Registration number:
for the
Year Ended
Specialist Aviation Services Group Limited
Contents
___________________________________________________________________________________________
Company Information |
|
Directors' Report |
|
Strategic Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Company Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Company Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Specialist Aviation Services Group Limited
Company Information
__________________________________________________________________________________________
Directors |
J F Van Den Nieuwenhuijzen K R Van Den Nieuwenhuijzen L A Farajallah
R W Ferrari |
Company secretary |
Harrison Clark (Secretarial) Limited |
Registered office |
|
Solicitors |
|
Auditors |
|
Specialist Aviation Services Group Limited
Directors' Report
for the
Year Ended 31 December 2021
___________________________________________________________________
_______________________
The directors present their report and the consolidated financial statements for the year ended 31 December 2021.
Principal activity
The principal activity of the Company is is that of holding an investment in a trading subsidiary group, that provides aviation services to various police authorities, air ambulance charities and government agencies and the provision of helicopter products and services.
Directors of the Group
The directors who held office during the year were as follows:
Information included in the Strategic Report
Disclosure regarding future developments, financial instruments and key risks is included in the strategic report.
Disclosure of information to the auditor
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, Hazlewoods LLP will be proposed for re-appointment as auditors of the company.
Approved by the
Director
Specialist Aviation Services Group Limited
Strategic Report
for the
Year Ended 31 December 2021
___________________________________________________________________
_______________________
The directors present their strategic report for the year ended 31 December 2021.
Principal activities
Since forming in 1984, Specialist Aviation Services has provided aviation solutions for rotary wing aircraft. The Group has its origins in two companies focused on police aviation services and medical aviation services, both set up in the UK over 30 years ago during the infancy of Emergency Services aviation. The Group is able to offer a range of services including aircraft provision, aircraft maintenance and support services, design and installation, and the provision of pilots and training. The Group has also held a long-standing maintenance and engineering relationship with the Kuwait Police Flying Wing and has maintained their fleet of helicopters based in Kuwait.
The UK headquarters are at Gloucestershire Airport in England. From this location we support our customers in Europe and the Middle East. There are around 160 staff including pilots, maintenance, design and logistics staff.
In addition to an Air Operator Certificate which covers a variety of specialist operations, SAS holds a wide range of EASA and CAA approvals covering training, maintenance, design, manufacturing and flight testing. SAS holds the prestigious title of being the only UK based Leonardo Helicopters Service Centre of Excellence, which is the highest accolade any operator and Maintenance and Repair Organisation can hold.
During 2019 and in recognition of the need for strategic change, the shareholders/owners of SAS appointed a new Chief Executive Officer, Luke Farajallah. A new strategy, mission, and vision were established, and SAS is now executing this plan which is built around a broadening of its product-base, expanding its range of services, and growing its footprint in new territories. SAS is well placed to compete and win new contracts in its operating sphere.
Review of the business and future developments
Performance during the year was broadly in line with expectations. The strategic decision to move away from the MD902 and into the AW169, made in 2016, introduced a considerable (planned) change to the business model and required investment to ensure the aircraft entered into service successfully. It is expected the company will exit its final MD902 in Q1 of 2024. With four years’ experience behind the Group, the true operating metrics of the AW169 are well understood and SAS has led the way in developing the type, and can take much credit for the increasing levels of reliability and availability being delivered. Market inflationary forces affecting key resource groups, especially pilots and engineers have meant an adjustment to the compensation and employment arrangements in order to remain competitive in the market place. The Belgium operation continued to perform well, and has developed a number of key contracts that have significant life remaining on them.
The directors remain confident that Group performance in the future will benefit from high demand for our helicopter emergency services, design & completion capability, maintenance expertise, and training support. The Group expects to see expansion opportunities across all of these product-lines. The core business is based around multi-year contracts and often with charitable trusts, providing for a stable environment in which to conduct business. Our track record as a trusted partner continues to support our move into new markets and geographies.
