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← Fly Navy Heritage Trust Limited

2023-12-31-accounts

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

Annual Report and Financial Statements

For the Year Ended 31 December 2023

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

Fly Navy Heritage Trust Limited Contents For the Year Ended 31 December 2023

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 - 14
Statement of Cash Flows and Consolidated Statement 15
of Cash Flows
Notes to Financial Statements 16 – 29

Fly Navy Heritage Trust Limited Reference and Administrative Details For the Year Ended 31 December 2023

President

Admiral Sir George Zambellas GCB DSC ARC DL FRAeS

Trustee Directors:

Chairman

Rear Admiral T A Cunningham CBE

Ex- Officio

Rear Admiral S Moorhouse CBE – Asst Chief of Naval Staff (Aviation & Carriers) (appointed 1 May 2022)

Commodore N R Griffin MBE RN Captain D Thomas 2023)

Elected

Rear Admiral S B Charlier CBE FRAeS – Chairman FAA Officers’ Association Mr N Coleman

Mr N Coleman -- Market Development Leondardo Helicopters UK, UK Geographic Helicopter Devision (appointed 12 October 2023) Ms S L Cook – Vice President, UK Government business Leonardo (MW) (resigned 12 October 2023) Commodore W M Covington CBE RN – Business Executive, aircraft owner Mr E T Taylor – Business Executive, Lockheed Martin UK Limited Mr T J Manna – President, Kennet Aviation 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 2023

The Trustee Directors (“Trustees”) present their report and accounts For the Year Ended 31 December 2023. 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 2022 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

Navy Wings Heritage Flight Limited (NWHF) (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 2023

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

Continuity is maintained at the Trust with the Chief Executive Officer, Commodore Jock Alexander remaining at the helm since joining in February 2016. The aim, ensconced in the Charitable Objectives, remains to reach as wide an audience as possible, supported by a continually evolving web-site and a wide collection of aircraft. The Navy Wings Heritage Flight consists of the ex-Royal Navy Historic Flight (RNHF) aircraft, along with a Harvard, Wasp and Seafire which have since been acquired.

2023 was the most successful year ever in the history of either the Royal Navy Historic flight, or Navy Wings. The aircraft were seen ‘in the flesh’ by over 2.8M people and the Trust achieved national coverage in the Press and on TV. Highlights included the Battle of the Atlantic 80th celebrations in Liverpool, National Armed Forces Day in Falmouth and the flying Legends Air Show at Sherburn-in-Elmet to name but a few. No planned sorties were lost through aircraft unserviceability. The transfer of the final aircraft (Swordfish LS326) was delayed once again through Government process, but we are now assured that all the paperwork has been completed and we expect to take ownership towards the end of this year. The Memorandum of Understanding agreed with the Royal Navy was re-signed by both parties in Feb 2024 and it continues to under-pin our business. We are currently nearing the end of the 2024 display circuit and all our planned flying activity has so far been met, with only two planned displays lost due to inclement weather.

From a financial perspective, the Trust remains in good health and we are currently in Year 4 of a 4-year investment programme valued at £5M. The stability of guaranteed income of this magnitude over the last four years cannot be underestimated and it has allowed us to invest in long term resilience, including many spare parts for our fleet of aircraft. 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. We are currently in dialogue with the same investor about further donations.

Page. 3

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2023

Our weekly lottery is now producing a steady income stream, while our on-line presence continues to grow apace, which has enabled retail sales to finish yet another year ahead of budget. Major fund-raising activities were conducted in the form of a dinner in London and a charity Clay Pigeon Shoot at the Royal Berkshire Shooting Ground, all of which were very well supported and returned healthy profits. Finally, the launch of our documentary on the History of UK Naval Aviation has been delayed due to production reasons and we now expect it to be released in 2025, which should return a profit in years to come from downstream sales of DVD’s and digital down-loads.

