running cosls 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 Trusys objectives for future periods are to.. 13- tjocusign Envelope ID.. 267F2E8C-E58C444E-8B65-2EEB1 FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Maintain Avro Vulcan XH558 in full working order, and to operate the aircraft on the ground safely to the benefit of spectators at DSA for as long as possible. Continually review the plan to ￿$tore Canberra WK163 to an airworthy condition, for the purpose of displaying the aircrafi to the benefit of the public at air shows and other outside events around the Country, and to raise funds specifically for that purpose. Continue to deliver our education plans, through the Skills Street facility, for the Trusl to provide relevant publi¢ benefits, in particular in inspiring the young in engineering, technology and aviation. Build and develop a permanent home for XH558, The Vulcan Experience, lo ensure growing public access to this important aircraft, and ensure affordability, visitor and school accessibility, catchment area and local & regional support. Deliver inspirational education experiences on design, science, technology, engineering and mathematics (STEM), to a range of audiences, including national Curriculum topics for school children, on Cold War history and related subjects focused around the aircraft, and inform all of the various methods and technologies by which aviation's impact on climat8 change will be minimised. Secure the funding needed to achieve the above objectives, from a diverse range of sources so as lo minimise rlsk. 5. ORGANISATIONAL STRUCTURE. GOVERNANCE AND MANAGEMENT Vulcan to the Sky Trust was granted charitable status on 8 February 2004, and is registered with the Charity Commission under number 1101948. Vul¢an lo the Sky Trust is constituted as an incorporated company limited by guarantee, ils goveming document Comprising ils recently reviewed and updaled Articles of Association, The Trustees (who are also the Trust's Directors) who have served since 1 November 2023 are as detailed in section The Board of Trustees met five limes belween 1st November 2023 and 31 st October 2024, including an Annual General M8eling. There have also been règular 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 re¢eipied expenses. In January 2024, afler nearly 20 years as a Trustee of Vulcan to the Sky, Ken Smart CBE FRAeS retired from his role. Sadly, on 3 Aprll 2024 Ken passed away. In June 2024, Sir Donald Spiers retired as a Vule2n to the Sky Trustee after more than 20 years. We wish hlm all the best in his well-deserved relirement. It should be put on record, the impact on the project to retum Vulcan XH558 to flight of both these gentlemen. Ken played an instrumental part in returning Vulcan XH558 to light. In Ihe early days at Brunlingthorpe Ken worked with the team lo convince a very sceptical Civil Aviation Authority (CM) 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 thal the CAA awarded Vulcan XH558 her Permit to Fly on 3 July 2008. Two days later she performed her firsl display for an enthralled British public al the RAF Waddington Air5how and went on to fly for many more years before making her final landing on 28 October 2015. Sir Donald has had an illustrious career in both govemment and industry, which included various significant directorships. fellowships, and influential positions within the aerospace and defence sectors. This huge wealth of experience was significant to the project of returning Avro Vulcan XH558 to flight. Throughout his lenure with The Vulcan to the Sky Trust, Sir Donald's contributions have been invaluable, playing a major role in the restoration of XH558. We extend our deepest gratitude to Sir Donald for his exceptional service. 14- D0CL￿19n Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 'The Trust owes a great d8bt of gratilude to two of its longest-serving Trustees, whose particular skills and wise judgement over a long period were invaluable in the work to retum XH558 to flight and its subsequent support within the wider community.. _ Edward Jarron, Chairman of the Board of Trustees. Recrui men and trainin of Tru ees 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 an induction pack by the Company Secretary, including briefings on Ihe workings of the Trust, its formal documenlalion, the Trustee's role, the financial status of the Trust and its future plans. Three new Trustees have joined the Board since November 2023. Steven Roberts in September 2024, Alexander Jones in October 2024, and Barry Cunliffe in April 2025. Unfortunately, Alex Jones resigned for personal reasons in January 2025, but we hope there is an opportunily in the future for him to re-join the Board. The Board is responsible for policy and overall management of the charily, but has delegated necessary operating Powers and decision-making to an Executive Rol8. 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. Marc Walters regularly updates the Board of Trustees on important matters. The remuneration of key management is approved by the Chairman of Trustees and is sel against established pay scales, benchmarked in comparison with similar sized charities. The Trust operates with 3 fvll-time employees and 3 part-time employees as al 31 st October 2024. The Trust also benefits significantly from a large amount of volunteer support. including spe¢ifi¢ally assisting with public relations, events, merchandise fulfilmenl and the Trust's air show presence. Vulcan to the Sky Enterprises Limited is the wholly-owned retail trading subsidiary of VTST. ￿SE covenants its taxable profits lo ￿ST under the Gift Aid scheme. There are three additional wholly-owned subsidiaries of the Trust, which were incorporated to enable the Trust lo undertake certain activilies aimed at creating a sustainable business model during ils occupalion Hangar 3 al Doncaster Sheffield Airport. These subsidiaries. the Vulcan Marketing Company. The Vulcan Operating Company and the Vulcan Property Management Company are now dormant. Marc Walters has been director for all subsidiary companies since 1 January 2023. The Trust, through its management team. continues to identify and review the major risks that the charity faces. Procedures, including a Safety Managemenl System, have been put in place to mitigate and monitor these risks. Health and Safety are regularly discussed at meetings. The Tnjst's principal risks and uncertainties are.. Securing funding for its charitable activities each year and managing working capital- The occurrence of an event that threalens the reputation or integrity of the Trust., Sudden loss of key personnel., Potential for overtrading with limited resoUr￿s- and The implications to its plans of the coronavirus pandemic and changes in public behaviour. 