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2020-12-31-accounts

Aerobility

Trustees’ Report

and Financial Statements

for the year ended 31 December 2020

Registered Charity Number 1149629 Registered Company Number 08200768

AEROBILITY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

INDEX

Page
Charity information 1
Report of the Trustees 2
Independent Auditor’s Report 6
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Accounting policies 12
Notes to the financial statements 14

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

CHARITY INFORMATION

Trustees

Shona Bowman Chairman Jon Windover Deputy Chairman Emrys Harries Secretary Allister Bridger Mike Matthews Joel Rose Jamie Smith (appointed 20 November 2020) Neil Tucker Simon Warr Brian Wheeler Paul Winstanley

Principal Office

Blackbushe Airport Camberley GU17 9LQ

Registered Office

Cawley Priory South Pallant Chichester West Sussex PO19 1SY

Registered Charity Number

1149629

Registered Company Number

08200768

Chief Executive

Mike Miller-Smith MBE

Independent auditor

Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY

Bankers

CAF Bank Limited 25 Kings Hill Avenue West Malling ME19 4JQ

Page 1

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

REPORT OF THE TRUSTEES

The Trustees hereby present their Annual Report for the purposes of the Charities Act 2011 and Sections 416 to 419 of the Companies Act 2006, together with the accounts for the year ended 31 December 2020. The trustees have adopted the provisions of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102).

STRUCTURE GOVERNANCE AND MANAGEMENT

Aerobility is a charitable company limited by guarantee incorporated on 4 September 2012 (company number 08200768) and registered as a charity on 6 November 2012 (charity number 1149629). It is governed by its Articles of Association. The members of the Company are the Directors who are also Trustees under Charity law.

The Board meets regularly and provides the strategic direction and oversight of the charity.

Trustees are recruited by advertising in suitable media and by actively considering suitably qualified individuals who make a direct approach. New trustees are supplied with copies of the charity’s governing and policy documents together with Charity Commission guidance, such as CC3 and CC8, and receive training as necessary.

Aerobility pay policy for key staff reflects experience, performance and regional variations. All salary increases are subject to approval by the Board of Trustees Remuneration Committee.

Aerobility encourages collaboration with other charities and voluntary organisations to enhance our common charitable objectives.

OBJECTIVES AND ACTIVITIES

The charity’s objects are:

To promote and provide education, recreation and leisure time activities for disabled persons in particular by providing opportunities in aviation with the object of improving the conditions of life.

Aerobility offers disabled people, without exception, the opportunity to fly an aeroplane and participate in aviationbased activities. Aerobility removes barriers to aviation which as an activity offers disabled people a real sense of achievement and genuinely changes people's lives.

Aerobility's specially adapted aircraft fly from various airfields around the UK providing life changing experience flights and flight training. Aerobility aims to support a variety of aviation activities for disabled people and represents the needs of disabled people whatever their aviation aspirations. Participants range from disabled young people through to soldiers injured in service and elderly persons with disabling impairments. All disability types are catered for including physical disabilities, learning disabilities, sensory impairments and mental health issues.

– “I recently had my first flying experience with Aerobility... For 30 minutes I was in the plane, controlling it – there was too much to think about to think about my own problems. I was so, so pleased with how it went it offered total liberation from my brain injury and all the problems it causes on a daily basis. I want to thank Aerobility and everyone involved in making the day happen. I loved it.”

Activities are designed and built by disabled people for disabled people, with disabled people and beneficiaries within key roles in the organisation. Through this, beneficiaries achieve:

Aerobility measures success by gathering metrics and output data such as participation levels and disability types accessing Aerobility services. Aerobility also records and utilises outcomes measures such as well-being and – knowledge gained through participation both directly from service users and also from those around them such as family members and caregivers. Together these measures are utilised for improving the quality of Aerobility services and to ensure aims and objectives are being met.

Page 2

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

REPORT OF THE TRUSTEES

Using volunteers to assist with the delivery of services and with Charity administration is a key component of Aerobility structure. Flying instruction, fundraising event management, health and safety advice, and IT support are key roles delivered by over 75 regular volunteers.

The Trustees confirm that they have referred to the guidance on public benefit when reviewing the Charity’s aims and objectives and when planning future activity. The Trustees confirm that they are satisfied that public benefit is at the heart of Aerobility’s activities.