Volunteers and Sponsorship

The Trust and Navy Wings Heritage Flight Ltd, together trading as ‘Navy Wings’, continues with its wellestablished 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 a rich panoply of key players in industry, including some more new companies who have been attracted by our Corporate package programme and net-working opportunities. Our Corporate dinner in March 23 was once again a huge success and was completely sold out ahead of the event, which demonstrates that this has now become the ‘go to’ heritage aviation dinner as we planned it should be.

Grant making policy to Naval Wings Heritage Flight Ltd (NWHF)

The overall Business Plan for Navy Wings is to ensure Navy Wings Heritage Flight Ltd (NWHF) becomes profitable, where the key drivers will be the diversification and growth of income streams, as well as generating income from aircraft. Several Air Shows have ceased trading after the Covid crisis and as reported last year, we expect this income stream to remain low for some years to come. We have decided that in order to preserve precious aircraft flying hours, we will not be conducting regular paid flights in our Swordfish, but rather restricting these to bespoke flights as approved by the Board. Sales of merchandise remain very strong and continue to show year on year growth.

Achievements and Performance

As already stated, this was the busiest year ever for the Charity with all operational aims being achieved without incident and with no loss of aircraft displays from unserviceability. This is a remarkable achievement with a fleet of vintage aircraft. We now have a long term, costed plan for the next five years, with an outline plan for ten years and we have built in resilience in the form of spare engines, or parts for most of our fleet Our financial achievements are covered separately, but to summarise, we remain in an excellent financial position and we have a highly motivated and professional work-force properly constituted to take us forward.

Page. 4

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2023

Reserves policy

Since there can be no guarantee of the quantum of future income streams, 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 6 months operating costs of £782,000. At 31st December 2023 the group held £7,487,133 of free reserves and excess reserves to provide future funding for aircraft.

Review of financial position

From a financial point of view, 2023 was a successful year providing a surplus when a deficit was budgeted for. This is mostly down to unexpected Legacy donations received and also savings were achieved in direct and overhead costs as well.

The total consolidated income included £335,817 of restricted income (12.2%) and £2,405,734 of unrestricted income (87.8%). Restricted income was applied to the purposes for which it was provided. Income from grants, donations and legacies decreased this year by £241,334 to £2,190,702.

Navy Wings Heritage Flight Ltd Revenue (covering merchandising and aircraft displays) provided £245,698 of income. Merchandising was below budget however it continues to grow year on year and indeed was 20% higher than 2018.

Total consolidated expenditure in 2023 totalled £2,445,298, a decrease on the prior year with good management of expenditure in line with income. The Group held £70,553 of restricted funds at the year end and £7,523,131 in unrestricted funds.

Cash and short term investments totalled £1,650,717 at 31 December 2023 compared with £1,723,258 at the previous year end. Capital expenditure totalled £16,217 during the year, comprising of operational equipment (Helmets, Headsets) and computer equipment.

Plans for future periods

We have now been able to take a long-term view on aircraft and engine availability and we have thus streamlined our Fleet with the aim of having an aircraft available to cover as many epochs of naval aviation as we can. Our Sea Fury FB11 will return to the skies for the 2025 season alongside our Seafire Mk XVII (last flying example in the world) and we will have a second Swordfish in the air next year, meaning that the last two flying examples of this iconic aircraft are also operated by Navy Wings. We aim to build on our financial success by continuing to investigate alternative income streams, whilst we have also attracted some considerable positive PR with several national TV and newspaper appearances. We have now been granted a license to sell alcohol and we plan to market some bespoke (collectible bottles) of spirits later this year to celebrate various anniversaries as they happen. The Trust continues to plan for a sustainable programme and anticipates eventually operating a core flying fleet of two Swordfish, a Sea Fury, a Seafire, the Wasp helicopter and one Sea Hawk jet.

Going concern

The Trustees have, as always, 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. They 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.