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 Insuran￿ policies include cover for damage lo the aircraft, for war and terrorism risks, and for personal injury insurance for the aircrew. 15- Docusign Envelope ID.. 267F2E8C-E58C444E4B6&2EEBIFEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 6. REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISORS Trustse8 Air Commodore Ed Jarron (Chairman) Mr John Sharman FRAeS Mr Richard Clarke Sir Gerald Howarth Dr Stephen Liddle CEng MRAes Mr Phillip Spiers Mrs Marie Cooper Mr Steven Roberts (appointed 9 September 2024) Mr Barry Cunliffe (appointed 29 May 2025) Mr Ken Smart CBE {resigned 19 January 2024) Sir Donald Spiers CB TD FRAeS (resigned 22 June 2024) Company Socretary Mr Marc Walters Charlty nUM￿r 1101948 Company number 04478688 Prlnclpal •ddre88 Unit 4, Delta Court Third Avenue Doncastèr Sheffield Airport Doncaster DN9 3GN Registered office Unit 4, Delta Court Third Avenue Doncaster Sheffield Airport Don¢a$ter DN9 3GN Auditors Newby Castleman LLP Wesl Walk Building 110 Regent Road Leicester LE17LT Bankers HSBC Bank PIC 58 High Street nchesler Hampshire S023 9BZ Solicitors Stone King LLP Offices at.. Bath | Birmingham | Cambridge | Leeds I London l Manchester- wthi.stoneking.co.uk 16- DOcus￿n Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 7. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also directors of Vulcan to the Sky TNst for the purposes of company law) are responsible for preparing the Trustees, Report and the financial slatements in accordance with applicable law and United Kingdom Accounting Slandards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the trustees musl not approve the financial statements unless they are satisfied thal they give a true and fair view of the slale of affairs for the charitable company and group and of th8 incoming resources and application of resources, including the income and expenditure, of the charitable company and group for thal period. In preparing these financial slatemenls, the Trustees are required to.. seled suilable accounting policies and Ihen apply them consistently; observe the methods and principles in the Charities SORP 2019 {FRS 102)., makejudgements and estimates that are reasonable and prudent; state whether applicable UK a¢¢ounting standards have been followed, subject lo any material departures disclosed and explained in the financial statements; prepare financial statements on the going concern basis unless it is inappropTiale to presume that the charitable company and group wlll continue in operation. The Trustees are responsib18 for keeping adequate accounting records that disclose with reasonable accuracy at any tlme Ihe financial position of the charitable company, and enable them to ensure that the financial statements comply with the Companles 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 Truslees are aware.. there is no relevant audit ir)formation of which the charitable company and group's auditors are unaware., and the Trustees have taken all steps thal they ought to have taken to make themselves aware of any relevant audit information and to establish thal the auditors are aware of thal information. 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 slatements may differ from legislation in other jurisdictions. 8. SMALL COMPANY PROVISIONS Thls 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 81on•d by.. FOATrI2KD0404•2.':'""'" Air Commodore Ed Jarron Chalmian of Trustees 06-07-2025 Approved by the Board of Trustees on 17- Docusign Envelope ID.. 267F2E8C-E58C444E-8B65-2EEB1FEF2043 VULCAN TO THE SKY TRUST INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF VULCAN TO THE SKY TRUST Opinlon 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 2024 which comprise the Group Consolidated Statement of Financial A¢livities, 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 Ac¢ounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and R8public of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and parent charitable company's affairs as at 31 October 2024, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared in accordance with Uniled Kingdom Generally Accepted Accounting Pra¢tice- and have been prepared in accordance with the requirements of the Charities Act 2011. Bas1• for oplnlon We Conducted our audit in accordance wilh International Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in Ihe Auditor's responsibilities for the audit of the financial slatements section ofour report. We are independent oflhe group and parent charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other elhical responsibilities in a¢cordance with these requirements. We believe that the audlt evidence we have obtained is sufficienl and appropriate to provide basis for our opinion. Motsrfal uncortalnty relatsd to golng concern We draw attention to note 1.3 of the financial statements, concerning the group's ability to continue as a going concern. This indi¢ales that the group is relianl on the continued supporl of the National Lottery Heritage Fund, the City of Doncaster Council and its 100Qh owned airport operating company FlyDoncasler Ltd., and the future financial support from its donors to be able to continue operating. These conditions, along wilh the other matters as set forth in note 1.3, indicate that a material uncertainty exisls that may cast significant doubl on the group's ability to continue as a going concern. Our opinion is not modified in respect of this malter. In audiling the financial stalemenls, 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 ¢on¢ern are described in the relevant sections of this report. Other Inforn)atlon The trustees are responsible for the other infomiation induded In the trustees, roport. 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 Ihe other information and, except to the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other informalion and, in doing so, consider whether Ihe other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otheNise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise lo a material misslatemenl in the financial statements themselves. If, based on the work we have performed, we conclude thal there is a malerial misstatement of Ihis other information, we are required to report that fact. We have nothing to report in this regard. 