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Registered number: 01505037










Trade-Air Airline Support Limited










Annual Report and Financial Statements

For the Year Ended 31 December 2023

 
Trade-Air Airline Support Limited
 

Company Information


Directors
N R Webb 
K M Stratton 
T R Smith 
D A Parks 




Company secretary
K M Stratton



Registered number
01505037



Registered office
4 Cinema Buildings
Poole Road

Bournemouth

Dorset

BH4 9DW




Independent auditor
Kreston Reeves LLP
Statutory Auditor & Chartered Accountants

Springfield House

Springfield Road

Horsham

West Sussex

RH12 2RG




Bankers
Lloyds

Crawley

West Sussex





 
Trade-Air Airline Support Limited
 

Contents



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Notes to the Financial Statements
13 - 25

 
Trade-Air Airline Support Limited
 

Strategic Report
For the Year Ended 31 December 2023

Introduction
 
The directors have pleasure in presenting their strategic report for the year ended 31 December 2023.
The directors aim to present a balanced and comprehensive review of the development and performance of the company’s business during the year and its position at the year end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the company faces.

Business review
 
The profit for the financial year after taxation was £3,142,125 which has resulted in an increase in net assets of 23.83%.
Fixed dividends of £25.25 per share on the preference shares owned by controlling management were paid and these are reported within interest charges before tax. Equity dividends on certain classes of ordinary share totalling £762,450 were also paid during the year.
The turnover in the year increased by 8.49% and there was an increase in the gross profit margin from 19.5% in 2022 to 24% in 2023. The increase in turnover has however, coupled with prudent controls on cash, resulted in a year end increase in cash reserves of 39.35% with the year-end debtors growing by 21.74%. The net current asset position has increased from the previous year by 24%.
During the year the pound strengthened against the US Dollar by circa. 3.9% but weakened against the Euro by 1.18%. As almost the entire trading business of the company is operated in US dollars, a strong pound against the dollar results in a lower figure when converting to sterling. As most of the business is conducted in US Dollars and the business returns profits in sterling, the effect of a strong pound decreases the sterling equivalent values of assets and liabilities that are held in US dollars at the balance sheet date. The result of this is that overall losses on exchange in the year totalled £138,403, whereas in 2022, resultant from the weak pound in that year, gains on conversion totalled £469,751.

Page 1

 
Trade-Air Airline Support Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Principal risks and uncertainties
 
The key business risks and uncertainties affecting the company are considered to relate to the recessive influence on customers and the scale of supplies entering the market, competitive strategies from international service providers and exchange rate fluctuations to reported results, although this year’s currency fluctuations have, as explained above, resulted in a marginal decrease to the company’s financial reporting. Logistical difficulties are still being encountered following Brexit when dealing with countries within the European Union and last year’s introduction by HM Revenue and Customs of the Customs Declaration Service seems not to have eased the burden exacted by an increase in paperwork.
Because the company has shown that it can still provide its usual high standard of customer care, the current order book is extremely healthy and the management is optimistic that the company will continue to progress, albeit with appropriate caution and controlled expenditure. The company remains debt free and the nature of the company’s customer base, being mainly sovereign states based in the middle east, mitigates any likelihood of there being any going concern issues.
The liquidity requirements of the company are managed by the directors through the use, as and when required, of an overdraft facility from Lloyds Bank plc, secured by a floating charge in the form of an unlimited debenture over the assets of the company. The company has no loans or finance arrangements other than this.
The company trades in a US Dollar-based industry and as such is subject to the effect of exchange rate fluctuations when reporting in sterling. The political uncertainty both in the UK with a recent change in government and the USA with a pending presidential election, coupled with the war in Ukraine and tensions in the Middle East, do result in some concerns.    
However, given the nature of the company’s mainly middle eastern sovereign state clients, who are therefore, not in the main commercially based airline sector, the directors are confident that the company’s future, whilst continuing to be challenging, will be secure.
The increase in Corporation Tax rates from 1 April 2023 has had an effect on the company, but it is not considered to be a major issue affecting the company’s future progress.