Page. 5

Fly Navy Heritage Trust Limited Trustee Directors’ Report For the Year Ended 31 December 2023

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 2023

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 24 September 2024 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 2023

Opinion

We have audited the financial statements of the Fly Navy Heritage Trust Limited For the Year Ended 31 December 2022, 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 2023

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 2023

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 2023

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

25 September 2024

Page. 11

Fly Navy Heritage Trust Limited Consolidated Statement of Financial Activities (including income and expenditure account) For the Year Ended 31 December 2023

Unres-
tricted
Notes
£
Income:
Grants, donations and legacies
2
1,854,885
Other trading activities
3
521,741
Interest receivable
4
29,108
Total income
2,405,734
Expenditure:
Costs of raising funds
5
754,527
Charitable activities
6
1,138,348
Total expenditure
1,892,875
512,859
Transfers between funds
17
-
-
Tax charge
1,491
7
514,350
Reconciliation of funds
Total funds brought forward
7,008,781
Total funds carried forward
7,523,131
Net (expenditure)/income for
the year before transfers and
gains and losses
Net income/(expenditure) and
net movement in funds for the
year
Realised and unrealised gains
and losses		 Res-
tricted
£
335,817
-
-		 Total 2023
£
2,190,702
521,741
29,108
2,741,551
754,527
1,690,771
2,445,298
296,253
-
-
1,491
297,744
7,295,940
7,593,684		 Unres-
tricted
£
1,571,574
651,808
2,663
2,226,045
1,008,568
1,185,988
2,194,556
31,489
2,200,000
(60,000)
18,174
2,189,663
4,819,118
7,008,781		 Res-tricted
£
860,462
-
-		 Total 2022
£
2,432,036
651,808
2,663
335,817 860,462 3,086,507
-
552,423		 -
373,303		 1,008,568
1,559,291
552,423 373,303 2,567,859
(216,606)
-
-
-		 487,159
(2,200,000)
-
-		 518,648
-
(60,000)
18,174
(216,606)
287,159		 (1,712,841)
2,000,000		 476,822
6,819,118
70,553 287,159 7,295,940

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 2023

Notes
Fixed assets
Tangible fixed assets
11
Investments
12
Current assets
Stock
13
Debtors
14
Cash at bank and in hand
Liabilities:
Creditors falling due within one year
15
Net current assets
Provision for liabilities
16
Total net assets
The funds of the charity:
Restricted funds
17
Unrestricted funds
17
Revaluation reserve
17
Total charity funds		 £
£
Group
Charity
5,178,416
5,124,567
-
1
5,178,416
5,124,568
224,988
50,000
760,545
732,555
1,650,717
1,638,563
2,636,250
2,421,118
(216,520)
(65,925)
2,419,730
2,355,193
(4,462)
-
7,593,684
7,479,761
70,553
636,576
7,487,133
6,843,185
35,998
-
7,593,684
7,479,761
2023		 £
£
Group
Charity
5,187,525
5,123,712
-
1
5,187,525
5,123,713
203,233
50,000
451,797
585,702
1,723,258
1,568,475
2,378,288
2,204,177
(263,920)
(92,851)
2,114,368
2,111,326
(5,953)
-
7,295,940
7,235,039
287,159
287,159
6,968,783
6,947,880
39,998
-
7,295,940
7,235,039
2022		 £
£
Group
Charity
5,187,525
5,123,712
-
1
5,187,525
5,123,713
203,233
50,000
451,797
585,702
1,723,258
1,568,475
2,378,288
2,204,177
(263,920)
(92,851)
2,114,368
2,111,326
(5,953)
-
7,295,940
7,235,039
287,159
287,159
6,968,783
6,947,880
39,998
-
7,295,940
7,235,039
2022
5,123,713
50,000
585,702
1,568,475
2,204,177
(92,851)
2,111,326
-
7,235,039
287,159
6,947,880
-
7,235,039

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.

The charity 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 £244,722 (2022 - £515,920 incoming resources) based on income of £2,495,853 (2022- £2,878,794).

Page. 13

Fly Navy Heritage Trust Limited – Company Number 05971284 Balance Sheet and Consolidated Balance Sheet As at 31 December 2023

The notes from pages 16 – 29 form part of these accounts.

