**Charity number: 297897 Company number: 2109510**
**Army Flying Museum Limited (A Company limited by guarantee)**
**Trustees’ annual report and Consolidated financial statements For the year ended 28[th] February 2025**
**Compass Accountants Limited Chartered Accountants and Statutory Auditors Venture House The Tanneries East Street Titchfield Hampshire PO14 4AR**
**Army Flying Museum Limited Company number: 2109510**
## **Contents**
|**ents**||
|---|---|
||**Page**|
|Legal and administratve informaton|**1**|
|Chairman’s Report|**2**|
|Trustees' annual report (incorporatng the Strategic Report)|**3 - 14**|
|Structure, governance & management||
|Strategic report||
|Objectves & actvites||
|Achievements & performance||
|Financial review||
|Plans for future periods||
|Principal risks & uncertaintes||
|Statement of Trustees’ responsibilites|**15**|
|Auditor’s report to the Trustees|**16 - 18**|
|Consolidated Statement of fnancial actvites|**19**|
|Consolidated balance sheet|**20**|
|Cash fow statement|**21**|
|Notes to the fnancial statements|**22 - 34**|
**Army Flying Museum Limited Company number: 2109510**
## **Legal and Administrative Information**
**Charity number** 297897 **Company number** 2109510 **Registered Office** Middle Wallop Stockbridge Hampshire SO20 8FB **Chief Executive** Lucy Johnson **Trustees** Major General (Retd) Neil Sexton CB (Chairman) Colin Sibun (Vice Chairman) Caroline Hopkins (Treasurer) Paul Beaver Colonel Edward Butterworth Paul Edwards James Johnson Colonel Brendan Shaw David Short Rhonda Smith **Company Secretary** Andrew Simkins **Senior Statutory Auditor** Kerry Lawrance FCA **Auditors and** Compass Accountants Limited **Accountants** Venture House, The Tanneries East Street Titchfield Hampshire PO14 4AR **Bankers** Royal Bank of Scotland Holts Farnborough Branch Lawrie House, Victoria Road Farnborough Hampshire GU14 7NR
**Page 1**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
## **Chairman’s Report**
This year has been one of the most significant in the Museum’s history. As well as celebrating 40 years of the Army Flying Museum (50 if you include the 10 years the museum collection was based in the cinema on Middle Wallop camp), in May 2024, we became the first UK museum to display an Apache AH Mk.1 (ZJ224) – something that has been one of our core objectives for over a decade. This momentous occasion was made even more special with a visit from His Majesty King Charles III at the launch. ZJ224 is a very special aircraft having been in service in the Army Air Corps for over 20 years and it played an important role in the rescue mission at Jugroom Fort, Afghanistan. It is a fantastic addition to the Museum collection, and we are honoured to preserve it for future generations.
Following the upward trend of 23-24, it has been exciting to see the continued development of the Army Flying Museum this year. Visitor figures are up again this year (22% on the previous year), with a new audience being attracted from the area to the East of the museum including Newbury, Reading and Basingstoke.
We have spent a number of sessions over the last 8 months working with trustees, staff and volunteers to develop our new strategy which is summarised in the four key strategic objectives below:
- 1) A good day out for all the family
- 2) Trusted and accredited custodians
- 3) Leaders in aviation STEM for education
- 4) A great corporate venue
STEM in education is a huge opportunity for us and we are looking at providing experiences for young people of all ages to engage with it as a subject. Our continued partnership with Leonardo Helicopters has allowed us to grow our annual STEM day (aimed at 12-13 year olds) and over 150 attended this year’s event. Our relationships with our key corporate partners help to bring value and experience to these opportunities, whilst also inspiring a new generation of engineers.
Another example of this is the introduction of the Discovery Den, an area dedicated to engineering and technology for all ages, at our annual flagship fundraising event, Wallop Wheels and Wings. Now in its fourth year, this event is a firm favourite in the calendar and has sold out every year. This year saw the museum team work with personnel from the Army Aviation Centre and Army Air Corps to enable display flying to take place for the first time. This is an extremely exciting step forward for us and the event was a great success.
A focus for the last few years has been to consolidate the work that was delivered during Project Eagle whilst also trying to recover from the Covid-19 pandemic and I am pleased to report that we are now seeing an upward trend of improved visitor figures, increased spend, better financial reports and an increase in positive feedback from visitors and users alike.
We cannot get complacent though – this is a challenging economic climate and we are seeing museums and cultural institutions struggling and closing across the country. We are lucky to receive some support from the MoD but that is not guaranteed and we are eager to build up some reserves for our financial resilience. This year will see the trustees, staff and volunteers consider our next 5 year plan to ensure that the organisation can continue to grow.
**Major General (Retd) Neil Sexton CB**
**Chairman**
**Page 2**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
**Page 3**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
The Trustees present their report and the financial statements for the year ended 28[th] February 2025. The Trustees, who are directors of company for the purposes of company law and, who served during the year and up to the date of this report are set out on page 1. The Trustees have had due regard to the guidance issued by the Charity Commission on Public Benefit.
## **Structure, governance and management**
## **Governing Document**
The Museum is governed by its Memorandum and Articles of Association. Trustees are selected by the existing Board from persons having an interest in the story of British Army flying, heritage, conservation and the local community and who have a particular skill or qualification which will add to the combined skills and experience of the Board of Directors. Trustees are recruited to fill gaps in specific skill areas within the Board. The Army Flying Museum Limited (‘the Museum’) was incorporated as a private company limited by guarantee, and without share capital, in March 1987 when the exhibits of the former AAC Museum were donated to it as a basis for public display. The company is also a registered charity (no. 297897).
## **Appointment of Trustees**
The articles provide for the ex-officio appointment of 3 serving AAC officers as trustees. Remaining Trustees are recruited through advertising or recommendations. All trustees are interviewed for suitability before appointment. Selected trustees are also Directors of the Army Flying Museum Trading Company Limited, the Charity’s 100% owned subsidiary. The Trading Company carries out trading activities to generate profits that are Gift Aided to the Museum. The Museum is the ultimate holding company of the Trading Company. While the Museum exercises responsibility as shareholder of the Army Flying Museum Trading Company Limited, the Trading Company board is solely responsible for all trading decisions. Each trustee’s liability in the event of liquidation of the trust is limited to £1 in accordance with Memorandum of Association.
## **Induction and Training**
Newly selected trustees are briefed by the Chairman and CEO before taking up their appointment and participate in annual Board Training. Governance arrangements, the subcommittee structure, and the role and conduct of trustees is the subject of a comprehensive paper that is based on Charity Commission, and other guidance and which is available to all trustees and issued to new trustees before taking up their appointment.
The objects for which the Museum is established are to advance the education of the public primarily, but not exclusively, by the provision of a public Museum recording and exhibiting all aspects of flying in the British Army both past and present.
## **Arrangements For Setting Pay and Remuneration of 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 increases are not awarded automatically, 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 increases by the CEO in recognition of outstanding performance or other exceptional circumstances.
**Page 4**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
## **Public Benefit**
Directors consider that they have complied with the duties expressed in Section 2(1)(b) 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 significant audience of all ages. The Museum has provided a service of great public benefit, offering an educational, enjoyable and satisfying experience through its displays, events and internet presence.
