Charity number.. 297897
Company number: 2109510
Army Flylng Museum Llmlted
IA Company Ilmlted by guarantee)
Trustees, annual report and Consolidated flnanclal ateMentS
For the year ended 28 February 2023
Compass Accountants Llmlted
Chartered Accountants and Statutory Audltors
Venture House
The Tannerles
East Street
Tltchfleld
Hampshlre
P014 4AR
Army Flying Museum Limited
Company number: 2109510
Contents
Page
Legal and administrative information
Chairman's Report
Trustees, annual report (incorporating the Strategic Report)
3-13
Structure. governance & mana8ement
Strategic report
Objectives & activitles
Achievements & performance
Financial review
Plans for future periods
Principal risks & uncertaintie5
Statement of Trustees, responslbilities
14
Auditorfs report to the Trustees
15-17
Consolldated Statement of financial actlvltles
18
Consolidated balance sheet
19
Cash flow statement
20
Notes to the flnanclal statements
21-33
Army Flylng Museum Limited
Company number: 2109510
Legal and Admlnlstrailve Informatlon
Charlty number
297897
Company number
2109510
Reglstered Office
Middle Wallop
Stockbrld8e
Hampshlre 5020 80Y
Chlef Executlve
Lucy Johnson
Trustees
Sir Gary Coward Ichalrmanl
Colin Sibun (Vice Chairman)
Carollne Hopklns (Treasurer)
Phillip Webb (resigned 19 April 20221
Rhonda Smith
Paul Edwards
Paul Beaver
Colonel Jullan Facer
Colonel Robln Mellin8 (resigned 15 February 20231
Warrant Officer I Paul Dockrell
David Short
James Johnson
Neil Sexton {appointed 20 January 2023)
Company Secretary
Andrew 51mkSns
Senlor Statutory Audltor
Kerry Lawrance FCA
Audltors and
Accountants
Compass Accountants Llmlted
Venture House. The Tannerles
East Street
Titchfield
Hampshire P014 4AR
Bankers
Royal Bank of Scotland
Holts Farnborough Branch
Lawrle House, Victoria Road
Farnborough
Hampshire GU14 7NR
Pase I
Army Flyln8 Museum Llmlted
Company number: 2109510
Report of the trustees (Incorporatlng the Dlrectors, report} for the year ended 28 February 2023
Chairman's Report
2022 has been a challengin8 year with many external factors impacting on the performance of the Museum.
The economlc crisis, the war in Ukraine and generol rising cost5 have all had an effect and meant we had to
adjust our budget and forecasts mid-year. However, 2022 also saw us record our highest number of visitors
in over 10 years and deliver another sold-out Wallop Wheels & Wings. There are many positives from thi5
year that bode well for the future.
After the Covid-19 pandemic, we made the decision to offer every visitor an annual pass with their admission
(rather than it being Gift Aid dependent). This ha5 resulted In a far higher number of return visitors over the
last 12 months than we have seen previously, with famllies taking advantage of the ability lo return in
multiple school holiday5. Thi5 has allowed u5 to build better relationships with our visitors and has had
positive impact on our reputatSon, partlcularly wlth plnch currently being felt on people'5 leisure budgets.
We are becomln8 increasingly known for our welcoming Staff and our additional activitie5 and word of mouth
15 helplng us attract new visitors. However, this has affected our income targets as we now need to focus on
engaging new visitors from a wlder catchment area which is one of our prioritle5 for the comln8 year.
On 02 July 2022 we delivered the second Wallop Wheels & Wings, our flagshlp event, at full capacity. This
year saw 3,775 people attend as visitors (with an addltional 500 attending as car or aircraft exhibitors) and
excellent feedback received to help inform our growth for 2023.
Thls year has also seen the return of ourvolunteering programmes and It has been fantastlc to welcome back
our volunteers across En8ineerlng, Archlve, Educatlon and Tour Guide5. We have over 40 active volurbteers,
all of whom brln8 a wealth of knowledge and experience to the Museum and really contrlbute to the
Museum's alms.
Fundraising continue5 to be a key part of our operatlon and our Corporate Partnership scheme is proving to
be popular. We were dellghted to welcome Leonardo on board as a Corporate Partner and worked wlth them
to deliver two STEM days at the Museum for 11-14 year olds, plus an evenin8 sesslon for local Scout/Guide
groups. We are looking forward to developing this partnership further over the comin8 year.
Another area of museum operations that has significantly improvedls corporate hlre and public events. We
have seen a 20% increase on corporate bookinBS in terms of bud8et and this trend Is contlnuln8 into thls year
with new clients approaching us regularly. Our online lecture programme ha5 now turned to a hybrid lecture
programme with our popular monthly lecture5 belng broadcast online as well as to a live audlence In
Museum. Education vlsits have seen an increase too, and our school holiday activities continue to Bather
momentum wlth the programme being advertised at least two months in advance.
However, the climate 15 challenging, and museums are difficult to make profitable. We contlnue to work
IuwdlL15 beLUITiiri¥ Ili¥ first UK rnu5eum to display an Apache, and hope to be able to install one by 2024. Thls
is key to our next stage of development in terms af visitor attraction and the contlnuatlon of the Army
aviation story.
Slr Gary Coward
Chairman
Page I
Army Flyln8 Museum Llmlted
Company number: 2109510
Report of the trustees Ilncorporatln£ the Dlrectors, report) lor the year ended 2Wh February 2023
The Trustees present thelr report and the financial statements for the year ended 28, February 2023. The
Trustees, who are directors of company for the purposes of company law and, who seNed during the year
and up to the date of this report are set out on page l. The Trustees have had due re8ard to the guidance
issued by the Charity Commisslon on Public Benefit.
Strurturei aovemance and management
Go¥ernlng Document
The Museum Is governed by Its Memorandum and Articles of Association. Trustees are selected by the
existing Board from peisons having an interest in the story of 8rltlsh Army flylng, herltage. conservation and
the local communlty and who have a particular skill or qualification which will add to the combined skills and
experience of the Board of Director5. Trustees are recruited to fill 8aps in specific skill areas within the Board.
The Army Flying Museum Limited I'the Museum'l wa5 incorporated as a private company Ilmlted by
guarantee, and without share capital, in March 1987 when the exhiblts of the former AAC Museum were
donated to it as a basis for publlc dlsplay. The company Is a150 a registered charlty Ino. 2978971.
AppDlntment ol Trustees
The artlcles provide for the ex-officio appointment of 3 servlng AAC officers as trustees. Remainin8 Trustees
are recruited through advertising or recommendations. All trustees are interviewed for 5Uitability before
appointment. Selected trijstees are also Directors of the Army Flying Museum Trading Company Limited, the
Charity's 100% owned subsidiary. The Tradin8 Company carries out tradln8 actlvltles to generate profits that
are Gift Aided to the Museum. The Museum is the ultlmate holding company of the Trading Company. Whlle
the Museum e¥erclses responsibility as shareholder of the Army Flyin8 Museum Trading Company Llmited.
the Tradln8 Company board is solely respon51ble for all tradin8 decisions. Each trustee's liabi1Sty in the event
of liquidation of the trust is limited to £1 In accordance with Memorandum of Assoclatlon.
Inductlon and Tralnlni
Newly selected trustees are briefed by the Chairman and CEO before taking up their appointment and
participate in annual Board Trainlng. Governance arrangement5, the Subcommittee structure, and the role
and conduct of trustee5 IS the subject of a comprehensive paper that Is based on Charlty Commission, and
other guidance and which is available to all trustees and issued to new trustees before taking up their
appointment.
The oblects for which the Museum 15 established are to advance the education of the public primarily, but
not exclusively, by the provlsion of a public Museum recording and exhibiting all a5pect5 of flying in the British
Army both past and present.
Arrangements For Setting Pay and Remuneration ol Key Management Personnel
Rates of pay for newly recruited staff are determined through analysis of the labour market for museum staff
and affordability. Across the board annual pay increa5e5 are not awarded autornatically, but according to
affordability and included in the forecast budget which is subject to Board approval before the start of the
financial year. Individual staff members can be awarded modest increa5e5 by the CEO in recognition of
outstanding performance or other exceptional circumstances.
Pa8e Y
Army Flylng Museum Limited
Company number,, 2109510
th
Report of the trustees Ilncorpovatlng the Dlre¢tors' report) for the year ended 28 February 2023
Publlc Benefit
Directors consider that they have complied with the dutie5 expre55ed in Sedion 2llllbl of the Charities Act
2011 to have due regard to public benefit guidance as published by the Charities Commission. The activities
undertaken by the museum throughout the year reached a $18nificant audlence of all ages. The Museum has
provided a seNice of great public benefit, offering an educational. enjoyable and Satisfying experience
through its di5play5. events and internet presence.
Strategic Report
Museum activlty over the last 12 months has been focussed on the recovery from the Covid-19 pandemlc
and managing the changes in consumer 5pendinB. Visitor numbers are up on last year but conslst of more
free admlsslons than previous years.