18- Docu$i9n Envelope ID: 267F2E8C-E58C444E-8B6&2EEBIFEF2043 VULCAN TO THE SKY TRUST INDEPENDENT AUDITORS. REPORT (CONTINUED) TO THE TRUSTEES OF VULCAN TO THE SKY TRUST Matters on whlch VM are requlred to report by exceptlon 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.. the information given in the financial statements is inconsistent in any material respect with the trustees, report. or the parent charitabl8 company has not kept adequate accounting records., or the parent charitable Company financial statements are not in agreement with the accounting records and returns., or we have not received all the information and explanations we requi￿ for our audit. Rosponslbllltles of trustèes As explained more fully in the trustee5' responsibilities statement set out on page 17, the trustees (who are also the directors of the charitab18 company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfièd that they give a true and fair view, and for such intemal 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 preparlng the financial slalements, the trustees are responsible for assessing the groups and parent charitable company's abilily to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going concern basis of a¢counling unless the tNstees either int8nd to liquidate the group or the parent charitable company or lo cease operations, or have no realistic alternative bul lo do so. Audltor's respon¥lbllllle8 for tho audlt of the financlal itstements We have been appointed auditor under section 151 of the Charities Act 2011 and report in accordance wilh Ihls Act. Our objectives are to obtain reasonable assurance about whether the finan¢lal statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audilor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in a¢¢ordance 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 declslons 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 irregularilies, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Extent to which the audlt was consldered capable of detscting irregularftles We identify and assess the risks of material misstatement of the financial slalemenls, whether due to fraud or error, and then design and perform audit procedures responsive lo those risks, ir)cluding obtaining audit evidence that is suffi¢ient 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 mi55tatement in Tespect of irregularities, including fraud and non- compliance with laws and regulations, our procedures included the following.. obtaining an understanding of the legal and regulatory framework applicable to the group and parent charitable company by considering the nature of the industry in which the group and parent charitable company operales and enquiring of managemenl., and identifying the key laws and regulations considered lo have a direct impact on the financial statements including the UK Companies Acl 2006, UK Charities Act 2011. UK Generally Accepted Accounting Practice and UK lax legislation., and assessing how the group and parent charitable company is complying with the applicable legal and regulatory framework by making further enquiries of management and observing the groups and parent charitable company's control environment regarding compliance with regulations and fraud prevention: and assessing the suscepiibility of the groups and parent charitable company's financial statements to material misstatement, including how fraud might occur, by considering the effectiveness of the group's and parent charitable company's accounting systems and controls and how these were monitored by management. Where the risk of material misstatement was considered to be higher in ￿rtain areas, further audit procedures were designed to address this increased risk. and 19- VULCAN TO THE SKY TRUST INDEPENDENT AUDITORS, REPORT (CONTINUED) TO THE TRUSTEES OF VULCAN TO THE SKY TRUST discussing amongst the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud. Audlt response to rfsks of Irregularltles Identlfled Our procedures to respond to risks identified included the following.. performing audit work over revenue recognition including analytical procedures and substantive tests of detail of a sample of revenue transactions., and reviewing financial slatemenl disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations., and enquiry of charity stsff responsible for compliance to identify any instances of non-complian￿ with laws and regulations; and enquiry of management, those charged with govemance and other relevant parties around actual and polenllal litigation ¢laims' and reviewing supporting documentation regarding actual and potential litigation d2ims- and reviewing minutes of meetings of those charged with governance; and performing audit work over the risk of management override of controls, including testing of journal entries and other adjustmer)ts for appropriateness, evalualing the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias., and communicating identified laws and regulations and potential fraud risks to all engagement team members and assessing whether there are any indications of fraud or non-complian￿ with laws and regulations throughout the audit. Because of the Inherent Ilmitations 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 Ihat Compliance with a law or regulation is Temoved from the events and transactions reflected in the financial stal8menls. as we will be less likely to become aware of InStan￿S of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, a8 fraud involves inlentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https.'Ilwww.frc.org.ukJauditorsresponsibililies. This description forms part of our auditor's report. Use of our rnport This report is made solely to the charitable company's trustees, as a body, in accordance with Part4 ofthe Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate to the charitable company's trustees those matters we are required to state lo 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 lo anyone other than the charitable company and the charitable ￿MpanY'S trustees as a l)ody, for our audil work, for this report, or for the opinions we have formed. è4-4 Newby Castleman LLP Chartered Accountants Slalutory Auditor Wèst Walk Building 110 Regent Road Leicester LE17LT Date.. 15 July 2025 Newby Castleman LLP is eligible to act as an auditor in terms of seclion 1212 of the Companies Ad 2006. -20- Docusign Envelope ID.. 267F2E8C-E58C444E4B6&2EEB1 FEF2043 VULCAN TO THE SKY TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2024 Unrestrlcted Restrlcted funds funds Total 2024 Total 2023 Nots8 Income from Donations and legacies Charitable activities Other trading aclivities Investments Other 818,667 899 170,850 1,618 818,667 899 170,850 1,618 6.440 230,616 46,581 190,027 1,251 610 Total 998,474 998,474 469,085 Expondlture on Raising funds Charitable activities 613,55S 294,899 613.555 294.899 508,625 314,063 Total 908,454 908.464 822,688 Net Income l {oxpendlture) for the year I Net movement In funds 90,020 90,020 (353,603) Reconclllatlon of funds Total funds brought fO￿ard 937,187 16,600 953,787 1.307,390 Totsl funds carrfed forward 1,027,207 16,600 1,043,807 953,787 All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised during the year. 21 Docusign Envelope 10.