REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
ALLAERO LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
ALLAERO LIMITED |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Statement of Income and Retained Earnings | 9 |
Balance Sheet | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
ALLAERO LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
STRATEGIC REPORT |
For The Year Ended 31 March 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
Allaero is one of the world's largest independent stockists of business aircraft parts. To complement our regular service of sale and exchange of business aircraft parts we provide a competitive service to repair customer owned parts, 'one stop shop' sourcing, inventory consignments and have established Repaero - our in house FAA/EASA/CAA Part 145 repair facility. |
BUSINESS MODEL |
Allaero hold a large inventory of business aircraft parts that are continually being updated, expanded and replenished. The aircraft that we provide a full parts support service for include turbo prop aircraft and all jets from entry level to long range. |
Repaero has the capability to repair/overhaul a vast range of electrical components fitted not only to business aircraft but also to all types of aircraft. Our capability is continuously expanding to meet the needs of our customers. |
We operate a quality system that combines over 35 years of aerospace best practise, with the requirements of the ASA100 Standard. Accordingly, we only source stock from our network of quality approved suppliers and repair facilities. This ensures that dual (FAA/EASA) or triple (CAA/EASA/FAA) release accompanies any return to service parts. |
Our products are marketed globally to aircraft owners and operators through our website and aviation specific marketplaces. |
MARKETS AND TRENDS |
During 2024, the aviation industry returned to pre-pandemic levels of demand on a global basis with strong sales for Allaero during this period. Competitive activity in the markets in which the business operates continue to be high, with the added pressures of disruption in the industry's supply chain impacting lead times. The global lag in the aviation supply chain is predicted to last for up to two years, which brings both challenge and opportunity for the company. However, the continued investment in stock replenishment has strengthened the company's proposition as an independent stockist of business aircraft parts. |
OBJECTIVES AND STRATEGY |
The company continues on its trajectory to transform the business aviation supply chain through the development of gold standard processes including the fully automated warehouse, 15 year development of our bespoke computer system 'Parts' to deliver industry leading process improvements and enable the business to diversify its offering into different markets. |
Our current corporate targets include investing in building another warehouse in the Manor Royal for the increase in capability of Repaero. We are also investing in our website to release online buying to our customers. |
RISKS |
Supply chain: |
Being a stockist/distributor the effects of Covid unbalanced the supply chain drastically. Raw materials to produce parts and labour/expertise to produce/repair the components both contributed to a number of product lines such as glass and tyres having a worldwide shortage. Allaero monitors and forecasts such holes in the market to ensure the stock is in place to buffer any shortages from the OEM's. |
Financial risk: |
With a number of MRO's going into liquidation since Brexit and the pandemic, the financial procedures have had to be re-evaluated and credit limits are evaluated daily. Credit is given to companies with the advice of a third party credit scoring company and the sales procedures have also been re-evaluated to ensure no customers can default on core charges. We also regularly review our cash flow forecasts ensuring we remain in a strong financial position ensuring we can meet our forecasted financial obligations. |
OEM support: |
As aircraft age the OEM releases its support on certain aircraft and product types, which make the repair of some units impossible. There is also a tightening in the market of OEM supply, which does not allow third party repairs of their product. This makes product support difficult for the aircraft we support so we seek to reduce this risk by repairing more product through Repaero and investing into superseded and PMA parts to ensure the supply of these parts. |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
STRATEGIC REPORT |
For The Year Ended 31 March 2024 |
FUTURE DEVELOPMENTS |
We are focussing on Repaero's new building. This is due for completion in Q4 of 2024/25 which will then follow a period of investment in tooling, capabilities and labour. The computer system is continually being modified to include electronic signatures, management reports and website development. |
ON BEHALF OF THE BOARD: |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company continued to be that of supply and distribution of goods in the air transport industry. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
FUTURE DEVELOPMENTS |
In accordance with schedule 414C(11) of the Companies Act 2006, details of future developments are set out in the Strategic Report. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently; |
- | make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Caldwell Penn Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALLAERO LIMITED |
Qualified Opinion |
We have audited the financial statements of Allaero Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 loss for the period then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to smaller entities; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion |
The previous year financial statements were not audited as the company was exempt from audit. As this is the first year that the company has had its financial statements audited, we are required to ensure that the opening position has not been materially misstated. We have not been able to obtain all information and explanations required to support all of the opening balances and therefore we have been unable to conclude that the opening position has not been materially misstated. |
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 in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified 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. |
Key audit matters |
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALLAERO LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALLAERO LIMITED |
