Company Registration No. 02956375 (England and Wales)
Multiflight Limited
Annual report and financial statements
for the year ended 30 November 2021
Multiflight Limited
Company information
Directors
David Hood
Stephen Borrowdale
Miles Beecham
Secretary
Miles Beecham
Company number
02956375
Registered office
South Side Aviation
Leeds Bradford International Airport
Leeds
West Yorkshire
LS19 7UG
Independent auditor
Saffery Champness LLP
Mitre House
North Park Road
Harrogate
North Yorkshire
HG1 5RX
Bankers
Barclays Bank plc
PO Box 190
1 Park Row
Leeds
LS1 5WU
Solicitors
Gateley plc
Minerva
29 East Parade
Leeds
LS1 5PS
Multiflight Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 29
Multiflight Limited
Strategic report
For the year ended 30 November 2021
Page 1

The directors present the strategic report for the year ended 30 November 2021.

Business Objectives and Strategy

Multiflight has a diverse portfolio of operational areas and customers in order to try and protect it from any industry pressures in one particular area and factors beyond our control. A number of long term contracts remain in place to secure income going forwards, and we continue to assess opportunities as they present themselves on an individual basis. Where these are felt to be a good fit with the Company we will endeavour to secure them.

 

Technology improvements continue at a rapid pace and we look to embrace them where they bring efficiencies and it is cost effective to do so. We regularly review new equipment with our customers to ensure they are aware of market opportunities.

 

Our current book of customers is strong and we continue to look after them with care and consideration. We accept that there will always be natural movement with a small element of customers both coming and going. We have a highly trained workforce which we endeavour to keep up to date with technological and regulatory training and requirements.

 

 

Business Review and Performance in the Year

2021, like 2020, has been an extremely difficult year in which Covid-19 played a major part in the aviation sector. Whilst some elements of the Company continued to operate almost unchanged, some were badly affected by lockdowns, and others were completely closed for some months. The benefits of having a diverse portfolio of operation and clients again proved its worth in the year. Like many companies in the sector, operating with restricted international travel and Airport closures has meant we used the Government Job Retention Scheme in order to continue to retain our workforce. Asset values have been reviewed in the year and where appropriate write downs in value have been made.

 

Despite another lockdown in early 2021 we now have all our staff returned to their respective roles and we have also recruited additional staff to fill gaps that have arisen following a sharp return of business once the lockdown was eased.

 

It is a testament to the workforce that we were able to increase turnover and return to profit in the year.

 

Research and Development

We are not involved in scientific or high-tech research, but continue to consider alternative areas of aviation and locations, both in the UK and Europe to diversify our turnover yet further.

Multiflight Limited
Strategic report (continued)
For the year ended 30 November 2021
Page 2
Principal Risks and Uncertainties facing the Business

A resurgence or new variant of Covid-19 leading to further restrictions on international travel is the biggest risk factor in the Aviation industry. The ongoing and ever present issues surrounding security, regulation, supply of trained staff and fuel price also remain matters of concern. Ongoing issues in Ukraine have affected everyone and we are seeing the impact on fuel price. We have little control over these issues, but feel we are sufficiently diversified and in touch with the market to enable to us to protect ourselves from sudden changes, and to be able to react appropriately to any incidents that occur.

 

Foreign currency exposure is reduced as much as we are able. Purchases from the USA or Europe are made in local currency and where able the subsequent sale is made the customer in the currency of purchase. When unable, currency is converted into Sterling at the first opportunity to fix the cost and take away the uncertainty of exchange gains and losses.

 

Financial Instruments

The company’s financial risk management objective is broadly to seek to make neither a profit nor loss from exposure to currency or interest rate risks. Its policy is to finance working capital through retained earnings and through the director’s loan, which is interest free.

 

Imported components are brought in at the exchange rate in force at the time for small items. Whilst this will generate exchange fluctuations, they will in nature be small. Any large items brought in will be prepaid by customers at agreed rates in order to negate any exchange rate fluctuations.

 

The directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position or profit.