Key performance indicators
Given the nature of the business, the Groups’ directors are of the opinion that key performance indicators are important. We use a number of indicators to monitor and improve the development, performance and position of the business. Service indicators such as aircraft availability, flying hours and maintenance efficiency metrics are reviewed and altered to meet changes in the internal and external environments.
Results and dividends
The results for the year, which are set out in the profit and loss account, show turnover of £28.6m (2020 - £29.3m) and a pre-tax loss of £5.9m (2020 - loss £8.3m). The directors do not recommend a dividend.
The Group has tangible fixed assets including aircraft and equipment and tools valued at £53.2m (2020 - £70.6m), stock of £6.8m (2020 - £7.7m) and trade debtors of £1.8m (2020 - £0.1m). The Group had net debt (bank loans and cash at hand and in bank) of £53.6m (2020 - £66.2m) and trade creditors (including payments on account) of £2.3m (2020 - £2.0m).
Specialist Aviation Services Group Limited
Strategic Report
for the
Year Ended 31 December 2021
___________________________________________________________________
_______________________
Financial risk management
The Group's financial instruments comprise cash and liquid resources, loans and borrowings, and various other items such as trade debtors and trade creditors etc. that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the Group. The main risks arising from the Group's financial instruments are set out below.
The Group’s revenues are sensitive to the availability and usage of aircraft. The availability of aircraft will closely correlate to our service and maintenance performance. The Group mitigates the risk of reduced revenue by maintaining thorough maintenance performance and planning.
The Group has a number of relief aircraft to cover routine maintenance of primary aircraft, in support of aircraft availability.
The Group is exposed to a number of financial risks, which through a risk management programme the directors have sought to minimise.
The Group manages liquidity risk by maintaining adequate undrawn uncommitted borrowing facilities, managing bank credit risk and diversifying the sources of financing with a range of maturities and interest rates.
The Group manages inflation risk by entering into inflation adjusted contracts, which allows some insulation from the risk of inflation in its operating cost base. The directors will continue to monitor the effects of inflation on the operating environment.
The Group manages credit risk and counterparty risk with financial institutions, customers and suppliers. The risk arises in respect to a deterioration in a customer’s credit quality and is managed by undertaking thorough credit checks before entering into commercial contracts. Cash flow risk associated with selling on credit is managed by implementing a credit control process.
The Group is exposed to interest rate risk as it has interest-bearing liabilities and any movement in the London Interbank Borrowing Rate could increase the cost of funding. To manage exposure to interest rate fluctuations on borrowings the Group will vary the proportion of fixed rate debt relative to floating rate debt to reflect the underlying commitments. The Group does not currently have any interest rate hedging.
The Group seeks to reduce the exposure to volatility in earnings and cash flows from movements in foreign currency exchange rates. The Group is exposed to a number of foreign currencies, with the most significant being Euro and US Dollar. The risk of fluctuation in foreign exchange rate is managed by matching sales and purchases in the same currency where possible.
Specialist Aviation Services Group Limited
Strategic Report
for the
Year Ended 31 December 2021
___________________________________________________________________
_______________________
Going concern and post balance sheet events
Since 31 December 2019, the consequences of the COVID-19 outbreak have been affecting daily operations. Despite the challenges of operating within the COVID-19 environment and with covid cases still affecting the workforce, the Group continues to operate HEMS missions for our customers throughout the UK to normal level of operational availability. Our income is reliant on our HEMS contracts, and these contracts have remained operational throughout the period. The other income in the business is derived from supporting 3rd party maintenance, design and aircraft parts sales, which have all been impacted by the outbreak but are all showing signs of picking up in activity.