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST GROUP AND CHARITY BALANCE SHEET AS AT 31 OCTOBER 2024 Group 2024 Charlty 2024 Group 2023 Charity 2023 Notes Flxed assets Tangible assets Heritage assets Investments 14 15 16 5.493 714,433 5,369 714.433 7,159 725,147 6,937 725.147 Total fixed assets 719,926 719,807 732,306 732,089 Current assets Stocks Debtors Cash at bank and in hand 17 18 73.486 80,625 269,904 76,841 100,521 174,009 283,468 238,784 299,603 164,344 Total curr•nt a•8et• 424,016 522,252 351,371 463,947 Llabllltles: Creditors.. Amounts falling due within one year 19 1100,1341 1100,11 S) {129,890) (130,553) Net curront a•80ts 323,881 422,137 221,481 333,394 Total a8sets1o88 curront Ilabllltles 1,043.807 1,141,944 953,787 1,065,483 Totsl net a$80ts 21 1,043,807 1,141,944 953,787 1,065,483 The fund$ of the charlty Restrided funds Unrestri¢ted funds 20 16,600 1,027,207 16.600 1,125.344 16,600 937,187 16,600 1,048,883 Total charlty funds 1,043,807 1,141.944 953,787 1,065,483 These financial statements have been prepared in accordance with the provision applicable to companies subject to the small companies, regime. As permitted by 5408 Companies A¢1 2006, the charity has not presented its own statement of financial activilies and related notes. The charity's surplus for the year was £76,462 (2023 - £322,111 deficil). For the year ending 31 October 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as Ihe company is a charity, it is subjè¢1 to audit under the Charities Act 2011. Diredors, responsibililies.. The members have not required the company to obtain an audit of its finan¢ial statements for the year in question in accordance with section 476., The directors acknowledge their responsibilities for complying with the requirements of the Ad with respect to accounting records and the preparation of accounts. -22- Docusign Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST BALANCE SHEETS (CONTINUED) AS AT 31 OCTOBER 2024 The financial statements were approved and authorised for issue by the board of trustees on and are signed on its behalf by.. 06-07-2025 SIBhlldby'. ' w￿A2D￿401y2..' Air ommodore Ed Jarron Chaiman of Trustees Company Registratlon No. 04478686 The notes on pages 25 - 41 form part of these financial stat8m8nts. -23- DOcus￿n Envelope ID.. 267F2E8C-E58C444E-886&2EEB1 FEF2043 VULCAN TO THE SKY TRUST GROUP STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 OCTOBER 2024 2024 2023 Notes Net cash (ouffiow} I Inflow from operating activities 26 95,305 {183,3201 Cash flow from investing activities Purchase of tangible fixed assets Interest received 11,028) 1,618 1,251 Not cash (ouffiowl I Inflow from Investlng actlvltlwd 590 1,251 Nèt {de¢rea8e) In cash of ca$h equlvalents 95,895 (182,069) Cash or ¢a*h oqulvalent• at 1 Novembor 2023 174,009 356,078 Cash or cash equlvalents at 31 October 2024 269,904 174,009 -24- Docuslgn Envelope ID". 267F2E8C-E58C444E.8B65-2EEBIFEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2024 Accounting policies Charlty Informatlon Vulcan to the Sky Trust {'the charity") is a private company limited by guarantee, incorporated in England and Wales. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charity. The address of the registered office is given in the reference and administration section of the trustees, report. The group consists of Vulcan to the Sky Trust and all of its subsidiaries {'the group.), being Vulcan to the Sky Enterprises Lirnited, The Vulcan Operating Company Limited, The Vul¢an Property Management Company Limited, and The Vulcan Marketing Company Limited. 1.1 Ba$ls of preparatlon 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 I'FRS 102"), Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities applying FRS 102 (20191, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice. The financial statements ara 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 indude the revaluation of certain heritage assels. The principal accounting policies adopted are set out below. These policies have been consistently applled to all years presented unless otherwise staled. The charlty is a qualifying entity for the purposes of FRS 102, being a mèmber of a group where the parenl of Ihat group prepares publicly available consolidated financlal statements, including this Charily, which are intended to give a tru8 and fair view of the assets, liabilities, financial position and net movemenl in funds of the group. The charity has taken advanlage of the exemption from preparing a statement of financial aclivilies and a statement of cash flows on the basis that the88 are incorporated into the group statement of financial activities and statement of cash flows, 1.2 Basls of consolldatlon The consolidated financial statements incorporate those of Vulcan lo the Sky Trust and all of its subsidiaries (i.e. entities that the group controls through its power to govem the financial and operating policies so as to obtain economic benefits). All financial statements a￿ rnade up to 31 October 2024. ￿ere necessary, adjustments are made to the financial statements of subsidiari85 to bring the accour)ting 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. Golng concern These financial statements are prepared on the going ¢on¢ern basis. There is a material uncertainty related to going concern noted in the audil report. however the truslees have a ￿8$Onable expectation thal the group will continue in operational existence for the foreseeable future. The group is reliant on the continued support of the National Lottery Heritage Fund, the City of Ooncaster Council and its 1000A owned airport operating company - FlyDoncaster Ltd., and the future financial support from its donors lo be able to continue operating. As explained more fully in the trustees, report set out specifically on pages 2 4, the trustees have a reasonable èxpectation that Ihey will be able to remain onsite at Doncaster and begin fundraising for the 25- Dtscusign Envelope ID.. 