Fly Navy Heritage Trust Limited (A Charitable Company Llmlted by Guarantee) Annual Report and Financlal Statements For the Year Ended 31 December 2024 Company Number: 05971284 Charity Reg5stered in England and Wales Number: 1117272 *AEC7818P¥ 3010W2025 COMPANIES HOUSE A52
Fly Navy Heritage Trust Limited Contents For the Year Ended 31 December 2024 Pa Reference and Administrative Details Trustee Directors, Report (including Statement of Trustees, Responsibilities) 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 of Cash Flows 15 Notes to Financial Statements 16-29
Fly Navy Heritage Trust Limited Reference and Administrative Details For the Year Ended 31 December 2024 President Admiral Sir George Zambellas GCB DSC ARC DL FRAeS Trustee Directors.. Chalrman Rear Admiral T A Cunningham CBE Ex- Officlo Rear Admiral S Moorhouse C8E Asst Chief of Naval Staff (Aviation & Carriers) (resigned 6 February 2024) Commanding Officer RNAS Yeovilton Captain D Thomas Elected Rear Admiral S B Charller CBE FRAeS - Chairman FAA Officers. Association Mr N Coleman Market Development Leondardo Helicopters UK, UK Geographic Helicopter Devision Business Executive, aircraft owner Business Executive. Lockheed Martin UK Limited President, Kennet Aviation Solicitor Chartered Accountant Deputy Chairman FNHT, Business Executive Asst Chief of Naval Staff (Aviation & Carriers) (Appointed 6 February 2024) Commodore W M Covington C8E RN Mr N Colbern Mr T J Manna Mr N R Smith Mr M J F Strong Rear Admiral I P G Tibbitt CBE Rear Admiral Anthony Rimmington Chief Executive Officer Commodore R S Alexander OBE FRAeS Company Secretary Mr N R Smith Charily Number 1117272. Company Number 05971284 Prlnclpal Address and Reglsterod Offlce Building 412, South Dispersal, RNAS Yeovilton, Yeovil, Somerset, BA22 8HT Auditors Albert Goodman LLP, Goodwood House, Blackbrook Park Avenue, Taunton, Somerset, TA12PX Bankers Barclays Bank Plc, Klng George Slreet, Yeovil, Somerset, 8A20 1 PX Page. 1
Fly Navy Heritage Trust Limlted Twstee Directors, Report For the Year Ended 31 December 2024 The Trustee Directors ("Trustees') present their report and accounts For the Year Ended 31 December 2024. The financial statements have been prepared in accordan 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
Fly Navy Heritage Trust Llmlted Trustee Directors, Report For the Year Ended 31 December 2024 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, meeling. Risk mitigation actions are included as part of Ihe charity's annual Work Plan. Objectlves The Charity's objectives are set out in the Memorandum of Association as follows: To educate members of the Royal Nawy and the public in the hlstory, traditions and exploils of the Fleet Air Arm and the history of Royal Navy aviation generally. To provide a memorial and tribute to the men and women who have flown, maintained or contributed in any way to the operation of aircraft within the fleet. To advance the effectiveness of the armed forces of the Crown by promoting the efficiency of aviation in the Royal Navy. 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 We have continued to maintain continuity 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. social media engagement and a wide collection of aircraft. The Navy Wings Heritage Flight now consists of all the ex-Royal Navy Historic Flight (RNHF) aircraft, including the second Swordfish ILS 326) along with a Harvard, Wasp and Seafire, which have since been acquired. We have now completed our busiest year ever in 2024, whereby we estimate we were seen by over 3M people. The Trust achieved national coverage in the Press and on BBC1, as the central part of the Britain's Great Railway show, with Michael Portillo flying in our Har¥ard. We displayed at many Air Shows across England (including the Channel Islands). Wales, Scotland and Northern Ireland. which culminated in the award of the prestigious British Air Display Association trophy for 2024. Importantly and as in 2023, no planned sorties were lost through aircraft unserviceability. The Memorandum of Understanding agreed with the Royal Navy continues to under-pin our business and we are currently nearing the end of the 2025 display circuit, with all our planned flying activity met to date. From a financial perspective, the Trust remains in good health. Although we have reached the end of a 4- year investment programme, we have a healthy bank account and have now been able to acquire a significant spares invenlory, which will set as well for the years ahead. We are now focussed on further investment and have already secured a significant input from the Royal Navy as part of their support for heritage. Page. 3