In response to the challenges caused by COVID-19, the Directors have introduced a number of measures to protect the financial position of the business. The Group has responded directly to Government safety advice and implemented further operational safety measures to protect employees and ensure continued operations. The Group has adopted a number of Government schemes such as furloughing staff and has managed the relationships with key customer, suppliers and lenders. Furthermore, in 2021 the revenue business models, that affect the price charges for services, has been adjusted to respond to market forces affecting the operating cost structure where possible. At the same time, the business continues to invest in AW169 aircraft infrastructure to improve operating efficiencies and support future growth. After reviewing the Group’s forecast, the Group is on track to return to profitability and will generate positive cash flows from operations in 2022.
The financial and operational measures introduced in response to COVID-19 will reaffirm the Group’s ability to continue as a going concern. Specialist Aviation Services has access to considerable financial resources via its private family ownership. The Group has throughout 2021 engaged in a refinancing programme which completed in Q1 2022. This will reduce the debt burden considerably and allow the Group to invest in future strategic projects such as the recent award of a 3-year contract for further work in Kuwait for the Ministry of the Interior for the maintenance of a number of blue-light and VVIP helicopters. To assist with the financing requirements, the Group will continue with asset sales to contribute to the future cash requirements and further debt reduction.
The directors therefore have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and continue to adopt the going concern basis in preparing the financial statements.
Approved by the
Director
Specialist Aviation Services Group Limited
Statement of Directors' Responsibilities
___________________________________________________________________________________________
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Parent Company and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting 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; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Specialist Aviation Services Group Limited
Independent Auditor's Report to the Members of
Specialist Aviation Services Group Limited
___________________________________________________________________________________________
Opinion
We have audited the financial statements of Specialist Aviation Services Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom 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 the parent Company's affairs as at 31 December 2021 and of the group's loss 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. |
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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the 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 statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Specialist Aviation Services Group Limited
Independent Auditor's Report to the Members of
Specialist Aviation Services Group Limited
___________________________________________________________________________________________
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the parent Company financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors’ remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors 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 directors 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 directors are responsible for assessing the Group’s and the parent 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Based on our understanding of the group and the parent company and its activities, we identified that the principal risks of non-compliance with laws and regulations related to Civil Aviation Authority regulation, UK tax legislation and money laundering, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as UK GAAP and the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate or fictitious journal entries to manipulate the financial performance or financial position of the group or the parent company.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also planned and performed audit procedures including:
• |
Gaining an understanding of the legal and regulatory framework and considering the risk of any acts which may be contrary to applicable laws and regulations, including fraud. |
• |
Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. |
• |
Evaluation of the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
• |
Making inquiries with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud. |
• |
Testing journal entries and other adjustments for appropriateness and evaluating the business rationale of any significant transactions outside the normal course of business. |
Specialist Aviation Services Group Limited
Independent Auditor's Report to the Members of
Specialist Aviation Services Group Limited
___________________________________________________________________________________________
• |
Evaluation of the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
• |
Conclusion on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material mistatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities is available 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 Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members 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 Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
Specialist Aviation Services Group Limited
Consolidated Profit and Loss Account
and statement of comprehensive income
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Note |
2021 |
2020 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating loss |
( |
( |
|
Interest payable and similar charges |
( |
( |
|
Loss before tax |
( |
( |
|
Taxation |
|
|
|
Loss for the financial year |
( |
( |
Other comprehensive income
2021 |
2020 |
|
Loss for the year |
( |
( |
Foreign currency translation (losses) / gains |
( |
|
Total comprehensive income for the year |
( |
( |
The above results were derived from continuing operations.
Specialist Aviation Services Group Limited
(Registration number:
02799272
)
Consolidated Balance Sheet
as at
31 December 2021
___________________________________________________________________________________________
Note |
2021 |
2020 |
|
Fixed assets |
|||
Intangible assets |
( |
( |
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
1,020 |
1,497 |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Retained earnings |
( |
|
|
Total equity |
|
|
Approved and authorised by the
Director
Specialist Aviation Services Group Limited
(Registration number:
02799272
)
Company
Balance Sheet
as at
31 December 2021
___________________________________________________________________________________________
Note |
2021 |
2020 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Retained earnings |
|
|
|
Total equity |
|
|
The company made a loss after tax for the financial year of £76,000 (2020 - profit of £38,000).