Tradin8 activity this year was slightly better than forecast but expendlture costs have increased more than
anticipated meaning activlties have been less profltable than expected. Slgnificant increases have been seen
In corporate hlres and public event attendees.
The focus thls year ha5 been on consolidating the work carried out durin8 Project Eagle and embeddin8 the
new practice5. There has been a huge amount of change over the last five years and It has been Important to
ft)cus on the day to day operat5ons for a period of time,
Objectlves and actlvltles
The oblect for which the Museum was establlshed Is..
'to advance the education of the publlc prlmarlly but not exclusively by the provision of a public
museum recording and exhibiting all a5pect5 of flying in the British Army both present and past,.
In addition to thls charltable oblect, the Army sets objectives for its museums that include..
Malntain and enhance the Army's connection with society
Present the country's military herltage and provide an academic research resource
Contrlbute to the education of childTr and adults Including educational outreach and support for
the National Curricula
Educate, train and Inspire the current generatlon of service men and women.
Mlsslon. Vlslon and Values
Our M1551un Is:
We tell the story of Brltish Army Flylng,
Our Vlslon Is:
Our vision is.. a sustoinable visitor attraction and heritoge cu5todion of nutionulsignificance.
Pa8e 4
Army Flylng Museum Limited
Company number: 2109510
Report of the trustees lincorporating the Director5, report) for the year ended 28 February 2023
Ourvalues are:
Enterpri51ng
Innovative
Focu55ed
Inspirin8
Collaborative
Inclusive
Strategy Mana8ernent and Strateglc Plan
The Museum's Strategic Plan is revlewed and approved by Dlrectors annually In March for the following year
and covers a period of 5 years. The strate8ic aim is to underpln future viability by developing a programme
of continuous improvement to the museum's Visitor Offer. This aim is delivered throu8h a number of
balanced strateglc aims, operational and development objectives contalned within the Plan.
In early 2022 as a result of the challen8in8 economic climate, it was agree(I that it would be necessary to
restructure operatlons in order to reduce stafflng costs. An area of operation5 was identified as being able to
be restructured and the exercise resulted In two redundancles and a 5% reduction in 5alarle5 expenditure.
Slgnlflcant Actlvltles Undertaken
Project Ea8le-the Development of the Museum.
Phase I Ithe building of the Army Flyin8 Memorlall was completed In September 2017.
Phase 2 Ithe modernisation of the Museum) was completed In April 2019 and the Actlvlty Plan wascompleted
in December 2021.
Phase 3 Ithe future expanslon of the Museum) is bein8 consldered by the 8oard of Trustees In their strate8iC
revlew for 2023-2028.
Beyond Project Eagle
Project Eagle concluded in December 2021. Followln8 thls investment. the Museum hos made 518nificant
progre55 In non-project related activities over the last 12 months. In particular:
Media- our social media presence continues to 8row and is summarised below..
MEDIA
Asat
2810212023
5,259
ii,iii
3,576
321
18.895
A5at
3010412022
4,814
9,277
3,053
176
15,828
% Change
over year
9.2%
19.8%
17.1%
82.3%
19.3%
Twitter Followers
Facebook Followers
Instagram
Linkedln
Mailing List
pe5
Army FlyinE Museum Limited
Company nurnber: 2109510
Report of the trustees Ilncorporatlng the Directors, report) for the year ended 28 February 2023
Ternporary Exhlbitions
We have held 3 temporary exhibitions thls year plus three onllne exhlbltions. We also loaned out two
artefacts to the Fashion and Textile Museum in London.
Physlcal exhlbltlons:
13 to 31 August & 01 Oct to 30 Nov . 'Weather and Aviation,
oi to 30 September. Caught on Camera: 65 Years of the Army Air Corps,
01 December to date. Palaces for the People.. Prefabs of the Temporary Housing Programme 1944
to 1948,
Loaned Item$
01 Aprll to 04 September: Two artefacts dlsplayed at the Fashion and Textile Museum, London, as part of
'Crown to Catwalk- 150 Years of the Royal School of Needlework..
On15ne exhlbltlons:
From 02 Aprll: The Falklands War,
From 03 October: Blo8 Post on website. Agrlculture to Alrfleld: A H55tory of Middle Wallop Airfield
up to 1939 Part I,
From 24 October: Blog post on website, Agriculture to Airfleld: A H55tory of Middle Wallop Alrfield
up to 1939 Part 2,
Ah1ve
Since the development of the new Archlve through Project Eagle, we have noticed an increase in enquirie5
and have done a lot of work to process some of the inherited backlo8 in catalo8uing. The AAC have also
provlded fundin8 to support the employment of an Archive Assistant and the team work closely wlth HQ AAC
to ensure the recordin8 of course hi5torie5.
113 enqulrles and 6 physical visits
2 blog posts and 3 articles
Updatlng of the Post WW2 Campalgn Screens
Catalogued large portion of donatSon backlog whlch stretched to the 1990s to Box Level
109 Donotion5 catalogued since Apr 2021
A significant number of oral history recordin8S
We We also 5ucce55ful in gettin8 8rant fundin8 from AIM for an audit of the Archive's
negatlve/photographlc collections.
Educatlon and Learnlng
In terms of Education, there has been a slow recovery of in-person vislts over the last 12. months:
29 schools came on trips to the Museum- 1,043 pupils
We hosted two regular work experience placements in conjunctlon wlth Grateley School and Sparsholt
College (both college age).
Pa8e 6
Army Flying Museum Limrted
Company nurnber: 2109510
Report of the trustees Ilncorporatln£ the Dlrectors, report) for the year ended 2*h February 2023
School Hollday Famlly Activitles
Our school holiday activities remain popular, and the programme is developed in conjunction with the
curatorial and marketlng teams. We know that more famllies are visiting on a regular ba515 to join in with
these, 50 we make sure the programme changes each holiday.
Easter Holidays 2022.. 523 participants
May Half Term 2022: 256 participant5
Summer Holidays 2022.. 1,672 participants
October Half Term 2022.. 558 partlclpants
Christmas Holidays 2022.. 467 participants
February Half Term 2023.. 561 partScipants
Outreach
Outreach has been firmly embedded in the museum operations now, although we were unable to recruit
replacement Outreach Officer earller thls year. In the interim, member5 of the Museum team covered the
various activities.
The followlng Outreach events took place:
Youn8 Eagle$ Youth Group sessions lin paitnership wlth the Army Welfare Service):
No of Youn8 Eagles sessions.. 8 sessions
No of Youn8 Eagles porticipant5.' 160 participants
Pro-S¢hool Pll¢ts (sessions for under-ss and thelr parenvcarerl
No of Pre-school Pilot sessions.. 6 sessions
No of Pre-school Pilot participant5.' 90 participants
Scout/Gulde 8roup$ etc and the number of partlcipants
Museum visits by Youth Groups: 153 participants
Pop Up Museum events:
No of events attended.. 6 events
No of participants: 600 participants lestimatedl
Fundralslni
The Museum's fundraising capability is now firmly established. To keep the cost of fundraising down, the CEO
provides the staff lead and has the support of a part time Development Manager. She reports to the
Fundraisin8 Committee that provldes guidance and support. The Museum is reglstered wlth the Fundralsin8
Regulator and the team abide by the Fundraising Code. The Museum's fundraising promise is linked to the
website httP5'.1/www.armyfl%inLcom]_projecl-eaElelfundfaisin
l. Fundraising actlvltles have concentrated
on application5 to Brant making trust5, developing business relationships and major fundraising event5. The
Museum did not receive any complaints in the period.
Page 7
Army Flying Museum Limlted
Company number: 2109510
Report of the trustees {incorporating the Directors, report) for the year ended 28 February 2023
Fundraising Events
Fundralslng contlnues In earnest with an alm of generating £40k surplus every year. We have refreshed the
Fundraising Committee and are focussed on building new business relationships, increasin8 the Corporate
Partnerships scheme and putting on publlc event5 to help raise fund5 whilst also increasing awareness of the
Museum. New events this year have included the Remembrance Concert with the Andover and Middle
Wallop Military Wives Choir, Santa's Flying Visit la meet Santa event) and a Christmas Craft Market.
The Museum'5 flagship fundraising event, Wallop Wheels & WlnBS, took place on Saturday 02 July 2022 wlth
an increased capacity of 3,775 and the event sold out for the second year runnin8. We have built stronB
relationships with Salisbury, Wilton and Andover Rotary, Hampshire SeaTch & Rescue, and numerous
Combined Cadet Force groups now and are extremely grateful for thelr support and the support we recelve
from the Army Air Corps and Army Aviation Centre in order to deliver this event. A lot of le550ns were leamt
from the second event to hopefully inform and ensure the success of the comlnB years.