## **Strategic Report**
Museum activity over the last 12 months has been focussed on improving the financial operation of the Museum and managing the changes in consumer spending. We have seen another increase in visitor numbers and the number of free admissions has continued to grow too.
Trading activity this year was slightly better than forecast but expenditure costs have increased more than anticipated meaning activities have been less profitable than expected. Significant increases have been seen in corporate hires and public event attendees.
This year has been about consolidating the work carried out over the last five years, really looking at how we operate and how we can improve. So much has changed over the last five years and it has been important to focus on the day to day operations for a period of time.
## **Objectives and activities**
The object for which the Museum was established is:
‘to advance the education of the public primarily but not exclusively by the provision of a public museum recording and exhibiting all aspects of flying in the British Army both present and past’.
In addition to this charitable object, the Army sets objectives for its museums that include:
- Maintain and enhance the Army’s connection with society
- Present the country’s military heritage and provide an academic research resource
- Contribute to the education of children and adults including educational outreach and support for the National Curriculum
- Educate, train and inspire the current generation of service men and women.
## **Mission, Vision and Values**
## **Our Mission is:**
To preserve, protect and explain the story of British Army flying.
## **Our Vision is** :
To be a sustainable organisation that inspires, educates and preserves its collections for future generations.
**Page 5**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
## **Our Values are:**
- **Passionate** – staff and volunteers care deeply and believe in
- **Inspiring** – we want to use the heroic stories of Army aviation to inspire young and old people alike
- **Informative** – we want to deliver information in a variety of ways to allow easy access
- **Business minded** – we want to operate in a professional and financially sound manner
- **Integrity** – we value the work that we do and conduct ourselves with the highest standards
- **Inclusive** – everyone is welcome at the Army Flying Museum
## **Strategy Management and Strategic Plan**
The Museum’s Strategic Plan is reviewed and approved by Directors annually in March for the following year and covers a period of 5 years. The strategic aim is to underpin future viability by developing a programme of continuous improvement to the museum’s Visitor Offer. This aim is delivered through a number of balanced strategic aims, operational and development objectives contained within the Plan.
Now that operations are more stable, the Board of Directors are currently looking to develop the next 10 year plan for the Museum to ensure we keep looking forward.
## **Significant Activities Undertaken**
## **Project Eagle – the Development of the Museum.**
Phase 1 (the building of the Army Flying Memorial) was completed in September 2017.
Phase 2 (the modernisation of the Museum) was completed in April 2019 and the Activity Plan was completed in December 2021.
Phase 3 (the future expansion of the Museum) is being considered by the Board of Trustees in their strategic review for 2024-2030.
## **Beyond Project Eagle**
Phase 2 of Project Eagle concluded in December 2021. Following this investment, the Museum has made significant progress in non-project related activities over the last 12 months. In particular:
**Media** – our social media presence continues to grow and is summarised below:
|**MEDIA**|**As at**
**28/02/2025**|**As at**
**29/02/2024**|**As at**
**28/02/2023**|**% Change**
**overyear**|
|---|---|---|---|---|
|Twiter Followers|5,946|5,735|5,259|4%|
|Facebook Followers|20,397|13,673|11,111|49%|
|Instagram|6,370|5,281|3,576|21%|
|LinkedIn|746|495|321|51%|
|MailingList|20,972|19,088|18,895|10%|
**Page 6**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
## **Curatorial**
Temporary Exhibitions:
- ‘The Road to Ypres: The War Photography of Olive Edis’. On loan from Norfolk Museums Service (10/12/2023 – 30/06/2024).
- ‘Apache AH Mk.1 ZJ224 at the Army Flying Museum’. (August 2024 – May 2025)
## Permanent Exhibitions:
- Relocation of A109A
- Installation of Apache AH Mk.1
Interpretation:
- Update of Leonardo STEM trail to include the Apache AH MK.1
- Social media posts on objects in the collection and significant dates
- Object handling session in Museum
Enquiries: 67 received
## Collections Management:
- Suspended aircraft checks completed
- Second line installed on Rotachute
- Firearms Licence renewed
- Application for surrender of Environment Agency permit completed
## Collections documentation:
- Completion of gifting paperwork for Apache AH Mk.1
- 11 Donations (47 artefacts) accessioned
- Research and renewal of loans, including condition reports
- Maintenance of collections inventories: Aircraft, Flags, Flying Clothing, Medals, Models, Personal Equipment, Artwork, Uniforms, Vehicles, and Weapons.
- Creation of object digital record folders
- Improvements in location records
## Volunteers:
- Creation and maintenance of Practical Jobs List with Job Request Forms
- Embley Cadets:
- Gardening
- Aircraft cleaning
- Preparing craft materials for Education
- Engineers:
- Exhibition maintenance
- Building maintenance
- Installation of fire extinguishers
- Pedal plane repairs
- Radiation checks
**Page 7**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
- Aircraft condition reports
- Creation of model play table
- Creation of Lego play table
- Creation of photograph stands
- Maintenance of simulators
Training: Emergency Planning Training (National Army Museum)
## **Archives**
Enquiries and donations:
- Total enquiries: 269
- Research visits: 17
- Accepted donations: 31
- New archive services price structure in place.
## Marketing:
- Blog posts: 1 – Operation MARKET GARDEN: 80 years on
- Hawkeye articles: 3 – Balloon Sections, D-Day 80 & Op VARSITY
- Regular social media posts written about items in the Archive & for anniversaries and national days.
- Collections pages on the website updated.
## Other tasks:
- Continued cataloguing of donation backlog up to 2014.
- Retrospective cataloguing of the book/library collection.
- Several oral history recordings completed
- Retrospective cataloguing and rehousing of logbook collection.
- Research conducted into a potential new Collections Management System.
- Joint project with Hampshire Archives Trust and FAST underway to make important RFC collection available online.
- Work undertaken to get the climate control unit in the archive storeroom working again.
- Documentation Officer attended NAM Curator’s Course; part funded by a grant form AIM.
## Volunteers continued working in the archive:
- AOP personnel database completed and AAC database begun.
- Cataloguing the album collections ongoing.
- Cataloguing framed and print material completed.
- Cataloguing ex-display material completed.
- Cataloguing Air Publications ongoing.
- Cataloguing the large negative collection completed.
- Identifying negatives and maps in boxes.
- Surveying video collection ongoing.
- Scanning and cataloguing negatives ongoing.
- Transcribing oral history recordings.
- Writing up AAC Squadron histories ongoing.
**Education and Learning**
**Page 8**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
In terms of Education we still have room for growth, and we have seen numbers stay static for the last couple of years. However, we have introduced Home School Days which have been well attended too.
- 24 schools came on trips to the Museum – 898 pupils
## **School Holiday Family Activities**
Our school holiday activities have become a focal point for local families with many returning each holiday with their annual pass. We have developed these beyond the popular daily craft sessions to include visiting activity providers (for example, a petting farm at Easter and reptiles for our camouflage theme) as well as other activities provided by the staff team like the dressing up, object handling and model making. The programme is developed in conjunction with the curatorial and marketing teams.
- Easter Holidays 2024: 745 participants
- May Half Term 2024: 255 participants
- Summer Holidays 2024: 1,095 participants
- October Half Term 2024: 397 participants
- Christmas Holidays 2024/25: 290 participants
- February Half Term 2025: 505 participants
## **Outreach**
Outreach has been firmly embedded in the museum operations now, with a range of staff and volunteers working to deliver the different activities.