 

Future Developments

The Company continues to look for opportunities to complement our existing business both in the UK and abroad. Some existing contracts have been extended and new customers are being sourced. The challenges and effects of Covid-19 continue been significant but our staff have worked extremely hard and we are comfortable with our costbase and liquidity to be able to return further profits in 2022.

On behalf of the board

Miles Beecham
Director
12 August 2022
Multiflight Limited
Directors' report
For the year ended 30 November 2021
Page 3

The directors present their annual report and financial statements for the year ended 30 November 2021.

Principal activities

The principal activity of the company continued to be the provision of General Aviation services at Leeds Bradford International Airport. This includes helicopter and fixed wing charter, aircraft engineering, parts sales, Air Ambulance management and operation, aircraft sales and management, hangarage, refuelling, café and ground handling.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

David Hood
Stephen Borrowdale
Miles Beecham
Auditor

Saffery Champness LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Miles Beecham
Director
12 August 2022
Multiflight Limited
Directors' responsibilities statement
For the year ended 30 November 2021
Page 4

The directors are responsible for preparing the annual 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Multiflight Limited
Independent auditor's report
To the members of Multiflight Limited
Page 5
Opinion

We have audited the financial statements of Multiflight Limited (the 'company') for the year ended 30 November 2021 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' 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 financial statements are 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.

Multiflight Limited
Independent auditor's report (continued)
To the members of Multiflight Limited
Page 6

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.

 

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 company or to cease operations, or have no realistic alternative but to do so.

Multiflight Limited
Independent auditor's report (continued)
To the members of Multiflight Limited
Page 7
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

Multiflight Limited
Independent auditor's report (continued)
To the members of Multiflight Limited
Page 8

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

Jonathan Davis (Senior Statutory Auditor)
For and on behalf of Saffery Champness LLP
15 August 2022
Chartered Accountants
Statutory Auditors
Mitre House
North Park Road
Harrogate
North Yorkshire
HG1 5RX
Multiflight Limited
Statement of comprehensive income
For the year ended 30 November 2021
Page 9
2021
2020
Notes
£
£
Turnover
3
13,136,492
9,898,619
Cost of sales
(11,002,498)
(9,152,418)
Gross profit
2,133,994
746,201
Administrative expenses
(1,846,573)
(1,806,749)
Other operating income
148,227
226,453
Operating profit/(loss)
4
435,648
(834,095)
Interest receivable and similar income
7
9
601
Interest payable and similar expenses
8
(1,561)
(1,406)
Profit/(loss) before taxation
434,096
(834,900)
Tax on profit/(loss)
9
(239,513)
88,331
Profit/(loss) for the financial year
194,583
(746,569)

The income statement has been prepared on the basis that all operations are continuing operations.

 

There was no recognised other comprehensive income in any year other than that included in the profit and loss account.

