Company Registration No. 01435045 (England and Wales)
AEROSPACE LOGISTICS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
PAGES FOR FILING WITH REGISTRAR
AEROSPACE LOGISTICS LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 10
AEROSPACE LOGISTICS LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF AEROSPACE LOGISTICS LIMITED FOR THE YEAR ENDED 31 AUGUST 2020
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Aerospace Logistics Limited for the year ended 31 August 2020 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance
.
This report is made solely to the Board of Directors of Aerospace Logistics Limited, as a body, in accordance with the terms of our engagement
.
Our work has been undertaken solely to prepare for your approval the financial statements of Aerospace Logistics Limited
and state those matters that we have agreed to state to the Board of Directors of Aerospace Logistics Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Aerospace Logistics Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Aerospace Logistics Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and loss
of Aerospace Logistics Limited. You consider that Aerospace Logistics Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Aerospace Logistics Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Carpenter Box
25 May 2021
Chartered Accountants
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
AEROSPACE LOGISTICS LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2020
31 August 2020
- 2 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,562,576
1,606,521
Current assets
Stocks
4
2,254,761
2,203,255
Debtors
5
2,220,901
2,189,535
Cash at bank and in hand
192,157
353,514
4,667,819
4,746,304
Creditors: amounts falling due within one year
6
(3,658,295)
(2,758,064)
Net current assets
1,009,524
1,988,240
Total assets less current liabilities
2,572,100
3,594,761
Creditors: amounts falling due after more than one year
7
(92,508)
(89,255)
Provisions for liabilities
(47,400)
(51,200)
Net assets
2,432,192
3,454,306
Capital and reserves
Called up share capital
8
100
100
Revaluation reserve
493,505
503,735
Profit and loss reserves
1,938,587
2,950,471
Total equity
2,432,192
3,454,306
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 31 August 2020 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 member has 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.
AEROSPACE LOGISTICS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2020
31 August 2020
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 25 May 2021 and are signed on its behalf by:
Mr S Wright
Director
Company Registration No. 01435045
AEROSPACE LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
- 4 -
1
Accounting policies
Company information
Aerospace Logistics Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Amelia House, Crescent Road, Worthing, West Sussex, BN11 1RL.
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 £.
The financial statements have been prepared under the historical cost convention.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had an impact on the company’s operations. However, the entity was able to work through the pandemic on a reduced scale. Due to the social distancing measures put in place and a temporary reduction and delay in orders, activity during the year under review has reduced. The entity has utilised the government’s Job Retention Scheme and grant funding, together with the Government backed loans. Futures sales, costs and cash flow are being regularly reviewed and monitored and the company's trading post year end has improved due to the phased easing of lockdown. In response to the COVID-19 pandemic, the directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact
true
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts
and
settlement discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the
repair and overhaul
services is recognised by reference to the stage of completion
and invoiced in stages to reflect the work completed
.
Costs incurred on account of incomplete contracts are included as unbilled work in progress.
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.
AEROSPACE LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 5 -
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:
Land and buildings freehold
2% per annum on a straight line basis - buildings only
Leasehold improvements
15% per annum on a straight line basis
Plant and machinery & computer equipment
15% per annum on a straight line basis
Fixtures, fittings & equipment
15% per annum on a straight line basis
Computer equipment
25% per annum on a straight line basis
Motor vehicles
15% per annum on a diminishing balance basis
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
Stocks
Stocks are stated at the lower of cost and
realisable value
less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stock held for longer than six months is valued at its realisable scrap valuation as deemed appropriate by the directors.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash at bank and in hand
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.
1.7
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost
.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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.
1.8
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.
AEROSPACE LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 6 -
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year.
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a 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
in the period
are included in profit or loss.
AEROSPACE LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 31 (2019 - 31
).
AEROSPACE LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 8 -
3
Tangible fixed assets
Land and buildings freehold
Leasehold improvements
Plant and machinery & computer equipment
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 September 2019
1,650,156
262,301
89,676
346,493
146,948
149,109
2,644,683
Additions
19,394
25,542
17,619
17,563
80,118
At 31 August 2020
1,650,156
281,695
115,218
364,112
164,511
149,109
2,724,801
Depreciation and impairment
At 1 September 2019
370,815
147,541
62,201
239,846
144,157
73,602
1,038,162
Depreciation charged in the year
33,003
28,752
12,023
20,702
5,254
24,329
124,063
At 31 August 2020
403,818
176,293
74,224
260,548
149,411
97,931
1,162,225
Carrying amount
At 31 August 2020
1,246,338
105,402
40,994
103,564
15,100
51,178
1,562,576
At 31 August 2019
1,279,341
114,760
27,475
106,647
2,791
75,507
1,606,521
AEROSPACE LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 9 -
4
Stocks
2020
2019
£
£
Stock and work in progress
2,254,761
2,203,255
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
1,357,408
1,210,925
Amounts owed by group undertakings
221,178
Other debtors
863,493
757,432
2,220,901
2,189,535
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
2,517,376
1,667,376
Trade creditors
477,033
331,031
Amounts owed to group undertakings
290,834
Taxation and social security
71,090
179,732
Other creditors
301,962
579,925
3,658,295
2,758,064
The bank loan is secured. The bank has provided guarantees on behalf of the company in the amount of £550,000 (2019: £276,014).
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
20,258
38,345
Other creditors
72,250
50,910
92,508
89,255
The hire purchase finance within other creditors included in note 6 and 7 is secured over the related assets.
AEROSPACE LOGISTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 10 -
8
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
310,600
310,600
10
Events after the reporting date
Since the year end dividends of £153,699 have been voted and paid.
11
Directors' transactions
Dividends payable by the holding company totalling £193,548 (2019 - £193,548) were paid in the year in respect of shares held by the company's directors in the Holding Company.
Interest is payable on the amount owed by the director at the rate of 3% per annum. At 31 August 2020 the amount owed by the directors was £549,740 (2019: £499,661).
12
Parent company
The Company is under the control of Yarngrange Limited, a company incorporated in England and Wales. The registered office is Amelia House, Crescent Road, Worthing, West Sussex, BN11 1QR.