The Mu$eum Lecture Programme
The Museum ha5 alwoy5 had a popular lecture programme but Sn response to the Covld-19 pandemic we
developed the Lockdown Lectures which were broadcast onllne with a live Q&A. These launched in April 2020
and quickly 8rew in popularlty, and a grant from the HeTltage Fund Emergency Fund in late 2020 allowed us
to purchase our own Ilve-stream equipment. Now, we Ilve stream all our lectures as well as havlng a live
audience in the Museum, and we offer them to vlew on catch up too. We have also donated pa55e5 to watch
our onllne lecture 'box-sets' to local care homes for their residents.
Date
1610312022
0710412022
1210512022
1710512022
0610612022
1510612022
1210712022
1011012022
2211112022
3010112023
2010212023
Lerture
Codename Intrepld
Falklands 40
Navy Win85 Collaboration
The Rlfles Museum partnership
Nothing is Imp055lble
Dad's War with Chris Tarrant
Sicilv
Test Pllot
Op Freshman
Chinook Crew Chick
D-Day, Arnhem and the Rhine
Onllne
49
63
151
54
71
In Person
N/A
NIA
NIA
N/A
139
N/A
97
96
31
49
50
75
63
43
iio
55
NIA
Volunteers
Volunteering is fully underway with all four volunteer teams working hard on iheir respective project5. The
teams are Engineering, Archive, Education and Tour Guides and we have over 40 active volunteers now. The
role5 our volunteers perform are invaluable to the runnin8 of the Museum and they often get involved in the
wider activities too Illke Wallop Wheels & Win851.
Pa8e 8
Army Flying Museum Limited
Company number: 2109510
th
Report of the trustees (incorporating the Directors, report) for the year ended 28 February 2023
Achievements and perfomiance
Flnanclal Revlew
The Museum. Café and Shop were open throughoul the reporting period.
YTD
VISITOR NOS
TICKET INCOME
CAFÉ INCOME
£161,430
SHOP INCOME
28 FE8 23
38,596
£238,536
£66,531
28 FEB 22*
35,396
£195,357
£119,673
£57,584
28 FEB 21**
14,3B8
£95,093
£46,538
£31,066
29 FEB 20***
36,282
£257,320
£188,984
£67,692
28 FE8 19****
23.568
£147,087
£142,183
£58,443
28 FE8 18
30.3S4
£189,758
£146,681
* NB. The Museum was c105ed due to Covid 19from 01 Mor-16 May 2022
' NB. The Museum was closed due to Covid 19 oportfrom 13 Jul-04 Nov 20 ond04 Dec.23 Dec 20
**¥ NB. The Museum wos closed in March 2019for refurbishment
N8. The Museum wos closedfrom Nov 18- Feb 19for relurbishment
£75,732
Subsldlary Undertak1Th8
The Army Flylng Museum Tradlng Company Limited Is the i¢Th subsldlary of the Army FlySng Museum
Limited. The 5ub5idiary operated the tradin8 activltles of the museum and covenants Its profits to the
Museum on an annual basls.
Prlnclpal fundln8 Streams
The principal fundlng streams into the Museum are threefold, as detailed below. All fundlng has been used
In the appropriate manner to SUPPOrt the management oblectlves for the period.
Income generatlon from tradlng and admlsslon actlvlty Includlng glft ald
This Income is dlrected toward5 the management of the Museum and the Improvements required to develop
the business. This year has seen an improvement in shop profit5. The café continues to be a challenge and is
un(ier80ing a full review in the comin8 year to Infom) Its future vlability-
MOD support
The MOD provides SUPPOrt in 2 ways:
Grant in aid. This totalled £62,450 for the year.
Internal BusSness Agreement. Thi5 covers support such as the provision of utilities and some
maintenance and which the MOD value at £71,571 for the year.
We also received two grants from the AAC Charlty- one annual grant of £18,000 to support the employment
of an Archivist and ArchNe Assistant, and a one-off grant of £6,OCQ to support the renovation of the Armv
FFying Memorial floorlng.
Page 9
Army Hylng Museum Limited
Company number: 2109510
th
Report of the trustees (Incorporatlng the DIreCtor report) for the year ended 28 February 2023
Grants and donatlons
Unle55 specified by the donor. grants and donatlons to the Museum are allocated to unrestricted fund5.
Tkket Prlcln8
The standard ticket was increased on 01 October 2022 due to rising costs and a lower level of visitor spending.
An adult ticket increased from £14.00 to £16.Ll), children are now priced at £9.50 Ifrom £8.00) and
concessions have InCaSed from £IO.W to £12.00. A family tlcket for two adults and two chlldren Is priced
at £42.00 and under 45 are free.
Free Entry
The Museum offers free entry to:
AAC members (plus their accompanying Spouse/Childrenl
Army Air Cadets (when booked through the Army Air Corps)
Servin8 Brltlsh or Commonwealth Military personnel on production of a MOD90 or equlvalent ID Card
AAC Veterans with an AAC Veterans, Association Membership Card
Wheelchair pu5her5 and carer5 of disabled people
Middle Wallop Membershlp cardholders
Children under 4
Reserves Pollcv
The sUltS for the period, and the company's flnanciol positlon at the end of the year, are shown In the
attached accounts. The agreement5 Wlth the MOD continued to work well and are of enormous benefit to
the Museum. However, MOD budget constralnts continue to adversely affect the maintenance support for
Phase l of the museum building Iwhich is an MOD maintenance responsibility). This has resulted In Museum
staff taking on Some maintenance tasks and additional expense falling to the Museum.
The Museum maintains a level of free resee5 as mltlgatlon a8ain5t the operational ri5k5 listed in the risk
register. Restricted reserves are used in accordance with their specified restrictions. Free li.e. non-
committed) reserves are calculated on the basis of the excess of unrestricted funds over flxed a55ets. The
minimum level of the unrestricted reserve is determined by the requirement to provlde some financial
mitigatlon of risks listed In the risk register. The most significant of these in financial terms is the risk of
income falling to a level that prejudices the Museum's vlabillty. Due to the increased cost of Ilvlng and risin8
overhead5, the Trustees have reviewed the pollcy regardin8 free re5erve5 and agreed to increase the
requlrement to £2,0.
At 28 February 2023 the level of the Museum's free reservc5 amountcd to £144,07412022.' £213,222).
Investment Pollcv
The Museum's investment poliry is to hold it5 IiqLJid a55ets in its bank accounts. Project Ea8le reserve5 have
lar8ely been expended no significant sums are held in interest bearing accounts.
Plans for future perlods
Directors have approved the annual update to the 5-year strategic plan for the museum that aims to deliver
the Museum's vision.
Page 10
Army Hyln8 Museum Llmlted
Company number: 2109510
Report of the trustees (incorporatlng the Dlrector< report) for the year ended 281h February 2023
Review
Thi5 plan 15 reviewed annually. Key imperatives from this annual analysis are that we must:
consolidate our operational and resource position followin8 Project EAGLE.
address our outstanding infrastructure issues.
continue to build up our fundralslng capability.
continue to press and plan for the installation of an Apache.
consider our options for further development durlng the next 5trate8ic period127-331.
Assumptlon5
The 5trate8lc plan is based on the followin8 assumptions..
MOD Support. MOD support includlng the Brant In ald received via AMOT will continue at current
levels until at least 2027 but may well reduce thereafter, Maintenance support will continue at
current patchy levels.
Alrfield. Army flyin8 operation5 wlll Increase 23-26 and continue for the foreseeable future.
Economy. The UK economy will grow very slowly, base Interest rate5 will Increase slgnificantly,
labour wlll be In short supply and there Is a hl8h rlsk of sta8flatlon, leadln8 to a recession.
Key Strate8le$
The followln8 Strategies wlll be pursued by the Museum..
Maintain and develop an effective board of trustees/dlrectors.
hlurture the c105e relationship wlth the Army Air Corps.
Seek to Increase museum visitor footfall up to 40,IXIO annually by 2027.
Invest in Corporate and Membership schemes, almln8 for 5% growth annually.
Bulld on our outreach programme, seeking to double our coverage by 2027.
Develop our fundraising activities to 8enerate £70K annually by 2027.
Market the MLtseum primarily throu8h digital activities and social media and developin8 a plan to
improve our PR profile re8ionallv.
Invest more in training our staff.
Operatlonal Oblectlves
Our Key Operational Objectives are,.
Develop Wallop Wheels & Wing5 to deliver a £40K annual surplus.
Maintain a routlne events programme to generate £20K annually.
Sustain the Lockdown Lecture Series to generate £20K annually.
Operate the Shop to generate £IOK surplus annually.
Operate the Café to generate £20K surplus annuallv.
P•#e 11
Army Flying Museum Umlted
Company number: 2109510
th
Report of the trustees {incorporating tho Dirertors, report) for the year ended 28 February 2023
Development Objectives
Our key development objective5 are to..
Assess the flnancial Implications of reductions In MOD 5UPPOrt.
Resource and deliver a restroom refurbishment project 23-25.
Build on the visitor feedback collected to date and ensure that evaluatlon is embedded in all
actlvities.
Seek to extend and diversify our audience.
Consider how to better reflect Army unmanned aerial pSatform5.
Increase collaboration with other regional museums.
