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← Fly Navy Heritage Trust Limited

2021-12-31-accounts

Fly Navy Heritage Trust Limited (A Charitable Company Limited by Guarantee)

Annual Report and Financial Statements

For the Year Ended 31 December 2021

Company Number: 05971284 Charity Registered in England and Wales Number: 1117272

Fly Navy Heritage Trust Limited Contents For the Year Ended 31 December 2021

Page
Reference and Administrative Details 1
Trustee Directors’ Report (including Statement of Trustees’
Responsibilities) 2 – 7
Independent Auditors’ Report 8 – 11
Consolidated Statement of Financial Activities 12
Balance Sheet and Consolidated Balance Sheet 13
Statement of Cash Flows and Consolidated Statement
of Cash Flows 14
Notes to Financial Statements 15 – 29

Fly Navy Heritage Trust Limited Reference and Administrative Details For the Year Ended 31 December 2021

Patron

HRH the Duke of York KG GCVO (resigned 13 January 2022)

President

Admiral Sir George Zambellas GCB DSC ARC DL FRAeS

Trustee Directors:

Chairman

Rear Admiral T A Cunningham CBE

Ex- Officio

Rear Admiral M J Connell CBE – Asst Chief of Naval Staff (Aviation & Carriers) Commodore N R Griffin MBE RN – Commanding Officer RNAS Yeovilton Elected Commodore S F Baldwin RN – Programme Director, Rolls Royce Plc Rear Admiral S B Charlier CBE FRAeS – Chairman FAA Officers’ Association Ms S L Cook – Vice President, UK Government business Leonardo (MW) Commodore W M Covington CBE RN – Business Executive, aircraft owner Mrs E T Taylor – Business Executive, Lockheed Martin UK Limited (appointed 1 June 2021) Mr P N Livingston - Vice President and Group Managing Director, Lockheed Martin UK Integrated Systems (resigned 1 June 2021) Mr H G Mason – Heritage manager Mr T J Manna – President, Kennet Aviation Mr M J Ryan – Business Executive, aircraft owner Mr N R Smith – Solicitor Mr M J F Strong – Chartered Accountant Rear Admiral I P G Tibbitt CBE – Deputy Chairman FNHT, Business Executive

Chief Executive Officer

Commodore R S Alexander OBE FRAeS

Company Secretary

Mr N R Smith

Charity Number 1117272

Company Number 05971284

Principal Address and Registered Office

Building 412, South Dispersal, RNAS Yeovilton, Ilchester, Somerset, BA22 8HT

Auditors

Albert Goodman LLP, Goodwood House, Blackbrook Park Avenue, Taunton, Somerset, TA1 2PX

Bankers

Barclays Bank Plc, King George Street, Yeovil, Somerset, BA20 1PX

Page 1

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2021

The Trustee Directors (“Trustees”) present their report and accounts for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with the Charity’s governing document, applicable law and the requirement of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

References and Administrative Details

Administrative information is given in a separate section at the front of these accounts.

Structure Governance and Management

The Fly Navy Heritage Trust was registered with the Charity Commission and is constituted and regulated by a Declaration of Trust dated 16 July 1991. In December 2006 the Trust transferred its assets and undertakings, in accordance with the incorporation agreement dated 31 December 2006, to the Fly Navy Heritage Trust Limited. This company, limited by guarantee, (company registration number 05971284) was incorporated on 18 October 2006; it is registered with the Charity Commission (charity registration number 01117272). In accordance with the governing document, the current trustees may appoint additional trustees and have absolute discretion and unrestricted powers to invest trust monies. Trustees may serve for up to three years before requiring re-appointment.

Induction and training of trustees

New Trustees are inducted and trained using information obtained from various sources, including the Charity Commission, attendance as required at specialist courses and by personal briefings.

Organisational structure

A full list of trustees and directors (all trustees are also directors of the company) who have served since 31 December 2020 is shown on page 1. The Trustees meet at least three times a year to discuss and review the current and future position of the Charity. The Charity occupies office space within MOD owned buildings within RNAS Yeovilton and now, in accordance with the Trustees’ directive to increase the fundraising capacity of the charity, employs 17 staff members.

Related parties

Naval Aviation Limited (NA Ltd) (company registration number 07052646) is a wholly owned subsidiary of the Charity and exists as the trading operation of the Charity. Activities include sales of aircraft displays, sales of souvenir merchandise and the operation of the Chipmunk Mk 22 (G-CNVH).

Key management personnel

Remuneration for key management personnel is set by a Remuneration Committee comprising the Trust Chairman, Deputy Chairman and the Financial Trustee (an accountant). In setting salary levels, market comparators for similar roles within the charities sector are taken into consideration. There is also the need to ensure that key posts are attractive to personnel having the detailed knowledge, experience and skills demanded of both the charity and directing an aircraft operating company.