267F2E8C-E58C444E-8B6&2EE81FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Accountlng Pollcles (continued) project to build a new home for the aircraft. While the Trust continues its planning to build the Vulcan Experience, it will ¢ontinue its on-going fundraising activities to mainlain Avro Vulcan XH558 to the usual high standards and to deliver public access through the team of dedicated volunteers and staff. The Trust expects a lease to be offered by FlyDoncaster Ltd who said publicly that they 'are looking forward to working with the VTST to put a lease in place that gives them some long-lem security.. The trustees have prepared forecasts for the period ended 31 August 2026 which incorporate the above plans. Based on these forecasts, and the voluntary income that has been received since the yearend date, the trustees are of the opinion that the group will receive sufficient donations, and income from its merchandise sales and publi¢ events, for a period of al least 12 months from the date of approval of these financial statements to continue operating. However, donations are inlrinsically uncertain and the ongoing support of Ihe ¢harity'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 statemenls on the going ¢on¢em basis. 1.4 Charltabl• funds Unrestri¢led funds are available for use at th8 discretion of the trustees in furtherance of their charilable objectives unless the funds have been designated for other purposes. Restricted funds are funds which are to be used in ac¢ordanc8 with specific restriction$ imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and adminislering such funds are charged against the specific fund. The aim and use of each restricted fund is sel out in the notes to the financia5 statements. 1.6 Income recognitlon Income is re¢ognised when the charity is18galty entitled to it after any performance conditions have been met, the amounts Can be measured reliably, and it is probable that in¢ome will be received. Cash donations are recognised on receipt. Other donations are recognis8d once the ¢harlty has been notified of the donation, unless performance conditions require deferral of the amount. Income lax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation. Legacie5 are recognised al the earlier of the charity being notified of an impending distribution or the legacy being received. Where legacies have been notified lo 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. Government grants are recognised at fair value when the charity has entitlement after any performance conditions have been mel, it is probable that the income will be received and the amount can be measur8d wilh reliability. If entillement is not met, then the amounts are deferred. In¢ome 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 tickel 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 rec8ived in advance of the ground-run are deferred. Income from trading activities primarily includes income eamed 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. -26- Docu8￿n Envelope ID: 267F2E8C-E58C444E-8B6>2EEB1FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Accountlng Pollcles (contlnued Investment income is eamed through holding assets for investment purposes. It comprises bank interest and is recognised on an accwals basis. Expendlturo recognition All expenditure is accounted for on an accruals basls and has been classified under headings Ihat aggregate all costs relating to the category. Expenditure is recognised when there is a legal or construdive obligation lo make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably.11 is re¢ognised under the following headings.. Costs of raising funds includes Costs incurred in seeking donations, legacies, grants and fvndraising. Expenditure on charitable activits'es includes cosls relating to restoration and maintenance, and exhibition and display, to further the delivery of the objedives of the charity. Other expenditure includes losses on the sale of langible fixed assets. Irr8COV8rable VAT has been posted to other costs included in support costs (note 11). Support CO8ts Support costs are those Ihal 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 adminislrative payroll costs. They are incurred directly in support of expenditure on the objeclives of the charity. Support costs are allocated lo costs of raising funds and expendilure on charitable activities on a basis consistent with use of the sour¢88. The analysis of these costs Is included in note 11. Tanglblo Ilxed 48set8 Tangible fixed ass81s are measured al cost, nel of depreciation and any impairment losses. Depreciatlon is recognised so as to wrlte off the cost of assets less their residual values over their useful lives on the following bases: Fixtures, fittings & equipment Motor vehicles 200/• Straight line 200/0 Straight line Heritago 88$9ts Heritage assets comprise the Avro Vulcan G-VLCN (XH558) and the English Canberra {WK163). The Vulcan is slated at valualion less depreciation, whilst the Canberra is stated al cost. Deprecialion is provided on the Vulcan at a rate calculated lo write off Ihe valuation less estimated residual value over its useful economi¢ 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 lo 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 a￿ Charged to the Statement of Financial Activities. 1.10 Impaimient of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to detemiine whether there is any indication that Ihose assets have suffered an impairmerrt 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 eX￿edS ils recoverable amount, an impairment loss is recognised in the Statement of Financial Activities (SOFA) unless th8 asset is carried at a revalued amount where the impaiment loss is revaluation decrease. 1.11 Investments in subsidiaries Investments are ststed at cost less any provision for diminution in value. 27- DocLk8ign Envelope ID.. 267F2E8C-E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Accountlng Pollcles Icontlnued) 1.12 Stock Stocks are valued at the lower of cost and nel realisable value, after making due allowance for obsolete and slow-moving items. Stock cost is recorded as invoice price net of any discounts re￿ived. 