Rlsks
A number of high-level risk5 have been identified that affect the Museum
STRATEGIC RISK
Income Generatlon
The Museum ha5, In the past, relled on income from events
supported by the Minlslry of Defence to 8enerate a surplus.
These events are no longer avallable and so additional income
needs to be generated through footfall, tradlng and
fundraising. In addltlon, Mlnlstry of Defence funding and
material support Is likely to decrease over time, puttin8
further PTe55ure on the Museum budget.
Covld-19
The impact of any future peaks and subsequent lock(iowns
will have a si8nificant impact on the reserves.
Loss of Reputatlon
Adverse comment and poor reputation affect bu51ness
performance.
Malntenance1Sablllty.
Pressure on Ministry of Defence funding has reduced
maintenance support puttlng addltlonal pressure on museum
funding
HR Rlsk
Errors in HR management can lead to discontent, 5tre55,1055
of productivity and in extreme cases, tribunals and fines.
RESPONSE
Project Eagle ha5 substantially increased
footfall and tradlng, but these have now
been affected by the pandemic, cost of
living crisis and the situation in Ukralne.
However, fundraising 15 now embedded in
the or8anisation and a component of core
fundin8.
All opportunltles for fundraising and
income generation must be actioned
when p055ible.
LeBal compllance and a culture of
customer seNice and value for money.
Signlflcant Improvements in the material
State of the Museum through Project
Ea8le plus a 5VStem of planned
maintenance.
HR advlce has been outsourced to
Peninsula business services.
Health and Safetv
Inadvertent noncompliance with Health and Safety legislation
leadin8 to a fine.
Fraud
Stsff loading/lncapacity
Health and Safety advice ha5 been
out50urced.
Implementation of Proper procedures.
Careful monitoring and Keyman insurance
P•8e 12
Arniy Flyln8 Museum Llmlted
Company number: 2109510
Report of the trustees liKorporating the Directors, report) for the year ended 28th February 2023
Auditors
The accounts have been audited by Compass Accountants Llmlted. A resolutlon to reappoint the auditor will
be put to the members at the Annual General Meetin8.
So far as the Trustees are aware, there is no relevant audlt Informatlon of which the company's auditors are
unaware. Trustees have taken all the steps necessary to make themselves aware of any relevant audit
Information and to establlsh that the company's auditor5 are aware of that information.
Small company provlslons
This report has been prepared in accordance wlth the special provisions for small companle5 under Part 15
ofthe CompanlesA¢t 2006,
Slr Gary Coward
On behalf of the Board
Date: 31
111>5
Pwly
Army Flylng Museum Limited
Company number: 2109510
th
Statement of trustees, responslbllltles for the year ended 28 February 2023
The Trustees Iwho are also directors of the Army Flying Museum Limited for the purposes of company lawl
are responslble for preparing the Trustees, Annual Report (including the Strateglc Report) and the financial
statement5 in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom
Generally Accepted Accountln8 Practice).
Company law requires the Trustees to prepare financial statements for each financial year, which give a true
and fair view of the state of affairs of the charitable company and of the incoming resources and application
of resources, includlng the income and expendlture, of the charitable company for that period. In preparing
these financial statements, the Tru5tee5 are required to:
select suitable accountlng policie5 and then apply them con515tently,'
observe the method5 and principles in the Charltles SORP 2019 IFRS 1021;
make judgements and estlmates that are reasonable and prudent:
state whether 3ppllcable UK Accountlng Standards have been followed, subJect to any material
departures disclosed and explained in the financial statements;
prepare the flnancial statement5 on the going concern basis unless it is inappropriate to presume
that the charitable company will continue in operatlon.
The Trustees are responslble for keeping adequate accountln8 records that dlstlose with rea50nable accurary
at any tlme the financlal posltion of the charltable company and enable them to ensure that the financlal
statements comply with the Companies Act 2006. They are also responsible for safeguarding the a55ets of
the charitable company and hence for takln8 reasonable 5tep5 for the prevention and detection of fraud and
other irregularlties.
Slr Gary Coward
On behalf of the 8oard
31
Pa8e 14
Army Flying Museum Limitid
Company number: 2109510
Independent Audltorfs Report to the Mernbers and Trustees of the Army Flylng Museum Llmlted
Oplnlon
We have audited the financlal statements of the Army Flying Museum Limited Ithe'parent charltable companVI and Its
subsldlary Ithe'group'l for the year ended 28, February 2023 which comprise the Consolidated Statemènt of Financial
AttivitiÈs, the Con501idated Balance Sheet, theconsolldated Cash Flow Statement and notes to the financial statements,
includin8 a Summary of 518nlflcant accountlng pollcles. The financial reportin8 framework that has been applied Sn thelr
preparation is appllcable law and United KlnÈdom Accountlng Standards. including Financial Reporting Standard 102
The Flnonclol Repcjrtlng 5t(Jndurd opplicoble in the UK ond Republic of Irelond Iunited Kingdom Generally Accepted
Ac¢ouniin8 Practice).
In our opSnlon the flnanclal statements..
8ive a true and fair view of the state of the 8roup's and parent charitable company's affairs as at 28, February 2023,
and of the group's Incomin8 resources and appllcatlon of resources, Includln8 Its income and expenditure, for the
vear then endeé,.
have been properly prepared In accordance with Unlied Kbngdom Generally Accepted Accounting Practice; and
have been prepared In accordance wlth the requirement5 of the Companies Act 2006 and the Charltles Act 2011.
Basls for oplnlon
We Conducted our audit in accordance wlth International Standards on Auditlng ILIKI IISAS IUKII and applicable law. Our
responslbilitles under those standard5 are further described In theAudltor's responslbilitles for the audlt of the financlal
statements sectlon of our report. We are independent of the group and parent charltable company In accordance with
the ethlcal requirements that are relevant to our audit ol the financSal statements In the UK, includlng the FRCS Ethical
Standard, and we have fulfilled our other elhical responsibilitie5 in accordan with these requlrements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a bas15 for our oplnion.
Conduslons relatln8 to ioln8 concern
We have nothSng to report In respect of the followln8 matters in relatlon to which the ISAS IUKI requlre us to report lo
vou where..
the tTUStees' use of the 8olng concern basis of accountin8 in the preparatlon of the financlal statements Is not
approprlate,. or
the trustees have not dlsclosed In the flnanclal statements any identifled materlal uncertainlles that may cast
518nificant doubt about the group's or parent charltable company'5 ability to continue to adopt the Boing concern
basis of accountin8 for a period of at lea5l Iwelve months from the date when the flnanclal statements are
authorised for Issue.
Oiher Informatlon
The trustees are responslble for the other informatlon. The other Informatlon comprlses the Informatlon Included in
the Iruslees. annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the
financial statements does not cover the other informBlion Jnd, except to the extent otherwise explicitly stated In our
report. we do not express any form of assurance conclusion thereon.
In eonnectlon wlth our audlt of the flnancial stalemenls, our responsibility is to read the other information and. in doing
so. consider whether the other information is materially inconsistent with the finanrial statements or our knowledge
obtained in the audit or otherwise appears to be malerlally misstated. If we identify such material Inconsistencies or
apparent materlal misstatements, we are required to determine whether there is a material misstatement In the
financlal statements or a material misstatement of the other informatlon. If, based on the work wè have pèrformed, we
Conclvde that there is a material misstatement of this othèr inforrnation, we are required to report that fact.
We have nothSng to report In this fegard.
Pale 15
Army Flylng Museum Llmlted
Company number: 2109510
Oplnlons on other matters prescrlbed by the Companles Art 2006
In our opinion, based on the work undertakèn in the course ol the audit;
the Informatlon Blven In the trustees, report lincorporatlng the dlrectors, feportl for the financial year for which
the financial statements are prepared is con515tent wlth the financlal statement5; and
the diTector5' report has been prepared In accordance with applicable legal requirements.
Matters on whl£h w• are r•qulred to report by exceptlon
In the light of our knowledge and understandlng of the group and parent tharitable company and its envlronment
obtained in the course of the audlt, we have not identified material misstatements in the directors, report.
We have noihlng to report in respect of the followln8 matters In relation to whlch the Companle5 Act 2006 and the
Charltle5 Act 2011 requlres U5 to report to you if, In our opinion:
adequate and sufficient accounting records have not been kept by the parent charltable company, or returns
adequate for our audlt have not been recelved from branches not vlslted by us,. or
the parent charltable company's Ilnanclal statements ale not in a8reement wlth the accountlng records and
returns.. or
certain disclosure5 01 directors. remuneratlon speclfied by law are not made,. or
we have not recelved all ihe Informatlon and e¥planatSons we requlre for our audlt,. or
the trustees were not entiiled to prepare the financSal statements In accordance wllh the small companles, re8irne
and take advanta8e of the small companles, exemptlons In prepaTill8 the directors, report and from the
requirement to prepare a strategic rèpoft.