Approved and authorised by the
Director
Specialist Aviation Services Group Limited
Consolidated Statement of Changes in Equity
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Share capital |
Retained earnings |
Total |
|
At 1 January 2020 |
5,373 |
11,375 |
16,748 |
Loss for the year |
- |
( |
( |
Other comprehensive income |
- |
|
|
New share capital subscribed |
|
- |
|
At 31 December 2020 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 January 2021 |
|
|
|
Loss for the year |
- |
( |
( |
Other comprehensive income |
- |
( |
( |
At 31 December 2021 |
|
( |
|
Specialist Aviation Services Group Limited
Company Statement of Changes in Equity
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Share capital |
Retained earnings |
Total |
|
At 1 January 2020 |
|
|
|
Profit for the year |
- |
|
|
New share capital subscribed |
|
- |
|
At 31 December 2020 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 January 2021 |
|
|
|
Loss for the year |
- |
( |
( |
At 31 December 2021 |
|
|
|
Specialist Aviation Services Group Limited
Consolidated Statement of Cash Flows
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Note |
2021 |
2020 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items: |
|||
Depreciation and amortisation |
|
|
|
(Profit)/loss on disposal of property plant and equipment |
(450) |
|
|
Foreign exchange (gain)/loss |
( |
|
|
Finance costs |
|
|
|
Income tax expense |
( |
( |
|
|
( |
||
Working capital adjustments: |
|||
Decrease in stock and work in progress |
|
|
|
(Increase)/decrease in debtors |
( |
|
|
Increase/(decrease) in creditors |
|
( |
|
1,476 |
3,057 |
||
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisition of tangible fixed assets |
( |
( |
|
Proceeds from sale of tangible fixed assets |
|
|
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowings |
(11,757) |
(792) |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 January |
|
( |
|
Cash and cash equivalents at 31 December |
905 |
39 |
Specialist Aviation Services Group Limited
Consolidated Statement of Cash Flows
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Analysis of changes in net debt |
At 1 January 2021 |
Cash flows |
Other non cash changes |
At 31 December 2021 |
Cash and cash equivalents |
||||
Cash |
1,497 |
(477) |
- |
1,020 |
Overdraft |
(1,458) |
1,343 |
- |
(115) |
39 |
866 |
- |
905 |
|
Borrowings |
||||
Due within 1 year |
(8,805) |
11,757 |
(13,119) |
(10,167) |
Due after 1 year |
(57,476) |
- |
13,119 |
(44,357) |
(66,281) |
11,757 |
- |
(54,524) |
|
Total net debt |
(66,242) |
12,623 |
- |
(53,619) |
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
The company has taken advantage of the following disclosure exemptions available to qualifying entities in preparing its separate financial statements, as permitted by FRS 102:
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17 (d);
• the requirements of Section 33 Related Party Disclosures paragraph 33.7; and
• the requirements of certain paragraphs within Sections 11 and 12 relating to Financial Instruments.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.
Basis of consolidation
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2021.
A subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
2 |
Accounting policies (continued) |
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
Since 31 December 2019, the consequences of the COVID-19 outspread have affected the daily operations, as outlined in the strategic report.