ACHIEVEMENTS AND PERFORMANCE

Charitable Activities

Aerobility’s entire operation was significantly affected by the COVID-19 pandemic, from March 2020 to the end of the year. After the first national lockdown in March, Aerobility re-opened on a limited basis in June 2020, having ensured that our premises and practices were COVID-safe as far as possible. Group flying days and flight instruction requiring hoisting were not resumed, since social distancing could not be maintained.

Development of virtual participation:

In the face of a global pandemic that grounded aircraft and shut facilities, the challenge became about supporting the disabled community in challenging and isolating circumstances. The response was ‘Virtual Aerobility ’ which was in essence, a virtual community centre. A much needed lifeline, enabling our disabled community to reconnect and support each other. It delivered resilience and continuity of Aerobility services in the most difficult of times. These virtual programs included:

Disabled accessible aircraft build – Building the Dream:

By the end of 2020 despite 2 national lockdowns - the BaD team of 6 committed volunteers have done an amazing job. The aircraft is sitting on its undercarriage, with the wings on and the engine in position and have had the seats covered. Many thanks to the team, our fundraising team and to our many sponsors who have contributed and supported this great project. £2,037 was invested during the year on the kit and parts for our ‘Building the Dream’ disabled aircraft build.

Junior Aspiring Pilot Programme & Aviation Education Programme:

Despite the limitations of Covid-19 in 2020, Aerobility successfully completed the Junior Aspiring Pilots Programme 2020 and the Aviation Education Programme 2019/20. The Junior Aspiring Pilots Programme saw its first group of the year by the start of lockdown. The course moved to a virtual setting with participants being invited to Aerobility individually to take their flights between lockdowns.

Similarly, the Aviation Education Programme moved online in May 2020, after commencing in September the previous year. Our virtual course taught most of the normal syllabus, including a virtual tour of the Farnborough Airport Fire Station.

PROJECT ABLE

During 2020 Aerobility received a grant from the Department for Transport of £745,000, and two individual donations totalling £36,000 to enable us to undertake Project Able, the acquisition , refurbishment and re-certification of 63 GROB-109 airframes which had belonged to the Ministry of Defence. The intention of this project (Project Able) is to provide Aerobility with a small fleet of airworthy GROB-109 aircraft over the lifetime of the project, and to sell the remaining aircraft, to finance the costs of bringing them back into operation.

A new Community Interest Company, Aerobility Holdings CIC, was set up in 2019 in preparation for this project (Project Able) and the DfT grant was loaned to the CIC by Aerobility to provide working capital for the project. Although impacted by COVID-19, Project Able has made slow progress during the year and the prototype GROB-109, developed by GROB SE in Germany, made its inaugural flight in summer 2020. See P4 Financial Review.

Page 3

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

REPORT OF THE TRUSTEES

Fundraising

With normal flying operations severely curtailed and our income thereby significantly impacted , fundraising during 2020 became more vital than ever. We were fortunate to attract COVID-19 support grant funding from Sport Relief, the National Lottery and Hart District Council.

We received magnificent support from individual supporters during the year, particularly in fundraising through the 2.6 Challenge, wingwalking and other fundraising events.

Corporate supporters also generously sponsored or donated to our activities, notably NATS, Aerobytes, Leigh Cables, Breitling, Haywards, Boeing, ISTAT, Nasmyth Group, Biggin Hill Airport, BIFFA, the Co-op, RAF Odiham and other flying clubs and masonic lodges.

Grants were received from BBC Children in Need (for the JAPP programme), Sport Relief, National Lottery, Hart District Council, Hart Rotary and the Dougie Dalzell Memorial Trust.

Our pioneering (virtual) Armchair Airshow 2020 raised significant amounts for the charity in sponsorship and via an online auction, as did our (virtual) Aviators Ball 2020, held later in the year.

Organisation

Most staff other than the CEO, Business Administration Manager and the Fundraising Team, were furloughed during the year. The Coronavirus Job Retention Scheme enabled us to retain all staff in post, and the majority of staff returned to work part-time when restrictions enabled operations to resume in the summer 2020.

The Trustee Board meets regularly to determine the strategic direction of the charity and set performance objectives for the Chief Executive as well as providing the required governance. During the period March to December 2020 the Board met regularly via Zoom.