Fly Navy Heritage Trust Limitèd Trustee Directors, Report For the Year Ended 31 December 2024 Our successful weekly lottery continues to produce a steady income stream, while our on-line presence has now overtaken many of our contemporaries, which has itself enabled retail sales to continue to flourish. We also gained a license to sell alcohol and some of our specialist and highly collectable bottles have added to the sales figures. Major fund-raising activities were conducted in the form of a Corporate dinner in London in February and a charity Clay Pigeon Shoot at the Royal Berkshire Shooting Ground, both of which were very well supported and returned healthy profits. We also decided to re-invigorate our high-end Ambassadors Ball, which was held in Raffles London at the Old War Office in Nov and which proved to be a resounding success with a net profit of almost £1 OOK on the night; it was so successful we are planning to do the same this year. Volunteers and Sponsorship This remains much the same as last year in thal the Trust and Navy Wings Heritage Flight 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 promole, 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 supen4ised aircraft mechanical engineering tasks. All volunteers receive induction training and, as necessary. health and safely briefings and workplace clolhing, 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 wide spread of key players in Industry, including some new companies who have been attracted by our Corporate package programme and net-working opportunities. Our Corporate dinner in London in February 24 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 maklng pollcy to Naval Wlngs Herltage Fllght 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. Sadly, the Air Show circuit has much diminished post 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 merchandlse remain very strong and continue to show year on year growth. Achievements and Performance Having reported 2023 as the busiest year ever, 2024 has surpassed even that. with all our operational aims having been achieved without incident and with no loss of aircraft displays from unsep4iceability. This is a remarkable achievement with a fleet of vintage aircraft. We now have a long tem, 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 a sound 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 2024 Reserves pollcy 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 £777,493. At 31 st December 2024 the group held £1,549.300 of free reserves and excess reserves to provide future funding for aircraft. Review of financlal posltlon From a financial point of view. 2024 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 £118.933 of restricted income (5°kn) and £2,364,121 of unrestricted income (950/0). Restricted income was applied to the purposes for which it was provided. Income from grants, donations and legacies decreased this year by £517,902 to £1.662,800. Navy Wings Heritage Flight Ltd Revenue (covering merchandising and aircraft displays> provided £219,835 of income which is an decrease of £21,138 on the prior year. Total consolidated expenditure in 2024 totalled £2,798,898, an increase on the prlor year with additional fundraising costs and consultancy fees. The Group held £nil (2023: £70,553) restricted funds at the year end and £7,169,500 in unrestricted funds. Cash and short term investments totalled £1.277,282 at 31 December 2024 compared with £1,650,717 at the previous year end. Capital expenditure totalled £485,423 during the year. It included purchases of aircraft, aircraft engines, operational equipment (Survival Gear & Helmets) and IT equipment(Laptops, Printer). Plans for future periods The Board has now agreed a long-term plan for our aircraft and englne availability and we have continued to stream-line 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 should return to the skies this autumn, although our Seafire Mk XVII has been delayed due to emerging engine issues. We now have the last two flying Swordfish in the world, which are supported by three engines to give resilience and we will aim to have at least one of these iconic aircraft on the display circuit every year. 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 rd and newspaper appearances. The Trust continues to plan for a sustainable programme and anticipates eventually operating a core flying fleet of two Swordfish, either a Sea Fury or a Seafire, the Wasp helicopter and, if finances allow. one Sea Hawk jet. Golng concern The Trustees have, as always, given careful conslderation 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 2024 Auditors The auditors, Albert Goodman LLP are deemed to be reappointed under section 487{2) of the Companies Act 2006. Small company provlsions . 