Despite the challenges of operating within the COVID-19 environment and with covid cases still affecting the workforce, the Group continues to operate HEMS missions for our customers throughout the world to normal levels of operational availability. In response to the challenges caused by COVID-19, the group's Directors introduced a number of measures to protect the financial position of the business including adopting a number of Government schemes such as furloughing staff. Furthermore, in 2021 the revenue business models, that affect the price charges for services, have been adjusted to respond to market forces affecting the operating cost structure and the group continues to invest in AW169 aircraft infrastructure to improve operating efficiencies and support future growth. The group has access to considerable financial resources via its private family ownership and the group will be able to continue to raise capital in order to continue operations and invest in future strategic projects. The Group has throughout 2021 engaged in a refinancing programme which completed in Q1 2022. This will reduce the debt burden considerably and allow the Group to invest in future strategic projects such as the recent award of a 3-year contract for further work in Kuwait for the Ministry of the Interior for the maintenance of a number of blue-light and VVIP helicopters. To assist with the financing requirements, the Group will continue with asset sales to contribute to the future cash requirements and further debt reduction.
After reviewing the Group’s forecast, the Group is on track to return to profitability and will generate positive cash flows from operations in 2022. The Group therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
2 |
Accounting policies (continued) |
Judgements and estimation uncertainty
The Directors are required to make various judgements and estimates in respect of: the residual value of fixed assets; the fair value of stock held; the recoverability of trade debtors; and amounts recoverable on long term contracts. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The Group recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the Group's activities.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants relating to revenue are recognised in income over the period in which the related costs are recognised.
Foreign currency transactions and balances
Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the Group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Foreign tax incurred is recognised as a debtor to the extent that it is considered recoverable.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Contractual customer relationships
Customer relationships are amortised over their useful economic life of ten years on a straight line basis.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
2 |
Accounting policies (continued) |
Tangible fixed assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation, including capitalised interest. Tangible assets are only depreciated once the asset is brought into commission.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
20 years (5% per annum) |
Leasehold improvements |
6.7 years (15% per annum) |
Other fixtures and fittings |
6.7 years (15% per annum) |
Equipment |
6.7 years (15% per annum) |
Aircraft |
Written down to residual value of £750,000 to £1m over remaining life up to 25 years. |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
Trade debtors
Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.
Stock and work in progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the Group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
2 |
Accounting policies (continued) |
Long term contracts
The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years.
Contract work in progress is stated at cost incurred, less those transferred to the profit and loss account, after deducting foreseeable losses.
Loans and borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges, unless in relation to a fixed asset not yet in use, where interest incurred in financing that asset is capitalised.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Operating lease rental income and expenditure are credited / charged to the profit and loss account on a straight line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
2 |
Accounting policies (continued) |
Financial instruments
Classification
Recognition and measurement
Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Impairment
A non-financial assets is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Turnover |
The analysis of the Group's turnover for the year from continuing operations is as follows:
2021 |
2020 |
|
Rendering of services |
|
|
Sale of parts |
|
|
|
|
The analysis of the Group's turnover for the year by market is as follows:
2021 |
2020 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2021 |
2020 |
|
Coronavirus Job Retention Scheme grant |
- |
|
Coronavirus Job Retention Scheme grant
The Coronavirus Job Retention Scheme grant is a government grant relating to a wage subsidy programme introduced in the United Kingdom in response to the COVID-19 pandemic. The Group was entitled to the wage subsidy because it had reduced operations in the United Kingdom as a result of the pandemic. The accounting policy adopted is set out in Note 2 to the financial statements; the grant was recognised in the profit and loss in 'other income' as the related wages and salaries for furloughed employees were recognised.
Operating (loss)/profit |
Arrived at after charging / (crediting):
2021 |
2020 |
|
Depreciation expense |
|
|
Negative goodwill |
( |
( |
Foreign exchange (gains) / losses |
( |
|
Operating lease expense - property |
|
|
Operating lease expense - other |
24 |
- |
(Profit)/loss on disposal of property, plant and equipment |
( |
830 |
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Auditors' remuneration |
2021 |
2020 |
|
Audit of these financial statements |
32 |
32 |
Interest payable and similar expenses |
2021 |
2020 |
|
Interest on loans and borrowings |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2021 |
2020 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs |
|
|
Redundancy costs |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2021 |
2020 |
|
Pilotage |
|
|
Engineering |
|
|
Management and administration |
|
|
|
|
Company
The only employees during the current and prior period were the directors. Directors are remunerated by a group company and the amounts in respect of their services as director of the Company are not separately identifiable.