Approved by the Board on 24 September 2023 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 2023

Notes
Cash flows from operating activities
Net movements in funds for the year
Adjustments to cash flows from non-cash items
Depreciation
11
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
Realised and unrealised gains
Disposal of tangible assets
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
297,744
21,326
(29,108)
(1,491)
288,471
(21,755)
(308,748)
(47,400)
(89,432)
29,108
-
4,000
(16,217)
(72,541)
1,723,258
1,650,717
1,650,717
1,650,717
Total		 £
Charity
244,722
4,926
(29,108)
-
220,540
-
(146,853)
(26,926)
46,761
29,108
-
-
(5,781)
70,088
1,568,475
1,638,563
1,638,563
1,638,563
2023		 £
Group
476,822
29,963
(2,663)
(18,174)
485,948
(24,915)
1,960,488
39,800
2,461,321
2,663
60,000
-
(2,023,836)
500,148
1,223,110
1,723,258
1,723,258
1,723,258
Total		 £
Charity
1,197,872
6,226
(2,663)
-
2022
1,201,435
-
1,750,827
(12,867)
2,939,395
2,663
-
-
(2,003,268)
938,790
629,685
1,568,475
1,568,475
1,568,475

Page. 15

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

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.

There are no material uncertainties about the charity’s ability to continue as a going concern. Taking into account current trading and reserves, 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.

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.

Page. 16

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

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

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 2023

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. 18

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

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

Grants, donations and
legacies
3
Other trading income		 Unres-
tricteded
£
1,854,885
1,854,885		 Res-
tricted
£
335,817
335,817		 Total 2023
£
2,190,702
2,190,702		 Unres-
tricted
£
1,571,574
1,571,574		 Res-
tricted
£
860,462
860,462		 Total 2022
£
2,432,036
2,432,036
Total 2022
£
207,588
444,095
125
651,808
Merchandise
Fundraising event income
Other income		 Unres-
tricted
£
189,965
276,043
4,725
521,741		 Res-
tricted
£
-
-
-
-		 Total 2023
£
189,965
276,043
4,725
521,741		 Unres-
tricted
£
207,588
444,095
125
651,808		 Res-
tricted
£
-
-
-
-

Page. 19

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

4 Interest receivable

4
Interest receivable
Bank interest Unres-
tricted
£
29,108		 Res-
tricted
£
-		 Total 2023
£
29,108		 Unres-
tricted
£
2,663		 Res-
tricted
£
-		 Total 2022
£
2,663
5
Costs of raising funds
Unres-
tricted
£
Fundraising costs
123,308
PR and advertising
10,824
Trading costs
620,395
754,527
6
Charitable activities
Unres-
tricted
£
Aircraft maintenance
11,829
Insurance
19,875
Payroll fees
2,023
Staff costs
714,908
Consultancy
156,273
Other administration
138,375
Depreciation
21,012
Governance costs
65,753
Bad debts
8,300
1,138,348		 Res-
tricted
£
-
-
-
-
Res-
tricted
£
536,921
-
-
-
15,502
-
-
-
-
552,423		 Total 2023
£
123,308
10,824
620,395
754,527
Total 2023
£
548,750
19,875
2,023
714,908
171,775
138,375
21,012
65,753
8,300
1,690,771		 Unres-
tricted
£
319,918
11,895
676,755
1,008,568
Unres-
tricted
£
236,108
13,628
2,026
672,343
91,848
79,864
29,868
60,303
-
1,185,988		 Res-
tricted
£
-
-
-
-
Res-
tricted
£
260,462
-
-
-
112,841
-
-
-
-
373,303		 Total 2022
£
319,918
11,895
676,755
1,008,568
Total 2022
£
496,570
13,628
2,026
672,343
204,689
79,864
29,868
60,303
-
1,559,291

Page. 20

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

7 Net income/(expenditure) for the year

This is stated after charging:

----- Start of picture text -----
Charity Subsidiary Total
2023 2022 2023 2022 2023 2022
£ £ £ £ £ £
Depreciation of owned
assets 21,326 29,963 16,400 23,737 37,726 53,700
Auditors remuneration
Audit services 5,200 3,950 2,300 2,300 7,500 6,250
Other services 710 - 2,190 1,466 2,900 1,466
- 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 (2022 – £nil). No trustees were reimbursed expenses (2022 – £nil) during the year. No charity trustee received payment for professional or other services supplied to the charity (2022 – £nil).