Other key performance indicators
 
Given the straightforward nature of the business, the directors rely on the gross profit margin, turnover, liquidity, and net assets reported in the business review. Weekly meetings between the directors and the staff focus on these areas of the business.
As mentioned earlier, during the year the gross profit percentage showed an increase of 4.5% on the previous year. This is in part due to better margins being negotiated on certain large transactions and, to a lesser extent, some uplift in stock values over the previous year. The overall profitability after tax, showed an increase on 2022 of 17.2%.
The directors continue to monitor all aspects of the business and considering the global impact of the war in Ukraine coupled with the tensions in the Middle East and general economic uncertainties, they are pleased to report that sales have continued to be maintained at a high level in the company’s well established regions of operation such as, in particular, the Middle East.


This report was approved by the board and signed on its behalf.



N R Webb
Director
Date: 24 September 2024
Page 2

 
Trade-Air Airline Support Limited
 

 
Directors' Report
For the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £3,142,125 (2022 - £2,680,954).

The directors declared and paid interim dividends totalling £762,450 for the year (2022: £54,500).

Directors

The directors who served during the year were:

N R Webb 
K M Stratton 
T R Smith 
D A Parks 

Matters covered in the Strategic Report

Items  required  to  be  disclosed  in the  Directors’  report  are  set  out in the  Strategic  Report  in  accordance  with s.414C(11) CA 2006. 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 3

 
Trade-Air Airline Support Limited
 

 
Directors' Report (continued)
For the Year Ended 31 December 2023

Auditor

The auditor, Kreston Reeves LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





N R Webb
Director
Date: 24 September 2024
Page 4

 
Trade-Air Airline Support Limited
 

 
Independent Auditor's Report to the Members of Trade-Air Airline Support Limited
 

Opinion


We have audited the financial statements of Trade-Air Airline Support Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 United Kingdom, including the Financial Reporting Council'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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
Trade-Air Airline Support Limited
 

 
Independent Auditor's Report to the Members of Trade-Air Airline Support Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
Trade-Air Airline Support Limited
 

 
Independent Auditor's Report to the Members of Trade-Air Airline Support Limited (continued)


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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud
Based on our understanding  of the company and industry, and through discussion  with the directors  and other management  (as required  by auditing  standards),  we identified  that the principal  risks  of non-compliance with laws and regulations related to health and safety, employment law and aviation regulations. We considered the extent to which non-compliance  might  have  a  material  effect  on  the  financial  statements.  We  also  considered  those  laws  and regulations  that have a direct impact on the preparation  of the financial statements such as the Companies Act 2006 and taxation legislation.  We communicated  identified  laws  and regulations  throughout  our team and  remained  alert  to  any  indications  of non-compliance  throughout  the  audit.  We  evaluated  management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of  controls),  and  determined  that  the  principal  risks  were  related  to  posting  inappropriate  journal  entries  to increase revenue or reduce expenditure. Audit procedures performed by the engagement team included:
 
Discussions  with management  and assessment  of known or suspected instances of non-compliance   with laws  and  regulations  (including  health  and  safety and employment law)  and  fraud,  and  review  of  the  reports  made  by management; and
Assessment of identified fraud risk factors; and
Challenging  assumptions  and judgements  made by management  in its significant  accounting estimates; and
Checking and reperforming the reconciliation of key control accounts; and
Performing  analytical  procedures  to  identify  any  unusual  or  unexpected  relationships, including  related party transactions, that may indicate risks of material misstatement due to fraud; and
Confirmation  of  related  parties  with  management,  and  review  of  transactions  throughout  the  period to identify  any  previously   undisclosed  transactions   with  related  parties  outside  the  normal  course  of business; and
Reading  minutes  of  meetings  of  those  charged  with  governance  and  reviewing  correspondence  with relevant tax and regulatory authorities; and
Review  of  significant   and  unusual  transactions   and  evaluation   of  the  underlying   financial  rationale supporting the transactions; and
Identifying  and testing journal entries, in particular  any manual entries made at the year end for financial
statement preparation; and
A sample of year end trade debtor balances have been agreed to after date cash received

 
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 





 

 
Page 7

 
Trade-Air Airline Support Limited
 

 
Independent Auditor's Report to the Members of Trade-Air Airline Support Limited (continued)


As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


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 2006Our 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.