The following Outreach events took place:
- **Young Eagles** Youth Group sessions (in partnership with the Army Welfare Service):
- No of Young Eagles sessions: 10 sessions
- No of Young Eagles participants: 198 participants
**Pre-School Pilots** (sessions for under-5s and their parent/carer)
- No of Pre-School Pilot sessions: 10 sessions
- No of Pre-School Pilot participants: 300 participants
**Scout/Guide groups** etc and the number of participants
- Museum visits by Youth Groups: 179 participants
## **Pop Up Museum** events:
- No of events attended: 4 events
- No of participants: 500 participants (estimated)
## **Fundraising**
Fundraising is a key part of the Museum’s operations. 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 Development Committee that provides guidance and support. The Committee comprises of Trustee, Staff and Volunteer representation. The Museum is registered with the Fundraising Regulator and the team abide by the Fundraising Code. The Museum’s fundraising promise is linked to the website htps://www.armyfying.com/project-eagle/fundraising/. Fundraising activities have concentrated on
**Page 9**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
applications to grant making trusts, developing business relationships and major fundraising events. The Museum did not receive any complaints in the period.
## **Fundraising Events**
Fundraising continues in earnest with an aim of generating £40k surplus every year. We have refreshed the Development Committee and are focussed on building new business relationships, increasing the Corporate Partnerships scheme and putting on public events to help raise funds whilst also increasing awareness of the Museum.
The Museum’s flagship fundraising event, Wallop Wheels & Wings, took place on Saturday 13 July 2024 with an increased capacity of 5,000 and the event sold out for the fourth year running. We have built strong relationships with Salisbury, Wilton and Andover Rotary, Hampshire Search & Rescue, and numerous Combined Cadet Force groups now and are extremely grateful for their support and the support we receive from the Army Air Corps and Army Aviation Centre in order to deliver this event.
This year, for the second year, we chose to bring the management of the event in-house with the Museum’s Marketing & Commercial Operations Manager taking the role of Event Manager (rather than bringing in a freelance Event Manager). This worked exceptionally well in terms of the Museum’s ownership of the event and also greatly improved the profitability of the event.
## **The Museum Lecture Programme**
The Museum has always had a popular lecture programme but in response to the Covid-19 pandemic we developed the Lockdown Lectures which were broadcast online with a live Q&A. These launched in April 2020 and quickly grew in popularity, and a grant from the Heritage Fund Emergency Fund in late 2020 allowed us to purchase our own live-stream equipment.
Now, we live stream all our lectures as well as having a live audience in the Museum, and we offer them to view on catch up too. We have also donated passes to watch our online lecture ‘box-sets’ to local care homes for their residents.
|**Name of Lecture**|**Date**|**Name of Presenter**|
|---|---|---|
|Best Fighter Debate|15 April 25|Paul Beaver|
|SOFO Pegasus Bridge|23 May25|Richard Folkes|
|Operaton Overlord|03 June 25|Chris Cox|
|Secrets of D-Day|10 June 25|Paul Beaver|
|Airbourne Operatons|02 Aug25|James Daly|
|Operaton Market Garden|16 Sept 25|Derek Armitage|
|In Search of the Band of Brothers|19 Sept 25|Richard Osgood|
|Refectons on Batle of Britain|16 Oct 25|Black Robertson|
|Silent Wings: GPR Tour|09 Nov 24|Ham & Jam|
|OpFreshman|18 Nov 24|Dr Bruce Tocher|
|The Berlin Airlif|16 Jan 25|Derek Armitage|
|Pegasus Bridge|27 Jan 25|Neil Barber|
|Knited Comforts and Services|13 Feb 25|Joyce Mercer|
|Westland Lecture|24 Feb 25|Inpartnershipwith Leonardo|
**Page 10**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
## **Volunteers**
Volunteering is a vital part of the Museum operations. The volunteer teams are Engineering, Archive, Education and Tour Guides and we have around 40 active volunteers now. The roles our volunteers perform are invaluable to the running of the Museum and they often get involved in the wider activities too (like Wallop Wheels & Wings).
## **Achievements and performance**
## **Financial Review**
The Museum, Café and Shop were open throughout the reporting period.
|YTD|VISITOR NOS|TICKET INCOME|CAFÉ INCOME|SHOP INCOME|
|---|---|---|---|---|
|28 FEB 2025|46,829|£304,376|£195,287|£85,723|
|29 FEB 2024|44,033|£293,680|£182,170|£78,664|
|28 FEB 2023|38,596|£238,536|£161,430|£66,531|
|28 FEB 2022*|35,396|£195,357|£119,673|£57,584|
|28 FEB 2021**|14,388|£95,093|£46,538|£31,066|
|29 FEB 2020***|36,282|£257,320|£188,984|£67,692|
|28 FEB 2019****|23,568|£147,087|£142,183|£58,443|
|28 FEB 2018|30,354|£189,758|£146,681|£75,732|
- _NB. The Museum was closed due to Covid 19 from 01 Mar-16 May 2022_
- _** NB. The Museum was closed due to Covid 19 apart from 13 Jul-04 Nov 20 and 04 Dec-23 Dec 20_
- _*** NB. The Museum was closed in March 2019 for refurbishment_
- _**** NB. The Museum was closed from Nov 18 – Feb 19 for refurbishment_
## **Subsidiary Undertaking**
The Army Flying Museum Trading Company Limited is the 100% subsidiary of the Army Flying Museum Limited. The subsidiary operated the trading activities of the museum and covenants its profits to the Museum on an annual basis.
## **Principal funding streams**
The principal funding streams into the Museum are threefold, as detailed below. All funding has been used in the appropriate manner to support the management objectives for the period.
## **Income generation from trading and admission activity including gift aid**
This income is directed towards the management of the Museum and the improvements required to develop the business. This year has seen an improvement in shop profits and following a change in management in the Café in December, provision and profits are starting to improve.
**MOD support**
**Page 11**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
The MOD provides support in 2 ways:
- Grant in aid. This totalled £67,931.26 for the year.
- Internal Business Agreement. This 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 an additional grant from the AAC Charity of £20,000 to support the employment of a Collections and Archive Assistant, and we benefit from support from the AAC with the delivery of Wallop Wheels & Wings.
## **Grants and donations**
Unless specified by the donor, grants and donations to the Museum are allocated to unrestricted funds.