Auditors' 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 a Report of the Auditors 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. |
How the audit was considered capable of detecting irregularities, including fraud |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- ensuring that the team collectively had appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulation; |
- considering the nature of the industry and control environment affecting the company; |
- undertaking a review of business performance including consideration of key drivers for directors’ remuneration, bonus levels and performance targets; |
- enquiring of management about their identification and assessment of risks, how they detect and respond to risk, the internal controls established to mitigate risks of fraud or non-compliance with laws and whether they have any knowledge of actual, suspected or alleged fraud; |
- identification of laws and regulations impacting the company and enquiring of management whether they were aware of any instances of non-compliance; |
- reviewing the company’s documentation of their policies and procedures relevant to the above; |
In addition to the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and undertaking testing to assess compliance with provisions of relevant laws and regulations; |
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- testing the appropriateness of journal entries and other adjustments; |
- performing analytical procedures to identify large, unusual or unexpected transactions and investigating any large variances from the prior year; |
- assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and |
- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, no key audit matters were identified that related to the potential risk of fraud. |
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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALLAERO LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
7a Abbey Business Park |
Monks Walk |
Farnham |
Surrey |
GU9 8HT |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
STATEMENT OF INCOME AND RETAINED EARNINGS |
For The Year Ended 31 March 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
RETAINED EARNINGS AT END OF YEAR |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
BALANCE SHEET |
31 March 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
CASH FLOW STATEMENT |
For The Year Ended 31 March 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | (60,800 | ) | - |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 702,065 |
Cash and cash equivalents at end of year | 2 | 962,298 | 1,543,573 |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
NOTES TO THE CASH FLOW STATEMENT |
For The Year Ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
as restated |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Finance income | (2,027 | ) | - |
1,153,708 | 2,046,687 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 962,298 | 1,543,573 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
as restated |
£ | £ |
Cash and cash equivalents | 1,543,573 | 702,065 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank | 1,543,573 | (581,275 | ) | 962,298 |
1,543,573 | ( |
) | 962,298 |
Total | 1,543,573 | (581,275 | ) | 962,298 |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Allaero Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. |
These financial statements are presented in £ sterling, which is the company's main functional currency. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with the provisions of Section 1A ''Smaller Entities'' of Financial Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
Critical accounting judgements and key sources of estimation uncertainty |
The company makes accounting estimates and judgements, which are reliant upon assumptions regarding the future of the business. These estimates and judgements are based on historical experience and expectations of future events that are believed to be reasonable in light of knowledge available at the time these are made. |
One key accounting estimate included within these financial statements which has a significant risk of causing a material adjustment to the carrying amount within the next financial year is the stock impairment. |
Stock includes an impairment adjustment in respect of all stock over three years old, as it is deemed that all stock held over this age will not be sold. This impairment adjustment is made after consideration of a number of factors including the regulations surrounding the lifetime of parts and the likelihood of such stock being sold. Although this impairment adjustment is applied to all such parts, a review is undertaken of all affected parts at the balance sheet date, and individual impairments adjusted where it is considered that these are not appropriate on that particular stockline as a result of additional evidence being available such as subsequent refurbishment or sale. |
Turnover |
Turnover represents corporate aircraft component parts sales, service and repair, excluding value added tax. Revenue in respect of parts supplied both as outright sales and on part exchanges is recognised when control passes on shipment to the customer. Revenue from servicing and repair is recognised once the work has been completed. |
Intangible assets |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their |
useful lives on the following bases: |
Computer Software | - | 20% on cost |
Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended by management. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
Leasehold improvements | - | 25% reducing balance |
Fixtures and fittings | - | 25% on cost |
Motor vehicles | - | 25% on cost |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value. Net realisable value is based on the estimated selling price in the ordinary course of business less the estimated costs to bring the stock item into a saleable condition, which include service and repair costs. |
Shelf life stocks |
Due to the nature of the business and the strict rules around both the serviceable and ultimate lifetime of stocks, there are different categories of parts which become shelf life expired over time. |
Depending on the class of parts, at the end of their shelf life, Consumables are normally scrapped and Rotables are sent away for a re-life. Allaero offers a shelf life discount which reduces the sale price if stock is close to its expiry date. |
Rotables |