Allan Pinner FCCA (Senior Statutory Auditor)
for and on behalf of
Kreston Reeves LLP
Statutory Auditor
Chartered Accountants
Horsham

25 September 2024
Page 8

 
Trade-Air Airline Support Limited
 

Statement of Comprehensive Income
For the Year Ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
32,212,203
29,691,619

Cost of sales
  
(24,471,643)
(23,904,652)

Gross profit
  
7,740,560
5,786,967

Distribution costs
  
(1,158,851)
(1,122,736)

Administrative expenses
  
(1,985,044)
(1,583,458)

Other operating charges
  
(138,403)
469,751

Operating profit
 5 
4,458,262
3,550,524

Interest receivable and similar income
 9 
-
442

Interest payable and similar expenses
  
(260,257)
(190,630)

Profit before tax
  
4,198,005
3,360,336

Tax on profit
 10 
(1,055,880)
(679,382)

Profit for the financial year
  
3,142,125
2,680,954

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 25 form part of these financial statements.
Page 9

 
Trade-Air Airline Support Limited
Registered number: 01505037

Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
46,819
48,451

  
46,819
48,451

Current assets
  

Stocks
 13 
3,249,944
2,227,528

Debtors: amounts falling due within one year
 14 
10,909,750
8,961,473

Cash at bank and in hand
 15 
3,533,777
2,535,921

  
17,693,471
13,724,922

Creditors: amounts falling due within one year
 16 
(5,362,158)
(3,780,202)

Net current assets
  
 
 
12,331,313
 
 
9,944,720

Total assets less current liabilities
  
12,378,132
9,993,171

Creditors: amounts falling due after more than one year
 17 
(1)
(1)

Provisions for liabilities
  

Deferred tax
  
(13,254)
(7,976)

  
 
 
(13,254)
 
 
(7,976)

Net assets
  
12,364,877
9,985,194


Capital and reserves
  

Called up share capital 
 19 
190
182

Profit and loss account
 20 
12,364,687
9,985,012

  
12,364,877
9,985,194


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




N R Webb
Director
Date: 24 September 2024

The notes on pages 13 to 25 form part of these financial statements.
Page 10

 
Trade-Air Airline Support Limited
 

Statement of Changes in Equity
For the Year Ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
182
7,358,558
7,358,740


Comprehensive income for the year

Profit for the year
-
2,680,954
2,680,954

Dividends: Equity capital
-
(54,500)
(54,500)



At 1 January 2023
182
9,985,012
9,985,194


Comprehensive income for the year

Profit for the year
-
3,142,125
3,142,125

Dividends: Equity capital
-
(762,450)
(762,450)

Shares issued during the year
8
-
8


At 31 December 2023
190
12,364,687
12,364,877


The notes on pages 13 to 25 form part of these financial statements.
Page 11

 
Trade-Air Airline Support Limited
 

Statement of Cash Flows
For the Year Ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
3,142,125
2,680,954

Adjustments for:

Depreciation of tangible assets
12,007
12,050

Loss on disposal of tangible assets
473
817

Interest paid
260,257
190,630

Interest received
-
(442)

Taxation charge
1,055,880
679,382

(Increase) in stocks
(1,022,416)
(38,169)

(Increase) in debtors
(1,948,277)
(3,940,584)

Increase in creditors
1,379,321
1,668,835

Corporation tax (paid)
(840,799)
(242,941)