FINANCIAL REVIEW

Incoming resources amounted to £1,247,139 (2019: £579,593) including restricted donations and designated funds, the outgoing resources were £467,462 (2019: £671,574) giving a surplus for the year of £779,677 (2019 deficit: £91,981), including depreciation costs.

Donations and legacy income amounted to £985,690 (2019: £229,441), £854,887 (2019: £112,741) of which was restricted income, with unrestricted income totalling £130,803 (2019: £116,700).

At the balance sheet date, the charity's funds amounted to £1,290,642 (2019: £510,965) inclusive of restricted funds of £784,256 (2019: £37,115) and a fixed asset fund of £324,554 (2019: £362,954).

Free reserves being unrestricted income funds exclusive of the net book value of fixed assets of £324,554 (2019: £362,954) amounted to £181,832 (2019: £110,896) at the year-end.

PROJECT ABLE FINANCIAL IMPACT

The grant of £745,000 donated by the Department for Transport was loaned during the year to Aerobility Holdings CIC, at an interest rate of 1.5% above the Bank of England Base Rate. The loan is repayable on the written demand of the charity and secured by a debenture issued by Aerobility Holdings CIC.

The loan has been provided to Aerobility Holdings CIC which will deliver 8 Vigilant GROB 109 glider aircraft for the charity’s use during the lifetime of Project Able and also further glider aircraft for resale to the general public with surpluses arising being passed to the charity to support the furthering of its objects.

Risk managemen t

The assessment and management of risk is a core principle at Aerobility.

An operational Safety Management System (SMS) which incorporates regular risk assessments of all aviation and charitable activities is embedded within daily procedures and includes a reporting procedure which is regularly reviewed by the charity safety team and trustees.

Robust policies and procedures provide the framework for all activities and include vulnerable adult and child protection, DBS checking and volunteer management.

Page 4

AEROBILITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 REPORT OF THE TRUSTEES Financial risk is minimised using agreed policies and procedures. and through the regular financial review by Trustees ol monthly management accounts. All levels ol managemenl, staff afid volunteers are accountable lor Ihe delivery of OLtr risk and safety performance, from the Truslees and Chief Executive downwards throughout the whole organisation. PLANS FOR FUTURE PERIODS During 2021 the Charity will seek lo recover full operational activity following Ihe COVID-19 pandemlc, securlng our financial future, extending our virtual activity lo extend the reach ol our services to a wider community of people with disabilities and an interest in avlalion. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Iruslees {who are also diiectors of Aerobility lor the purposes ol ¢ompany lawl are responsible for preparing the Report ol the Truslees and the financial statements in accordance with applicable law and United Kingdom Accounting StandaTds (United Kingdom Generally AC￿pIed Accounting Pra¢ticel. Company law requires the trustees lo prepare financial statements for each financial year, wh¢ch give a true and lair view ol the State ol affairs of the charitable company and ol the incoming resources and application of iesources, including the income and expenditure, ol the charitable company for that period. In preparing these financial slatemenls, the trustees are required lo-. select suitable accounting policies and then apply them consistentty,. obseNe the melhods and principles in the Charities SORP 2019 IFRS 1021- make judgements and estimates that are reasonable and prudent-: stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial stalemenls,. Prepa￿ the financial slalemenls on the going concern basis unless it is inappropriatè lo presume that the charitable company will ¢onlinue in operation. The trustees are responsible for keeping adequale accounting records that disclose with reasonable accuracy at any lime the financial position ol the charitable company and enable them lo ensure Ihal the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assels of the charitable company aThJ hence lor taking ieasonable sleps for Ihe prevention and detection ol fraud and other irregularities. In so lar as the trustees are aware.. there is no relevant audit information of which the charitable company's auditor is unaware., and the trustees have taken all steps that they ought lo have taken to make themselves a¥vare of any relevant audit information and to establish that the auditor Is aware ol that inforn7ation. The trustees are iesponsible lor the mainlenanee and integrity ol the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of linancial statements may differ from leglslation in other jurisdictions. APPOINTMENT OF INDEPENDENT AUDITOR The charity exceeded th8 audrt threshold during the year under review and appointed Blue Spire Limited as audrtor. This report has been prepared having taking advantage ol the small companies, exemption in the Gompanies Act 2006. Approved by the Iruslees and signed on their behxm. Shona Bowman Chairrnan Date Page S