Page 2

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2021

Risk management

The Trustees routinely assess the risks to which the Charity is exposed to ensure that systems and procedures are in place to mitigate exposure in these areas. A Risk Register is held in the Charity’s Business Plan and is reviewed at Management Group level and at each Trustees’ meeting. Risk mitigation actions are included as part of the charity’s annual Work Plan.

Objectives

The Charity’s objectives are set out in the Memorandum of Association as follows:

This can be summed up as: To Educate, Inspire and Remember; this is articulated as a single aim as follows: Inspiring future generations by bringing together the aircraft, people and the story of flying from ships.

Activities

The Chief Executive Officer, Commodore Jock Alexander, joined the Trust in February 2016, following which the Charity was re-branded as ‘Navy Wings’ in July of the same year. The aim remains to reach as wide an audience as possible with a refreshed look, supported by a continually evolving web-site and a wide collection of aircraft. The core flight consists of the ex-Royal Navy Historic Flight (RNHF) aircraft, most of which have now been gifted to FNHT, along with some new aircraft the Trust has purchased in 2021. This is supported by an Associate Collection, which reaches out to individuals in the UK who operate their own, vintage naval aircraft and invites them to join the Navy Wings Associate Collection. This has been a huge success and there are now 20 aircraft as part of that collection, ranging from a WW1 Bristol Scout, through to a Sea King helicopter from the 1990’s. Importantly, the Trust does not raise money for the Associates, but rather they join a club of like-minded people which enable Navy Wings to tell a more comprehensive story about our heritage.

The bulk of management activity in 2021 was spent dealing with concomitant actions arising from Covid 19, which continued to wreak havoc amongst organised events. Almost all major fund-raising activities and large Air Shows were cancelled, however, we managed to attend a few smaller shows and organise two fundraising events as described below. Most of the ex RNHF aircraft are now owned by the Trust, with the exception of Swordfish LS 326, which is expected to be gifted to us in early 2022.

The Memorandum of Understanding agreed with the Royal Navy, has been refreshed and will continue to under-pin our business for the foreseeable future. We are currently planning to have full participation of the Navy Wings Heritage Flight on the display circuit in 2022, although the full list of available Air Shows is still being finalised.

Page 3

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2021

In 2021, the Trust continued to feel the impact of Covid 19, but the award of a Grant of £280,400 from the Culture Recovery Fund (CRF) in Oct 2020 enabled us to cover staff costs through to April 2021 and thus recover everyone from furlough. The Trust also benefitted from a significant private donation to the tune of £1.25M, with the same sum guaranteed for the next three years. The stability of having £5M over four years has allowed us to not only purchase our own T6 Harvard training aircraft and Wasp helicopter, but also to invest in a long term plan for engine availability and, importantly, to invest in a properly constituted engineering work-force of six personnel. This enabled us to apply to the Civil Aviation Authority (CAA) for permission to do our own engineering maintenance and we now hold all the required licenses to do so.

In a major development, our Sea Fury T20 was lost in an accident on Wednesday 28 April 2021. Both the crew escaped with minor injuries and the aircraft was subsequently written off by the insurance company, which culminated in a settlement of £1M for the Trust. Following much debate, we then had an offer from a private individual to fund the purchase of an operational Seafire with a spare engine to replace the Sea Fury. This led to the purchase of a Seafire Mk XVII, which was delivered to our base just before Christmas 2021 and the purchase of a spare engine, which should be ready in about two years post refurbishment.

Our weekly lottery, which we launched in May 2020, continues to build well and we are now aiming for an income stream of circa £200K by the end of Yr 5. Meanwhile, our continued investment in on-line presence continues to pay dividends and our retail sales finished the year ahead of budget, which already had 10% growth built in from the previous year. We managed to run two fund-raising events in the form of a Corporate dinner in London and a Clay Pigeon shoot at the Royal Berks Shooting Ground, both of which returned a healthy profit and more importantly, made the point that we were back in business post Covid restrictions.

Volunteers and Sponsorship

The Trust and Naval Aviation Ltd, together trading as ‘Navy Wings’, continues with its well established Volunteering Policy, which concentrates on a critical nucleus who provide the core of this support. This network of volunteers is drawn from the Navy Wings Supporter base who provide their time free in order to promote, develop and support various activities that aim to deliver required funds to continue operation. Volunteer support is invaluable and is particularly useful in sales of merchandise and aircraft support operations. The latter encompasses aircraft stores, documentation and admin support alongside supervised aircraft mechanical engineering tasks. All volunteers receive induction and training and, as necessary, health and safety briefings and workplace clothing. In addition, we have a small team of high profile Supporters who volunteer to promote ‘Navy Wings’ and the heritage aircraft as ‘Ambassadors’.