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 Herltage Trust Llm5ted Trustee Directors. Report For the Year Ended 31 Decemb6r 2024 Stalement of trustees. responslbilities The tnJstees (who are directors of the Fly Navy Heritage Tnjst Llmiled for the purpDse5 Of company law) are responsible for preparing the Trustee Directors, Report and the financial stalemenls in accordance with applicable law and United KlngdDm Accounting Standards, including Financial Reporting Standard 102, the Financial Reportlng Standard appllc8bl8 In the UK and the Republic of Ireland {Unlted Kingdorn Generally Accepted Accountlng Practice). Company law requires the trustees to prepare financial Statements for each financial year wh5ch give a tiue and fair view of the state of affalrs of the charitable company and the gmup and of the incoming resources and application of resources, including the Income and expenditure of the charitable group for that period. In praparlng these financial ststements, the trustees are required to.. Selecl suitable accounting policie5 and then apply them conslstently; ObseNe the methods and principles in the Charstles SORP; Mak6 Judgements and accountlng estimates that are reasonable and prudent., State whether applicable UK Accountlng Standard have been followed. subjact to any materlal departures disclosed and explained in the financial ststements, and Prepare the financial statements on the golng concern basls unless it is 5napproprlate to presume that the charitable company will continu8 in business. The trustees are responsible fer keeplng adequate accounting r8cords that disclose wlth reasonable accuracy at any time the financlal position of the charitable company and enablè them to ensur8 that the . finandal 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 taklng reasonabla steps for the pr8V8ntlon and deleciion of fraud and other iagularItIeS The trustees are responsible'for the maintenance and integrity of the corporat6 and financial information included on the charltable company's website. Leglslation in the United Klngdom governing the preparation and di5seminatiDn of financial statements may éiffer from legislation in otherjurisdictions. Statement as lo disclosure to our auditors In so far as the trustees are aware 8t the tlme of approving our trustees, annual report: There is no relevant Information, being information needed by the auditor in connection with preparing their report of whlch the group's audltor is unaware: and The truslees have each taken all the steps that they ought to have taken to make thern5elves aware of any relevant audit information and to establ. h that the audhor is aware of the infoimation Approved by the Trustees on and slgned on their behalf by: Rear Admiral T A Cun Chairman and Trustee Ingham CBE Page. 7
Fly Navy Heritage Trust Limited Independent Auditors, Report to the Trustees and Members For the Year Ended 31 December 2024 Opinion We have audited the financial statements of the Fly Navy Heritage Trust Limited For the Year Ended 31 December 2024, which comprise the consolidated Statement of Financial Activities, the consolidated and parent charitable company Balance Sheets, the consolidated and parent charltable 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 ststements: give a true and fair view of the state of the group's and the parent charitable company's affairs as at 31 December 2024, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended,, have been properly prepared in accordance wlth United Kingdom Generally Accepted Accounting Practice: and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon 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. Concluslons relatlng 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 financia5 statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, May cast slgnificant 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 wilh respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for Ihe 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 2024 Opinlon on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustee Directors, Report. which includes the Directors, Report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements., and the Directors, Report included within the Trustee Directors, Report have been prepared in accordance with applicable legal requirements. In connection with our audit of the financial statements, our responsibility is to read the other infomiation 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 infonnation. If, based on the work we have performed, we conclude that there is a materlal misstatement of thls other information, we are required to report