## **Ticket Pricing**
A planned price increase was implemented on 01 March 2025 to both the online and on-the-door tickets (following the successful introduction of this system in November 2023). This helps to streamline the visitor experience and to also ease the collection of customer data. All full price tickets still provide an annual pass and we encourage visitors to agree to Gift Aid if they are able.
|**TICKET**|**NEW ONLINE**
**PRICE**|**_ONLINE PRICE_**|**NEW ON THE**
**DOOR PRICE**|**_ON THE DOOR_**
**_PRICE_**|
|---|---|---|---|---|
|Adult|**£18.00**|_£17.00_|**£21.00**|_£20.00_|
|Child|**£10.50**|_£10.00_|**£13.00**|_£13.00_|
|Concession|**£15.00**|_£14.00_|**£18.00**|_£17.00_|
|Universal Credit /
Pension Credit holder|**£15.00**|_N/A_|**£18.00**|_N/A_|
|Family (1a+2c)|**£34.00**|_£34.00_|**£40.00**|_£40.00_|
|Family (2a+2c)|**£50.00**|_£48.00_|**£60.00**|_£60.00_|
|Under 4s|**Free**|_Free_|**Free**|_Free_|
## **Free Entry**
The Museum offers free entry to:
- AAC members (plus their accompanying Spouse/Children)
- Army Air Cadets (when booked through the Army Air Corps)
- Serving British or Commonwealth Military personnel on production of a MOD90 or equivalent ID Card
- Any UK Veteran with a valid Veterans’ Membership Card
- Carers who are accompanying people with disabilities
- Children under 4
## **Reserves Policy**
The results for the period, and the company’s financial position at the end of the year, are shown in the attached accounts. The agreements with the MOD continued to work well and are of enormous benefit to the Museum. However, MOD budget constraints continue to adversely affect the maintenance support for Phase 1 of the museum building (which is an MOD maintenance responsibility). This has resulted in Museum staff taking on some maintenance tasks and additional expense falling to the Museum.
**Page 12**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
The Museum maintains a level of free reserves as mitigation against the operational risks listed in the risk register. Restricted reserves are used in accordance with their specified restrictions. Free (i.e. noncommitted) reserves are calculated on the basis of the excess of unrestricted funds over fixed assets. The minimum level of the unrestricted reserve is determined by the requirement to provide some financial mitigation 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 viability. Due to the increased cost of living and rising overheads, the Trustees reviewed the policy last year regarding free reserves and agreed to increase the requirement to £200,000.
At 28 February 2025 the level of the Museum’s free reserves amounted to £317,022 (2024: £201,159).
## **Investment Policy**
The Museum’s investment policy is to hold its liquid assets in its bank accounts. However, it has been agreed to move £100,000 into a separate COIF account to hopefully move towards starting an Investment Portfolio. Project Eagle reserves have largely been expended no significant sums are held in interest bearing accounts.
## **Plans for future periods**
Directors have worked with the staff team to review the strategic plan for the Museum over the coming year to determine the priorities for delivering the Museum’s vision in the next 5 years.
## **Review**
The strategic plan has identified 4 key objectives for the next 5 years:
- 1) A good day out for all the family
- 2) Trusted and accredited custodians
- 3) Leaders in aviation STEM for education
- 4) A great corporate venue
## **Assumptions**
The strategic plan is based on the following assumptions:
- **MOD Support** . MoD support including the grant in aid 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.
- **Airfield** . Army flying operations will continue for the foreseeable future.
- **Economy** . The UK economy will continue to grow very slowly, base interest rates will increase significantly, labour may be in short supply and all costs are likely to grow.
## **Key Strategies**
The following strategies will be pursued by the Museum:
- Maintain and develop an effective board of trustees/directors.
- Nurture the close relationship with the Army Air Corps.
**Page 13**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
- Seek to increase museum visitor footfall up to 55,000 annually by 2027.
- Invest in Corporate and Membership schemes, aiming for 5% growth annually.
- Build on our outreach programme, seeking to double our coverage by 2027.
- Develop our fundraising activities to generate £70K annually by 2027.
- Market the Museum primarily through digital activities and social media and developing a plan to improve our PR profile regionally.
- Invest more in training our staff.
## **Operational Objectives**
Our Key Operational Objectives are:
- Develop Wallop Wheels & Wings to deliver a £40K annual surplus.
- Maintain a routine events programme to generate £20K annually.
- Sustain the Lecture Series to generate £20K annually.
- Operate the Shop to generate £10K surplus annually.
- Operate the Café to generate £20K surplus annually.
## **Development Objectives**
Our key development objectives are to:
- Assess the financial implications of reductions in MOD support.
- Resource and deliver a restroom refurbishment project 25-27.
- Build on the visitor feedback collected to date and ensure that evaluation is embedded in all activities.
- Seek to extend and diversify our audience.
- Consider how to better reflect Army unmanned aerial platforms.
- Increase collaboration with other regional museums.
## **Risks**
A number of high-level risks have been identified that affect the Museum
|**STRATEGIC RISK**|**RESPONSE**|
|---|---|
|**Income Generaton**
The Museum has, in the past, relied on income from events
supported by the Ministry of Defence to generate a surplus.
These events are no longer available and so additonal
income needs to be generated through footall, trading and
fundraising. In additon, Ministry of Defence funding and
material support is likely to decrease over tme, putng
furtherpressure on the Museum budget.|Work over the last 5 years has
substantally increased footall and
trading. Fundraising is now embedded in
the organisaton and a component of
core funding.|
|**Covid-19**
The impact of any future peaks and subsequent lockdowns
will have a signifcant impact on the reserves.|All opportunites for fundraising and
income generaton must be actoned
whenpossible.|
|**Loss of Reputaton**
Adverse comment and poor reputaton afect business
performance.|Legal compliance and a culture of
customer service and value for money.|
|**Maintenance liability.**|Signifcant Improvements in the material|
**Page 14**
**Army Flying Museum Limited Company number: 2109510**
## **Report of the trustees (incorporating the Directors’ report) for the year ended 28[th] February 2025**
|Pressure on Ministry of Defence funding has reduced
maintenance support putng additonal pressure on
museum funding|state of the Museum through Project
Eagle plus a system of planned
maintenance.|
|---|---|
|**HR Risk**
Errors in HR management can lead to discontent, stress, loss
of productvity and in extreme cases, tribunals and fnes.|HR advice has been outsourced to
Peninsula business services.|
|**Health and Safety**
Inadvertent noncompliance with Health and Safety
legislaton leadingto a fne.|Health and Safety advice has been
outsourced.|
|**Fraud**|Implementaton of Properprocedures.|
|**Staf loading/Incapacity**|Careful monitoring.|
## **Auditors**
The accounts have been audited by Compass Accountants Limited. A resolution to reappoint the auditor will be put to the members at the Annual General Meeting.
So far as the Trustees are aware, there is no relevant audit information 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 establish that the company’s auditors are aware of that information.
## **Small company provisions**
This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.
## **Major General Neil Sexton CB On behalf of the Board**
## **Date:**
**Page 15**
**Army Flying Museum Limited Company number: 2109510**
## **Statement of trustees’ responsibilities for the year ended 28[th] February 2025**
The Trustees (who are also directors of the Army Flying Museum Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 **.** They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Major General Neil Sexton CB On behalf of the Board**
## **Date:**
**Page 16**
**Army Flying Museum Limited Company number: 2109510**
## **Independent Auditor’s Report to the Members and Trustees of the Army Flying Museum Limited**
## **Opinion**
We have audited the financial statements of the Army Flying Museum Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 28[th] February 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom 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:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 28[th] February 2025, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or parent charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial
**Page 17**
## **Army Flying Museum Limited Company number: 2109510**
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and parent 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 and the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
## **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 group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent 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,
**Page 18**
**Army Flying Museum Limited Company number: 2109510**
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:
- We gained an understanding 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 application of relevant audit knowledge and experience
- We made enquiries of management around actual and potential litigation and claims
- We made enquiries 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 regulations which could give rise to material misstatement in the financial statements including, but not limited to, the Companies Act 2006, the Charities Act 2011, the Charities SORP, and the Financial Reporting Standard 102.
