Company registration number 12662460 (England and Wales)
ROTORTRADE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ROTORTRADE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
3 - 8
ROTORTRADE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
4
7,447,435
284
Cash at bank and in hand
8,435
4,214
7,455,870
4,498
Creditors: amounts falling due within one year
5
(352,052)
(62,816)
Net current assets/(liabilities)
7,103,818
(58,318)
Creditors: amounts falling due after more than one year
6
(6,550,660)
Net assets/(liabilities)
553,158
(58,318)
Capital and reserves
Called up share capital
7
5,000
5,000
Capital contribution reserve
416,184
Profit and loss reserves
131,974
(63,318)
Total equity
553,158
(58,318)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
Mr R Lubrano
Director
Company registration number 12662460 (England and Wales)
ROTORTRADE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2022
5,000
-
(60,070)
(55,070)
Period ended 31 December 2022:
Loss and total comprehensive income
-
-
(3,248)
(3,248)
Balance at 31 December 2022
5,000
-
(63,318)
(58,318)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
195,292
195,292
Amount recognised on financing transaction
-
416,184
416,184
Balance at 31 December 2023
5,000
416,184
131,974
553,158
ROTORTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Rotortrade Limited is a private company limited by shares incorporated in England and Wales, registration number 12662460. The registered office is 3rd Floor, 28 Austin Friars, London, EC2N 2QQ.
1.1
Reporting period
The current accounting period is from 1 January 2023 to 31 December 2023. The previous accounting period is from 1 July 2022 to 31 December 2022.
1.2
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 functional currency of the company is Euro's. The financial statements are prepared in sterling, which is the presentational 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. The principal accounting policies adopted are set out below.
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, settlement discounts and volume rebates.
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 the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
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.
ROTORTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Where the entity enters into a financing transaction, the financial asset or liability is initially recognised at the present value of future payments discounted at a market rate of interest for a similar debt instrument as determined at initial recognition adjusted for transaction costs. Subsequently, the financial asset or liability is measured at amortised cost using the effective interest rate method.
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 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank 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.
1.6
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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ROTORTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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.
ROTORTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
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.
In preparing the financial statements, management has exercised significant judgement in determining the market rate of interest for the intercompany loan as required under FRS 102. The market rate of interest is the rate that the entity would expect to pay on similar financial instruments in an open market transaction under comparable terms and conditions. In estimating this rate, management have considered the current market conditions, including prevailing interest rates for instruments with similar profiles and terms.
Based on these considerations, management has concluded that the market value of interest for the relevant financial instrument is 6.50%. This rate has been applied in discounting future cash flows for the purposes of measuring intercompany balances in accordance with the requirements of FRS 102.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
2
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
546,768
Other debtors
235
284
547,003
284
2023
2022
Amounts falling due after more than one year:
£
£
Trade debtors
6,900,432
Total debtors
7,447,435
284
ROTORTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
246,791
Corporation tax
40,285
Other taxation and social security
1,790
1,083
Other creditors
63,186
61,733
352,052
62,816
Included within other creditors is £54,638 (2022 - £57,207) owed by the company to the directors Mr R Lubrano and Mrs M I Lubrano. This amount is unsecured, interest free and repayable on demand.
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
6,550,660
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £100 each
50
50
5,000
5,000
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Statutory Auditor:
FKCA Limited
9
Events after the reporting date
During July 2024 a payment was received from a customer of EUR 8,250,826 which cleared the trade debtor balance due at the balance sheet date in full.
During July 2024 a payment was made to the parent undertaking of EUR 8,018,050 which cleared a debt owed to the parent undertaking at the balance sheet date in full.
10
Related party transactions
ROTORTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Related party transactions
(Continued)
- 8 -
During the year the company charged £30,000 (2022 - £21,500) for its services to Rotortrade Pte Services Ltd, the parent undertaking.
In December 2023 the company purchased an aircraft from Rotortrade Pte Services Ltd, the parent undertaking for EUR 10,400,000 (£9,048,000).
At 31 December 2023 the company owed EUR 8,260,000 (£7,186,200) to Rotortrade Services Pte Ltd in respect of the purchased aircraft. Of this amount EUR 252,134 (£219,356) is included within amounts owed to group undertakings within one year, EUR 7,529,494 (£6,550,660) is included with amounts owed to group undertakings after more than one year. The loan was deemed to constitute a financing transaction in accordance with FRS102 11.13, as such a capital contribution has been recognised of EUR 478,372 (£416,184). This overall amount is secured against the underlying asset, repayable within two years and is subject to interest at 3.33% per annum with effect from January 2024.
At 31 December 2023 the company owed £27,435 (2022 £0) to Rotortrade Services Pte Ltd in respect of other monies advanced for working capital purposes. This amount is unsecured, interest free, repayable on demand and included within amounts owed to group undertakings within one year.
11
Controlling party
On 1 January 2023, 100% of the issued share capital of the company was transferred to Rotortrade Services Pte Ltd, a company incorporated in Singapore whose registered office address is 9, Raffles Place, Singapore 048619, Singapore.
The immediate parent undertaking is Rotortrade Services Pte Ltd. The ultimate controlling party is The Helicopter and Jet Company, a company incorporated in the Kingdom of Saudi Arabia whose registered office address is Airport Road, Riyadh 13413, the Kingdom of Saudi Arabia.
No consolidated accounts are prepared that include the results of Rotortrade Limited.