Net cash generated from operating activities

2,038,571
1,010,532


Cash flows from investing activities

Purchase of tangible fixed assets
(10,848)
-

Interest received
-
442

Net cash from investing activities

(10,848)
442

Cash flows from financing activities

Issue of ordinary shares
8
-

Dividends paid
(762,450)
(54,500)

Interest paid
(260,257)
(190,630)

Net cash used in financing activities
(1,022,699)
(245,130)

Net increase in cash and cash equivalents
1,005,024
765,844

Cash and cash equivalents at beginning of year
2,528,753
1,762,909

Cash and cash equivalents at the end of year
3,533,777
2,528,753


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,533,777
2,535,921

Bank overdrafts
-
(7,168)

3,533,777
2,528,753


The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

Trade-Air  Airline  Support  Limited  is  a  private  company  limited  by  shares  incorporated  in  England  and Wales.  The  address  of the  registered  office  is  4  Cinema  Buildings, Poole Road, Bournemouth, BH4 9DW. The address of the principal place of business is The Merlin Centre, County Oak Way, Crawley, West Sussex, RH11 7XA.
The Company's  principal  activity during the year was that of providing  a global spare parts maintenance service for state, corporate and private airlines.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

All of the company’s subsidiary undertakings have been dormant throughout the current and previous accounting   periods,   and   are   considered   by   the   directors   to   be  immaterial   in  obtaining   an understanding  of the results and financial position of the company. Therefore the company is exempt from the requirement to prepare group accounts by virtue of section 402 of the Companies Act 2006. These financial  statements  are therefore the company's  separate  financial statements,  and present information about the company as an individual undertaking and not about its group.

The following principal accounting policies have been applied:

  
2.2

Turnover

Turnover  is  recognised  to  the  extent  that it  is  probable  that the  economic  benefits  will flow  to  the Company and the turnover  can be reliably measured. Turnover  is measured  as the fair value of the consideration  received or receivable,  excluding  discounts, rebates, value  added tax and other sales taxes.
Turnover  in  respect  of  parts  supplied  both  as  outright  sales  and  on  exchange  is  recognised  on delivery to the customer.
Turnover for services supplied, such as repair charges, is recognised on completion of the repair.

 
2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.3
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and on a reducing balance basis.

Depreciation is provided on the following basis:

Short-term leasehold property
-
5% straight line
Motor vehicles
-
25% reducing balance
Furniture and equipment
-
15% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.4

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. The cost of rotable parts is based on the specific cost to the Company of the  original  rotable  item.     Where  items  are  issued  under   exchange   terms  for  a  customer's unserviceable  unit  which  is  then  regenerated  under  indemnified  terms  at  the  customer’s  cost,  the refurbished  item  is returned  to  the  stock  pool.   The  cost  of refurbishment  and recovery  thereof  is expensed.
At each balance  sheet  date,  stocks  are assessed  for impairment.  If stock  is 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.
Page 14

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.5

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Page 15

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.5
Financial instruments (continued)


Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

  
2.6

Dividends

Dividends  on  shares  recognised  as  liabilities  are  recognised  as  expenses  and  classified  within interest payable.

 
2.7

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 16

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have had to make the following judgments:
The company provides spare parts for aircraft and is subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When  calculating   the  inventory  provision,  management   considers   the  nature  and  condition  of  the inventory,  as  well  as  applying  assumptions  around  anticipated  future  usage.  See  note  13 for  the  net carrying value of stocks.
The company makes  an estimate  of the recoverable  value of trade and other debtors.  When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the aging profile of debtors and historical experience. See note 14 for the net carrying amount of debtors.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sales of parts and exchange and repair services
32,212,203
29,691,619

32,212,203
29,691,619


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
1,369,700
2,180,117

Rest of Europe
8,117,263
3,624,920

Rest of the world
22,725,240
23,886,582

32,212,203
29,691,619



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Foreign exchange (gains) / losses
138,403
(469,751)

Other operating lease rentals
86,250
86,250


6.