Corporate Support

The Trust continues to enjoy support from some key players in industry, not only from a financial perspective, but also from their knowledge of the aviation industry and in particular, heritage aircraft. We reviewed our Corporate packages for support last year and we have already seen good take-up with some new companies coming on board. Our Corporate dinner in September was a huge success, with all tables selling out ahead of the event and our aim to make this the ‘go to’ heritage aviation dinner is starting to be realised; this bodes well for 2022.

Page 4

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2021

Grant making policy to Naval Aviation Ltd (NAL)

The Trustees consider the needs of our sole beneficiary (NAL) to ensure that all support is provided in accordance with the objects of the charity. As part of the overall business planning for Navy Wings and NAL, the intention and plans are for Naval Aviation Ltd to trade towards being profitable, where the key drivers will be the diversification and growth of income streams, as well as generating income from aircraft. As alluded to above, NAL was not able to conduct much display flying in 2021, with all the large shows being cancelled, however, we did attend a few smaller, local shows with the aim being to demonstrate that we had survived lock-down and were back in business. Sales of merchandise would undoubtedly have been greater had we had our normal ground presence at air shows and we look forward to engaging with the public again in 2022.

Achievements and Performance

The main achievement of the Charity was to attract two High Net-worth investors, which has fundamentally changed our plans for the future through a four-year investment plan and the donation of a Seafire. We conducted minimal display flying in 2021, but we did manage to get all our pilots trained, whilst attending several local events. Our financial achievements are covered separately, but to summarise, we unquestionably finished the year in an excellent position, both financially and with a work-force properly constituted to take us forward. The future is bright.

Reserves policy

Despite significant funding agreed in the next few years, the Trustees’ policy is to retain funds in excess of the current needs to meet unanticipated expenditure which is an inherent feature of maintaining historic aircraft. In addition, Trustees continue to ensure that available free reserves are adequate to cover in excess of 3 months operating costs of £303,526. At 31st December 2021 the group held £1,565,466 of free reserves and excess reserves to provide future funding for aircraft.

Review of financial position

From a financial point of view, 2021, as explained above was a successful year financially as a result of the significant donations received in the year. Significant funding levels have importantly been secured for the next few years to provide sustainability to aid in the success in the trusts’ long term future.

Total consolidated income included £2,681,706 of restricted income (31.5%) and £5,837,403 of unrestricted income (68.5%). Restricted income has increased as a result of the Culture Recovery fund received, Royal Navy transitional funding relating to the transfer of the aircraft (which were mentioned above) as well as the significant donation received of £2m to purchase the Seafire aircraft shortly after the year end.

NA Ltd retail sales (covering merchandising and aircraft displays) provided £132,170 of income. As mentioned above, merchandise sales finished ahead of budget. As previously stated, only a very small number of shows were able to be attended in the year. The other major source of income during the year was the receipt of £1m from insurance income following the accident during the year.

As a result of the additional aircraft now under the groups ownership and the employment of staff, expenditure has increased to £2,076,815 (2020: £882,882).

The Group held £2,000,000 of restricted funds at the year end and £4,819,118 in unrestricted funds. Cash and short term investments totalled £1,223,110 at 31 December 2021 compared with £199,304 at the previous year end. Capital expenditure of £235,519 was made in the year. The other capital additions relate to the £2.9m of donated aircraft.

Page 5

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2021

Plans for future periods

The Charity has clearly had to review its ten-year rolling plan based on the effects of Covid, but more importantly for us, the injection of new cash in the form of four capital investment and the additional purchase of a Seafire. The Business Plan is being reviewed yet again to reflect this, which will be under-pinned by a new Risk Register. Although the short-term pressure to raise money has been removed, we are still planning to double our income within the next five years and the new weekly Lottery is already proving to be a success as a future income stream. The Trust continues to plan for a sustainable programme and anticipates eventually operating a core flying fleet of one Swordfish, one Seafire, the Wasp helicopter and one jet (Seahawk) on an annual basis.

Impact of Covid-19 and going concern

In light of the impact of Covid-19 the trustees have given careful consideration to the cashflow forecasts of the charity covering the period of at least twelve months from the date of signing the accounts. The trustees are satisfied that the charity has sufficient working capital resources in place over that period, and therefore the accounts are drawn up on the going concern basis.

Auditors

The auditors, Albert Goodman LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Small company provisions

This report has been prepared in accordance with the small companies regime under section 487(2) of the Companies Act 2006.