that fact. We have nothing to report in this regard. Matters on whlch we are requlred to report by exceptlon 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 nothlng to report in respect of the followlng matters In relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us: or the parent company financial statements are not in agreement with the accounting records and returns: or certain disclosures of trustees. remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit: or the trustees were not entitled to prepare the financial statements in accordance with the small companies, regime and take advantage of the small companies, exemptions in preparing the Trustees. Report and from the requirement to prepare a Strategic Report. Rosponsibilitles 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 2024 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, cic nf aoÈ3
Fly Navy Heritage Trust Limited Independent Auditors, Report to the Trustees and Members For the Year Ended 31 December 2024 In response to the risk of irregularities and non-compliance with laws and regulations we designed procedures which included, but were not limited to; Agreeing financial statements disclosures to underlying supporting documentation; Reading the minutes of meetings of those charged with governance: Enquiring of management as to actual and potential litigation and claims. 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 non- compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other managernent and the inspection of regulatory and legal correspondence, if any. Materlal 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 responsibilitles for the audlt of the financlal statements is located on the Financial Reporting Council's website at www. rc.or .uklauditorsres onsibilities. This description fonns 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 responsibilily 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 Audltor) for and on behalf of Albert Goodman LLP, Statutory Auditor Goodwood House Blackbrook Park Avenue Taunton TA12PX 2fi1.01.l.Qc>2f Page. 11
Fly Navy Heritage Trust Limited Consolidated Statement of Financial Activities (including income and expenditure account) For the Year Ended 31 December 2024 Unres. tricted Res. tricted Total 2024 Unres- tricted Res-tricted Totsl 2023 Notes Income: Grants, donations and legacies Other trading activities Interest receivable 2 1,543,867 787,211 33.043 118,933 1,662,800 1,844,885 787,211 521,741 33,043 29,108 335.817 2,180.702 521,741 29,108 Total income 2,364.121 118,933 2,483,054 2,395,734 335.817 2,731,551 Expenditure: Costs of raising funds Charitable activities 5 1,042,843 6 1,566,569 1,042,843 754,527 1,756.055 1.138,348 754.527 552,423 1,690,771 189,486 Total expendllure 2,609.412 189,486 2,798,898 1,892,875 552,423 2,445,298 Net (expenditure)lincome for the year before transfers and galns and losses (245,291) (70,553) (315,844) 502,859 (216,6061 286,253 Transfers between funds Realised and unrealised gains and losses Tax charge 17 (98,340) {98,340) 1,491 1,491 Net incomel{expenditure) and net movement in funds for the year 7 (343.631) (70,553) (414,184) 504,350 (216,606) 287,744 Reconclliation of funds Total funds brought fotward 7.513.131 70,553 7,583,684 7,008,781 287,159 7,295.940 Total funds carrled forward 7,169.500 7,169,500 7,513,131 70,553 7,583.684 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 Balan Sheet and Consolidated Balance Sheet As at 31 December 2024 2024 2023 Notes Group Charity Group Charity (as restated) Fixed assets Tangible fixed assets Investments 11 12 5,620,200 5,127,030 5.178,416 5,124,567 5,620,200 5.127.031 5,178.416 5,124,568 Current assets Stock Debtors Cash at bank and in hand 13 14 300,057 371,847 1,277,282 175,000 536,484 1,171,203 224,988 760.545 1,650,717 50,000 732,555 1,638,563 1,949.186 1,882.687 2,636,250 2,421,118 Llabllltles: Creditors falling due within one year 15 (297,084) (143,974) (226,520) {75,925) Net current assets 1,652,102 1,738,713 2.409,730 2,345,193 Provision for liabilltles 16 (102,802) (4,462) Total net assets 7,169.500 6,865.744 7,583,684 7,469,761 The funds of the charlty: Restricted funds Unrestricted funds Revaluation reserve 17 17 17 70,553 7.477,133 35,998 70,553 7,399.208 7,145,095 24.405 6,865,744 Total charlty funds 7,169,500 6,865,744 7,583,684 7,469.761 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 outgoing resources for the year of £604,017 (2023 £234,722 incoming resources) based on income of £2,259,710 (2023- £2,495.853). Page. 13