Multiflight Limited
Statement of financial position
As at 30 November 2021
Page 10
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
10
7,288,319
7,553,901
Investment properties
11
2,800,000
2,800,000
Investments
12
100
100
10,088,419
10,354,001
Current assets
Stocks
15
1,838,882
3,918,202
Debtors
16
1,575,505
2,123,132
Cash at bank and in hand
816,592
80,288
4,230,979
6,121,622
Creditors: amounts falling due within one year
17
(2,413,827)
(4,956,290)
Net current assets
1,817,152
1,165,332
Total assets less current liabilities
11,905,571
11,519,333
Provisions for liabilities
Deferred tax liability
19
532,690
341,035
(532,690)
(341,035)
Net assets
11,372,881
11,178,298
Capital and reserves
Called up share capital
21
50,000
50,000
Revaluation reserve
1,013,668
1,013,668
Profit and loss reserves
10,309,213
10,114,630
Total equity
11,372,881
11,178,298
The financial statements were approved by the board of directors and authorised for issue on 12 August 2022 and are signed on its behalf by:
Miles Beecham
Director
Company Registration No. 02956375
Multiflight Limited
Statement of changes in equity
For the year ended 30 November 2021
Page 11
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 December 2019
50,000
1,013,668
10,861,199
11,924,867
Year ended 30 November 2020:
Loss and total comprehensive income for the year
-
-
(746,569)
(746,569)
Balance at 30 November 2020
50,000
1,013,668
10,114,630
11,178,298
Year ended 30 November 2021:
Profit and total comprehensive income for the year
-
-
194,583
194,583
Balance at 30 November 2021
50,000
1,013,668
10,309,213
11,372,881
Multiflight Limited
Statement of cash flows
For the year ended 30 November 2021
Page 12
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
2,902,394
(1,068,486)
Interest paid
(1,561)
(1,406)
Income taxes refunded/(paid)
849
-
Net cash inflow/(outflow) from operating activities
2,901,682
(1,069,892)
Investing activities
Purchase of tangible fixed assets
(102,561)
(78,162)
Proceeds on disposal of tangible fixed assets
-
0
120
Interest received
9
601
Net cash used in investing activities
(102,552)
(77,441)
Financing activities
Repayment of bank loans
(1,455,000)
1,455,000
Interest paid
-
(1,406)
Repayment of director's loan
(550,699)
(553,235)
Net cash (used in)/generated from financing activities
(2,005,699)
900,359
Net increase/(decrease) in cash and cash equivalents
793,431
(246,974)
Cash and cash equivalents at beginning of year
23,161
270,135
Cash and cash equivalents at end of year
816,592
23,161
Relating to:
Cash at bank and in hand
816,592
80,288
Bank overdrafts included in creditors payable within one year
-
0
(57,127)
Multiflight Limited
Notes to the financial statements
For the year ended 30 November 2021
Page 13
1
Accounting policies
Company information

Multiflight Limited is a private company limited by shares incorporated in England and Wales. The registered office is South Side Aviation, Leeds Bradford International Airport, Leeds, West Yorkshire, LS19 7UG.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

Group accounts have not been prepared as all of the company's subsidiaries are permitted to be excluded from group accounts by virtue of sections 402 and 405 of the Companies Act 2006. These financial statements therefore present information about the company as an individual undertaking and not about its group.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. Engineering turnover is recognised on completion of work, fixed base operations turnover the period of hangarage, and charter turnover the period the aircraft is hired.

Other income relates to receipts received under the Coronavirus Job Retention Scheme.

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.

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
1
Accounting policies (continued)
Page 14

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 Property
Between 10 - 50 years
Plant, machinery and office equipment
Between 2 - 10 years
Motor vehicles
Over 5 years straight line
Aircraft
Over 30 years straight line

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
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
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.

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
1
Accounting policies (continued)
Page 15

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.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

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.

1.9
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.

1.10
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 statement of financial position 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.

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
1
Accounting policies (continued)
Page 16
Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
1
Accounting policies (continued)
Page 17
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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
1
Accounting policies (continued)
Page 18
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
1
Accounting policies (continued)
Page 19
1.15
Government grants

Government grants are recognised at the fair value of the asset received 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.

1.16
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.

2
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 amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key areas of estimation and judgement have been identified as follows:

 

 

Valuation of investment property

Investment property (£2.8m in 2021 and 2020) is recognised at fair value. As disclosed in note 11, this fair value is based on a valuation undertaken by surveyors in 2020. The directors consider that the fair value of the property has not materially changed since this valuation was undertaken.

 

Valuation of inventory

Inventory is recorded at the lower of cost and net realisable value. Net realisable value is the estimated selling price less cost to complete. An impairment of inventory of £400,000 (2020 £1,050,000) has been recognised in the year to reduce the carrying value of stock to its estimated net realisable value.