Page 6

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2021

Statement of trustees’ responsibilities

The trustees (who are directors of the Fly Navy Heritage Trust Limited for the purposes of company law) are responsible for preparing the Trustee Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure of the charitable group for that period. In preparing these financial statements, the trustees are required to:

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

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

Statement as to disclosure to our auditors

In so far as the trustees are aware at the time of approving our trustees’ annual report:

Approved by the Trustees on 20[th] September 2022 and signed on their behalf by:

Rear Admiral T A Cunningham CBE Chairman and Trustee

Page 7

Fly Navy Heritage Trust Limited Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2021

Opinion

We have audited the financial statements of the Fly Navy Heritage Trust Limited for the year ended 31 December 2021, which comprise the consolidated Statement of Financial Activities, the consolidated and parent charitable company Balance Sheets, the consolidated and parent charitable company 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 Generally Accepted Accounting Practice, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

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

Page 8

Fly Navy Heritage Trust Limited Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2021

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustee Directors’ Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities (set out on page 7), the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 9

Fly Navy Heritage Trust Limited Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2021

Auditor’s responsibilities for the audit of the financial statements

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

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

The extend to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement including obtaining an understanding of how fraud might occur by:

To address the risk of fraud through management bias and override of controls, we:

Page 10

Fly Navy Heritage Trust Limited Independent Auditors' Report to the Trustees and Members For the Year Ended 31 December 2021

In response to the risk of irregularities and non-compliance with laws and regulations we designed procedures which included, but were not limited to;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involved deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.grc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the group and parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group and parent charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the group and parent charitable company and the group and parent charitable company’s members as a body and the parent charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed

Robert Oram BFP FCA (Senior Statutory Auditor) for and on behalf of Albert Goodman LLP, Statutory Auditor

Goodwood House Blackbrook Park Avenue Taunton TA1 2PX

22[nd] September 2022

Page 11

Fly Navy Heritage Trust Limited Consolidated Statement of Financial Activities (including income and expenditure account) For the Year Ended 31 December 2021

Unres-tricted
Notes
£
Income:
Grants, donations and legacies
2
4,465,157
Other trading activities
3
1,372,067
Interest receivable
4
179
Total income
5,837,403
Expenditure:
Costs of raising funds
5
673,674
Charitable activities
6
698,257
Total expenditure
1,371,931
4,465,472
Transfers between funds
17
73,231
Tax charge
(24,127)
7
4,514,576
Reconciliation of funds
Total funds brought forward
304,542
Total funds carried forward
4,819,118
Net (expenditure)/income for
the year before transfers and
gains and losses
Net income/(expenditure) and
net movement in funds for the
year		 Res-tricted
£
2,681,706
-
-		 Total 2021
£
7,146,863
1,372,067
179
8,519,109
862,710
1,214,105
2,076,815
6,442,294
-
(24,127)
6,418,167
400,951
6,819,118		 Unres-
tricted
£
304,690
189,568
1,457
495,715
178,587
404,275
582,862
(87,147)
-
-
(87,147)
391,689
304,542		 Res-
tricted
£
246,551
-
-		 Total
2020
£
551,241
189,568
1,457
2,681,706 246,551 742,266
189,036
515,848		 64,979
235,041		 243,566
639,316
704,884 300,020 882,882
1,976,822
(73,231)
-
1,903,591
96,409		 (53,469)
-
-		 (140,616)
-
-
(53,469)
149,878		 (140,616)
541,567
2,000,000 96,409 400,951

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

All income and expenditure derive from continuing activities.

Page 12

Fly Navy Heritage Trust Limited – Company Number 05971284 Balance Sheet and Consolidated Balance Sheet As at 31 December 2021

----- Start of picture text -----
2021 2020
£ £ £ £
Notes Group Charity Group Charity
Fixed assets
Tangible fixed assets 11 3,253,652 3,126,670 145,320 493
Investments 12 - 1 - 1
3,253,652 3,126,671 145,320 494
Current assets
Stock 13 178,318 50,000 123,995 -
Debtors 14 2,412,285 2,336,529 161,213 452,702
Cash at bank and in hand 1,223,110 629,685 199,304 186,225
3,813,713 3,016,214 484,512 638,927
Liabilities:
Creditors falling due within one year 15 (224,120) (105,718) (228,881) (210,239)
Net current assets 3,589,593 2,910,496 255,631 428,688
Provision for liabilities 16 (24,127) - - -
Total net assets 6,819,118 6,037,167 400,951 429,182
The funds of the charity:
Restricted funds 17 2,000,000 2,000,000 96,409 96,409
Unrestricted funds 17 4,719,120 4,037,167 204,544 332,773
Revaluation reserve 17 99,998 - 99,998 -
Total charity funds 6,819,118 6,037,167 400,951 429,182
----- End of picture text -----

The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared and delivered in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

Page 13

Fly Navy Heritage Trust Limited – Company Number 05971284 Balance Sheet and Consolidated Balance Sheet As at 31 December 2021

The notes from pages 15 – 29 form part of these accounts.