Fly Navy Heritage Trust Llmlted - Company Number 05971284 Balance Sheet and Consolidated Balance Sheet As at 31 December 2024 The notes from pages 16 - 29 form part of these accounts. Approved by the 8oard on and signed on thelr behalf by: Rear Admlral T A Cunnlngham CBE Trustee Dlrector Mr M J F Strono 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 2024 Total 2024 Total 2023 Notes Group Charity Group Charity Cash flows from operatlng activities Net movements in funds for the year Adjustments to cash flows from non-cash items Depreciation Impairment Interest receivable Deferred tax provision (414,184) (604,017) 287,744 234.722 17,639 11,583 (33,043) 98,340 6,121 21,326 4,926 (33,043) {29,1081 1,491 (29,108) (319,665) {630.939) 278.471 210.540 Working capital adjustments (Increase)Idecrease in stocks Decreasel(increase) in debtors Increasel(decrease) in creditors 13 14 15 (75,069) (125,000) 388,698 196,071 70,564 68.049 {21,755} {308,748) {146,853) (37,400) (16,926) Net cash flow from operations 64,528 (491,819) (89,432) 46.761 Cash flows Irom Inve8tlng actlvltles Interest receivable Proceeds of tangible assels Acquisitions of tangible assets 33,043 14.417 (485.423) 33,043 29,108 4.000 (16.217) 29,108 (8,584) {5,781) Net (decrease)lincrease In cash and cash equivalenls (373,435) (467,360) (72,541) 70,088 Cash and cash equivalents at Ihe beginning of the reporting period 1.650,717 1,638,563 1,723,258 1,568,475 Cash and cash equivalents at the end of the reporting period 1,277,282 1,171,203 1,650,717 1,638.563 Cash & Cash equivalenls reconciliation.. Cash at bank 1.277,282 1,171,203 1,650,717 1,638,563 Total cash & cash equivalents at the end of the reporting period 1,277,282 1,171,203 1,650,717 1.638,563 Page. 15
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 Dernber 2024 Accounting Policies The principal accounting policies adopted in the preparation of the financial statements are as follows.. Basls 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 Acl 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 811 amounts are presented in £ sterling. These financial statements consolidate the results of the Charity and its wholly owned subsidSary, Naval Avlalion 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. 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. Incomé 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 distributlon. 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 contingenl 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 2024 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 th¢ 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. Interest recelvable 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. Expendlture 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 8fficiency of aviation in the Royal Navy and to educate the members of the public in the history, Iraditions and exploits of the Fleet Air Arm and the history of Royal Naval Aviation. Operating leases Rental charges are charged on a straight line basis over the term of the lease. Fund accountlng 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 2024 Tanglble flxed assets and depreclatlon Aircraft, excluding engines, 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 Office equipment Computer equipment 3 years straight line 3 years straight line 330/0 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. Engines included under the Aircraft heading will be depreciated once they come into use. 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. 1.11 Stock Stock consists of merchandise for resale and is valued al 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 penslon 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 lo the Financial Statements For the Year Ended 31 December 2024 1.15 Taxatlon As a registered charity, the company is not liable to corporation tax or capital gains tax lo 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 undertaklngs 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. Financlal liabillties trade creditors, amounts owed to group undertaklngs, 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. Grants, donations and legacles Unres. tricteded R8s- tricted Total 2024 Unres- tricteded Res- .tricted Total 2023 Grants, donations and legacies 1.543,867 118.933 1,662,800 1,844,885 335,817 2,180.702 1,543,867 118,933 1,662,800 1,844,885 335,817 2,180,702 Other trading incorne Unres- tricted Res- trlcted Total 2024 Unres. trlcted Res. tricted Total 2023 Display fees Merchandise Fundraising event income Other income 51.956 167,879 563,867 3,509 51,956 167,879 563.867 3,509 51,008 189,965 276,043 4,725 51,008 189,965 276.043 4,725 787,211 787,211 521.741 521,741 Page. 19