- We identified the risk of material misstatement of the financial statements due to fraud and designed audit procedures to respond to the risk. We performed audit procedures designed to address the risk of fraud arising from management override of controls, including, but not limited to, testing of journal entries and other adjustments, reviewing accounting estimates for evidence of bias, and evaluating the business rationale of significant transactions outside the normal course of business
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 for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
**Page 19**
**Army Flying Museum Limited Company number: 2109510**
**Kerry Lawrance FCA** Senior Statutory Auditor For and on behalf of Compass Accountants, Statutory Auditor
Venture House, The Tanneries East Street, Titchfield Hampshire PO14 4AR
## **Date:**
**Page 20**
**Army Flying Museum Limited Company number: 2109510**
## **Consolidated Statement of financial activities (incorporating the income and expenditure account)**
## **For the year ended 28[th] February 2025**
|**Unrestricted Restricted**
**funds**
**funds**
**Notes**
**£**
**£**
**Income from:**
Donatons and legacies
Grant in aid
4
-
67,931
Services donated by the Ministry of
Defence (MoD)
4
-
71,571
Donatons and grants
4
226,450
27,050
Charitable actvites (incl admissions)
5
582,608
-
Other trading actvites
Trading company
3
283,600
-
Investments
6
3,755
2,043
Other
7
553
-
**Total income**
1,096,966
168,595
**Expenditure on:**
Fundraising and publicity
8
78,072
-
Trading company
8
258,960
-
Charitable actvites
9
497,851
386,390
**Total expenditure**
834,883
386,390
**Net income/(expenditure)**
262,083
(217,795)
**Transfers between funds**
60,000
(60,000)
**Net movement in funds**
322,083
(277,795)
**Reconciliaton of funds:**
Total funds brought forward
1,290,023
764,215
**Total funds carried forward**
1,612,106
486,420|**2025**
**Unrestricted Restricted**
**Total**
**funds**
**funds**
**£**
**£**
**£**
67,931
-
65,056
71,571
-
71,571
253,500
9,391
23,080
582,608
533,401
-
283,600
265,551
-
5,798
2,471
2,359
553
6,769
-
1,265,561
817,583
162,066
78,072
58,025
-
258,960
256,956
-
884,241
473,310
390,099
1,221,273
788,291
390,099
44,288
29,292
(228,033)
-
-
-
44,288
29,292 (228,033)
2,054,238
1,260,731
992,248
2,098,526
1,290,023
764,215|**2024**
**Total**
**£**
65,056
71,571
32,471
533,401
265,551
4,830
6,769|
|---|---|---|
|||979,649|
|||58,025
256,956
863,409|
|||1,178,390|
|||(198,741)
-|
|||(198,741)
2,252,979|
|||2,054,238|
All recognised gains and losses are included in the statement of financial activities. All transactions are derived from continuing activities.
The depreciation costs of the capital expenditure on Project Eagle will reduce the balance of restricted reserves over the life of the lease and will result in deficits after depreciation being recognised in future years.
**The notes on pages 22 to 34 form an integral part of these financial statements.**
**Page 21**
**Army Flying Museum Limited Company number: 2109510**
## **Consolidated Balance Sheet as at 28[th] February 2025**
|**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**
**Net assets**
**Funds**
Unrestricted funds
18
Restricted funds
19
Revaluaton reserve
Non Charitable Trading funds
**Total funds**|**Group**
**2025**
**£**
1,486,109
210,000
-
1,696,109
14,656
40,144
429,424
484,224
(81,807)
402,417
2,098,526
1,286,015
486,420
285,657
40,434
2,098,526|**Group**
**2024**
**£**
1,647,627
10,000
-
1,657,627
13,591
27,765
407,182
448,538
(51,927)
396,611
2,054,238
914,411
764,215
340,782
34,830
2,054,238|**Charity**
**2025**
**£**
1,484,458
210,000
100
1,694,558
-
58,084
403,038
461,122
(97,588)
363,534
2,058,092
1,286,015
486,420
285,657
-
2,058,092|**Charity**
**2024**
**£**
1,646,855
10,000
100
1,656,955
-
42,896
382,982
425,878
(63,425)
362,453
2,019,408
914,411
764,215
340,782
-
2,019,408|
|---|---|---|---|---|
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
**Major General Neil Sexton CB Caroline Hopkins Chairman Treasurer Date: Date:**
**The notes on pages 22 to 34 form an integral part of these financial statements.**
**Page 22**
**Army Flying Museum Limited Company number: 2109510**
## **Cash flow statement**
## **for the year ended 28[th] February 2025**
|**Cash fows from operatng actvites:**
**Net cash provided by (used in) operatng actvites**
**Cash fows from investng actvites:**
Interest income
Purchase of fxed assets
**Net cash provided by (used in) investng actvites**
**Increase/(decrease) in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 March 2024**
**Cash and cash equivalents at 28 February 2025**
Net income/expenditure for the reportng period
Depreciaton and impairment
Donated heritage assets
Income from investments
Decrease/(Increase) in stocks
Decrease/(Increase) in debtors
Increase/(Decrease) in creditors
**Net cash provided by (used in) operatng actvites**|**Group**
**2025**
103,568
5,798
(87,124)
(81,326)
22,242
407,182
429,424
44,288
248,642
(200,000)
(5,798)
(1,065)
(12,379)
29,880
103,568|**Group**
**2024**
42,018
4,830
(1,684)
3,146
45,164
362,018
407,182
(198,741)
251,912
-
(4,830)
(537)
(16,786)
11,000
42,018|
|---|---|---|
**Page 23**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
## **1. Accounting policies**
## **1.1. Charity information**
The Army Flying Museum Limited is a private company limited by guarantee and incorporated in England and Wales. The registered office is the Army Flying Museum, Army Aviation Centre, Middle Wallop, Stockbridge, Hampshire, SO20 8DY.
The Army Flying Museum Limited meets the definition of a public benefit entity under section 34 of FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy.
The principal objectives of the charity are detailed in the Trustees report.
## **1.2. Basis of preparation of financial statements**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements are presented in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The consolidated financial statements incorporate the results of the Army Flying Museum Limited and of its subsidiary, Army Flying Museum Trading Company. The Consolidated Statement of Financial Activities includes the results of the trading subsidiary as single line items. The consolidated Balance Sheet includes the net assets of the trading subsidiary on a line by line basis.
A separate statement of financial activities and income and expenditure account are not presented for the charity itself following the exemptions afforded by Section 408 of the Companies Act 2006.
## **1.3. Incoming resources**
All incoming resources are included in the SOFA when the company is legally entitled to the income and the amount can be quantified with reasonable accuracy, and it is probable that the income will be received. The following polices are applied to particular categories of income:
Income from trading activities represents monies received (exclusive of Value Added Tax) from shop and restaurant sales during the year.
All donations are accounted for on a receivable basis. Separate reserves are maintained for restricted funds in accordance with the Charities Act 2011.
Grants receivable are accounted for when received and are included under the heading of donations.
Services donated by the Ministry of Defence is the value of the services of staff and facilities paid directly by the Ministry of Defence. These have been included on a cost basis in the accounts.
Grant in aid is a donation from the Ministry of Defence towards employment costs. Investment income is recognised on a receivable basis.
## **1.4. Governance costs**
Governance costs include costs of the preparation and examination of the statutory accounts, the cost of Trustee meetings and the cost of any legal advice to Trustees on governance or constitutional matters.
