Nicholson McLaren Aviation Limited 05696256 false 2022-10-01 2023-09-30 2023-09-30 The principal activity of the company is that of aircraft engineering Digita Accounts Production Advanced 6.30.9574.0 true true 05696256 2022-10-01 2023-09-30 05696256 2023-09-30 05696256 core:CurrentFinancialInstruments 2023-09-30 05696256 core:CurrentFinancialInstruments core:WithinOneYear 2023-09-30 05696256 core:Goodwill 2023-09-30 05696256 core:FurnitureFittingsToolsEquipment 2023-09-30 05696256 core:MotorVehicles 2023-09-30 05696256 bus:SmallEntities 2022-10-01 2023-09-30 05696256 bus:AuditExemptWithAccountantsReport 2022-10-01 2023-09-30 05696256 bus:FullAccounts 2022-10-01 2023-09-30 05696256 bus:SmallCompaniesRegimeForAccounts 2022-10-01 2023-09-30 05696256 bus:RegisteredOffice 2022-10-01 2023-09-30 05696256 bus:Director2 2022-10-01 2023-09-30 05696256 bus:PrivateLimitedCompanyLtd 2022-10-01 2023-09-30 05696256 core:Goodwill 2022-10-01 2023-09-30 05696256 core:FurnitureFittingsToolsEquipment 2022-10-01 2023-09-30 05696256 core:MotorVehicles 2022-10-01 2023-09-30 05696256 core:OtherRelatedParties 2022-10-01 2023-09-30 05696256 countries:EnglandWales 2022-10-01 2023-09-30 05696256 2022-09-30 05696256 core:Goodwill 2022-09-30 05696256 core:FurnitureFittingsToolsEquipment 2022-09-30 05696256 core:MotorVehicles 2022-09-30 05696256 2021-10-01 2022-09-30 05696256 2022-09-30 05696256 core:CurrentFinancialInstruments 2022-09-30 05696256 core:CurrentFinancialInstruments core:WithinOneYear 2022-09-30 05696256 core:Goodwill 2022-09-30 05696256 core:FurnitureFittingsToolsEquipment 2022-09-30 05696256 core:MotorVehicles 2022-09-30 iso4217:GBP xbrli:pure

Registration number: 05696256

Prepared for the registrar

Nicholson McLaren Aviation Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 September 2023

 

Nicholson McLaren Aviation Limited

(Registration number: 05696256)
Balance Sheet as at 30 September 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

187,995

260,769

Tangible assets

5

95,057

98,813

 

283,052

359,582

Current assets

 

Stocks

6

677,340

752,125

Debtors

7

443,937

861,845

Cash at bank and in hand

 

215,555

146,532

 

1,336,832

1,760,502

Creditors: Amounts falling due within one year

8

(4,066,180)

(4,340,718)

Net current liabilities

 

(2,729,348)

(2,580,216)

Net liabilities

 

(2,446,296)

(2,220,634)

Capital and reserves

 

Called up share capital

1,000

1,000

Share premium reserve

149,950

149,950

Other reserves

336,596

336,596

Profit and loss account

(2,933,842)

(2,708,180)

Shareholders' deficit

 

(2,446,296)

(2,220,634)

For the financial year ending 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 13 March 2024 and signed on its behalf by:
 


J I Waghorn
Director

 

Nicholson McLaren Aviation Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
12 Ivanhoe Road
Hogwood Industrial Estate
Finchampstead
Wokingham
RG40 4QQ

 

2

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that 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.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources, with the ongoing support of its shareholders to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements or key sources of estimation uncertainty

No significant judgements or key sources of estimation uncertainty have been made by management in the preparation of these financial statements.

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 company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company 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 company'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 are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

 

Nicholson McLaren Aviation Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. 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.

Tangible 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.

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

Fixtures, fittings and equipment

15% net book value/33.33% of cost

Motor vehicles

25% net book value

Goodwill

Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’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.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

5% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Nicholson McLaren Aviation Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Stocks

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 company 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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss 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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.

 

Nicholson McLaren Aviation Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 23 (2022 - 20).

 

4

Intangible assets

Goodwill
 £

Cost

At 1 October 2022

1,455,466

At 30 September 2023

1,455,466

Amortisation

At 1 October 2022

1,194,697

Amortisation charge

72,774

At 30 September 2023

1,267,471

Carrying amount

At 30 September 2023

187,995

At 30 September 2022

260,769

 

Nicholson McLaren Aviation Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

 

5

Tangible assets

Fixtures, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 October 2022

414,687

62,416

477,103

Additions

18,244

-

18,244

Disposals

-

(5,625)

(5,625)

At 30 September 2023

432,931

56,791

489,722

Depreciation

At 1 October 2022

349,147

29,143

378,290

Charge for the year

13,385

8,318

21,703

Eliminated on disposal

-

(5,328)

(5,328)

At 30 September 2023

362,532

32,133

394,665

Carrying amount

At 30 September 2023

70,399

24,658

95,057

At 30 September 2022

65,540

33,273

98,813

 

6

Stocks

2023
 £

2022
 £

Raw materials, consumables and work in progress

677,340

752,125

 

7

Debtors

2023
 £

2022
 £

Trade debtors

135,102

153,830

Other debtors

274,180

643,801

Prepayments

34,655

64,214

 

443,937

861,845

 

8

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

9

3,179,682

3,169,681

Trade creditors

 

414,332

462,805

Social security and other taxes

 

116,943

61,218

Accrued expenses

 

4,000

4,000

Deferred income

 

351,223

643,014

 

4,066,180

4,340,718

 

Nicholson McLaren Aviation Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023

 

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Other borrowings

3,176,059

3,166,058

Director's loan account

1,981

1,981

Director's loan account

1,642

1,642

3,179,682

3,169,681

Shareholder and connected company loans, with no fixed repayment terms or interest charged, were created to purchase the goodwill, plant and machinery and motor vehicles. At 30 September 2023, the total value of loans was £3,160,797 (2022: £3,166,058). As set out in note 2 the shareholders have continued to support the company and will do so for the foreseeable future. The directors believe that these loans will not be repaid within one year.

 

10

Related party transactions

Summary of transactions with other related parties


Nicholson McLaren Engines Limited - a company controlled by the controlling shareholder M B Endean. During the year, the companies provided loans and made recharges on an arms length basis, to cover costs of the shared properties. At the balance sheet date, the company was owed £250,179 (2022: £619,800) from Nicholson McLaren Engines Limited.

 

Transactions with directors

At the balance sheet date, the amount due to the directors of the company was £3,623 (2022: £3,623). There are no fixed repayment terms and interest charged on the outstanding balance.