Responslbllliles of trustees
A5 explalned more fully in the tru5tee5' responsiblllties statement set out on page S. the trustÈes (who are also the
dlrectors of the charitable company for the purposes of company lawl are responsible for the preparatlon of the
financlal 5tatemenls and for belng sallsfled that they glve a true and fair view, and for such Internal control as the
trustees determlne Is necessary lo enable the preparatlon of financSal statements that are free from material
mlsstatement, whether due to fraud or error.
In preparlng the financlal statements, the tru5tee5 are responslble for a55essln8 the group's and parent charltable
companvs ablllty lo continue as a golng concern. disclosln& as appllcable, matters related to goin8 concern and using
the 80ing concern bas55 of accounting unless the trustees either intend to liquidate the group or the parent charltable
company or to cease operations, oi have no realistic alternatlve but to do so.
Audltorfs responslbllltles lor the •udlt of the fln•nclal st•ttmertt$
Our objectives are to obtain reasonable a55urance about wheiher the financial statement5 as a whole are free from
materlal m155t3tement, wheiher due to fraud or error, and to Issue an audltorfs report that Includes our oplnlon.
Reasonable assurance 15 a high level of assurance. but Is not a guarantee that an audit conducted in accordance with
ISA5 IUKI will always detect a material misstatement when it e¥i5t5. Mi55tatements can arise from fraud or error and
ale consldered materlal if, individually or in the a88re8ate, they could reasonably be empecied to Influence the economic
decisions of users taken on the basis of these flnanclal statements.
Irregularitles. includTng fraud, are instances of non-compliance wlth laws and regulatlons. We desi8n procedures in line
with our responsibilities, outlined above, to detect material misStaternent5 in respect of irregularities, including fraud.
The speclflc procedures for this enga8ement and the extent to whlch these are capable of detectln8 Irregularlties.
includSng fraud Is Iletailed below-
We gained an uftderstandlng of the legal and regulatory framework applicable to the charity and the sector In
which it operates through discussions with management. sector research, and the applicatlon of relevant audit
knowledge and experience
We made enquiries of management around actual and potential litigation and clairns
Pale 16
Army Flying Museum Llmlted
Company number: 2109510
We made enquirie5 of management and relevant staff, and designed our audit procedures, including reviewing
financial statement disclosures and testing of supporting documentation, to assess compliance with applicable
laws and regulations. We focussed on laws and re8ulations which could give rise to material misstatement in
the financlal statements includlnB, but not Ilmlted to, the Charlties Act 2011, the Charities SORP, and the
Flnancial Reportlng siandard 102.
We Identified the iisk of material misstatement of the financial statements due to fraud and deslgned audlt
procedures to respond to the risk. We performed audit procedures de518ned to addre55 the risk of fraud ari5in8
from management override of controls, including, but not limited to, testin8 of journal entries and other
adlustment5. revSewlng accountlng estlmates for evldence of blas, and evaluating the bu5ine5s rationale of
slgnlflcant iransartions outside the nomial course of buslness
Because of the inherent limitations of an audlt, there Is a risk that we will not detect all irre8ularilies, including those
leadlng to a malerlal mlsstatement In the financlal statements or non-compliance wlth regulatlon. This risk Increases
the more that compliance wlth a law or Te8ulation is removed from the event5 and transactlons reflected In the flnancial
statements, as we will be le55 likely to become aware of instances of non-cornpliance. The risk is also greater regarding
irregularities occurrln6 due to fraud rather than error, as fraud Involves Intentlonal concealment, forgery, collusion,
omi551on or mlsrepre5entatlon.
A further description of our responsibilities for the audlt of the financial statement5 is located on the Financial Reporting
Councll's webslte al.. www.frc.cr8.uVaudStorsresponsibilities. Thls description forms part of our auditorfs report.
Use ot our r•port
This report Is made solely to the charitable company's members, as a body, In a¢cord8n¢e wlth Chapter 3 of Part 16 of
the Companle5 Act 216 and to the charltable company's trustees, a5 a body, In accordance wlth Part 4 of the Charities
(Accounts and Reports) Regulatlons 2008. Our audlt work has been undertaken so that we mlght state to the charltable
compan$ members and its trustees those matters we are requlred to stale to them In an auditor's report and for no
other purpose. To the fL4llest extent permitted by law, we do not accept or as5urne re5pon5ibility to anyone other than
the charltable company and the charltable company's members 85 a body and the charStable company'5 trustee5 as
body for our a
it work, for thls report, or for the oplnlons we have formed.
K•rry Lawranc• FCA
Senior Statutory Audltor
For and on behalf of Compass Accountanis, Statutory Audltor
Venture House, The Tanneries
East Street, TStchfield
Hampshire
P014 4AR
t>ate: S r 2cf23
Compass Accountants 55 ell8lble to act as an audltor In terms of sectlon 1212 of the Companies Act 2CK)6
Page 17
Am?v Flylng Museum Llmlted
Company number: 2109510
Consolldated Statement of financial activities lincorporating the income and expenditure account)
For the year ended 28 February 2023
Unrestrlcted Restrlcted
fvnds
funds
2023
Total
ilnrestrlrted Restrlcted
funds
funds
2022
Total
Notes
Income from:
Donations and legacles
Grant in aid
Services donated by the Ministry
of Oefence
Donations and grants
Charitable actlvltles
Admlsslons
Other tradin8 activities
Trading companv
Investments
Other
80,450
80,450
79,324
79,324
71,571
7,632
71,571
15,873
71,571
176,778
71,571
263.876
8,241
87,098
391,908
391,908
349,401
349,401
250,739
593
250,739
1,168
756
197,381
360
197,381
402
57S
42
756
24,ClJO
24,000
Total Income
652,237
160,228
812.465
658,240
327,715
985,955
E¥pendliure on.,
Fundra151n8 and publlclty
Tradin8 company
Charitable activitie5
63,342
249,614
433,923 376,538
63,342
249,614
810,461
57,013
186,906
404,780
57,013
186,906
960,932
SS6,152
Total expendltur•
746,879 376.S38 1,123.417
648,699
SS6,152 1,204,851
Net In¢omellexpendlturel
194,6421 1216,3101 1310,9521
9,541 1228,4371 1218,8961
Transfers bet•n fvNIs
Nel movement In lunds
194,6421 1216,3101 1310,9521
9,541 1228,4371 1218,8961
ReconclllalSon of funds:
Total funds brought forward
1,355,373 1,208,558 2.563,931
1,345,832 1,436,995 2,782,827
Total funds carrSed forward
1,260,731
992,248 2,252,979
1,355,373 1.208,558 2,563,931
All recognised gains and losses are included in the statement of financial activities. All tTan5actions are derived from
continuing activltie5.
The depreciation costs of the capital expenditure on Project Eagle wlll reduce the balance of restrlcted reserves over the
Ilfe of the lease and will result in deficiis after depreciation being reco8nised in future years.
Th• notes on pages 21 to 33 form an Intègral part of theselEnancSal statements.
Page IB
**Army Flying Museum Limited Company number: 2109510**
## **Consolidated Balance Sheet as at 28th February 2023**
|**Notes**
**Fixed assets**
Tangible assets
13
Heritage assets
14
Investments
15
**Current assets**
Stocks
Debtors
16
Cash at bank and in hand
**Creditors: amounts falling**
**due within one year**
17
**Net current assets**
Provisions for liabilities
**Net assets**
**Funds**
Unrestricted funds
Restricted funds
18
Revaluation reserve
Non Charitable Trading funds
**Total funds**|**Group**
**2023**
£
1,897,855
10,000
1,907,855
13,054
10,979
362,018
386,051
(40,927)
345,124
2,252,979
878,160
992,248
340,782
41,789
2,252,979|**Group**
**2022**
£
2,151,578
10,000
2,161,578
13,105
34,867
397,981
445,953
(43,600)
402,353
2,563,931
969,206
1,208,558
340,782
45,385
2,563,931|**Charity**
**2023**
£
1,884,362
10,000
100
1,894,462
19,346
330,662
350,008
(33,280)
316,728
2,211,190
878,160
992,248
340,782
2,211,190|**Charity**
**2022**
£
2,123,138
10,000
100
2,133,238
47,524
358,359
405,883
(20,575)
385,308
2,518,546
969,206
1,208,558
340,782
2,518,546|
|---|---|---|---|---|
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the Board and signed on its behalf by
**Sir Gary Coward Chairman Date:** _**J..-/**_ / _**:i.**_ **3** _**/t**_
**C. Hopkins Treasurer**
**The notes on pages 21 to 33 form an integral part of these financial statements.**
**Page 19**
Army Flying Museum Limited
Company number: 2109510
Cash flow statement
th
for the year ended 28 February 2023
Group
2023
Group
2021
Cash flows from operatlng a¢tivities:
Net cash provlded by (used Inl operatlng artlvltie$
136,0321
1153.6661
Cash flows from investing actlvltles:
Interest income
Purchase of fixed assets
1,168
11,0991
402
163.7531
Net cash provlded by (used In) Investlng actlvltles
69
163,3511
Increasel(decrease) In cash and ¢•sh equivalents In the year
135,9631
1217,0171
Cash and cash equlvalents at l March 2022
397,981
614,998
Cash and cash equlvalents at 28 February 2023
362,018
397,981
Net incomelexpenditure for the reportln8 perlod
Depreciation and impalrment
Income from Snvestments
Decrease/llntreasel in stocks
Decrea5elllncreasel In debtors
Increaselloecreasel In credltors
1310,9521
254,822
11,1681
51
23.888
12,6731
1218,8961
259,573
14021
11,0271
119,2241
1173,6901
Net cash provlded by (used In) operatln8 a¢tlvltles
136,0321
1153.6661
Page 20
Am)v Flylng Museum Llmlted
Company number: 2109510
Notes to financial statements
th
for the year ended 28 February 2023
AccountiTh8 polici05
Charlty Inforniation
The Army Flyin& Museum Limited Is a prlvate company lirniled by 8uarantee and incorporated in En8land and
Wales. The registered office is the Army Flying Mu5eurn, Army Aviation Centre, Middle Wallop, Stockbridge,
Hampshbre, S02D 8DY.