The charity has paid £3,052 (2022 – £1,421) 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 £12,340 (2022 – £11,044).

Contributions totalling £3,123 (2022 – £2,754) were payable to the scheme at the end of the year.

Page. 21

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

10 Employees

Number of employees

The average monthly number of employees during the year was:

2023
Chief executive officer
1
Management and administration
16
17
Employment costs
2023
£
Wages and salaries
632,201
Social security costs
65,687
Pension costs
12,340
710,228
The number of employees whose annual emoluments were £60,000 or more were:
2023
number
£100,000 - £110,000
-
£110,000 - £120,000
1		 2022
1
16
17
2022
£
598,785
58,733
11,044
668,562
2022
number
1
-

No pension costs were paid to this individual during the year (2022 – £nil)

The key management personnel of the group comprise those of the Trust and its wholly owned subsidiary Navy Wings Heritage Flight Limited. The key management personnel of the Trust comprise the trustees and the Chief Executive Officer. Navy Wings Heritage Flight 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 £124,200 (2022 - £120,092).

Page. 22

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

----- Start of picture text -----
11 Tangible fixed assets
Aircraft Plant & Office Computer Total
Machinery Equipment Equipment
£ £ £ £ £
At 1 January 2023 5,153,000 70,944 15,662 64,242 5,303,848
Additions - 10,436 - 5,781 16,217
- - -
Disposal (4,000) (4,000)
At 31 December 2023 5,149,000 81,380 15,662 70,023 5,316,065
Depreciation
-
At 1 January 2023 48,918 13,875 53,530 116,323
-
Charge for the year 15,266 1,134 4,926 21,326
At 31 December 2023 - 64,184 15,009 58,456 137,649
Net book value
At 31 December 2023 5,149,000 17,196 653 11,567 5,178,416
At 31 December 2022 5,153,000 22,026 1,787 10,712 5,187,525
----- 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 2023
Additions
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Aircraft
£
5,113,000
-
5,113,000
-
-
-
5,113,000
5,113,000		 Computer
Equipment
£
64,242
5,781
70,023
53,530
4,926
58,456
11,567
10,712		 Total
£
5,177,242
5,781
5,183,023
53,530
4,926
58,456
5,124,567
5,123,712

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 2023

12 Investments

----- Start of picture text -----
Charity
2023 2022
£ £
Navy Wings Heritage Flight Limited - 1 ordinary shares of £1 each 1 1
----- End of picture text -----

Navy Wings Heritage Flight 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
Other operating income
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		 2023
£
1,319,044
(1,169,145)
149,899
(98,443)
75
51,531
1,491
53,022
53,849
489,327
(424,791)
(4,462)
113,923
1
35,998
77,924
113,923		 2022
£
1,232,241
(1,173,325)
58,916
(798,140)
-
(739,224)
18,174
(721,050)
63,813
345,216
(342,175)
(5,953)
60,901
1
39,998
20,902
60,901

Page. 24

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

13 Stocks

Goods for resale Group
£
224,988		 2023
Charity
£
50,000		 Group
£
203,233		 2022
Charity
£
50,000
14
Debtors
Group
£
Trade debtors
18,540
Other debtors
36,663
Prepayments and accrued income
705,342
Amounts owed by group undertakings
-
760,545
15
Creditors: Amounts falling due within one year		 2023
Charity
£
13,970
240
444,150
274,195
732,555		 Group
£
38,244
27,023
386,530
-
451,797		 2022
Charity
£
37,100
-
377,497
171,105
585,702
2022
Charity
£
28,758
8,952
35,299
19,842
92,851