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 equlvalents 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 Flnan¢lal Instruments Financial instruments are recognised in the charity's balance sheet when the ¢harity becomes party lo 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 impaimi8nt are recognised in the SOFA. 1.16 Employeo benoflts When employees have rende￿d service to the charity, short-term employee benefits to which the employees are entitled are re¢ognised at the undiscounted amount expected to be paid in exchange for thal service. The cost of any unused holiday entitlement is recognised in the period in which the employee's 8ervices are received, 1.16 Rotlrement boneflts Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.17 Leas08 Rentals payable under operating leases, including any lease incentives re¢elved, are charged to the SOFA on a straight-line basis over the term of the relevant lease. 1.18 Taxatlon Vulcan to the Sky Trust is a registered charily and no taxation provision is required as its income from charitable activities falls within the various exemptions available to registered charities. Crltl¢al a¢¢ountlng estlmates 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 eslimales 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 re¢ognised in the period in which the estimate is Tevised 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 thé most significant effect on amounts recognised in the financial statements. Valuatlon 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 sto¢ks requires judgements to be made, which include forecast consumer demand, the promotional. competitive and economic environment, on the expe¢lation that the group will continue in operational existence for the foreseeable future. -28- DOcus￿n Envelope ID.. 267F2E8C-E58C444E-8B6&2EEBIFEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Key sources of estimatlon uncertainty The estimates and assumptions which hav8 a significant risk of ¢ausing a material adjustment to the carrying amount of assets and liabilities are as follows. Valuatlon of herltage asset (Vulcan) The valuation of the Vulcan is reassessed annually by the trustees and, when necessary, amended to reflect current estimates. Allo¢atlon of 8UPPOrt Costs The allocation of support costs is sensitive to changes in Ihe level of work undertaken on each activity by the charity. The allocation is reassessed annually and amended when necessary to reflect currenl estimates. Income from donallons and109acl•8 Unrnstrlctsd Ro$trfcted funds funds Totsl 2024 Total 2023 Regular donations Orse-off donations Other donations Gift aid recovered Legacies Names Under the Bomb Bay campaign Government grants 58,173 1,997 96,638 73.248 {2,949) 592,664 58,173 1,997 95,636 73,246 12,949) 592,564 66,227 5,212 101,747 9,830 20,000 27,600 818.667 818,667 230,616 Unreslricted funds Restricled funds 203,016 27,600 230,616 Income from ¢harltable acllvttles Unrestrlctsd Restrlcted fund$ funds Total 2024 Total 2023 Exhibition and display 899 899 46,581 899 899 46.581 Unrestricted funds Restricted funds 46,581 46,581 -29- Do¢usign Envek)pe ID.. 267F2E8C-E58C444E-8B65-2EEB1 FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Income from other trading activlties Unrnstrlcted Restrlcted funds funds Totsl 2024 Total 2023 Sale of merchandise Raffle income Commission income 135,979 28,828 6,043 135,979 28,828 6,043 153,805 33,678 2,544 170.850 170,850 190,027 Unrestricted funds Restricted funds 190,027 190,027 Income from Investmonts Unro•trlcted Re8trlctod funds fund8 Total 2024 Total 2023 Interest receivable 1.618 1,618 1,251 1,618 1,618 1,251 Unrestricted funds Restricted funds 1,251 1,251 Other Income Unrestricted Restrlcted funds funds Total 2024 Total 2023 Miscellaneous income 6,440 6.440 610 6.440 6.440 610 Unrestricted funds Restricted funds 610 610 -30- Docusign Envelope ID.. 267F2E8C-E58C444E-8B6&2EE81 FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Expenditure on raising funds Unre$trl¢ted Restrf¢ted funds funds Total 2024 Totsl 2023 in Staff costs Purchase of merchandise Consultancy costs Carriage and packaging Advertising and promolion Other Costs 130,930 84,425 9,997 22.350 251.401 11.235 130,930 64,425 9,997 22,350 251,401 11,235 153,423 83,968 14,660 25,399 84,500 10,548 490,338 123,217 490,338 123,217 372,498 136,127 Share of support costs (note 11) 613,555 613,555 508,625 Unrestricted funds Restricted funds 298,924 209,701 508,625 The expenditure on raising funds represents the day-tfrday management of the charity and includes tasks such as, managing volunteers, operating the online relail business, managing events, marketing and carrying out charitable fund-raising, promoting the Trust's activities, liaising with supporters and administrating Ihe database of supporters, supporting Ihe maintenance of XH558. and complying with mandatory governance requirements. We have invested in future plans and this includes business planning and updating the charity's Articles of Association to underwrile a se¢ure future, along wilh ensuring day to day costs of the business and maintaining the aircraft are ¢overed. Once the location that has been identified as a site for VTST to lease and build is formally agreed with FlyDoncaster, fo¢u$sed fundraising will begin to secure that future. The Vulcan Experience provides a sustainable business model through the associated revenue streams (visitor ti¢kets, physical Tetail store, corporate events) and a permanent and secure home for XH558. 31 Docusign Envelope ID.. 267F2E8C-E58C444E-8B6>2EEB1 FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS {CONTINUED> FOR THE YEAR ENDED 31 OCTOBER 2024 Expenditurè on charltable activities Activities undertaken directly {note 101 Support costs Total 2024 Total 2023 Inots 111 Restoration and maintenan¢e Exhibition and display 152,667 103.959 31,848 6,427 184,513 110,386 209,819 104,244 266,626 38,273 294,899 314,063 Unrestricted funds Restricted funds 294.899 84,989 229,074 294,899 314,063 10 Expendlturo on acllvltles undortaken dlrnctly Ro•toratlon and Exhlbltlon malnton4n¢e and dlsplay Total 2024 Total 2023 Staff ¢ost8 Depreciation Aircraft costs Hangar costs Air show events Travel costs Printing, postage and stationery 43,644 10,714 7,881 86,135 43,644 10,714 66,033 85,135 16.023 5.293 29.784 51,141 10,714 88,349 86,591 22,629 3,929 2,224 58,152 16,023 5,293 29,784 152,667 103,959 256,626 265,577 11 Expondlturn on support ¢osts Rostoratlon Ralslng and Exhibitlon funds malntenance and dlsplay Total 2024 Total 2023 Staff ¢osts Depreciation Computer cosls Bank charges Other costs 21,611 2,045 16,134 14,256 69,172 2,401 24,012 2,694 23.048 14.255 97.481 52,996 2,053 25,364 6,865 97,335 649 5,762 1,152 25,435 2,874 123,217 31,846 6,427 161,490 184,613 32- D￿us￿jn Erwelope ID.. 267F2E8C-E58C444E-8B8&2EEB1 FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 Support costs have been allocated to activities on a relevant basis to the nature of the underlying costs in proportion lo ￿SOurceS used. Other ¢o$ts include governance costs totalling £22,138 (2023 - £29,563). Governance ¢osls in¢lude auditor's remuneration totalling £15,467 (2023 - £12,026). 