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

INDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report to the Members of Aerobility

Opinion

We have audited the financial statements of Aerobility (the ‘charitable company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 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 trustees’ 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 financial statements are 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 other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 6

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

INDEPENDENT AUDITOR’S REPORT

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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 trustees’ responsibilities statement [set out on page 5], the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report

Page 7

AEROBILITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DEGEMBER 2020 INDEPENDENT AUDITOR'S REPORT Use ol our report This report is made solely lo the charilable company's members, as a bocly, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audil work has been undertaken so that we might stale to the charitsble company's members those matters we are required lo slate lo them in an asjditor's report and for no other purpose. To the fullesl extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, lor this report, or lor the opinions we have formed. Cawley Priory South Pallanl Chichester Wesl Sussex Geollrey Fr I BSclHonsl FCA (Senior Statutory Auditoil For and on behalf of Blue Spire Limited, Stalvtory Auditor P019 7UY Date zi Page 8

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Other trading activities
2
Aviators' Ball
Other fundraising events
Other income
Charitable activities
3
Flight payments
Contracted services
Events
Investments
4
Other
5
Total
EXPENDITURE ON:
Raising funds
6
Direct fundraising costs
Indirect fundraising costs
Management and support
Charitable activities
6
Aircraft operation and hire
Management and support
Total resources expended
Net income/(expenditure)
TRANSFERS
Gross transfers between funds
15
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
15
Total funds carried forward
15		 Unrestricted
Funds
£
130,803
52,552
34,656
80,551
48,610
975
-
9,040
35,065
392,252
92,498
20,615
27,959
115,478
120,412
376,962
15,290
17,246
32,536
473,850
506,386		 Restricted
Funds
£
854,887
-
-
-
-
-
-
-
-
854,887
36,000
-
-
-
54,500
90,500
764,387
(17,246)
747,141
37,115
784,256		 2020
Total
Funds
£
985,690
52,552
34,656
80,551
48,610
975
-
9,040
35,065
1,247,139
128,498
20,615
27,959
115,478
174,912
467,462
779,677
-
779,677
510,965
1,290,642		 2019
Total
Funds
£
229,441
162,427
4,548
18,310
98,721
43,573
666
191
21,716
579,593
123,597
28,284
38,811
242,238
238,644
671,574
(91,981)
-
(91,981)
602,946
510,965

The charity has no recognised gains or losses other than those dealt with in the statement of financial activities.

Page 9

AEROBILITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 BALANCE SHEET AS AT 31 DECEMBER 2020 2020 2019 Not• FIXED ASSETS rcraft in construction and 8iruaft Fllght slmulèlo Prop&ty Mobility equipment and other assets Ttstal fixèd ass•ts 10 10 10 10 231.526 8.906 77.790 8.332 257.474 8,632 86,433 10,415 324,554 362,954 CURRENT ASSErs Stoths for ￿sale Debtors Loan ash al hand and in bank rotsl current assets 5.166 57,751 745.000 220.670 1,028.587 6,458 79,329 11 12 335,254 221,041 CVRRENT UA8ILmES Cradilors.. amounts falllng due within one year 13 62,499 73,030 Net currant as8etsUllabillti081 966.088 148,011 Total n¢1 ￿ets 1.290.e42 510,965 THE FUNOS OF THE CHARITY R88trlct8d funds 15 784.256 37.115 Unrestrl¢ted funds 15 506,386 473,850 Total eharity lunds 1.290.642 510.965 These accounts heve been prepared in accordance ￿th thè provi%ons aP￿￿able lo compènies su￿.?ct to the small companies. regime. Approved by the truslées and sKJned on their behalf. Shona Bowman TnJst8 Dale Aerobi4￿Y Company number.. 08200768 Charity number.. 1149629 Pa9e 10