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2024 Interest receivable Unres- tricted Res- tricted Total 2024 Unres- tricted Res- tricted Total 2023 Bank interest 33,043 33.043 29.108 29,108 Costs of raising funds Unres- tricted Res- trlcted Total 2024 Unres- trlcted Res- trlcted Total 2023 Fundraising costs PR and advertising Trading costs 356,804 9,903 676,136 356,804 9,903 676,136 123,308 10,824 620,395 123,308 10,824 620,395 1,042,843 1,042,843 754,527 754,527 Charltable actlvities Unres- trlcted Res- trlcted Total 2024 Unres- tricted Res- tricted Total 2023 Aircraft maintenance Insurance Payroll fees Staff costs Consultancy Other administration Depreciation Impairment Governance costs 8ad debts 295,996 21.497 1.697 773,477 264,684 177,293 17,639 11,583 2.703 189,486 485.482 21,497 1,697 773,477 264,684 177,293 17,639 11,583 2,703 11,829 19,875 2,023 714,908 1 $6,273 138,375 21,012 536.921 548,750 19.875 2.023 714,908 171,775 138.375 21.012 15,502 65,753 8,300 65,753 8,300 1,566,569 189.486 1,756,055 1.138,348 552,423 1,690,771 Page. 20
Fly Navy Heritage Trust Limited Notes to the Financial Staternents For the Year Ended 31 December 2024 Net incomel(expenditure) for the year This is stated after charging: Charlty 2023 Subsldlary 2023 Total 2023 2024 2024 2024 Depreciation of owned assets Auditors remuneration Audit services Other services accounting 17,639 21.326 16,400 23,737 .37.726 53,700 7,650 2,600 5.200 710 2,300 2,190 2,300 1.466 7,500 2.900 6,250 1,466 Trustee dlrectors The charity trustees were not paid or received any other benefits from employment with the Trust or its subsidiary in the year (2023 £nil). No trustees were reimbursed expenses (2023 £nil) during the year. No charity trustee received payment for professional or other services supplied to the charity (2023- £nil). The charity has paid £3,048 (2023 - £3,052) for directors and officers indemnity insurance. Deflned contrlbulion 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,T40 (2023 £12,340). Contributions totalling £3,218 (2023 - £3,123) 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 2024 10 Employees Number of employees The average monthly number of employees during the year was: 2024 2023 Chief execulive officer Management and administration 17 16 18 17 Employment costs 2024 2023 Wages and salaries Social security costs Pension costs 688,524 67,514 12,653 632,201 65,687 12,340 768,691 710,228 The number of employees whose annual emoluments were £60,000 or more were.. 2024 number 2023 number £110,000- £120,000 No pension costs were paid to this individual during the year (2023- £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 Llmited 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 £131,665 (2023 - £124.200). Page. 22
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2024 11 Tangible fixed assets Aircraft & Engine Plant & Office Machinery Equipment Computer Equlpment Total At 1 January 2024 Additions Disposal Impairment 5,149,000 474,469 {14,417) (11,583) 81,380 2.370 15,662 70,023 8,584 5,316,065 485,423 {14,417) {11,583) At 31 December 2024 5,597,469 83,750 15,662 78,607 5,775,488 Depreciatlon Al 1 January 2024 Charge for the year 64,184 11,140 15,009 378 58,456 6,121 137,649 17,639 At 31 December 2024 75.324 15,387 64,577 155,288 Net book value At 31 December 2024 5.597,469 8,426 275 14,030 5,620,200 At 31 December 2023 5,149,000 17,196 653 11,567 5,178,416 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 al the insurance value, which is considered to be a fair reflection of the market value of the aircraft. The historical cost of the aircraft & engines is £474,471. Included in the above are engines with an estimated value of £746k. Charity Aircraft Computgr Equipment Total Cost Al 1 January 2024 Additions 5,113,000 70,023 8,584 5.183,023 8,584 At 31 December 2024 5,113,000 78.607 5,191,607 Depreciation At 1 January 2024 Charge for the year 58.456 6,121 58,456 6,121 At 31 December 2024 64,577 64,577 Net book value At 31 December 2024 5,113.000 14,030 5,127.030 At 31 December 2023 5,113.000 11,567 5,124,567 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 2024 12 Investments Charity 2024 2023 Na Wings Heritage Flight Limited - 1 ordinary shares of £1 each 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 /0 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 Limiled, and files audited accounts wlth the Registrar of Companies. A summary of the trading results is shown belo.w: 2024 2023 Turnover Cost of sales 1.607,204 (1,156,948) 1,319,044 (1,169,145) Gross profit Administrative expenses Other operating income 450,256 (162.083) 149,899 (98,443) 75 Net loss before tax Taxation 288,173 {98,340) 51,531 1.491 Retained in subsidiary The assets and liabilities yre. Fixed assets Current assets Curreni liabilities Provisions 189,833 53,022 493,170 443,012 (529,624) (102,802) 53,849 489,327 (424,791) (4,462) Total nel assets 303,756 113.923 Called up share capital Revaluation reserve Profit and loss account 24,415 279,340 35,998 77.924 303,756 113,923 Page. 24