Auditor's remuneration



Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
28,741
29,250


Page 17

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,824,390
1,588,427

Cost of defined contribution scheme
16,104
15,100

1,840,494
1,603,527


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Sales and distribution
17
17



Administration
2
2

19
19


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
933,365
664,360

Company contributions to defined contribution pension schemes
3,959
991

937,324
665,351


During the year retirement benefits were accruing to 3 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £309,664 (2022 - £306,101).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
-
442

-
442

Page 18

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,050,602
681,653

1,050,602
681,653


Deferred tax


Origination and reversal of timing differences
5,278
(2,271)


Taxation on profit on ordinary activities
1,055,880
679,382

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
4,198,005
3,360,336


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
1,049,501
638,464

Effects of:


Capital allowances for year in excess of depreciation
2,250
2,755

Preference dividends paid
63,125
36,100

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
4,243
2,063

Changes in provisions leading to an increase (decrease) in the tax charge
2,518
-

Marginal relief
(65,757)
-

Total tax charge for the year
1,055,880
679,382


Factors that may affect future tax charges

There are capital tax losses of £10,015 (2022: £10,015)  available to utilise against future capital gains of
the company.  A deferred tax asset has not been recognised in respect of these losses due to uncertainty about future recoverability.

Page 19

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

11.


Dividends

2023
2022
£
£


Preference dividends paid
252,500
190,000


Interim dividends paid on ordinary shares
762,450
54,500

1,014,950
244,500


12.


Tangible fixed assets





Short-term leasehold property
Motor vehicles
Furniture and equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2023
105,623
108,562
46,089
260,274


Additions
-
10,000
848
10,848


Disposals
-
(12,000)
-
(12,000)



At 31 December 2023

105,623
106,562
46,937
259,122



Depreciation


At 1 January 2023
105,623
86,256
19,944
211,823


Charge for the year on owned assets
-
7,958
4,049
12,007


Disposals
-
(11,527)
-
(11,527)



At 31 December 2023

105,623
82,687
23,993
212,303



Net book value



At 31 December 2023
-
23,875
22,944
46,819



At 31 December 2022
-
22,306
26,145
48,451
Page 20

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

13.


Stocks

2023
2022
£
£

Finished goods and goods for resale
3,249,944
2,227,528

3,249,944
2,227,528



14.


Debtors

2023
2022
£
£


Trade debtors
10,178,718
8,510,416

Other debtors
672,866
383,552

Prepayments and accrued income
58,166
67,505

10,909,750
8,961,473



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
3,533,777
2,535,921

Less: bank overdrafts
-
(7,168)

3,533,777
2,528,753



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
7,168

Trade creditors
3,202,977
1,744,139

Corporation tax
1,059,627
849,824

Other creditors
1,057,309
1,061,871

Accruals and deferred income
42,245
117,200

5,362,158
3,780,202



Page 21

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Share capital treated as debt
1
1

1
1


Disclosure of the terms and conditions attached to the non-equity shares is made in note 19.


18.


Deferred taxation




2023
2022


£

£






At beginning of year
(7,976)
(10,247)


Charged to profit or loss
(5,278)
2,271



At end of year
(13,254)
(7,976)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(13,254)
(7,976)

(13,254)
(7,976)

Page 22

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

19.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



1,250,000 (2022 - 1,250,000) Ordinary class B shares of £0.0001 each
125
125
100,000 Ordinary class C shares of £0.0001 each
10
10
100,000 Ordinary class D shares of £0.0001 each
10
10
100,000 Ordinary class E shares of £0.0001 each
10
10
100,000 Ordinary class F shares of £0.0001 each
10
10
75,000 (2022 - ) Ordinary class G shares of £0.0001 each
8
-
1,500 (2022 - ) Ordinary class H shares of £0.0001 each
-
-