AEROBILITY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF CASH FLOWS

Note
£
£
Net cash flow from operating activities (see below)
84,008
Cash flow from investing activities
Payments to acquire tangible fixed assets
10
(11,557)
Proceeds on sale of tangible fixed assets
3,925
Proceeds on sale of investments
-
Interest received
9,040
Net cash flow from investing activities
1,408
Net increase/(decrease) in cash and cash equivalents
85,416
Cash and cash equivalents at 1 January 2020
135,254
Cash and cash equivalents at 31 December 2020
220,670
Cash and cash equivalents consist of:
Cash at bank and in hand
220,670
Cash and cash equivalents at 31 December 2020
220,670
Reconciliation of net income to net cash flow from operating activities
£
£
Net income for the year
779,677
Adjusted for:
Interest receivable
(9,040)
Depreciation and impairment of tangible fixed assets
10
46,753
Loss/(profit) on the sale of tangible fixed assets
(721)
Decrease/(increase) in stocks
1,292
Decrease/(increase) in debtors
21,578
Decrease/(increase) in loans receivable
(745,000)
Increase/(decrease) in creditors
(10,531)
(695,669)
84,008
Analysis of changes in net debt
2020
Cash and cash
equivalents
£
Total net debt brought forward
135,254
Cash flows
85,416
Total net debt carried forward
220,670
2020
2020		 £
£
(113,910)
(30,986)
55,000
-
191
24,205
(89,705)
224,959
135,254
135,254
135,254
£
£
(91,981)
(191)
64,256
(18,674)
(6,458)
(41,376)
-
(19,486)
(21,929)
(113,910)
2019
Cash and cash
equivalents
£
224,959
(89,705)
135,254
2019
2019		 £
£
(113,910)
(30,986)
55,000
-
191
24,205
(89,705)
224,959
135,254
135,254
135,254
£
£
(91,981)
(191)
64,256
(18,674)
(6,458)
(41,376)
-
(19,486)
(21,929)
(113,910)
2019
Cash and cash
equivalents
£
224,959
(89,705)
135,254
2019
2019
(113,910)
2019
Cash and cash
equivalents
£
224,959
(89,705)
135,254

Page 11

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

ACCOUNTING POLICIES

GENERAL INFORMATION, SCOPE AND BASIS OF THE FINANCIAL STATEMENTS

Aerobility is an incorporated charity, limited by guarantee, incorporated in England with the company number 08200768. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities are outlined in the trustees' report.

The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

INCOME RECOGNITION

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’.

The charity received government grants in respect of the Coronavirus Job Retention Scheme and project funding. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income in the form of bank interest is recognised as the charity’s right to receive payment is established.

EXPENDITURE RECOGNITION

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

Management and support costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. Staff costs have been allocated between costs of raising funds, charitable activities and governance costs on the basis of time spent by staff. Support costs cannot be directly attributed to particular headings and have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. Support costs have been allocated between costs of raising funds and charitable activities on the best estimate of the use of those resources.

Staff costs together with CEO expenses are apportioned according to time spent on each activity.

Other general expenses are allocated according to an estimate of the proportion of resources expended.

VAT

The charity is not registered for VAT and cannot recover VAT incurred on costs. These are therefore stated inclusive of any VAT element.

Where VAT is recoverable on the purchase of supplies and equipment, it is included within other income in the Statement of Financial Activities.

Page 12

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

ACCOUNTING POLICIES

EMPLOYEE BENEFITS

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

TAXATION

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

TANGIBLE FIXED ASSETS

Fixed assets are stated at cost and depreciation is provided at rates calculated to write-off the cost of each asset over its useful economic life, less any estimated residual value as follows:

Property 10% straight line Aircraft in construction None in the period of construction Aircraft 15% of net book value Mobility Equipment 20% of net book value Other items 20% of net book value

Where fixed assets were received as part of the net assets transfer from the British Disabled Flying Association on 1 January 2013, The assets were recorded as additions at net book value. Depreciation rates have remained unchanged following this transfer to write of the remaining cost of the assets over their useful economic lives.

The Charity owns specially adapted light aircraft and mobility aids to assist users of the aircraft and the depreciation charge for these assets are allocated as a charitable expense.

Items of capital equipment are capitalised where the purchase price exceeds £1,000

STOCKS FOR RESEALE

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

DEBTORS AND CREDITORS RECEIVABLE/PAYABLE WITHIN ONE YEAR

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

FUND ACCOUNTING

Restricted funds

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the note 15 of these financial statements.