Approved by the Board on 20[th] September 2022 and signed on their behalf by:

Rear Admiral T A Cunningham CBE Mr M J F Strong Trustee Director Trustee Director

Page 14

Fly Navy Heritage Trust Limited Statement of Cash Flows and Consolidated Statement of Cash Flows For the Year Ended 31 December 2021

Notes
Cash flows from operating activities
Net movements in funds for the year
Adjustments to cash flows from non-cash items
Depreciation
11
Donated assets
Interest receivable
4
Deferred tax provision
Working capital adjustments
(Increase)/decrease in stocks
13
(Increase)/decrease in debtors
14
Increase/(decrease) in creditors
15
Net cash flow from operations
Cash flows from investing activities
Interest receivable
4
Acquisitions of tangible assets
11
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period
Cash & Cash equivalents reconciliation:
Cash at bank
Total cash & cash equivalents at the end of the
reporting period		 £
Group
6,418,167
27,187
(2,900,000)
(179)
24,127
3,569,302
(54,323)
(2,251,072)
(4,761)
1,259,146
179
(235,519)
1,023,806
199,304
1,223,110
1,223,110
1,223,110
Total		 £
Charity
5,607,985
5,748
(2,900,000)
(179)
-
2,713,554
(50,000)
(1,883,827)
(104,521)
675,206
179
(231,925)
443,460
186,225
629,685
629,685
629,685
2021		 £
Group
(140,616)
15,830
-
(1,457)
-
(126,243)
(19,334)
(76,046)
48,271
(173,352)
1,457
(30,554)
(202,449)
401,753
199,304
199,304
199,304
Total		 £
Charity
(67,135)
797
-
(1,457)
-
2020
(67,795)
-
(187,090)
59,184
(195,701)
1,457
(792)
(195,036)
381,261
186,225
186,225
186,225

Page 15

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

1 Accounting Policies

The principal accounting policies adopted in the preparation of the financial statements are as follows:

1.1 Basis of accounting

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

Fly Navy Heritage Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) and all amounts are presented in £ sterling.

These financial statements consolidate the results of the Charity and its wholly owned subsidiary, Naval Aviation Limited, on a line by line basis. The “Group” heading within the balance sheet refers to the consolidated accounts of the Fly Navy Heritage Trust Limited and Naval Aviation Limited.

In the parent company financial statements the investment in the trading subsidiary is accounted for at cost less impairment.

A separate Statement of Financial Activities or income and expenditure account, for the Charity itself has not been presented because the Charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006.

There are no material uncertainties about the charity’s ability to continue as a going concern. The Trustees have considered the implication of the Covid-19 pandemic on the operations of the charity. Grant and donation income has been received that is sufficient to cover the temporary reductions in fundraising and trading income. Taking into account all reasonable circumstances, the trustees believe that the charity remains a going concern and no adjustments to the accounts are necessary.

1.2 Legal status of the Trust

The Trust is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The company is incorporated in England and Wales and the company registered office is detailed on page 1, reference and administration details.

1.3

Income

Income from grants and donations is recognised in the year in which they are receivable when there is evidence of entitlement, receipt is probable and the amount can be reliably measured.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution.

Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Page 16

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

Income from other trading income is included in the period in which the group is entitled to receipt, it is probable that economic benefits will flow to the entity and the amount can be reliably measured.

1.4

Donated goods and services

Donated services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. Income is recognised within grants, donations and legacies and expenditure within costs of raising funds and charitable activities.

1.5

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

1.6 Expenditure and irrecoverable VAT

Resources expended are recognised on the accruals basis to match the period in which the expenditure was incurred.

Costs of raising funds are expenditure incurred in generating the trading subsidiary funds and in generating the charity fundraising event income funds.

Charitable activities expenditure comprises costs incurred in by the charity in the delivery of its charitable purposes for beneficiaries including grants payable to other institutions.

Grants payable are at the discretion of the Trustees. They are in furtherance of the charity’s objects, to support and promote the efficiency of aviation in the Royal Navy and to educate the members of the public in the history, traditions and exploits of the Fleet Air Arm and the history of Royal Naval Aviation.

1.7 Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

1.8 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work or for specific artistic projects being undertaken by the Trust.

Page 17

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

1.9 Tangible fixed assets and depreciation

Aircraft are initially recorded at cost and are then revalued at the year end. The Trustees review the assets for impairment each year. Donated aircraft are brought in at fair value.

Computer equipment is stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life as follows:

Plant and machinery 3 years straight line Office equipment 3 years straight line Computer equipment 33% reducing balance

Aircraft are not depreciated. The aircraft are continuously maintained and repaired and as a result of this, the directors have considered that they do not depreciate. The aircraft are reviewed for impairment each year.

1.10 Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Stock consists of merchandise for resale and is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.

1.11 Debtors

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

1.12 Cash at bank and in hand

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

1.13 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

1.14 Defined contribution pension

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as staff pension expense through the profit and loss when they are due.

Page 19

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

1.15 Taxation

As a registered charity, the company is not liable to corporation tax or capital gains tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is not recoverable by the company, and is therefore included in the relevant costs in the Statement of Financial Activities. The charity subsidiary is able to recover Value Added Tax and therefore it is not included within the relevant costs in the Statement of Financial Activities.

