Company Registration No. 07223824 (England and Wales)
PHOENIX HELICOPTER ACADEMY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
PAGES FOR FILING WITH REGISTRAR
PHOENIX HELICOPTER ACADEMY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
PHOENIX HELICOPTER ACADEMY LIMITED
BALANCE SHEET
AS AT 30 JUNE 2019
30 June 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
681,964
523,647
Current assets
Stocks
8,646
7,555
Debtors
4
16,810
19,132
Cash at bank and in hand
38,370
38,864
63,826
65,551
Creditors: amounts falling due within one year
5
(568,641)
(443,800)
Net current liabilities
(504,815)
(378,249)
Total assets less current liabilities
177,149
145,398
Creditors: amounts falling due after more than one year
6
(445,867)
(391,930)
Net liabilities
(268,718)
(246,532)
Capital and reserves
Called up share capital
7
1,500
1,500
Share premium account
8
277,500
277,500
Profit and loss reserves
9
(547,718)
(525,532)
Total equity
(268,718)
(246,532)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 30 June 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
PHOENIX HELICOPTER ACADEMY LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2019
30 June 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 23 March 2020 and are signed on its behalf by:
Mr P J Andrews
Director
Company Registration No. 07223824
PHOENIX HELICOPTER ACADEMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
- 3 -
1
Accounting policies
Company information
Phoenix Helicopter Academy Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Blackbushe Airport, Camberly, Surrey.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest
£1.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of aircraft at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis, not withstanding that there is a deficiency of assets at 30 June 2019 amounting to £268,718, the viability of which is dependent upon the continued financial support of the directors. The financial statements do not include any adjustments that would result from a discontinuance of the financial support. On this basis, the directors consider that it is appropriate for the financial statements to be prepared on the going concern basis.
true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business
, and
is shown net of VAT
.
The fair value of consideration takes into account trade
and
settlement discounts
.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
over the lease term
Plant and machinery
5% straight line
Fixtures, fittings & equipment
20% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
PHOENIX HELICOPTER ACADEMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 4 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price
. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors bank
and other
loans are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities
as
payment is due within one year or less.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
PHOENIX HELICOPTER ACADEMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 7 (2018 - 8).
PHOENIX HELICOPTER ACADEMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 6 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2018
-
715,480
715,480
Additions
35,078
200,000
235,078
Disposals
-
(203,052)
(203,052)
Revaluation
-
103,000
103,000
At 30 June 2019
35,078
815,428
850,506
Depreciation and impairment
At 1 July 2018
-
191,833
191,833
Depreciation charged in the year
7,016
30,162
37,178
Eliminated in respect of disposals
-
(60,469)
(60,469)
At 30 June 2019
7,016
161,526
168,542
Carrying amount
At 30 June 2019
28,062
653,902
681,964
At 30 June 2018
-
523,647
523,647
On 30 June 2019 the directors carried out an impairment review of the helicopters. They have adjusted the carrying value shown in the accounts to fair value.
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
12,510
15,063
Other debtors
4,300
4,069
16,810
19,132
PHOENIX HELICOPTER ACADEMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 7 -
5
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
16,584
-
Obligations under finance leases
56,214
69,502
Other borrowings
57,196
45,868
Payments received on account
139,186
184,355
Trade creditors
162,085
76,234
Other taxation and social security
11,259
15,489
Other creditors
124,221
49,781
Accruals and deferred income
1,896
2,571
568,641
443,800
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
6
Creditors: amounts falling due after more than one year
2019
2018
£
£
Obligations under finance leases
328,046
335,555
Other borrowings
117,821
56,375
445,867
391,930
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,000 "A" Ordinary shares of £1 each
1,000
1,000
500 "B" Ordinary shares of £1 each
500
500
1,500
1,500
8
Share premium account
An investment agreement dated 9 December 2011 was varied by a new agreement dated 8 May 2013, the result of which was a further investment of £228,000 linked to the 500 shares issued on 9 December 2011. This extra investment has been treated as share premium.
A charge has been registered over all the assets of the company as security for this investment.
PHOENIX HELICOPTER ACADEMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 8 -
9
Profit and loss reserves
2019
2018
£
£
At the beginning of the year
(525,532)
(254,433)
Loss for the year
(125,186)
(256,843)
Dividends declared and paid in the year
-
(14,256)
Transfer from revaluation reserve
103,000
-
At the end of the year
(547,718)
(525,532)
During the previous year the company paid dividends in excess of profits available for distribution, which is in breach of the Companies Act 2006. The position is expected to be temporary, and is being addressed by the Board.