**Page 24**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
## **1.5. Resources expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.
## **1.6. Basis of allocation**
Costs of generating funds comprise costs incurred in encouraging people and organisations to contribute financially to the charity's work and to promote the Army Flying Museum as a visitor attraction.
Support costs include central functions and have been allocated to cost categories on a basis consistent with the use of resources.
## **1.7. Irrecoverable VAT**
Irrecoverable VAT has been included as a cost of charitable activities.
## **1.8. Fixed assets**
Individual fixed assets costing £1,000 or more are initially recorded at cost.
## **1.9. Heritage assets**
The Army Flying Museum holds in trust artefacts comprising its collection. The collections have not been included in the financial statements due to their historic and inalienable nature and due to the specific and individual nature of the artefacts held, it is not believed to be possible to obtain a reliable value of the collection without incurring a cost disproportionate to the benefit of the information reported to the readers of the accounts.
Assets acquired prior to 1[st] April 2000 have not been capitalised and included in the accounts but with effect from 1[st] April 2000, additions to the collection with a cost in excess of £5,000, have been capitalised. These assets are not revalued or depreciated.
Heritage assets donated to the Museum with a value in excess of £5,000 are included in the accounts on the basis of internal valuations.
## **The Collection**
The main museum collection comprises aircraft, vehicles, equipment, uniforms, medals, weapons, artwork and ephemera. It also includes an archive of documents, books, photographs, photographic negatives, albums, slides and film. The collection, which numbers many hundreds of thousands of items, contains material which has a unique provenance relating to British Army Flying. Information regarding cost of value of this collection is not readily available and the charity considers that the cost of obtaining such valuation for the collection of assets held is significant, and is not commensurate with the benefit obtained by including the additional capitalised value in the financial statements.
## **Policy for the acquisition, preservation, management and disposal of heritage assets**
Acquisition and disposal of items in the collection is governed by its Collections Development Policy (2016) which is based on an approved template provided by Arts Council England. It takes into account the Museum Association Code of Ethics.
Documenting. The Museum's approach to documenting the collection is stated in its Collections Documentation Policy (2016) and is formalised in a forward plan of work. It operates 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 Policy (2016) and is formalised in a plan of work forward. Work in this area is undertaken by staff, volunteers under the supervision of staff or specialist contractors.
**Page 25**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements**
## **for the year ended 28[th] February 2025**
Access. The Museum's approach to providing access to collections is stated in its Access Policy (2016). The collections, and the information held therein, is made available through permanent and temporary exhibitions, website features, loans to other organisations and an enquiries service. Members of the public can also access material by appointment. Access is only limited where legislation requires it.
## **Memorial Wall**
The Museum commissioned and built a memorial wall, completed in 2017, to commemorate those that have lost their lives in the service of British Army Flying however this is not considered to be a heritage asset as defined by FRS 102.
## **1.10. Depreciation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over the expected useful economic life as follows:
Museum displays & equipment - 13% & 25% Straight line basis Leasehold property - Over the life of the lease Leasehold improvements - 10 or 25 years Shop & kitchen equipment - 20% Straight line basis
## **1.11. Investments**
Fixed asset investments are included at market value at the balance sheet date.
Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of financial activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.
## **1.12. Financial Instruments**
The Museum has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
The Museum’s financial assets and liabilities consist of cash and cash equivalents, short term investments, trade debtors, trade creditors and accrued expenses. The fair value of these items approximates their carrying value due to their short term value. Unless otherwise noted, the Museum is not exposed to significant interest, foreign exchange or credit risks arising from these instruments.
Term deposits of less than one year are classified as investments within current assets.
## **1.13. Stocks**
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.
## **1.14. Leased assets**
Rentals applicable to operating leases are charged to the Statement of Financial Activities as incurred.
**Page 26**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
## **1.15. Fund accounting policy**
Unrestricted income funds are generally funds that are available for use at the Trustees discretion in futherance of the objectives of the charity.
Restricted funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Further details of each fund are disclosed in note 19.
## **1.16. Restricted funds**
Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of overheads and support costs.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
## **1.17. 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.
## **1.18. Termination benefits**
The Museum recognises a liability for termination benefits at the point where the group is committed to making the payments in return for employee redundancy.
## **2. Pension costs**
The company operates a defined contribution pension scheme. The pension cost for the period represents contributions payable by the charity to the scheme and amounted to £9,099 (2024: £8,102).
Contributions totalling £684 (2024: £660) were payable to the scheme at the end of the period and are included in creditors.
**Page 27**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
## **3. Income and expenses from trading activities of subsidiaries**
The charity has a wholly owned trading subsidiary which is incorporated in the United Kingdom, Army Flying Museum Trading Company Limited.
|**Proft and Loss Account**
Turnover
Cost of sales
Gross Proft
Interest income
Overheads
Net proft/(loss) before tax
Amount gifed to The Army Flying Museum
Proft/(loss) for year before taxaton
Taxaton
Retained proft/(loss) for the period
Retained proft brought forward
Retained proft carried forward
Called up Ordinary Share Capital
Capital and reserves|**2025**
**£**
283,152
(113,056)
170,096
448
(145,904)
24,640
(19,036)
5,604
-
5,604
34,830
40,434
100
40,534|**2024**
**£**
265,125
(107,853)|
|---|---|---|
|||157,272
426
(149,103)|
|||8,595
(15,554)|
|||(6,959)
-|
|||(6,959)
41,789|
|||34,830
100|
|||34,930|
**Page 28**
**Army Flying Museum Limited Company number: 2109510**
## **4. Grants and Donations**
During the year the following grants and donations were received:
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Grant in Aid
-
67,931
Services provided by Ministry of Defence
-
71,571
-
139,502
Other grants and donatons:
General donatons
6,450
27,050
Donated heritage asset – Apache
200,000
-
Donated heritage asset – 2 x Cockpit Trainers
20,000
-
Above assets donated by the Ministry of Defence
226,450
27,050|**2025**
**Total**
**£**
67,931
71,571
139,502
33,500
200,000
20,000
253,500|**2024**
**Total**
**£**
65,056
71,571|
|---|---|---|
|||136,627|
|||32,471
-
-|
|||32,471|
In 2024 £159,707 were restricted funds with £9,391 being unrestricted funds.