Directors' remuneration |
The directors' remuneration for the year was as follows:
2021 |
2020 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
477 |
471 |
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
9 |
Directors' remuneration (continued) |
During the year the number of directors who were receiving benefits was as follows:
2021 |
2020 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2021 |
2020 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Taxation |
Tax charged in the profit and loss account:
2021 |
2020 |
|
Foreign tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
( |
( |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2021 |
2020 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Non deductible expenditure |
( |
( |
Corporate Interest Restriction |
- |
|
Effect of foreign tax rates |
|
- |
Increase (decrease) from tax losses for which no deferred tax asset was recognised |
( |
- |
Deferred tax credit relating to changes in tax rates or laws |
|
- |
Other tax effects |
( |
|
(1,236) |
(1,044) |
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
10 |
Taxation (continued) |
Deferred tax |
|||
Group |
|||
Deferred tax liabilities: |
|||
2021 |
2020 |
||
£ 000 |
£ 000 |
||
Accumulated depreciation in excess of capital allowances |
3,929 |
2,839 |
|
Losses carried forwards |
(5,203) |
(2,709) |
|
Deferred tax on revaluation of aircraft |
322 |
244 |
|
Other timing differences |
(18) |
(33) |
|
(970) |
341 |
Deferred tax liabilities as at 31 December 2020 are calculated at 19%, being the substantively enacted tax rate from1 July 2020. An increase in the UK corporation tax rate to 25%, effective from April 2023, was announced and substantively enacted on 24 May 2021. The deferred liability as at 31 December 2021 has been calculated based on the rate of 25%.
Intangible assets |
Group
Negative goodwill |
Contractual customer relationships |
Total |
|
Cost |
|||
At 1 January 2021 and at 31 December 2020 |
( |
|
( |
Amortisation |
|||
At 1 January 2021 |
( |
- |
( |
Amortisation charge |
( |
|
( |
At 31 December 2021 |
( |
|
( |
Carrying amount |
|||
At 31 December 2021 |
( |
|
( |
At 31 December 2020 |
( |
|
( |
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Tangible assets |
Group
Land and buildings |
Equipment, tools, fixtures and fittings |
Aircraft |
Total |
|
Cost |
||||
At 1 January 2021 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
( |
( |
( |
At 31 December 2021 |
|
|
|
|
Depreciation |
||||
At 1 January 2021 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
At 31 December 2021 |
|
|
|
|
Carrying amount |
||||
At 31 December 2021 |
|
|
|
|
At 31 December 2020 |
|
|
|
|
Included within the net book value of land and buildings above is £276,000 (2020 - £303,000) in respect of freehold land and buildings.
Within Aircraft are capitalised borrowing costs of £
Investments |
Company
2021 |
2020 |
|
Cost and carrying amount of investments in subsidiaries |
|
|
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
13 |
Investments (continued) |
Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
|
2021 |
2020 |
|
England and Wales |
Ordinary |
|
|
|
England and Wales |
Ordinary |
|
|
|
England and Wales |
Ordinary |
|
|
|
Belgium |
Ordinary |
|
|
|
England and Wales |
Ordinary |
|
|
|
England and Wales |
Ordinary |
|
|
|
England and Wales |
Ordinary |
|
|
* held indirectly, subsidiaries of Specialist Aviation Services
Specialist Aviation Services Ltd, European Support Centre BV, SAS (Kent) Limited, SAS (Dorset and Somerset) Limited and SAS (Surrey & Sussex) Limited operate in the aviation industry. All other subsidiary undertakings were dormant in the year.