173

165

Allotted, called up and partly paid



170,000 (2022 - 170,000) Ordinary class B shares of £0.0001 each
17
17

2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



10,000 (2022 - 10,000) Preference class A shares of £0.0001 each
1
1


Preference shares represent non-equity interests stated at par value. Dividends are payable quarterly at
£4.75 per share, net of tax credit and are cumulative. In addition, the company has the right to make discretionary additional dividends to preference share holders. The shares carry sole voting rights and have priority over ordinary shares in the event of winding up of their par value and any arrears of dividend. The preference shares are wholly owned by Mr N Webb.

During the year the company issued 75,000 Ordinary class G shares at par.
During the year the company issued 1,500 Ordinary class H shares at par.


20.


Reserves

Profit and loss account

The  profit  and  loss  account  fully  comprises  current  and  prior  period  retained  profits  and  losses  after deducting  any  distributions  made  to  the  company's  shareholders.  The  profit  and  loss  account  is  all distributable at each year end.
Page 23

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023
21.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

2,535,921

997,856

3,533,777

Bank overdrafts

(7,168)

7,168

-

Debt due after 1 year

(1)

-

(1)

Debt due within 1 year

(881,514)

19,460

(862,054)


1,647,238
1,024,484
2,671,722


22.


Pension commitments

The  Company  operates  a  defined  contribution  pension  scheme.  The  assets  of  the  scheme  are  held separately  from those of the Company   in an independently  administered fund. The pension cost charge represents  contributions  payable by the Company   to the fund and amounted  to £16,104 (2022 - £15,100). Contributions totalling £NiI (2022 - £NiI) were payable to the fund at the balance sheet date.


23.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
86,250
86,250

Later than 1 year and not later than 5 years
172,500
172,500

258,750
258,750

Page 24

 
Trade-Air Airline Support Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

24.


Related party transactions

During  the  year  dividends  totalling  £942,500 (2022:  £190,000)  were  paid  to two of the company's directors.  In addition, net amounts totalling £19,460 were advanced to these directors during the year (2022: £394,654 repaid by the directors). At  the  year  end  the  balance  owed  by  the  company  to  these two directors  was £862,054  (2022: £881,514).
The company rents its trading premises from The Gatwick Pension Fund, an entity set up for the benefit of  Mr  N Webb.  During  the  year  the  company  paid  rent  of  £86,250  (2022:  £86,250)  to  The  Gatwick Pension Fund. At the year end the balance owed by the company to The Gatwick Pension Fund was £nil (2022: £21,562).
The company  trades with Trade  Air Inc,  a company  incorporated  in The United  States of America  and wholly owned by Mr N Webb. During the year the company made acquisitions from Trade Air Inc totalling £233,246 (2022: £159,564) and paid management  charges  of £272,628 (2022:  £265,194)  to Trade  Air Inc.  At the year end no amounts were owed by the company to Trade Air Inc (2022: £nil).
Included in administrative expenses is advertising and promotion costs totalling £240,000 (2022: £200,000) that were incurred from No. 6 Racing Limited, the business interest of a close family member of N Webb. During the year payments totalling £320,000 (2022: £200,000) were made to No. 6 Racing Limited. At the year end £80,000 was owed to the company by No. 6 Racing Limited (2022: £nil).
All  directors  of  the  company  are  considered  to be  key  management  personnel.  Total  remuneration  in respect of key management personnel was £1,055,012 (2022: £749,487).


25.


Principal subsidiaries

Company name                            Country                      Percentage shareholding          Description
319 CJ Aerospace Limited               England and Wales      100                                           Dormant
319 CJ Aviation Limited                   England and Wales      100                                           Dormant
319 CJ Corporate Aviation Limited    England and Wales      100                                           Dormant


26.


Controlling party

Mr N Webb is the controlling party by virtue of his majority share holding in the company.

Page 25