Unrestricted funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

GOING CONCERN

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Page 13

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

NOTES TO THE FINANCIAL STATEMENTS

1. Income from donations and legacies

Donations
Gift Aid reclaimed
Legacies
Trust and corporate donations
Government grants
Sponsorship
Regular giving		 Unrestricted
Funds
£
20,764
883
5,000
68,527
-
19,250
16,379
130,803		 Restricted
Funds
£
2,037
-
-
107,850
745,000
-
-
854,887		 2020
Total
Funds
£
22,801
883
5,000
176,377
745,000
19,250
16,379
985,690		 Unrestricted
Funds
£
30,017
2,659
12,820
48,980
-
6,367
15,857
116,700		 Restricted
Funds
£
17,149
-
-
95,592
-
-
-
112,741		 2019
Total
Funds
£
47,166
2,659
12,820
144,572
-
6,367
15,857
229,441

2. Income from other trading activities

Aviators' Ball
Sponsored participation
Raffles
Merchandise
Other fundraising income
Management services income
Sales of airplane parts		 Unrestricted
Funds
£
52,552
34,656
3,168
892
39,746
745
36,000
131,014		 Restricted
Funds
£
-
-
-
-
-
-
-
-		 2020
Total
Funds
£
52,552
34,656
3,168
892
39,746
745
36,000
131,014		 Unrestricted
Funds
£
162,427
4,548
676
3,786
13,848
-
-
185,285		 Restricted
Funds
£
-
-
-
-
-
-
-
-		 2019
Total
Funds
£
162,427
4,548
676
3,786
13,848
-
-
185,285

3. Income from charitable activities

Flight payments
Air League
Other contracted services
Events		 Unrestricted
Funds
£
48,610
48,610
-
975
975
-
-
49,585		 Restricted
Funds
£
-
-
-
-
-
-
-
-		 2020
Total
Funds
£
48,610
48,610
-
975
975
-
-
49,585		 Unrestricted
Funds
£
98,721
98,721
24,051
19,522
43,573
666
666
142,960		 Restricted
Funds
£
-
-
-
-
-
-
-
-		 2019
Total
Funds
£
98,721
98,721
24,051
19,522
43,573
666
666
142,960

Page 14

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

NOTES TO THE FINANCIAL STATEMENTS

4. Income from investments

Bank interest received
Loan interest
5. Other income
Insurance claim and other income
Gain on sale of fixed assets
COVID-19 grants
6. Analysis of expenditure
Direct fundraising expenditure
Merchandise cost
Cost of aircraft and parts sold
Indirect fundraising costs
Credit card collection fees
Aircraft operating and hire
Aircraft depreciation charge
Resources expended
CEO remuneration
Operations director
Aviation Activities Officer
WIS manager
Office and financial administration
Employer's national insurance
Employer's pension
Premises costs
Building depreciation
General office expenses
Depreciation
Motor and travel expenses
Auditor and examiner fees
Other governance costs
Total support costs
Total resources expended
Restricted funds
Unrestricted funds		 Unrestricted
Funds
£
176
8,864
9,040
Unrestricted
Funds
£
-
721
34,344
35,065
Raising
funds
£
90,699
1,799
36,000
20,065
550
-
-
149,113
10,093
-
-
-
-
1,462
1,212
4,245
1,729
6,723
243
592
1,660
-
27,959
177,072
36,000
141,072
177,072		 Restricted
Funds
£
-
-
-
Restricted
Funds
£
-
-
-
-
Charitable
activities
£
-
-
-
-
-
78,583
36,895
115,478
23,551
33,066
11,136
16,910
30,191
3,410
2,829
16,988
6,914
22,752
972
2,873
3,320
-
174,912
290,390
54,500
235,890
290,390		 2020
Total
Funds
£
176
8,864
9,040
2020
Total
Funds
£
-
721
34,344
35,065
2020
Total
Funds
£
90,699
1,799
36,000
20,065
550
78,583
36,895
264,591
33,644
33,066
11,136
16,910
30,191
4,872
4,041
21,233
8,643
29,475
1,215
3,465
4,980
-
202,871
467,462
90,500
376,962
467,462		 Unrestricted
Funds
£
191
-
191
Unrestricted
Funds
£
3,042
18,674
-
21,716
Raising
funds
£
112,674
10,923
-
25,815
2,469
-
-
151,881
16,223
-
-
-
-
3,320
2,076
4,684
3,272
6,530
304
1,889
420
93
38,811
190,692
-
190,692
190,692		 Restricted
Funds
£
-
-
-
Restricted
Funds
£
-
-
-
-
Charitable
activities
£
-
-
-
-
-
195,863
46,375
242,238
37,853
38,781
13,155
21,800
47,539
7,747
4,844
18,735
13,090
26,055
1,215
6,618
840
372
238,644
480,882
84,885
395,997
480,882		 2019
Total
Funds
£
191
-
191
2019
Total
Funds
£
3,042
18,674
-
21,716
2019
Total
Funds
£
112,674
10,923
-
25,815
2,469
195,863
46,375
394,119
54,076
38,781
13,155
21,800
47,539
11,067
6,920
23,419
16,362
32,585
1,519
8,507
1,260
465
277,455
671,574
84,885
586,689
671,574