12 Tru8t•es' rèmunératlon None of the trustees received any remuneration or beneffls from the charity during the year, or the pr8vious year. On8 trustee was reimbursed a total of £73 for travel expenses. 13 Employees Number of ornployo0¥ The averag8 monthly number of employees during the year was.. 2024 Number 2023 Number Management and administration Aircraft crew Employment costs 2024 2023 Wages and salaries Social security costs Pension costs 184,495 10,688 3.403 238.529 14.309 6,722 198,586 257,560 There were no employees whose annual remuneration was £60,000 or more during the year. Remunoratlon of key management pernonnel The ￿Muneration of key managemeni personnel is as follows: 2024 2023 Aggregate compensation 56,821 100.290 -33- Docu8￿n Envelope ID: 267F2E8&E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 14 Tangible flxed assets Flxtures. flttlngs & equlpment Motor vehicles Total lal Group Cost At 1 November 2023 Additions 30.515 1.028 13,592 44,107 1,028 At 31 Octobar 2024 31.543 13,592 45,136 Dopreclatlon At 1 November 2023 Charge for the year 27.038 1.171 9,910 1,523 36,948 2,694 At 31 October 2024 28,209 11,433 39,642 Not book valu• At 31 OCto￿r 2024 3.334 2,159 5,493 At 31 October 2023 3,477 3,682 7,159 {b) Charlty Cost Al 1 November 2023 Additions 12,540 1,028 13,592 26,132 1,028 At 31 October 2024 13.568 13,692 27,160 Depre¢latlon At 1 November 2023 Charge for the year 9,284 1,073 9,911 1,523 19,195 2,596 At 31 October 2024 10.3S7 11,434 21,791 Not book value At 31 October 2024 3.211 2,158 5,369 At 31 October 2023 3,256 3,681 6,937 Docusign Envelope ID.. 267F2E8C-E58C444E4B6>2EEB1 FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 15 Heritage assets Vulcan Ivaluationl Canberra (cost) Total Group and Charlty Carrying amount at 1 November 2023 Deprecialion l impairment 664,288 (10,7141 60,859 725,147 {10,714) Carrying amount at 31 October 2024 653,574 60,859 714,433 At 31 October 2024 the charlty held Iwo heritage assets: 1) Avro Vul¢an G-VLCN (XH5581- held at valuation 21 Engllsh Canberra (WK163)- held at cost The Avr n B.MK2 -VL H5 XH558 was the last Vulcan to leave RAF seniice, 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 relurn her to flight at Bruntingthorpe Aerodrome In Leicestershire. In 1999 Marshall of Cambridge Aerospace was appointed Engineering Authority for the restoration project. In De¢ember 2003, the Heritage Lottery Fund announced a grant of £2.7million for XH558's restoration. After extensive restoration work and tesls, 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 resull, 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 Ghange in the status of Ihe asset has had an impact on its residual valuation. As al 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 2024, the board have reassessed their valuation of th8 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-Brilish four-engined jel aircraft anywhe￿ in the world slill capable of powered ground runs. XH558 is maintained in the current working slate. albeit not flying, under the terms of the trusl's contract with the Nalional Lottery Heritage Fund {NLHF> until 6 February 2085. The aircraft is subject to a first charge by the Trustees of The National Lottery Heritage Fund (see note 22 for further details). lish Electric Canberra B 2 K163 The English Electri¢ Canberra aircraft was the Royal Air Force's first jet bomber, and entered sep41￿ 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 importanl national aviation heritage asset. -35- Docuslgn Envelope ID.. 267F2E8C-E58C444E4B65-2EEB1FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 15 Heritage assets Icontinuedl Flve-year financial summary of herltage asset tran8actlons (group and Charlty) 2024 2023 2022 2021 2020 Purchases Vulcan Canberra 9,033 9,033 Chargo for Impalmient Vulcan Canberra 16 Flxed asset Inveslments la) Group The group holds no investments Ib) Charlty Shares In group undertaklngs Carylng amount At 1 November 2023 At 31 October 2024 Holdlngs of more than 20. The charily holds 100•/o of the ordinary Share capital in the following companies registered in England and Wales.. Subsldlary undertaklngs Vulcan to the Sky Enterprises Limited {04899710) The Vulcan Operating Company Limited {03787161) The Vulcan Property Management Company Limited {09924223) The Vulcan Marketing Company Limited (09906368) Prfnclple Actlvltles That of selling merchandise through its website slore and at air shows. Dormant. VTSE TVOC TVPMC Domiant. TVMC Dormant. Where applicable, the subsidiaries covenant all available profits to Vul¢an to the Sky Trust. Docusi9n Envelope ID.. 267F2E8C-ES8c444E-8￿2EE81FEF2O43 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 16 Fixed asset Investments {¢ontinued) The trading results for the period and the aggregate amount of capital and resèNes, as extracted from the financial statements ofthe subsidiary companies. are summarised below.. Total 2024 Total 2023 TVOC TVMC TVPMC VTSE Tumover Cost of sales 142,023 142,023 156,351 (82,889} (82,889) (106.325) Gross profit 59,134 59,134 50,026 Administrative expenses (46,1081 146,108) (81,519) Operating profit 13,026 13,026 131,493) Interest receivable Interest payable ProfiU(loss) before laxation 633 533 13.558 13,558 (31,493) Tax charge Profivloss for the year 13.558 13,5S8 131,493) Assets and Ilabllltlo8: Assets Liabilities 11,636 {13,805 16,003 19.095 109.330 156,064 139,745 16,612) {12,566) (221.213) {254,196) (251,435) Total net assets (2,1691 9,391 6,529 (111,883) 198,132) (111,690) Capltal and reserves: Called up share Capital Profit and loss account 9,390 6,628 1111,884) 198,137) (111,695) 12,169) 9,391 6,529 1111,883) 198,132) {111,690) Statement of movement on profit and loss: Balance at 1 November 2023 ProfiV(loss} for the year Donations paid to parent charity Balance at 31 October 2024 (2,1711 9.390 6.528 (125.4421 1111,6951 13.558 13,658 {80,2021 {31,493} 9,390 6,528 1111,884) (98.137) (111,695) -37- Do¢usign Envelope ID.. 267F2E8C-E58C444E4B6&2EE81FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 17 Stock Group 2024 Charity 2024 Group 2023 Charity 2023 Goods for resale 73.486 76,841 73.486 76,841 18 Debtorn Group 2024 Charlty 2024 Group 2023 Charity 2023 Amounts falling due within on8 year.. Trade deblors Amounts due from subsidiary undertakings Other deblors Prèpayments and accrued income 692 2,273 207,198 26,072 50,198 198,742 47,906 52,955 26,826 64.207 41,287 56,961 80,625 283,468 100,521 299,603 19 Credltor8: Amounts