Stocks |
Group |
Company |
|||
2021 |
2020 |
2021 |
2020 |
|
Work in progress |
|
|
- |
- |
Finished goods |
|
|
- |
- |
|
|
- |
- |
Debtors |
Group |
Company |
|||
2021 |
2020 |
2021 |
2020 |
|
Trade debtors |
|
|
- |
- |
Recoverable on long term contracts |
- |
|
- |
- |
Due from group undertakings |
- |
- |
|
|
Other debtors |
|
|
- |
- |
Prepayments and accrued income |
|
|
- |
- |
Corporation tax asset |
970 |
- |
- |
- |
|
|
|
|
Included within prepayments and accrued income is an accrued sum in relation to an ongoing claim, the value of which, is not being disclosed due to the sensitivity of the balance.
Details of non-current trade and other receivables
Group
£Nil (2020 - £292,000) of accrued income is classified as non-current.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Cash and cash equivalents |
Group |
Company |
|||
2021 |
2020 |
2021 |
2020 |
|
Cash at bank |
|
|
- |
- |
Bank overdrafts |
( |
( |
- |
- |
905 |
39 |
- |
- |
Creditors |
Group |
Company |
||||
Note |
2021 |
2020 |
2021 |
2020 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Payments received on account |
|
|
- |
- |
|
Social security and other taxes |
|
|
- |
- |
|
Other creditors |
|
|
- |
- |
|
Accruals and deferred income |
|
|
- |
- |
|
Corporation tax liability |
172 |
137 |
- |
- |
|
|
|
- |
- |
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Included within accrued expenses is an accrued sum in relation to an ongoing claim, the value of which, is not being disclosed due to the sensitivity of the balance.
Loans and borrowings |
Group |
Company |
|||
2021 |
2020 |
2021 |
2020 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Bank overdrafts |
|
|
- |
- |
Other borrowings |
|
|
- |
- |
|
|
- |
- |
Group |
Company |
|||
2021 |
2020 |
2021 |
2020 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Other borrowings |
|
|
- |
- |
|
|
- |
- |
Included in bank borrowings and other borrowings is £19,193,000 (2020 - £40,214,000) due to be paid after five years in instalments. Bank borrowings and other borrowings are secured on the aircraft owned by the group. Specialist Aviation Services Group Limited, Specialist Aviation Services Limited and European Support Centre BV are guarantors to the loans held by other group companies.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. 000 |
£ 000 |
No. 000 |
£ 000 |
|
|
|
6,673 |
|
6,673 |
New shares allotted
During the year - NewRow_0 having an aggregate nominal value of £Nil were allotted for an aggregate consideration of Nil. |
Reserves |
Profit and loss account
This reserve includes cumulative retained profits and losses after distributions by way of dividends. At 31 December 2021 the group had retained deficit of £673,000 (2020 - retained earnings of £4,262,000), of which £1,501,000 is undistributable (2020 - £1,886,000). Undistributable reserves relate to aircraft held at valuation under previous UK GAAP. On transition to FRS 102 the group opted to treat such valuations as deemed cost. The undistributable amount of retained earnings will become distributable as these revaluation gains are realised, either through excess depreciation or aircraft disposal.
Obligations under operating leases |
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to
£
Pension scheme contributions totalling £74,000 (2020 - £52,000) were payable to the schemes at the end of the year and are included in creditors.
Specialist Aviation Services Group Limited
Notes to the Financial Statements
for the
Year Ended 31 December 2021
___________________________________________________________________________________________
Commitments |
Capital commitments
The Group has contracted, but not provided in the financial statements, for the purchase of a number of new helicopters from Augusta Westland for £
Additionally in the current year the Group has contracted, but not provided for in the financial statements, for the purchase of aircraft parts of £376,000 (2020: £nil). The Group expects to take delivery of these parts in 2022.
Financial guarantees
Specialist Aviation Services Group Limited, Specialist Aviation Services Limited and European Support Centre BV are guarantors to the loans held by other group companies.
Related party transactions |
Summary of transactions with key management
Non adjusting events after the financial period |
|
Control |
The company's immediate parent is