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
Page 20
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
11,524,229
8,009,030
Rest of European Union
1,308,187
1,482,787
Rest of World
304,076
406,802
13,136,492
9,898,619
2021
2020
£
£
Other significant revenue
Interest income
9
601
Grants received
148,227
226,453
4
Operating profit/(loss)
2021
2020
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(34,891)
(5,949)
Government grants
(148,227)
(226,453)
Fees payable to the company's auditor for the audit of the company's financial statements
16,000
16,375
Depreciation of owned tangible fixed assets
368,143
378,234
Profit on disposal of tangible fixed assets
-
0
(120)
Impairment of stocks recognised or reversed
400,000
1,050,000
Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
Page 21
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
Engineering
29
27
FBO
12
16
Charter
2
5
Administration
6
5
Medical
5
4
Cafe
7
9
Total
61
66

Their aggregate remuneration comprised:

2021
2020
£
£
Wages and salaries
2,596,974
2,550,122
Social security costs
259,669
245,644
Pension costs
79,689
83,741
2,936,332
2,879,507
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
324,450
247,505
Company pension contributions to defined contribution schemes
37,464
36,102
361,914
283,607

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2020 - 2).

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
6
Directors' remuneration (continued)
Page 22
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
239,462
188,069
Company pension contributions to defined contribution schemes
26,664
25,302
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
9
601
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,561
1,406
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
47,858
(110,236)
Adjustments in respect of prior periods
-
0
(2,687)
Total current tax
47,858
(112,923)
Deferred tax
Origination and reversal of timing differences
84,060
(13,249)
Changes in tax rates
107,595
37,293
Other adjustments
-
0
548
Total deferred tax
191,655
24,592
Total tax charge/(credit)
239,513
(88,331)
Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
9
Taxation (continued)
Page 23

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2021
2020
£
£
Profit/(loss) before taxation
434,096
(834,900)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
82,478
(158,631)
Fixed asset differences
-
0
33,990
Expenses not deductible for tax purposes
35,777
1,156
Adjustments to tax charge in respect of prior periods
-
0
(2,687)
Adjustments to tax charge in respect of prior periods - deferred tax
107,595
548
Remeasurement of deferred tax to average rate at 19.00%
20,174
37,293
Non taxable adjustments
(2,057)
-
0
Super deduction
(4,454)
-
0
Taxation charge/(credit) for the year
239,513
(88,331)
Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
Page 24
10
Tangible fixed assets
Leasehold Property
Plant, machinery and office equipment
Aircraft
Total
£
£
£
£
At 1 December 2020
6,811,452
1,341,696
3,820,037
11,973,185
Additions
71,033
31,528
-
0
102,561
Disposals
(35,304)
(60,875)
-
0
(96,179)
At 30 November 2021
6,847,181
1,312,349
3,820,037
11,979,567
At 1 December 2020
2,957,297
1,136,039
325,948
4,419,284
Depreciation charged in the year
174,317
65,666
128,160
368,143
Eliminated in respect of disposals
(35,304)
(60,875)
-
0
(96,179)
At 30 November 2021
3,096,310
1,140,830
454,108
4,691,248
Carrying amount
At 30 November 2021
3,750,871
171,519
3,365,929
7,288,319
At 30 November 2020
3,854,155
205,657
3,494,089
7,553,901
11
Investment property
2021
£
Fair value
At 1 December 2020 and 30 November 2021
2,800,000

Investment property comprises hangars held to earn rental income. The fair value of the investment property has been arrived at on the basis of a valuation carried out during the year ended 30 November 2020 by Carter Towler Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors consider that the market value of the property has not materially changed.

On a historical cost basis the carrying value of the investment properties would have been £1,349,550, being cost of £2,272,912 less accumulated depreciation of £923,362 (2020 carrying value of £1,422,798 being cost of £2,272,912 less accumulated depreciation of £850,114)

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
Page 25
12
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
13
100
100
13
Subsidiaries

The aggregate of the share capital and reserves as at 30 November 2021 and of the profit or loss of the year ended on that date for the subsidiary undertakings, all of which were dormant, wholly owned and incorporated in England & Wales and registered at South Side Aviation Centre, Leeds Bradford International Airport, Leeds, West Yorkshire, LS19 7UG, were as follows:

Name of undertaking
Registered office
Class of shares held
% Held
Direct
Indirect
Yorkshire Aeroplane Club Limited
100.00
-
14
Financial instruments
2021
2020
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,139,466
1,387,510
Carrying amount of financial liabilities
Measured at amortised cost
2,347,600
4,893,496
15
Stocks
2021
2020
£
£
Aircraft spare parts
1,229,856
1,358,363
Aircraft for resale
433,582
2,433,576
Work in progress
175,444
126,263
1,838,882
3,918,202
Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
Page 26
16
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,039,367
1,027,759
Corporation tax recoverable
64,216
112,923
Other debtors
114,269
359,751
Prepayments and accrued income
357,653
622,699
1,575,505
2,123,132
17
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans and overdrafts
18
-
0
1,512,127
Trade creditors
567,213
775,988
Amounts owed to group undertakings
100
100
Taxation and social security
66,227
62,794
Other creditors
1,443,629
1,827,880
Accruals and deferred income
336,658
777,401
2,413,827
4,956,290

The Directors loan of £895,672 (2020: 1,446,371) is included within other creditors and is interest free and repayable on demand, however there is no intention that this will be recalled within the 12 month period from the date of signing these accounts.

18
Loans and overdrafts
2021
2020
£
£
Bank loans
-
0
1,455,000
Bank overdrafts
-
0
57,127
-
0
1,512,127
Payable within one year
-
0
1,512,127
Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
Page 27
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
394,101
234,998
Revaluation of investment property
138,589
106,037
532,690
341,035
2021
Movements in the year:
£
Liability at 1 December 2020
341,035
Charge to profit or loss
191,655
Liability at 30 November 2021
532,690
20
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
68,214
69,395

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
50,000
50,000
50,000
50,000
Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
Page 28
22
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021
2020
£
£
Within one year
341,603
336,074
Between two and five years
475,765
743,403
In over five years
4,311,488
4,409,766
5,128,856
5,489,243
23
Related party transactions

In addition to D Hood's loan to the company, disclosed in note 17, the following related party transactions took place during the year.

 

Sales of £137,405 (2020 £68,242) were made to D Hood in the year.

 

During the year, Multiflight Limited made sales to Infoserve Limited, a company in which D Hood is a majority shareholder of £39,710 (2020: £44,489) and purchased services from them of £nil (2020: 27,551). At the year end, Infoserve Limited owed Multiflight Limited £nil (2020: £9,735).

 

During the year, Multiflight Limited made sales to Boundless Communications Limited, a company in which D Hood is a majority shareholder of £12,387 (2020: £15,150) and purchased services from them of £6,921 (2020: £4,853). At the year end, Boundless Communications Limited owed Multiflight Limited £nil (2020: £97) and Multiflight Limited owed Boundless Communications Limited £90 (2020: £84).

 

The company owed the following balances to its subsidiary undertakings at the year end: Yorkshire Aeroplane Limited £100 (2020: £100).

24
Ultimate controlling party

The company is controlled by D R Hood.

Multiflight Limited
Notes to the financial statements (continued)
For the year ended 30 November 2021
Page 29
25
Cash generated from/(absorbed by) operations
2021
2020
£
£
Profit/(loss) for the year after tax
194,583
(746,569)
Adjustments for:
Taxation charged/(credited)
239,513
(88,331)
Finance costs
1,561
1,406
Investment income
(9)
(601)
Gain on disposal of tangible fixed assets
-
0
(120)
Depreciation and impairment of tangible fixed assets
368,143
378,234
Movements in working capital:
Decrease/(increase) in stocks
2,079,320
(540,381)
Decrease/(increase) in debtors
498,920
(821,545)
(Decrease)/increase in creditors
(479,637)
748,015
Cash generated from/(absorbed by) operations
2,902,394
(1,069,892)
26
Analysis of changes in net funds/(debt)
1 December 2020
Cash flows
30 November 2021
£
£
£
Cash at bank and in hand
80,288
736,304
816,592
Bank overdrafts
(57,127)
57,127
-
0
23,161
793,431
816,592
Borrowings excluding overdrafts
(1,455,000)
1,455,000
-
(1,431,839)
2,248,431
816,592
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