1.16 Financial instruments

The charity only holds basic financial instruments as defined by FRS 102. The financial assets and financial liabilities of the company are as follows;

Financial assets – trade and other debtors, accrued income, amounts owed by group undertakings and other debtors are basic financial instruments, and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors, amounts owed to group undertakings, bank loans, accrued expenses and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security and corporation tax creditors are not included in the financial instruments disclosure definition.

2 Grants, donations and legacies

Unres-
tricteded
£
4,465,157
Exceptional government funding
Coronavirus JRS grant
-
4,465,157
Grants, donations and
legacies
3
Other trading income		 Unres-
tricteded
£
4,465,157
Exceptional government funding
Coronavirus JRS grant
-
4,465,157
Grants, donations and
legacies
3
Other trading income		 Res-
tricted
£
2,681,706
-
2,681,706		 Total 2021
£
7,146,863
-
7,146,863		 Unres-
tricted
£
273,424
31,266
304,690		 Res-
tricted
£
246,551
-
246,551		 Total
2020
£
519,975
31,266
551,241
Total
2020
£
98,315
91,253
-
189,568
Merchandise
Fundraising event income
Other income		 Unres-
tricted
£
132,170
238,536
1,001,361
1,372,067		 Res-
tricted
£
-
-
-
-		 Total 2021
£
132,170
238,536
1,001,361
1,372,067		 Unres-
tricted
£
98,315
91,253
-
189,568		 Res-
tricted
£
-
-
-
-

Page 19

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

4 Interest receivable

4
Interest receivable
Bank interest
5
Costs of raising funds
Fundraising costs
PR and advertising
Trading costs
6
Charitable activities		 Unres-
tricted
£
179
Unres-
tricted
£
58,263
22,010
593,401
673,674		 Res-
tricted
£
-
Res-
tricted
£
189,036
-
-
189,036		 Total 2021
£
179
Total 2021
£
247,299
22,010
593,401
862,710		 Unres-
tricted
£
1,457
Unres-
tricted
£
34,488
20,175
123,924
178,587		 Res-
tricted
£
-
Res-
tricted
£
50,565
-
14,414
64,979		 Total
2020
£
1,457
Total
2020
£
85,053
20,175
138,338
233,552
Unres-
tricted
Res-
tricted
£
£
Aircraft maintenance
115,818
237,826
Grants paid to institutions
-
-
Insurance
8,235
-
Payroll fees
1,816
-
Staff costs
401,996
230,522
Consultancy
42,074
33,650
Other administration
54,688
9,600
Depreciation
27,186
-
Governance costs
46,444
4,250
Bad debts
-
-
698,257
515,848
Grants paid to institutions are broken down as follows:
RNHF aircraft
-
-
-
-		 Unres-
tricted
£
115,818
-
8,235
1,816
401,996
42,074
54,688
27,186
46,444
-		 Res-
tricted
£
237,826
-
-
-
230,522
33,650
9,600
-
4,250
-		 Total 2021
£
353,644
-
8,235
1,816
632,518
75,724
64,288
27,186
50,694
-
1,214,105
-
-		 Unres-
tricted
£
68,243
-
6,186
1,092
253,831
17,995
39,403
797
14,228
2,500
404,275
-
-		 Res-
tricted
£
75,860
20,916
-
-
98,918
39,347
-
-
-
-
235,041
20,916
20,555		 Total
2020
£
144,103
20,916
6,186
1,092
352,749
57,342
39,403
797
14,228
2,500
698,257 515,848 639,316
20,916
- 20,555

Page 19

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

7 Net income/(expenditure) for the year

This is stated after charging:

----- Start of picture text -----
Charity Subsidiary Total
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Depreciation of owned
assets 21,439 797 21,438 15,033 42,877 15,830
Auditors remuneration
Audit services 6,300 4,000 2,200 2,200 8,500 6,200
Other services 935 2,363 - 88 935 2,451
- accounting
----- End of picture text -----

8 Trustee directors

The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2020 – £nil). No trustees were reimbursed expenses (2020 – £nil) during the year. No charity trustee received payment for professional or other services supplied to the charity (2020 – £nil).

The charity has paid £1,198 (2020 – £600) for directors and officers indemnity insurance.

9 Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £9,426 (2020 – £4,866).

Contributions totalling £2,534 (2020 – £1,318) were payable to the scheme at the end of the year.

