Registration number:
Prepared for the registrar
for the
Year Ended 30 September 2023
Nicholson McLaren Aviation Limited
(Registration number: 05696256)
Balance Sheet as at 30 September 2023
Note |
2023 |
2022 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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|
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Current assets |
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Stocks |
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Debtors |
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|
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Cash at bank and in hand |
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|
|
|
|
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Net liabilities |
( |
( |
|
Capital and reserves |
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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 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
Director
Nicholson McLaren Aviation Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements 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
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
Recognition and measurement
Impairment
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Intangible assets |
Goodwill |
|
Cost |
|
At 1 October 2022 |
|
At 30 September 2023 |
|
Amortisation |
|
At 1 October 2022 |
|
Amortisation charge |
|
At 30 September 2023 |
|
Carrying amount |
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At 30 September 2023 |
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At 30 September 2022 |
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Nicholson McLaren Aviation Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023
Tangible assets |
Fixtures, fittings and equipment |
Motor vehicles |
Total |
|
Cost |
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At 1 October 2022 |
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Additions |
|
- |
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Disposals |
- |
( |
( |
At 30 September 2023 |
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Depreciation |
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At 1 October 2022 |
|
|
|
Charge for the year |
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Eliminated on disposal |
- |
( |
( |
At 30 September 2023 |
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Carrying amount |
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At 30 September 2023 |
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|
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At 30 September 2022 |
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|
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Stocks |
2023 |
2022 |
|
Raw materials, consumables and work in progress |
677,340 |
752,125 |
Debtors |
2023 |
2022 |
|
Trade debtors |
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Other debtors |
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Prepayments |
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Creditors |
Note |
2023 |
2022 |
|
Due within one year |
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Loans and borrowings |
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Trade creditors |
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Social security and other taxes |
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Accrued expenses |
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Deferred income |
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Nicholson McLaren Aviation Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 September 2023
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 |
|
|
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.
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.