**Page 29**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
## **5. Charitable activities**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Museum Admissions
318,276
-
Gif aid tax claimed
66,664
-
Hire of museum facilites
28,298
-
Special events
136,588
-
Sponsorship
32,782
-
582,608
-|**2025**
**£**
318,276
66,664
28,298
136,588
32,782
582,608|**2024**
**£**
307,007
59,105
34,107
112,221
20,961|
|---|---|---|
|||533,401|
All the income for 2024 were unrestricted funds
## **6. Investment income**
|**Investment income**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|||
||**funds**|**funds**|**2025**|**2024**|
||**£**|**£**|**£**|**£**|
|Dividends and interest|3,755|2,043|5,798|4,830|
In 2024 £2,359 were restricted funds with £2,471 being unrestricted funds
## **7. Other incoming resources**
||**Unrestricted**|**Restricted**|||
|---|---|---|---|---|
||**funds**|**funds**|**2025**|**2024**|
||**£**|**£**|**£**|**£**|
|Museum & Galleries Exhibiton Tax Relief (MGETR)|553|-|553|-|
|Insurance claim|-|-|-|6,769|
**Page 30**
**Army Flying Museum Limited Company number: 2109510**
|553
-
All the income for 2024 were unrestricted funds
**Cost of generatng funds**
**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Shop and restaurant expenses
258,960
-
Event Expenditure
78,072
-
337,032
-|553
**2025**
**£**
258,960
78,072
337,032|6,769|
|---|---|---|
||||
|||**2024**
**£**
256,956
58,025|
|||314,981|
## **8. Cost of generating funds**
All the expenditure for 2024 were unrestricted funds
**Page 31**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
## **9. Costs of charitable activities**
|**Unrestricted Restricted**
**funds**
**funds**
**£**
**£**
Staf costs
307,136
87,931
Costs paid by Ministry of Defence
-
71,571
Staf training
898
-
Outreach costs
1,497
-
Repairs and maintenance
26,940
-
Computer expenses
18,609
-
Hire of plant and machinery
10,311
-
Travel and subsistence
1,803
-
Unatributable VAT
18,418
-
Professional fees
9,772
-
Depreciaton
23,633
224,512
Loss on disposal of assets
-
-
Ofce costs
14,183
2,376
Advertsing & promoton costs
16,848
-
Bad debt expense
-
-
Governance and support costs
47,803
-
497,851
386,390|**2025**
**£**
395,067
71,571
898
1,497
26,940
18,609
10,311
1,803
18,418
9,772
248,145
-
16,559
16,848
-
47,803
884,241|**2024**
**£**
380,094
71,571
2,180
1,403
44,919
15,328
10,529
1,732
11,672
12,750
238,073
1,118
16,293
14,633
25
41,089|
|---|---|---|
|||863,409|
In 2024 £390,099 were restricted funds with £473,310 being unrestricted funds
## **10. Governance and support costs**
|**Governance and support costs**|||
|---|---|---|
|**Governance costs**
**£**
**Governance costs**
Staf costs
37,235
Auditors remuneraton
3,975
Costs of Trustees meetngs
943
**Support costs**
Bank charges and interest
5,650
47,803|**2025**
**£**
37,235
3,975
943
5,650
47,803|**2024**
**£**
30,543
3,600
776
6,170|
|||41,089|
## **11. Auditors' remuneration**
|Auditors' remuneraton - audit of the fnancial statements
Auditors' remuneraton - other fees:
- Preparaton of statutory accounts and payroll
- Taxaton services
- Consultancy and advice regarding VAT and other charity maters, including MGETR|**2025**
**£**
3,975
5,345
295
1,554
7,194|**2024**
**£**
3,600
4,870
265
1,638|
|---|---|---|
|||6,773|
**Page 32**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
## **12. Employees**
|**Employee costs**
Wages and salaries
Social security costs
Pension costs|**2025**
**£**
510,269
32,670
9,099
552,038|**2024**
**£**
486,372
27,987
8,102|
|---|---|---|
|||522,461|
Including the Chief Executive Officer, the average number of employees, analysed by function, was:
|Management staf
Museum staf|**2025**
11
18
29|**2024**
11
20|
|---|---|---|
|||31|
No employees received termination benefits in the year (2024: Nil).
No trustees received remuneration during the period, no trustees were reimbursed for expenses (2024: Nil).
No employees received remuneration of more than £60,000 during the year (2024: Nil).
## **Key management personnel**
Employee benefits received by key management personnel total £50,701 (2024: £47,018) which included employers’ national insurance contributions.
## **13. Tangible fixed assets**
|**Group**
**Leasehold Property Shop & KitchenMuseum Displays**
**& Improvement**
**Equipment**
**& Equipment**
**£**
**£**
**£**
**Cost**
At 1 March 2024
1,471,644
129,150
1,818,338
Additons
-
1,376
85,748
Disposals
-
-
-
At 28 February 2025
1,471,644
130,526
1,904,086
**Depreciaton**
At 1 March 2024
429,277
128,378
1,213,850
Charge for the year
16,734
497
231,411
Eliminated on disposal
-
-
-
At 28 February 2025
446,011
128,875
1,445,261
**Net book values**
At 28 February 2025
1,025,633
1,651
458,825
At 29 February 2024
1,042,367
772
604,488|**Heritage**
**Assets**
**£**
10,000
200,000
-
210,000
-
-
-
-
210,000
10,000|**Total**
**£**
3,429,132
287,124
-|
|---|---|---|
|||3,716,256|
|||1,771,505
248,642
-|
|||2,020,147|
|||1,696,109|
|||1,657,627|
**Page 33**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
|**Charity**
**Leasehold PropertyMuseum Displays**
**& Improvement**
**& Equipment**
**£**
**£**
**Cost**
At 1 March 2024
1,471,644
1,818,338
Additons
-
85,748
Disposals
-
-
At 28 February 2025
1,471,644
1,904,086
**Depreciaton**
At 1 March 2024
429,277
1,213,850
Charge for the year
16,734
231,411
Eliminated on disposal
-
-
At 28 February 2025
446,011
1,445,261
**Net book values**
At 28 February 2025
1,025,633
458,825
At 29 February 2024
1,042,367
604,488|**Heritage**
**Assets**
**£**
10,000
200,000
-
210,000
-
-
-
-
210,000
10,000|**Total**
**£**
3,299,982
285,748
-|
|---|---|---|
|||3,587,730|
|||1,643,127
248,145
-|
|||1,891,272|
|||1,694,458|
||||
|||1,656,855|
## **Revaluation of fixed assets**
The leasehold property was restated at open market value at 31[st] March 1993 and subsequently reduced by depreciation on that value.
**Page 34**
**Army Flying Museum Limited Company number: 2109510**
## **14. Heritage assets**
|**Cost**
At 1 March 2024
Additons
At 28 February 2025
**Five year summary**
Additons
Purchases
Donatons|**2025**
**£**
-
200,000
200,000|**2024**
**£**
-
-
-|**2023**
**£**
-
-
-|**2022**
**£**
-
-
-|**Total**
**£**
10,000
200,000
210,000
**2021**
**£**
-
-
-|
|---|---|---|---|---|---|
## **15. Fixed asset investments**
|**Fixed asset investments**|||
|---|---|---|
||**Charity**|**Charity**|
||**Unlisted**|**Total**|
|**Cost**|**£**|**£**|
|At 1 March 2024 and 28 February 2025|100|100|
Unlisted investments represents 100% of the issued share capital of Army Flying Museum Trading Company Limited.