falllng due wlthln one year Group 2024 Charfty 2024 Group 2023 Charity 2023 Trade creditors Amounts due to subsidiary undertakings Other creditors A¢¢ruals and deferred income Taxes and social security costs 58,154 46,726 11,621 673 37,107 3,988 73,968 64,821 11,621 699 49,125 4,287 673 37,319 3.988 899 50,936 4,287 100,134 100,115 129,890 130,553 38- Docusign Envelope ID.. 267F2E8C-E58C444E-8B65-2EEB1 FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 20 Restrlcted funds Balance at 1 Nov 2023 Balance at Income Expenditure 31 Oct 2024 Group and Charlty National Lottery Heritage Fund 16,600 16,600 16.600 16,600 Balance at 1 Nov 2022 Balance at Income Expendlture 31 Oct 2023 Group and Charlty Operation Safeguard National Lollery Heritage Fund 427.775 1427,775) {11,000) 27,600 16,600 427,775 27,600 1438,775 16,600 Operatlon Safeguard This represents amounts received through the Operation Safeguard appeal for the purpose of bulldlng The Vulcan Experience at DSA. All income received in respect of Operation Safeguard up to 31 October 2022 was re¢ognised as restricted income, and included income where donors did not respond 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. By May 2022 630h of donors had responded wlth 89.fi agreeing to the wfsT's retention of the donated funds. The charity applied to the Charity Commission to make a'scheme" lo widen the scope ofthe5e funds and allow these donations lo be used in pursuance of its charitable objects. On the 21 st June 2022 the Charily Commission authorised a Scheme which allows the trustees to use £323,400 of disclaimed I retained funds lo presenle and protect Avro Vul¢an XH558 and return her to full working order for the benefit of tha publi¢ and to demonstrate and display her to the public and to conserve and retum to full working order. On the 5th December 2022 the Charily Commission authorised a second scheme which allows the trustees to use £197,530 of disclaimed I rètained funds to preserve and protect Avro Vulcan XH558 and return her lo full working order for the benefit of the public and to conserve, demonstrate and display her to the public. The second scheme also stipulated thal if a donor requests that their donalion(s} to the appeal be relurned to Ihem by the charity, the Commission may authorise the return of such donalion(s) in writing. Where a donalion has been returned in accordance with this prowsion, this scheme will not be applicable to such donation{s) and the Commission's written authorisation to return donalion(s) will have no effect on the Continuing validity of this stheme. On Ihe 18th January 2023 the Charity Commission authorised a third scheme which allows the trustees to use £8,370 of dis¢laimed I relained funds to preserve and protect Avro Vulcan XH558 and relum her to full working order for the benefit of the public and to conserve, demonstrate and display her to the public. The Charity Commission confinned that Ihe third and final scheme effe¢tivety and successfully concluded all the legal protocols on Ihe failed appeal procedure. Natlonal Lottory Herltage 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 cost5 of the work to assess the business plan, the Trust applied for grantfunding from the National Lottery Heritage Fund (NLHF) and in December 2022 the Trust were informed that they were successful in that bid. VTST updated the NLHF of all changes mentioned within the Trustees, report and a completion dale of the end of April 2025 was agreed with NLHF. This work has now been completed and the final draw-down of funds will be made through the NLHF. -39- Docusign Envelope ID.. 267F2E8C-E58C444E-8B6>2EEB1FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 21 Analysis of net assets betweon funds Unrestrlcted Restrlcted funds funds 2024 2024 Total Unrestricted funds 2023 Restricted funds 2023 Total (al Group 2024 2023 Funds balances are represented by.. Tangible fixed assets Heritage assets Current assets Creditors.. amounts falling due within one year 5.493 714.433 407,415 5,493 714,433 424,015 7.159 725.147 334,771 7,159 725,147 16,600 351,371 16,600 1100,134) 1100,1341 (129,890) (129,890} 1,027,207 16,600 1.043,807 937,187 16,800 953.787 Unrestricted Rostrlctsd funds fund$ 2024 2024 Total Unrestricted funds 2023 Reslricled funds 2023 Total (b) Charlty 2024 2023 Funds balances are represented by.. Tangible fixed assets Heritage assets Investments Currenl assets Creditors.. amounls falling due within one year 5,369 714,433 5,369 714,433 6,937 725,147 6,937 725,147 605,652 16,600 522,252 447,347 16,600 463,947 1100,115) (130,553) (130,553) 1,12S.344 16,600 1,141,944 1,048,883 16,800 1,065,483 22 Contlngent Ilablllllos In previous years the trust re￿iVed funding from the National Lottery Heritage Fund (NLHF) In the sum of £2,734,000. The trust may be required lo repay some or all of this granl in the event of the sale, disposal or mortgage charge of the plane without prior approval of the NLHF. The amount repayable is currently limited to £377,498. 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. -40- ' DocLtsign Envelope ID.. 267F2E8&E58C444E-8B6&2EEB1FEF2043 VULCAN TO THE SKY TRUST NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2024 23 Operating lease ¢ommltments Al 31 October 2024 the group and charity had outstanding commitments for fulure minimum lease payments under non-cancellable operating leases, which fall due as follows- Group 2024 Charlty 2024 Group 2023 Charity 2023 Within one year Betrween two and five years 11,117 7,250 32,867 7,250 29,000 7,250 11,117 7,250 40,117 36,250 Lease payments tolalling £71,600 {2023 - £73,818) have been recognised as an expense during the year. 24 Ultlmate Controlllng party The ¢harily is controlled by ils trustees acting in accordance with the temis of the memorandum and articles of association. 25 Rolated partles The charity has taken advantage of the exemption glven by FRS 102, from disclosing iransactlons with its wholty owned subsidiaries. 26 Net cash flow from opgratlng actlvltlei 2024 2023 Net incomel(expenditure> for the year 90,020 (353,603) Investment income Oepreciation of heritage assets Depreciation of tangible assets 11,618 10,714 2,694 {1,251) 10,714 2,053 Movemènts in working capital: Decrease in stocks Decrease in debtors (De¢rease)lincrease in creditors 3,355 19,896 (29,756) 1,598 128,744 28,425 Not cash flow from operating actlvltles 95,305 (183,320) 27 Analysis of changes In net funds During the year the group had no borrowings or obligalions under finance leases. The changes in net funds of the Charity therefore solely comprise of cash and cash equivalents. 41