Page 19

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

10 Employees

Number of employees

The average monthly number of employees during the year was:

2021
Chief executive officer
1
Management and administration
16
17
Employment costs
2021
£
Wages and salaries
569,503
Social security costs
50,853
Pension costs
9,426
629,782
The number of employees whose annual emoluments were £60,000 or more were:
2021
number
£90,000 - £100,000
-
£100,000 - £110,000
1		 2020
1
12
13
2020
£
322,678
24,740
4,866
352,284
2020
number
1
-

No pension costs were paid to this individual during the year (2020 – £nil)

The key management personnel of the group comprise those of the Trust and its wholly owned subsidiary Naval Aviation Limited. The key management personnel of the Trust comprise the trustees and the Chief Executive Officer. Naval Aviation Limited does not have remuneration costs as all staff are paid by the Trust.

The total employee benefits including employers national insurance and employers pension costs of the key management personnel of the Trust were £116,958 (2020 - £94,772).

Page 22

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

11 Tangible fixed assets

----- Start of picture text -----
Aircraft Plant & Office Computer Total
Machinery Equipment Equipment
£ £ £ £ £
At 1 January 2020 100,000 47,913 14,531 42,049 204,493
Additions 3,113,000 3,594 - 18,925 3,135,519
At 31 December 2021 3,213,000 51,507 14,531 60,974 3,340,012
Depreciation
-
At 1 January 2020 12,301 5,316 41,556 59,173
-
Charge for the year 16,595 4,844 5,748 27,187
At 31 December 2021 - 28,896 10,160 47,304 86,360
Net book value
At 31 December 2021 3,213,000 22,611 4,371 13,670 3,253,652
At 31 December 2020 100,000 35,612 9,215 493 145,320
----- End of picture text -----

The year end open market value of the aircraft has been considered by the Trustees and the revaluation reflected in in the accounts. The value of the aircraft donated has been bought in at the insurance value, which is considered to be a fair reflection of the market value of the aircraft. The historical cost of the aircraft is £2.

Charity
Cost
At 1 January 2021
Additions
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Aircraft
£
-
3,113,000
3,113,000
-
-
-
3,113,000
-		 Computer
Equipment
£
42,049
18,925
60,974
41,556
5,748
47,304
13,670
493		 Total
£
42,049
3,131,925
3,173,974
41,556
5,748
47,304
3,126,670
493

The year end open market value has been considered by the trustees and the revaluation reflected in the accounts. The value of the aircraft donated has been bought in at the insurance value, which is considered to be a fair reflection of the market value of the aircraft.

Page 23

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

12 Investments

----- Start of picture text -----
Charity
2021 2020
£ £
Naval Aviation Limited - 1 ordinary shares of £1 each 1 1
----- End of picture text -----

Naval Aviation Limited (company no. 07052646) was incorporated in England and Wales on 21 October 2009 as a wholly owned trading subsidiary of Fly Navy Heritage Trust Limited. The parent charity holds 100% of the issued share capital and voting rights of the subsidiary.

The principal activity of the company is the operation of commercial activity on behalf of Fly Navy Heritage Trust Limited. The subsidiary gift aids its taxable profits to Fly Navy Heritage Trust Limited, and files audited accounts with the Registrar of Companies.

A summary of the trading results is shown below:

Turnover
Cost of sales
Gross profit
Administrative expenses
Net loss before tax
Taxation
Retained in subsidiary
The assets and liabilities were:
Fixed assets
Current assets
Current liabilities
Provisions
Total net assets
Called up share capital
Revaluation reserve
Profit and loss account		 2021
£
1,840,247
(947,045)
893,202
(58,893)
834,309
(24,127)
810,182
126,982
847,499
(168,403)
(24,127)
781,951
1
99,998
681,952
781,951		 2020
£
208,960
(254,232)
(45,272)
(28,209)
(73,481)
-
(73,481)
144,827
151,870
(324,928)
-
(28,231)
1
99,998
(128,230)
(28,231)

Page 24

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

13 Stocks

Goods for resale Group
£
178,318		 2021
Charity
£
50,000		 Group
£
123,995		 2020
Charity
£
-
14
Debtors
Group
£
Trade debtors
26,444
Other debtors
51,435
Prepayments and accrued income
2,334,406
Amounts owed by group undertakings
-
2,412,285
15
Creditors: Amounts falling due within one year
Group
£
Trade creditors
162,396
Accruals
32,273
Deferred income
10,000
Amounts owed to group undertakings
-
Taxation and social security
19,451
224,120		 2021
Charity
£
17,406
-
2,319,123
-
2,336,529
2021
Charity
£
16,250
10,017
10,000
50,000
19,451
105,718		 Group
£
106,131
8,666
46,416
-
161,213
Group
£
36,813
10,600
169,006
-
12,462
228,881		 2020
Charity
£
105,824
-
40,593
306,285
452,702
2020
Charity
£
22,421
6,350
169,006
-
12,462
210,239

Page 25

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

16 Provision for liabilities

----- Start of picture text -----
Group Deferred tax Total
£ £
- -
At 1 January 2021
Increase (decrease) in existing provisions 24,127 24,127
At 31 December 2021 24,127 24,127
Deferred tax
Deferred tax assets and liabilities: Asset Liability
£ £
2021
-
Other timing differences 24,127
- 24,127
2020
- -
Other timing differences
- -
----- End of picture text -----