The Army Flying Museum Limited meets thè deflnltlon of o publlc benefit entity under section 34 of FRS 102.
Assets and liabillties are initbally reco8nised at h15torlcal c05t or transactSon value, unless otherw15e stated in the
relevant accounting policy.
The prlncipal objectives of the ¢harlty are detalled in the Trustees report.
1.2. Basls of preparatlon of flnanclal statements
The financlal statements have been prepared in accordance with Accounting and Reportin8 by Charities..
Statement of Recommended Practlce applScable to charlties preparlng thelr accounts In accordance wlth the
Flnanclal ReportlnB Standard appllcable In the UK and Republic of Ireland (FR5 1021 (issued In October 20191
Icharltles SORP IFRS 10211, the Flnanclal Reportln8 Standard appllcable in the UK and Republic of Ireland IFRS
1021 and the Companle5 Act 2006.
The flnanclal statements are presented In sterlln8 whlch is the functlonal currency of the company. Monetary
amount5 In these flnanclal staternent5 are rounded to the nearest £.
The consolldated flnancial statements Incorporate the results of the Army Flyin8 Museum LSmlted and of It5
subsldlary undertaklng as at 281h February 2023 usinB the aequisitlon method of accounting.
A separate statement of financial activlties and income and expènditure account arè not presented for the
charity Itself followlng the exemptions afforded by Sectlon 408 of the Companles Act 2006.
1.3. Incomln8 resources
All Sncomln8 resouices are Included In the SOFA when the company is legally entitled to the Income and the
amount can be quantified wllh reasonable accuracy, and It Is probable that the income wlll be recelved. The
followln8 pollce5 are applled to partlcular categorles of Income:
Income from tradin8 aCtivitle5 Tepre5ents monles receSved lexcluslve of Value Added Tax) from shop and
restaurant sales durln8 the year.
All donations are accounted for on a receivable basis. Separate reserves are maSntalned for restrlcted funds
accordonce with the Charlties Acl 2011.
Grant5 receivable are accounted for when received and are included under the headlng of donatlons.
5ervlces donaied by the Ministry of Defence is the value of the seNices of staff and fatillties pald dlrectly by the
Ministry of Defence. These have been included on a cost basls In the accounts.
Grant in aid is a donation from the Ministry of Defence towards ernployment Costs. Investment income is
reco8n15ed on a receivable basis.
1.4. Governance costs
Governance costs incl¢Jde costs of the preparatlon and examination of the statutoryaccounts, the costof Trustee
meetings and the cost of any le8al advice to Truslee5 On 80¥ernan or constitutional matter5.
Page 21
Army Mying Museum Limited
Company number: 2109510
Notes to flnanclal statements
for the year ended 28 February 2023
Resources expended
All expenditure is accounted for on an accruals basls and has been classified under headings that a8gre8ate all
costs to the Category. Where cost5 cannot be directly attributed to partlcular headings they have been allocated
to actlvitles on a bas15 cons15tent wlth use of the resources.
1.6. Basls of allocatlon
Costs of generating funds comprise costs incurred in Èncoura8in8 people and organisatlons to conlrlbute
financially to the charity's work and to promote the Army Flying Museum as a visitor attraction.
Support costs Include central functlons and have been allocated to cost cate8orles on 8 bas15 conslstent wlth the
vse of resource5.
1.7. Irrecoverable VAT
Irrecoverable VAT has been Included a5 a c05t of charltsble actlvltSes.
1.8. FSxe¢ assets
Individual fixed assets costing £i,¢XJO or more are inltlally recorded at cost.
1.9. Herltage assets
The Army Flying Museum holds in trust artefacts comprlslng its collection. The collections have not been
Included in the Ilnancial statements due to their historic and inalienable nature and due to the 5peclfic and
Indlvldual nature of the artefacts held, it Is not belleved to be possible to obtaln a rellable value of the collecllon
wlthout Incurring a c05t dlsproportlonate to the benefit of the Informatlon reported to the readers ol the
accounts.
Assets acqulred prlor to I. Aprll 2000 have not been capltallsed and Included In the accounts but wlth effect
from I" Aprll 2CN)O, addltlons to the collectlon wlth a cosl excess of £5.000, have been capltallsed. These
assets are not revalued or depreciated.
Herlta8e assets donated to the Museum wlth a value In excess of £5,000 are Included In the accounts on the
bas15 of Internal valuatlons.
The Colle¢tlon
The maln museurn collectlon comprSse5 aSfcraft, vehicles, equlpment, unlforms, medals, weapons, artwork and
ephemera. It also Includes an archSve of documents, books, photO8r3phs. photographic ne8atlves, album5, slide5
and Illrn. The collectlon, which number5 many hundreds of thousands of items, contalns material whlch has ?
unique provenance relatSn8 to British Army Flyin8. Information reBardin8 Cost of value of thi5 collection 15 not
readSly avallable and the charlty conslders that the cost of obtalnlng such valuatlon for the collection of a5set5
held Ss siBniTicant, and Is not commensurate wbth the benefit obtained by Includlng the addltlonal capltallsed
value In the flnan¢lal 5t0tements.
Pollcy for the acqulsltlon. pre5ervatton. management and d15P05al of herttale assets
Acqulsltlon and dlsposal of items In ihe collectlon Is governed by its Collectlon5 Developrnent PolScy120161 whlch
Is based on an approved template provided by Arts Councll England. It takes Into account the Museum
Association Code of Ethics.
Documenting. The Museum's approach to dotumentinB the collection is stated in Its Collections Documeniation
Policy120161 and 15 formalised in a forward plan of work. It operate5 a system which meets Spectrum basic
standards Including entry, exit and transfer of title forms.. accession records and inventories.
Conservation. The Museum's approach to conserving the collection is Stated in its Collections Care and
Conservation Policy120161 and Ss formalised In a plan of work forward. Work in thi5 area is undertaken by staff,
volunteers under the supervision of staff or specialist contractors.
Page 22
Army Flying Museum Llmitsd
Company number: 2109510
Notes to financlal statements
for the year ended 28th February 2023
Access. The Museurn's approach to providing acce55 to collections Is stated In Its Access Poll¢y120161. The
collections. and the Information held therein, is made available through permanent and temporary exhibitions,
website features, loan5 to other organisations and an enqulries service. Mernber5 of the public can also access
materlal by appointment. Access Is only limlted where legislation requires it.
Memorlal Wall
The Museum commlssloned and built a memorial wall, completed In 2017, to commemorate those that have
lost thelr Ilve5 in the service of Brit15h Army Flying however thls is not considered to be a heritage asset as
deflned by FRS 102.
1.10. Oepre¢latlon
Depreciation is provided on tan8Sble flxed assets so as to wrlte off the cost or valuatlon, less any estlmated
rè51dual value, over the expected useful economlc Ilfe as follows..
Museum dlsplays & equlpment- 13% & 25% Straight Ilne basls
Leasehold property- Over the Ilfe of the lease
Leasehold improvements- 10 or 25 years
Shop & kitchen equlpment- 20% Strai8ht Ilne b¥515
1.11. Investments
Flxed asset Investments are included at market value at the balance sheet date.
Reallsed galn5 and 105ses on Investments are calculated 35 the dlfference between sales proceeds and their
market value at the start of the year, or thelr subsequent C05t, and are charged or credlted to the statement of
flnanclal actlvltles In the period of dlsposal.
Unreallsed galns and losses represent the movement In market values durlng the year and are credlted or
chargeil to the statement of ffinanelal actlvitles based on the market value at the year end.
1.12. Flnanclal Instruments
The Museum h35 elected to apply the provislons of Sectlon Il'Baslc Flnanclal Instruments. and Sectlon 12'0ther
Flnanclal Instruments Issues, of FRS102 to all of Its financial Snstruments.
Flnancial instruments are recognlsed when the company becomes party to the contractual provlslons of the
Instrument.