Page 15

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

NOTES TO THE FINANCIAL STATEMENTS

7. Independent auditor's and examiner's fees

2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
£ £ £ £ £ £
Audit 4,980 - 4,980 - - -
Examination - - - 1,260 - 1,260
Other services 1,104 - 1,104 576 - 576

8. Wages and salary cost

8. Wages and salary cost
Gross wages
Employer's national insurance costs
Employer's pension contributions
Staff numbers:
Average head count - administration of charitable activities
Analysed as:
Part time
Full time		 2020
Total
Funds
£
174,249
7,870
4,679
186,798
2020
11
5
6
11		 2019
Total
Funds
£
226,725
17,066
6,920
250,711
2019
11
4
7
11

During the year under review no employee (2019: one employees) received employee benefits (excluding employer pension costs) above £60,000 (2019: in the range £60,000 to £70,000).

During the year under review 1 (2019: 1) member of the charity's staff, identified as key management personnel, received employee benefits (inclusive of salary, social security and pension contributions) totalling £39,062 (2019: £62,387). In addition expenses of £431 (2019: £4,174) reimbursed to key management personal in the performance of their duties.

Aerobility operates a defined contribution pension scheme for its employees. Contributions to the scheme in the year amounted to £4,679 (2019: £6,920) with £nil (2019: £1,099) payable at the balance sheet date

9. Related party transactions

None of the trustees received any remuneration during the period under review. No trustees were reimbursed expenses during the period under review.

There were no other related party transactions requiring disclosure in these financial statements.

Page 16

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

NOTES TO THE FINANCIAL STATEMENTS

10. Tangible assets

Cost
Brought forward
Additions
Disposals
Depreciation
Accumulated brought forward
Charge
On disposals
Net book value carried forward
Net book value brought forward		 Aircraft in
construction
and aircraft
£
396,844
11,557
(9,800)
398,601
139,370
34,301
(6,596)
167,075
231,526
257,474		 Flight
simulators
£
10,790
-
-
10,790
2,158
1,726
-
3,884
6,906
8,632		 Property
£
163,615
-
-
163,615
77,182
8,643
-
85,825
77,790
86,433		 Mobility
equipment
£
14,455
-
-
14,455
10,113
868
-
10,981
3,474
4,342		 Other
equipment
£
17,317
-
-
17,317
11,244
1,215
-
12,459
4,858
6,073		 Total
£
603,021
11,557
(9,800)
604,778
240,067
46,753
(6,596)
280,224
324,554
362,954

11. Debtors

Trade debtors
Prepayments
Other debtors
12. Loan		 2020
Total
Funds
£
47,425
10,313
13
57,751		 2019
Total
Funds
£
72,941
6,388
-
79,329
12. Loan
Loan 2020
Total
Funds
£
745,000
745,000		 2019
Total
Funds
£
-
-

The charity has provided a loan to Aerobility Holdings CIC with an interest rate of 1.5% over the Bank of England base rate. The loan is repayable on the written demand of the charity and secured by debenture issued by the borrower.

This loan has been provided to Aerobility Holdings CIC as the project manager of Project Able which will deliver 8 Vigilant glider aircraft for the charity's use and further glider aircraft for resale to the general public with surpluses arising being passed to the charity to support the furthering of its objects.

Page 17

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

NOTES TO THE FINANCIAL STATEMENTS

13. Creditors: amounts falling due within one year

13. Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals
Deferred income (see below)
Other taxation and social security		 2020
Total
Funds
£
10,017
27
9,824
37,629
5,002
62,499		 2019
Total
Funds
£
6,138
1,099
3,960
57,644
4,189
73,030

Deferred income

Deferred income
ISTAT
Boeing scholarship
NATS Management Support
Southern Sailplanes
Gift vouchers		 Brought
forward
£
-
-
37,000
18,000
2,644
57,644		 Released
in year
£
-
-
(37,000)
(18,000)
-
(55,000)		 Deferred
in year
£
4,744
11,544
-
-
913
17,201		 Carried
forward
£
4,744
11,544
-
-
3,557
19,845

Income received in relation to future accounting periods, is deferred, and released to income in line with the specified timing of its use.

14. Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities		 Unrestricted
Funds
£
324,554
244,331
(62,499)
506,386		 Restricted
Funds
£
-
784,256
-
784,256		 2020
Total
Funds
£
324,554
1,028,587
(62,499)
1,290,642		 Unrestricted
Funds
£
362,954
175,259
(64,363)
473,850		 Restricted
Funds
£
-
45,782
(8,667)
37,115		 2019
Total
Funds
£
362,954
221,041
(73,030)
510,965

Page 18

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

NOTES TO THE FINANCIAL STATEMENTS

15. Analysis of net movement in funds
Restricted funds
Junior Aspiring Pilot Programme
NATS management support
Build the dream
Scholarship fund
Aircraft spares fund
Project Able fund
Total restricted funds
Unrestricted funds
Designated funds
Fixed asset fund
General funds
Total unrestricted funds
Total funds
Restricted funds
Junior Aspiring Pilot Programme
NATS management support
Build the dream
Scholarship fund
Aircraft spares fund
Project Able fund
Total restricted funds
Unrestricted funds
Designated funds
Fixed asset fund
General funds
Total unrestricted funds
Total funds		 Year ended 31 December 2020 Year ended 31 December 2020 Year ended 31 December 2020
Brought
forward
£
6,906
-
20,156
10,053
-
-
37,115
362,954
362,954
110,896
473,850
510,965		 Incoming
Outgoing
resources
resources
Transfers
£
£
£
7,850
-
(13,819)
54,500
(54,500)
-
2,037
-
-
9,500
-
(3,427)
36,000
(36,000)
-
745,000
-
-
854,887
(90,500)
(17,246)
-
-
(38,400)
-
-
(38,400)
392,252
(376,962)
55,646
392,252
(376,962)
17,246
1,247,139
(467,462)
-
Year ended 31 December 2019		 Carried
forward
£
937
-
22,193
16,126
-
745,000
784,256
324,554
324,554
181,832
506,386
1,290,642
Brought
forward
£
6,252
-
3,007
-
-
-
9,259
432,550
432,550
161,137
593,687
602,946		 Incoming
resources
£
11,792
50,000
17,149
33,800
-
-
112,741
-
-
466,852
466,852
579,593		 Outgoing
resources
£
(11,138)
(50,000)
-
(23,747)
-
-
(84,885)
-
-
(586,689)
(586,689)
(671,574)		 Transfers
£
-
-
-
-
-
-
-
(69,596)
(69,596)
69,596
-
-		 Carried
forward
£
6,906
20,156
10,053
-
-
37,115
362,954
362,954
110,896
473,850
510,965

Description of restricted funds

Junior Aspiring Pilot Programme

Funds received from BBC Children in Need and Hart Rotary to provide aviation education to disabled young people.

NATS Management Support

Funds received to cover the cost of employing administrative management.

Build the dream

Funds donated for the construction of a self-build aircraft.

Scholarship fund

Funds received to support disabled fliers by subsidising the cost of flights, enabling those people awarded scholarships to fly with aerobility free of charge.

Aircraft spares fund

Funds received to acquire aircraft in need of repair and aircraft spares to be used as part of Project Able.

Page 19

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

AEROBILITY

NOTES TO THE FINANCIAL STATEMENTS

Description of restricted funds continued

Project Able fund Funds received to support the repair and bring into use Vigilant aircraft for the charity's use and for sale.

Designated funds

Fixed asset fund Funds received to purchase new assets for the charity.

16. Financial instruments

The carrying amounts of the charity's financial instruments are as follows:

Financial assets
Debt instruments measured at amortised cost:
Trade debtors (note 11)
15. Financial instruments (continued)
Financial liabilities
Measured at amortised cost:
Trade creditors (note 12)		 2020
Total
Funds
£
47,425
47,425
10,017
10,017		 2019
Total
Funds
£
72,941
72,941
6,138
6,138

Page 20