Page 25

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

17 Summary of movement in funds

Group
Unrestricted funds
General
Revaluation reserve
Restricted funds
Transitional funds
Culture Recovery Fund
Swordfish W5856
Sea Vixen
Seafire		 Opening
Balance
£
204,544
99,998
-
8,395
88,014
-
-
400,951		 Incoming
Resources
£
5,837,403
-
541,006
140,200
-
500
2,000,000
8,519,109		 Outgoing
Resources
£
(1,396,058)
-
(467,775)
(148,595)
(88,014)
(500)
-
(2,100,942)		 Transfers
£
73,231
-
(73,231)
-
-
-
-
-		 Closing
Balance
£
4,719,120
99,998
-
-
-
-
2,000,000
6,819,118
Charity
Unrestricted funds
General
Restricted funds
Transitional funds
Culture recovery fund
Swordfish W5856
Sea Vixen
Seafire		 Opening
Balance
£
332,773
-
8,395
88,014
-
-
429,182		 Incoming
Resources
£
4,703,572
541,006
140,200
-
500
2,000,000
7,385,278		 Outgoing
Resources
£
(1,072,409)
(467,775)
(148,595)
(88,014)
(500)
-
(1,777,293)		 Transfers
£
73,231
(73,231)
-
-
-
-
-		 Closing
Balance
£
4,037,167
-
-
-
-
2,000,000
6,037,167

Unrestricted funds

The Trustees had designated funds of £200k in 2017 towards the retention of an engineer and storeman for the Sea Vixen with a view to ensuring that should the parts come available there could be the possibility that the Sea Vixen will get back to flying status. The amount designated has been brought back into general unrestricted this repair work is now unlikely to happen. The revaluation reserve is the difference between the fair value and original cost of the aircraft.

Restricted funds

Page 26

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

Summary of movement in funds - 2020

----- Start of picture text -----
Opening Incoming Outgoing Transfers Closing
Balance Resources Resources Balance
Group £ £ £ £ £
Unrestricted funds
General 91,691 495,715 (582,862) 200,000 204,544
Sea Vixen 200,000 - - (200,000) -
Revaluation reserve 99,998 - - - 99,998
Restricted funds
Transitional funds - 106,351 (106,351) - -
- -
Culture Recovery Fund 140,200 (131,805) 8,395
Swordfish W5856 148,493 - (60,479) - 88,014
Sea Vixen 1,385 - (1,385) - -
-
541,567 742,266 (882,882) 400,951
Opening Incoming Outgoing Transfers Closing
Balance Resources Resources Balance
Charity £ £ £ £ £
Unrestricted funds
General 146,439 397,400 (411,066) 200,000 332,773
Sea Vixen 200,000 - - (200,000) -
Restricted funds
Transitional funds - 106,351 (106,351) - -
- -
Culture recovery fund 140,200 (131,805) 8,395
Swordfish W5856 148,493 - (60,479) - 88,014
Sea Vixen 1,385 - (1,385) - -
-
496,317 643,951 (711,086) 429,182
----- End of picture text -----

Page 27

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

18 Analysis of assets between funds

18
Analysis of assets between funds
Tangible
Fixed Assets
£
Group
Unrestricted funds
3,253,652
Restricted funds
-
As at 31 December 2021
3,253,652
As at 31 December 2020
145,320		 Investments
£
-
-
-
-		 Net Current
Assets
£
1,589,593
2,000,000
3,589,593
255,631		 Provisions
£
(24,127)
-
(24,127)
-		 Total
£
4,819,118
2,000,000
6,819,118
400,951
Tangible
Fixed Assets
£
Charity
Unrestricted funds
3,126,670
Restricted funds
-
As at 31 December 2021
3,126,670
As at 31 December 2020
493		 Investments
£
1
-
1
1		 Net Current
Assets
£
910,496
2,000,000
2,910,496
428,688		 Provisions
£
-
-
-
-		 Total
£
4,037,167
2,000,000
6,037,167
429,182

Page 28

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2021

19 Income and expenditure account of the company

The company has taken advantage of Section 408 of the Companies Act and has not included its own Income and Expenditure Account or separate Statement of Financial Activities.

The Fly Navy Heritage Trust Limited has net incoming resources for the year of £5,607,985 (2020 - £67,134 outgoing resources) based on income of £7,385,278 (2020 - £643,951).

20 Related parties

There are no related party transactions in the reporting period that require disclosure.

21 Contingent assets

The charity has received notice that they have been named as a beneficiary of a legacy. The amount receivable cannot be reliably measured as the Will is being contested, but it is estimated that it will be in the region of £200k.

Page 29