Flnanclal asset5 and liabllltles are offset, wlth the net amount5 presented Sn the flnanclal statements, when there
15 a leBally enforceable ri8ht to Set off the recognised amounts and there Is an Intention to settle on a net bas15
or to reallse the asset and settle the Ilablllly slmultaneouslv.
The Museum'5 financial a55et5 and liabilities consSst of cash and cash equivalent5, Short terrn investments, trade
debtors, trade creditor5 and accrued pxppn49.%. Thp fAir valLJP fif th•%p itpms apprnxlmatPS thelr carrylne valLie
due to theirshort term value. Unless otherwise noted. the Museum Is notexposed to S*8nificant interest, foreign
exchon8e or credSt risks arising from these instrument5.
Term deposlts of less than one year are ¢las51fled as Investments withln current assets.
1.13. Stocks
Stock 15 valued at the lower of cost and net reallsable value. after due regard for obsolete and slow moving
stocks. Net reali5able value is based on selling price les5 anticipated cost5 to completion and sellln8 COSt5.
l.lQ Leased Jssets
Rentals applicable to operatin8 lease5 are charged to the Statement of Flnancial Activities as Incurred.
Pa8e 23
Army Flying Museum Limited
Company number: 2109510
Notes to flnanclal statements
for the year ended 28th February 2023
1.15. Fund accountlng policy
Unrestricted income funds are generally funds that arè available for use at the Trustees discretion in futherance
of the objectives of the charity.
Restrlcred funds are th05e donated for use in a particular area or for speclflc purposes, the use of which 15
restrlcted to that area or purpose.
Further detaSls of each fund are dlsclosed In note Ig.
1.16. Restrlcted lunds
Restricted funds are to be used for specilled purpose5 as lald down by the donor. Expendllurewhlch meets these
crlterla is Identlfied to the fund, together with a fair allocation of overhead5 and support costs.
Unrestricted funds are donatlons and other Incornin8 resources recelved or generated for the charltable
purposes.
1.17. Goln8 toncern
The flnancial statements have been prepared on a 8olng concern basls as the trustees belleve that no materlal
uncertalntles exisi. The trustees have consldered the level of funds held and the expected level of income and
expenditure for 12 months from authorlsing these financial statements. The budgeted income and expendlture
is sufflclent wlth the level of reserves for the charity to be able to contlnue a5 a 80in8 concern.
1.18. Terminatlon benefits
The Museum reco8nises a Ilablllty for termlnatlon beneflts at the point where the 8roup15 commltted to maklng
the payments In return for employee redundancv.
Pen$lon cost$
The company operate5 a deflned contrlbutlon penslon scheme. The penslon cost for the period represents
contributions payable by the charity to the scheme and amounted to £6,88012022'. £7,393).
Contrlbutlon5 totallln8 £57612022.. £6671 were payable to the scheme at the end of the perlod and are Induded
In ¢redltor5.
Pa8e 24
Army FIWn£ Museum Limited
Company number: 2109510
Notes to financial statements
for the year ended 28 February 2023
Income and expen5e5 from tradlrq actlvltles of subsidiaries
The charity has a wholly owned tradin8 subsidiary whlch is Incorporated In the Unlted Kingdom, Army Flylng
Museum Trading Company Limited.
Profit and Loss A¢¢ount
2023
2011
Turnover
Cost of sales
235,781
1225,2961
10,485
14.958
182.530
1158,6751
Gross Profit
23,855
14,853
16,991
128,2331
Sundry income
Giant from parent chaflty
Overheads
124,3171
Net proflt/l10551 before tax
Amount 8ifted to The Army Flylng Museum
1,126
14,7211
27,466
Profitll10551 for year before laxailon
Taxation
13,5951
27.466
Retalned profltlllossl for the perlod
13,5951
27,466
Retalned proflt brought forward
45,384
17,918
Retalned proflt cariled forward
Called up Ordinary Share Capltal
41,789
100
45,384
100
Capital and reserves
41,889
45,484
Grants and Donatlons
Durlng the year the followln8 grants and dortatlons were recelved..
Unr•slrlcted Re5trkted
funds
fund$
2023
Tot•1
2022
Tolal
Grant in Ald
Servlces provlded by Ministry of Defence
80,450
71,571
80.450
71,571
79,324
71,571
152,021
152,021
150,895
Other grants and donations:
General donatlDns
Coronaviru5 lob Retentlon Scheme
National Lottery Herltage Fund
Test Valley Borough Council
.241
7.632
15,873
29,393
29.071
176,698
28,714
8,241
7,632
15.873
263,876
In 2022 £87,098 were restrlcted funds with £327,673 being unre5trlcted funds.
Page 25
Amry Flying Museum Limited
Company nurnber: 2109510
Notes to financial statements
for the year ended 28th February 2023
Activities for generatlng funds
Unr•strlcted
lunds
R•strS(ted
funds
2023
2022
Museum Admisslons
Glft ald tax claimed
Hire of museum facilities
Special events
238,664
47.8S8
26.041
79,345
238,664
47,858
26.041
79,345
200,088
44.500
8,913
95,900
391,908
391,908
349,401
All the ineorne for 2022 were unrestricted funds
Investment Income
Unrestrlcted
funds
Restrfcted
funds
2023
2022
Dlvldend5 and Interest
Interest on Corporatlon Tax Repayment
593
575
1,168
57
345
593
575
1,168
402
In 2022 £42 were restrlcted funds wlth £360 beln8 unrestrlcted funds
Other Incomlng resources
Unrestrlcl•d Restrlcted
funds
funds
2013
2022
Museum & Gallerles Exhlbltlon Tax Rellef IMGETRI
756
756
24,000
756
756
24,000
All the Income for 2022 were unrestrl¢ted funds
Pa8e 26
Amiy Flying Museum Limited
Company number.. 2109510
Notes to flnancial statements
forthe year ended 28th February 2023
Cost of generating funds
UnrestrScted
funds
Restricted
funds
2023
2022
Shop and restaurant expenses
Event Expenditure
249,614
63.342
249,614
63.342
186.906
57.013
312.956
312.9S6
243.919
All the expenditure foi 2022 were unrestrlcted funds
Costs of charltable actlvltles
Unrestrlcted Restrkted
funds
funds
2023
2022
Staff costs
Cost5 pald by Mlnlstry of Defence
staff tralnin
Outreach cost5
Development project costs
Repalrs and malntenance
CompLtter expenses
Hire of plant and machlnery
Travel and sub51stence
Unattributable VAT
Profes51onal fees
Depreclation
Offlce costs
Advert15in8 & promotlon costs
Bad debt expense
Governance and SUPPDrt Costs
278,085
84,517
71,571
550
362,602
71,571
1,396
1,571
346,924
7J,571
13
846
1,571
191,909
18,275
9,689
8,535
947
7,606
10,893
243,637
13,333
10,637
306
26,657
18,594
14,435
8,634
1,447
8,663
12,465
21.998
15,460
16,379
96
35,250
2,682
21,276
14,43S
8,634
1,887
8,663
12,465
238,776
15,460
16,379
96
35,250
440
216,778
433,923
376,538
810.461
960,932
In 2022 £556,152 were restricted funds with £404,780 being unrestricted funds
10. Governance and support costs
Governance costs
2023
2022
Staff costs
Auditors remuneration
Cost5 of Trustee5 meetlngs
Bank charges and Interest
24,953
3,550
159
6,588
24,953
3,550
159
6,588
20,901
3,5
75
2,181
35.250
35,250
26,657
Page 27
Amiy Flylng Museum Limited
Company number: 2109510
Notes to financial statements
for the year ended 28th February 2023
11. Audltois, remuneratlon
2023
2022
Audltors, remuneration audit of the financial Statements
3,550
3,5LKJ
Audltors, remuneratlon other fee5..
Preparation of statutory accounts and payroll
Taxatlon servlces
- Consultancy and advlce reBardln8 VAT and other charlty matters, Includlng MGETR
S,093
265
1,545
5.345
265
1,831
6,903
7,441
12. Employees
1023
2012
Employee ¢osts
Wa8e5 and salaries
Soclal securlty costs
Pension costs
Redundancy costs
449,308
24,807
6,880
5,033
357,357
25,525
7,393
486.028
390,275
Includln8 the Chlef Executlve Officer, the avera8e number of employees, analysed by functlon. was:
2023
2022
Management staff
Museum Staff
li
19
li
23
30
34
Durln8 the year two employees recelved terminatlon beneflts of £5,03312022.' £NIII.
No tmstees recelvetl remuneration durlng the period, no trustees were relmbur5ed for expenses1281h Februaiv
2022.. Nill.
No employees received remuneration of more than £60,(h)O during the year12022.' NIII.
Key man•8ement personnel
Employee benefits recelved by key management personnel total £44,088 12022.. £41,262) whlch Induded
employers, natlonal rnsurance coniribuiions.