Rotable stocks are those which can be repaired or serviced in order to bring these parts into serviceable condition. At the end of their shelf life, Rotable stocks are sent away for a re-life. If a re-life cannot be achieved as the part has a separate ultimate calendar life, then these parts are scrapped. |
The cost of parts which can be repaired and re-used is based on the cost of purchase of the original Rotable item. As is typical in this industry, Rotable stocks are often issued in exchange for a used part. The used part is then refurbished and then entered into the stock pool. The costs of refurbishing stock items either as a result of acquiring a used part, or for a re-life, are added to the stock cost. |
Obsolete and slow moving stock |
Allaero aims to stock parts for the later and more in demand aircraft, but as fleets of aircraft age, aircraft types become less desirable, are flown less and become obsolete. Individual parts on aircraft are modified to later standards to ensure better reliability or performance. Being a stockist of parts for both of these scenarios regularly and quickly can leave Allaero retaining obsolete stocks. |
Not all parts are sold within a 3 year period but are still classified as a part worth stocking as they may be a slow moving part. Examples of these are flying surfaces such and Flaps, Elevators and Ailerons which are not changed due to a calendar life, but when damaged are not easily fixed at the MRO so an exchange unit is required. |
Shift in Market Pricing |
Aircraft are regularly parted out for spares and over time OEM's produce more stocks. Both of these scenarios release more product onto the market which increases competition and ultimately lowers the cost of the product so stock has to be discounted to ensure a sale. The stock value will be adjusted where the net realisable value of parts is expected to drop below the original cost (or cost plus repair/service) price. |
Impairment |
Once stock becomes 3 years old, the likelihood of selling becomes almost nil and therefore the company policy is to include a provision for all stock once it reaches 3 years old. The company also makes provision for other specific categories of stock where there is sufficient evidence to indicate that these categories will not be sold in future. |
At each reporting date, an impairment assessment is undertaken. This assessment works in two ways. Firstly, to undertake a re-assessment of items which have previously been impaired as above to consider whether there are any reasons why the impairment no longer applies. Secondly, to undertake an assessment of other items or categories of stock where evidence has come to light to suggest that an impairment provision has become necessary. An adjustment to the impairment provision will then be made as a result. |
Financial instruments |
The company enters into basic financial instruments, which result in the recognition of financial assets and liabilities. Financial instruments are recognised at amortised cost. At the end of each reporting period financial instruments are assessed for evidence of impairment, and changes are recognised in profit or loss. |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. |
Deferred tax represents the future tax consequences of material transactions and events recognised in the financial statements of current and previous periods. |
Current tax assets and liabilities are not discounted and are recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Foreign exchange |
Transactions denominated in foreign currencies are translated into sterling and recorded at the rate of exchange ruling at the date of the transaction. Balances at the year-end denominated in a foreign currency are translated into sterling at the rate of exchange ruling at the balance sheet date. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable are charged to the profit and loss in the period to which they relate. |
Employee benefits |
Short term employee benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which they are incurred. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
as restated |
£ | £ |
United Kingdom |
Europe |
United States of America |
South America |
Asia |
Africa | 615,856 | 786,535 |
Australia | 80,004 | 225,509 |
4. | EMPLOYEES AND DIRECTORS |
The average monthly number of employees during the year was as follows: |
2024 | 2023 |
Employees | 17 | 14 |
Directors | 4 | 4 |
21 | 18 |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 March 2024 |
2024 | 2023 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
as restated |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
as restated |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( |
) |
Computer software amortisation |
Foreign exchange differences | ( |
) |
Auditors remuneration - Audit |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax charge |
Tax on profit |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 March 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
as restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
R&D claim | ( |
) | ( |
) |
Deferred tax movement |
Total tax charge | 94,168 | 270,357 |
7. | PRIOR YEAR ADJUSTMENT |
An adjustment has been made to restate the prior year in order to capitalise Computer Software costs relating to the development of the company's bespoke stock system, which had previously been expensed. |
8. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
Amortisation for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 March 2024 |
9. | TANGIBLE FIXED ASSETS |
Improvements |
to | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
10. | STOCKS |
2024 | 2023 |
as restated |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
as restated |
£ | £ |
Trade debtors |
Other debtors |
Corporation tax |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
as restated |
£ | £ |
Trade creditors |
Corporation tax liability |
Social security and other taxes |
Other creditors |
Directors' loan accounts | - | 60,800 |
Accruals and deferred income |
ALLAERO LIMITED (REGISTERED NUMBER: 02326932) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 March 2024 |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
as restated |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
14. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
as restated |
£ | £ |
Deferred tax |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Charge to Income Statement during year |
Balance at 31 March 2024 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | as restated |
£ | £ |
Ordinary | £1 | 30,200 | 30,200 |
16. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
At 31 March 2024 |