Trade creditors
Accruals
Deferred income
Taxation and social security
Group
£
65,613
103,904
22,799
24,204
216,520		 2023
Charity
£
12,420
6,502
22,799
24,204
65,925		 Group
£
48,671
160,108
35,299
19,842
263,920

Page. 25

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

16 Provision for liabilities

----- Start of picture text -----
Group Deferred tax Total
£ £
At 1 January 2023 5,953 5,953
Increase (decrease) in existing provisions (1,491) (1,491)
At 31 December 2023 4,462 4,462
Deferred tax
Deferred tax assets and liabilities: Asset Liability
£ £
2023
-
Other timing differences 4,462
-
4,462
2022
-
Other timing differences 5,953
-
5,953
----- End of picture text -----

Page. 26

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

17 Summary of movement in funds

----- Start of picture text -----
Opening Incoming Outgoing Transfers Closing
Balance Resources Resources Balance
Group £ £ £ £ £
Unrestricted funds
General 6,968,783 2,405,734 (1,891,384) 4,000 7,487,133
Revaluation reserve 39,998 - - (4,000) 35,998
Restricted funds
Transitional funds - 335,817 (335,817) - -
RNVR Naval Club 287,159 - (216,606) - 70,553
-
7,295,940 2,741,551 (2,443,807) 7,593,684
Opening Incoming Outgoing Transfers Closing
Balance Resources Resources Balance
Charity £ £ £ £ £
Unrestricted funds
General 6,947,880 2,146,436 (2,251,131) - 6,843,185
Restricted funds
Transitional funds - 349,417 - - 349,417
RNVR Naval Club 287,159 - - - 287,159
-
7,235,039 2,495,853 (2,251,131) 7,479,761
----- End of picture text -----

Unrestricted funds

The Trustees general funds that have been received with no specific purpose other to be used for the organisations charitable objectives.

Restricted funds

Page. 27

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

Summary of movement in funds - 2022

----- Start of picture text -----
Opening Incoming Outgoing Transfers Closing
Balance Resources Resources Balance
Group £ £ £ £ £
Unrestricted funds
General 4,719,120 2,226,045 (2,176,382) 2,200,000 6,968,783
Revaluation reserve 99,998 - (60,000) - 39,998
Restricted funds
Transitional funds - 260,462 (260,462) - -
RNVR Naval Club - 400,000 (112,841) - 287,159
Seafire 2,000,000 200,000 - (2,200,000) -
-
6,819,118 3,086,507 (2,609,685) 7,295,940
Opening Incoming Outgoing Transfers Closing
Balance Resources Resources Balance
Charity £ £ £ £ £
Unrestricted funds
General 4,037,167 2,700,284 (1,989,571) 2,200,000 6,947,880
Restricted funds
Transitional funds - 260,462 (260,462) - -
RNVR Naval Club - 400,000 (112,841) - 287,159
Seafire 2,000,000 200,000 - (2,200,000) -
-
6,037,167 3,560,746 (2,362,874) 7,235,039
----- End of picture text -----

Page. 28

Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2023

18
Analysis of assets between funds
Tangible
Fixed Assets
£
Group
Unrestricted funds
5,178,416
Restricted funds
-
As at 31 December 2023
5,178,416
As at 31 December 2022
5,187,525		 Investments
£
-
-
-
-		 Net Current
Assets
£
2,349,177
70,553
2,419,730
2,114,368		 Provisions
£
(4,462)
-		 Total
£
7,523,131
70,553
(4,462) 7,593,684
(5,953) 7,295,940
Tangible
Fixed Assets
£
Charity
Unrestricted funds
5,124,567
Restricted funds
-
As at 31 December 2023
5,124,567
As at 31 December 2022
5,123,712		 Investments
£
1
-
1
1		 Net Current
Assets
£
1,718,617
636,576
2,355,193
2,111,326		 Provisions
£
-
-
-
-		 Total
£
6,843,185
636,576
7,479,761
7,235,039

19 Related parties

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

Page. 29