Page 28
Army Hylng Museum limited
Company number: 2109510
Notes to financlal statements
for the year ended 28 February 2023
13. Tangible fed assets
Group
Leasehold Property Shop & Kltchen Museum Dlsplays
& Improvem•nl
Equlpment
& Equlpment
Herltage
Assets
Total
At l March 2022
Additions
Disposals
1,482.824
135,368
1,099
7,317
1,835,114
10,000
3,463,306
1,099
8,180
863
At 28 Febiuary 2023
1,482,824
129.150
1,834.251
10.000
3,456,225
Depreclatlon
At l March 2022
Charge for the year
Ellrnlnated on disposal
401,350
19,554
106,928
16,046
7,317
793,450
219,222
863
1,301,728
254,822
8,180
Al 28 February 2023
420.904
115,657
1,011,809
1,548,370
Net book values
At 28 February 2023
1,061.920
13,493
822,442
10,000
1,907,855
At 28 February 2022
1,081.474
28,440
1.041,664
10,000
2,161,578
Charlty
Leasehold Property Museum Dlsplays
& Impro¥em•nt
& Equlpment
H•rStag•
A55Qts
Total
Cost
At l March 2022
Addition5
DIsp05als
1,482,824
1,83S,114
10,000
3,267,938
863
863
At 28 February 2023
1,482,824
1,834,251
10,000
3,327,075
Depreclatlon
At l March 2022
CharÉe for the year
Ellmlnated on dlsp05al
401,350
19,S54
793,450
219,222
863
1,194,800
238,776
863
At 2B February 2023
420,904
1.011,809
1,432,713
Net book values
At 28 February 2023
1,061.920
822,442
10,000
1,894,362
At 28 February 2022
1,081.474
1,041,664
10,000
2,133,138
Revaluatlon of flxed assets
The leasehold property was restated at open market value at 31" March 1993 and subsequently re(iuced bv
depreciation on that value.
Pa8e 29
Army Flylng Museum Llmited
Company number: 2109510
Notes to financial statements
for the year ended 28 February 2023
14.
Herlta8e assets
Total
Cost
At l March 2022 and 28 February 2023
io,coo
Flve year Summary
2023
2022
2021
2020
2019
Addltlons
Purchases
Donatlons
5.OCQ
5,000
10,000
15. Flxed asset Investments
Char5ty
Unllsted
Charlty
Total
Cost
At l March 2022 and 28 February 2023
loo
Unllsted Investments represents 100% of the Issued share capllal of Army FlySn8 Museum Tradin8 Company LSmited.
15.1. Investments held
The company holds 20% or fflore of the share capltal of the followlng companles:
Njture of
buslne
Shares h•ld % of shares
¢liss
h•ld
Comp•nv
Army Flyln8 Museum Tradln8 Company
Limlted
Commerclal actlvltles of the paret)t
companv
Ordlnary
i(xJ%
16. Debtors
Group
Z023
Group
2022
Charlty
2023
Charlty
2022
Amotsnts due wlthln I year.
Trade debtors
Other taxes and soclal security
Other debtors
Accrued income
Prepayments
Amount owed by group undertaklngs
2,413
2,236
481
4,579
24,000
3.571
2,413
2,236
481
4,579
24,000
3,571
12,657
5,245
5,002
4,721
3,321
3,889
3.321
10,979
34,867
19,346
47,524
P4e 30
Army Flying Museum Limlted
Company number: 2109510
Notes to flnanclal statements
for the year ended 28th February 2023
17. Credltors: amounts falling due within one year
Group
2023
Group
2022
Charlty
2023
Charlty
2022
Trade credltors
Other taxes and social securlty
Other creditors
Accrua15 and deferred intome
1,903
13,321
4.766
20,937
4,939
8.335
5,458
24.868
1,071
13.321
1,651
17,237
2,770
8,335
3,050
6,420
40,927
43,600
33,280
20,57S
18. Restrlcted funds
l March 2022
InmInI
Outplni
Transfers 28 Febru•ry 2023
Grant In ald
Ministry of Defence service5 provided
Herltage & Archlve appeal fund
Project EaBle development fund
Memorlal Garden & Wall fund
Cannon dlsplay fund
Other restiicted fund5
9,L)00
80,450
71,571
184,5171
171,5711
11,2831
1217,9951
4,933
1,283
1,188,876
4,432
4,472
495
575
6,000
971,456
10,432
4,472
955
1,632
11,1721
1,208.558
160.228
1376.5381
992,248
l March 20ZI
In¢omln8
Out¥olni
Tr4nsl•rs Z8 February 2022
Grant Sn ald
Mlnistry of Defence 5ervlces provlded
Heritage & Archive appeal fund
Projett Ea8le development fund
Memorial Garden & Wall fund
Cannon dlsplay fund
Other restricted funds
5,570
79,324
71,571
175,8941
171,5711
1,283
1,420,743
4,432
4,472
495
1,283
1,188,876
4,432
4,472
495
176,820
1408,6871
4?7,715
1.45fi,1 £?1
),?nA,44A
The Grant In Ald fund Is a grant from the Mlnlstry of Defen heriia8e branch for employees, salafies.
The Ministry of Defence services provided fund represents expenses paid by the Mlnistry of Defence as part of thè
ongoing IBA agreement in place between the Museum and the Ministry of Defence.
The Heritage and Archive appeal fund has been set up to fund archlve and dlsplay prolects. The donor of the fund
ha5 agreed that the donation can also be used for the development project if required.
The Project Eagle development fund represents funds ralsed towards ph35e11 of Project Ea81e.
Page 31
Army FlylnB Museum Llmlted
Company number: 2109510
Notes to financial statements
for the year ended 28th February 2023
The Memorial Wall fund represents funds donated for the building of a wall to cornmemorate those that have lost
their lives in the 5eNlce of BrStlsh Army Flyln8 at a cost of £310,000.
The Cannon Display fund represents a donation from Major R.W Hogarth R.A (Retired) for the purpose of making
a suitable display cabinet for a Scale model of a Waterloo Nine Pounder Cannon.
The National Lottery Heritage EmÈr8èn¢y fund was received toward5 thecost of the websiie aftd oiher equiprnent.
A total of £8,596 wa5 tran51erred to unrestricted fund5 to reflect expenditure Incurred on fixed a55ets in
accordance with SORP FRS 102 SectSon 2.26.
Sufflclent resources are held to enable each fund to be applied in accordance with any restridion5.
19. Analysis of net assets between funds
TanBlble Net Current ProvSslons for
Flx•d Asso1$
Assets
Uabllltles
2023
Unrestricted fund5
Restrlcted funds
1,074,868
819,594
144,074
172,654
1,218,942
992,248
1,894,462
13,393
316,728
28,396
2,211,190
41,789
Non charltable tradln8 funds
1,907,855
345,124
2,252,979
Included In the above flgures Is the revaluation reserve:
Revaluatlon r•ser¥e
340,782
340,782
Tanilbl• N•t Current Prov5slons for
AK•d As5•ts
5•ts
Uabllltles
2022
Unrestricted funds
Restricted funds
1,096.766
1,036,372
213,222
172,186
1,309,988
1,208,558
2,133,138
28.440
385,408
16,945
2,518,546
45,385
Non charltable tradln8 fund5
2,161,578
402,353
2,563,931
Included In the 8bove figures Is the revaluatlon reserve,.
Revaluatlon reserve
340,782
340,782
20. Commltments and cont•ngent Ilabllltles
The charlty had capltal commitments contracted for but not provlded for In the flnancSal statements amountSng
to £Nil12022'. £Nill. There wère no contin8ent liabilities at 281h February 202312022: £Nill.
Page 32
Army Flylng Museum Llmlted
Company number: 2109510
Notes to flnancial statements
for the year ended 28th February 2023
21. Taltsn
All of the charlty's Income15 applied forcharitable purposes and therefore the charity 15 exempt from cofporatlon
tax. The charity's trading subsidiary had a corporation tax liability of £Nil as at 28 February 2023.
22, Related party tran5actlon5
Theie were no related party transactlons.
23, Ultlmate controlllng party
The tsltlmate controllln8 party Is the Board of Trustee Olrectors.
24. Analysls of change5 In net funds
Group
Openln8
balince
Cash
flow5
Clojlni
Cash at bank and in hand
397,981
135,9631
362,018
Net fund$
397,981
135,9631
362,018
Charlty
Openlni
balance
Cash
flows
Closlnl
balance
Cash at bank and In hand
358,359
127,6971
330,662
Net funds
358,359
127,6971
330,662
25. Flnanclal Instruments
The carryin8 amounts of the group's fSnancial Instruments are as follows..
20Z3
2022
Flnancljl asjets
Debt tnstruments rnea5ured at amortised cost..
Trade debtors Inote 161
Other taxes and social securlty Inote 161
Other debtor5 (note 161
2,413
2,236
S,245
4,579
7,658
7,296
Flnandal Ilablllties
Measured at arnortised cost..
Trade creditors (note 171
Other taxes and 50clal security Inote 171
Other creditors (note 171
1,903
13,321
4,766
4,939
8,335
5,458
19.990
18,732
Page 33