Fly Navy Heritage Trust Limited Notes to the Financial Staternents For the Year Ended 31 December 2024 13 Stocks 2024 Charity 2023 Charity Group Group Goods for resale 300,057 175,000 224,988 50.000 14 Debtors 2024 Charity 2023 Charity Group Group Trade debtors Other debtors Prepayments and accrued income Amounts owed by group undertakings 61.003 100,246 210.598 57,050 18.540 36,663 705.342 13,970 240 444,150 274.195 102,921 376,513 371,847 536,484 760,545 732,555 15 Credltors.. Amounts falling due wlthin one year 2024 Charity 2023 Charity Group Group Trade creditors Accruals Deferred income Taxation and social security 128,867 51,612 93,174 23,431 19.869 7,502 93,174 23,429 65.613 103,904 32.799 24,204 12,420 6.502 32.799 24,204 297,084 143,974 226,520 75,925 Page. 25
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2024 16 Provlsion for liabllities Group Deferred tax Total At 1 January 2024 Increase (decrease) in existing provisions At 31 December 2024 4.462 98,340 102.802 4.462 98,340 102,802 Deferred tax Deferred tax assets and liabilities.. Asset Liability 2024 Other timing drfferences 102,802 102,802 2023 Other timing differences 4.462 4,462 Page. 26
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 310ecember 2024 17 Summary of movement in funds Opening Balance Incoming Resources Outgolng Resources Transfers Closing Balance Group Unrestricted funds General Revaluation reserve 7,477,133 35,998 2,364,121 {2,707.752) 11,593 (11.593) 7,145.095 24,405 Restricted funds Transitional funds RNVR Naval Club 118,933 (118.933) (70,553) 70,553 7,583,684 2,483,054 (2,897,238) 7,169,500 Openlng Balance Incoming Resources Outgolng Resources Transfers Closing Balance Charlty Unrestricted funds General 7.399,208 2,140,777 (2.674,241) 6,865,744 Restricted funds Transitional funds RNVR Naval Club 118,933 (118,933) (70,553) 70,553 7.469,761 2,259,710 (2,863,727) 6,865,744 Unrestrlcted funds The Trustees general funds that have been received with no specific purpose other to be used for the organisations charitable objectives. Restricted funds The Swordfish W5856 fund represents monies received from HM Treasury's LIBOR Fines Fund specifically for the provision of onward funding to the Royal Navy Historic Flight for the essential maintenance, repair and operation of Swordfish W5856. Transitional funds relates to income received for the maintenance of aircraft transferred to the charlty. The transfer of funds relates to transitional funds used to purchase fixed assets. The funds received from the Culture recovery fund were to cover overhead costs to support the charity through the pandemic. The RNVR Naval Club fund represents monies received from a donation towards Swordfish and Chipmunk projects. The Seafire fund represents monies received from a donation for the purchase and upkeep of a new Seafire aircraft. Page. 27
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2024 Summary of movement in funds - 2023 Opening Balance Incoming Resources Outgoing Resources Transfers Closing Balance Group Unrestricted funds General Revaluation reserve 6,968,783 39.998 2,395,734 (1,891,384) 4,000 (4,000) 7,477,133 35,998 Restricted funds Transitional funds RNVR Naval Club Seafire 335,817 (335,817) (216,606) 287,159 70,553 T,295,940 2,731,551 (2,443,807) 7.583.684 Opening Balance Incoming Outgoing Resources Resources (as restatedl {as restated} Transfers Closlng Balance (as restated) Charity Unrestricted funds General 6,947,880 2,150,036 (1,698,708) 7,399,208 Restricted funds Transitional funds RNVR Naval Club 335,817 (335,817) (216,606) 287,159 70,553 7,235,039 2,485,853 (2,251,131) 7,469,761 The restricted funds for the charity should have matched the group in the prior year. The comparative note has been updated to reflect this. Page. 28
Fly Navy Heritage Trust Limited Notes to the Financial Statements For the Year Ended 31 December 2024 18 Analysis of assets between funds Tangible Flxed Assats Investments Net Current Assets Provisions Total Group Unrestricted funds Restricted funds 5,620,200 1,652,102 (102,802) 7,169,500 As at 31 December 2024 5,620,200 1,652,102 (102.802) 7,169,500 As at 31 December 2023 5.178,416 2,409.730 (4,462) 7,S83,684 Tangible Fixed Assets Investments Net Current Assets Provislons Total Charlty Unrestricted funds Restricted funds 5,127.030 1,738,713 6,865,744 As at 31 December 2024 5,127,030 1,738,713 6,865.744 As al 31 December 2023 5,124,567 2,345,193 7,469,761 19 Related parties There are no related party transactions in the reporting period that require disclosure. Page. 29