## **Notes to financial statements for the year ended 28[th] February 2025**
## **15.1. Investments held**
The company holds 20% or more of the share capital of the following companies:
|||**Shares held**|**% of shares**|
|---|---|---|---|
|**Company**|**Nature of business**|**class**|**held**|
|Army Flying Museum Trading Company|Commercial actvites of the parent|Ordinary|100%|
|Limited|company|||
## **16. Debtors: amounts due within 1 year**
|Trade debtors
Other debtors
Accrued income
Prepayments
**Creditors: amounts falling due within one year**|**Group**
**2025**
**£**
6,855
26,501
1,879
4,909
40,144
**Group**
**2025**|**Group**
**2024**
**£**
9,976
6,019
6,769
5,001
27,765
**Group**
**2024**|**Charity**
**2025**
**£**
6,855
26,501
19,819
4,909
58,084
**Charity**
**2025**|**Charity**
**2024**
**£**
9,976
5,596
22,323
5,001|
|---|---|---|---|---|
|||||42,896|
|||||**Charity**
**2024**|
**17. Creditors: amounts falling due within one year**
**Page 35**
**Army Flying Museum Limited Company number: 2109510**
|Trade creditors
Other taxes and social security
Other creditors
Accruals and deferred income
Amount owed to group undertakings
**18.**
**Unrestricted funds**
**1 March 2024**
**£**
Unrestricted funds
1,290,023
Designated funds:
The Museum development and
improvement fund
-
Total designated funds
-
Total unrestricted funds
1,290,023
**1 March 2023**
**£**
Unrestricted funds
1,260,731
1,260,731
**Notes to fnancial statements**
**for the year ended 28th February 2025**
**19.**
**Restricted funds**
**1 March 2024**
**£**
Grant in aid
4,933
Ministry of Defence services provided
-
Project Eagle development fund
750,113
Memorial Garden & Wall fund
3,432
Cannon display fund
4,472
Other restricted funds
1,265
764,215
**1 March 2023**
**£**
Grant in aid
4,933
Ministry of Defence services provided
-
Project Eagle development fund
971,456
Memorial Garden & Wall fund
10,432
Cannon display fund
4,472
Other restricted funds
955
992,248|**£**
16,696
16,648
7,413
41,050
-
81,807
**Incoming**
**£**
1,096,966
-
-
1,096,966
**Incoming**
**£**
817,583
817,583
**Incoming**
**£**
87,931
71,571
2,652
-
1,302
5,139
168,595
**Incoming**
**£**
85,056
71,571
2,359
-
-
3,080
162,066|**£**
**£**
**£**
6,683
15,996
5,999
15,293
16,155
14,812
4,164
4,161
1,906
25,787
37,050
22,087
-
24,226
18,621
51,927
97,588
63,425
**Outgoing**
**Transfers 28 February 2025**
**£**
**£**
**£**
(834,883)
-
1,552,106
-
60,000
60,000
-
60,000
60,000
(834,883)
60,000
1,612,106
**Outgoing**
**Transfers 29 February 2024**
**£**
**£**
**£**
(788,291)
-
1,290,023
(788,291)
-
1,290,023
**Outgoing**
**Transfers 28 February 2025**
**£**
**£**
**£**
(87,931)
-
4,933
(71,571)
-
-
(224,512)
(60,000)
468,253
-
-
3,432
-
-
5,774
(2,376)
-
4,028
(386,390)
(60,000)
486,420
**Outgoing**
**Transfers 29 February 2024**
**£**
**£**
**£**
(85,056)
-
4,933
(71,571)
-
-
(223,702)
-
750,113
(7,000)
-
3,432
-
-
4,472
(2,770)
-
1,265
(390,099)
-
764,215|**£**
**£**
**£**
6,683
15,996
5,999
15,293
16,155
14,812
4,164
4,161
1,906
25,787
37,050
22,087
-
24,226
18,621
51,927
97,588
63,425
**Outgoing**
**Transfers 28 February 2025**
**£**
**£**
**£**
(834,883)
-
1,552,106
-
60,000
60,000
-
60,000
60,000
(834,883)
60,000
1,612,106
**Outgoing**
**Transfers 29 February 2024**
**£**
**£**
**£**
(788,291)
-
1,290,023
(788,291)
-
1,290,023
**Outgoing**
**Transfers 28 February 2025**
**£**
**£**
**£**
(87,931)
-
4,933
(71,571)
-
-
(224,512)
(60,000)
468,253
-
-
3,432
-
-
5,774
(2,376)
-
4,028
(386,390)
(60,000)
486,420
**Outgoing**
**Transfers 29 February 2024**
**£**
**£**
**£**
(85,056)
-
4,933
(71,571)
-
-
(223,702)
-
750,113
(7,000)
-
3,432
-
-
4,472
(2,770)
-
1,265
(390,099)
-
764,215|
|---|---|---|---|
||||764,215|
**Page 36**
**Army Flying Museum Limited Company number: 2109510**
The Grant in Aid fund is a grant from the Ministry of Defence heritage branch for employees' salaries.
The Ministry of Defence services provided fund represents expenses paid by the Ministry of Defence as part of the ongoing IBA agreement in place between the Museum and the Ministry of Defence.
The Project Eagle development fund represents funds raised towards phase II of Project Eagle.
The Memorial Wall fund represents funds donated for the building of a wall to commemorate those that have lost their lives in the service of British Army Flying 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.
Sufficient resources are held to enable each fund to be applied in accordance with any restrictions.
**Page 37**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
## **20. Analysis of net assets between funds**
|**Tangible**
**Net Current**
**Fixed Assets**
**Assets**
**£**
**£**
Unrestricted funds
1,256,656
255,016
Designated funds
-
60,000
Restricted funds
437,802
48,618
1,694,458
363,634
Non charitable trading funds
1,651
38,783
1,696,109
402,417
Included in the above fgures is the revaluaton reserve:
**Revaluaton reserve**
285,657
-
**Tangible**
**Net Current**
**Fixed Assets**
**Assets**
**£**
**£**
Unrestricted funds
1,054,034
201,159
Restricted funds
602,821
161,394
1,656,855
362,553
Non charitable trading funds
772
34,058
1,657,627
396,611
Included in the above fgures is the revaluaton reserve:
**Revaluaton reserve**
340,782
-|**2025**
**£**
1,511,672
60,000
486,420|
|---|---|
||2,058,092
40,434|
||2,098,526|
||285,657|
||**2024**
**£**
1,255,193
764,215|
||2,019,408
34,830|
||2,054,238|
||340,782|
## **21. Commitments and contingent liabilities**
The charity had capital commitments contracted for but not provided for in the financial statements amounting to £Nil (2024: £Nil). There were no contingent liabilities at 28[th] February 2025 (2024: £Nil).
## **22. Taxation**
All of the charity's income is applied for charitable purposes and therefore the charity is exempt from corporation tax. The charity's trading subsidiary had a corporation tax liability of £Nil as at 28[th] February 2025.
## **23. Related party transactions**
There were no related party transactions.
## **24. Ultimate controlling party**
The ultimate controlling party is the Board of Trustee Directors.
**Page 38**
**Army Flying Museum Limited Company number: 2109510**
## **Notes to financial statements for the year ended 28[th] February 2025**
|**25.**
**Analysis of changes in net funds**
**Group**
Cash at bank and in hand
**Net funds**
**26.**
**Financial instruments**
The carrying amounts of the group's fnancial instruments are as follows:
**Financial assets**
Debt instruments measured at amortsed cost:
- Trade debtors (note 16)
- Other debtors (note 16)
**Financial liabilites**
Measured at amortsed cost:
- Trade creditors (note 17)
- Other taxes and social security (note 17)
- Other creditors (note 17)|**Opening**
**balance**
**£**
407,182
407,182||**Cash**
**fows**
**£**
22,242
22,242
**2025**
**£**
6,855
26,501
33,356
16,696
16,648
7,413
40,757|**Closing**
**balance**
**£**
429,424|
|---|---|---|---|---|
|||||429,424|
|||||**2024**
**£**
9,976
6,019|
|||||15,995
6,683
15,293
4,164|
|||||26,140|
**Page 39**