Company registration number 03125944 (England and Wales)
AIRINMAR LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
AIRINMAR LIMITED
COMPANY INFORMATION
Directors
J Garascia
J Holmes
E Pachapa
Secretary
J Garascia
Company number
03125944
Registered office
7 Ivanhoe Road
Hogwood Industrial Estate
Finchampstead
Berkshire
England
RG40 4QQ
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
AIRINMAR LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
AIRINMAR LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present their Strategic Report and the audited financial statements for the year ended 31 May 2024.

Business Review

The statement of comprehensive income is set out on page 8 and shows the results for the year. Sales for the year were £5.1m (2023: £3.6m), and operating profit was £0.5m (2023: £0.6m).

 

The year-on-year improvement in revenue was attributed to a combination of factors that included organic growth across our core customer portfolio as well as new business secured during the year. The organic growth in the business is, in part, attributed to the rebound in the aviation sector from the COVID 19 pandemic. A general uptick in Airinmar’s customers’ operations has increased the volume of repair activity and provided Airinmar with an increased opportunity to generate value for the customer in this regard.

 

Airinmar continues to leverage its extensive service capability to drive increased value for existing and new customers. Airinmar covers many aspects of the component repair cycle including warranty management, repair management and repair cost oversight.

Customer services & IT

Airinmar continues to develop and improve the key services that it delivers to customers which include:

 

 

Airinmar regularly and systematically reports to customers on key performance indicators demonstrating delivered benefits. Having sophisticated proprietary IT systems based on the latest software technology is one of the keys to providing a valuable service to customers. This has enabled the company to make further enhancements to proprietary integrated business solutions including web based customer interfaces, that give customers dynamic access to the status of all repairs and component purchases and provides comprehensive quotation management history and cost trend analysis.

Information security, integrity and availability

The group retained its ISO 27001 accreditation demonstrating Airinmar’s continued commitment to maintaining a high standard of protection of all data in its care.

Personnel

Airinmar has continued to invest in the recruitment and development of high calibre well qualified people in a range of disciplines, such as engineering and software development, which enables the company to provide a sophisticated value adding service to customers across the world. Health and safety continues to be taken seriously.

Quality

Quality and safety is critical in the airline industry and Airinmar places great emphasis on operating rigorous quality systems. Airinmar is regularly audited by Bureau Veritas Quality International (BVQI) to ensure that it meets all the appropriate quality system standards including BS EN 9100, ISO 9001 and ISO 27001.

AIRINMAR LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Risks and uncertainties

Most of Airinmar’s sales transactions are US dollar denominated whereas costs are primarily in Sterling. Intercompany balances are denominated in US dollar. Accordingly Airinmar has significant exposure to currency rate fluctuations. Where possible, the company matches sales and purchase currencies. Foreign currency exposure has been managed by the ultimate parent company, AAR CORP.

 

Future prospects

Airinmar’s primary objective is to continue to deliver revenue growth by leveraging its current capabilities in securing new customers, and to continue developing the range of services and products if offers. Airinmar has established a good reputation within the aviation sector, has built a competitive product and service, and has the full support from its parent, which all contribute to a positive long term outlook for the business.

On behalf of the board

E Pachapa
Director
23 December 2024
AIRINMAR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The company manages the repair of aircraft parts for major international airlines, roto wing operators and MROs in Asia Pacific, Europe, USA and South America. Airinmar complements customers existing repair management infrastructure through a combination of custom on-line IT systems and back-office support services to deliver reduced repair expenditure, improved component availability and enhance internal operational efficiency.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Garascia
J Holmes
E Pachapa
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
E Pachapa
Director
23 December 2024
AIRINMAR LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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.

AIRINMAR LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AIRINMAR LIMITED
- 5 -
Opinion

We have audited the financial statements of Airinmar Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 the financial statements:

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 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 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 report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

AIRINMAR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AIRINMAR LIMITED
- 6 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

AIRINMAR LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AIRINMAR LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 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.

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 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.

David Green MA (Cantab) FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
7 January 2025
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
AIRINMAR LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
5,089,482
3,582,883
Cost of sales
(2,267,754)
(1,432,714)
Gross profit
2,821,728
2,150,169
Administrative expenses
(2,324,373)
(1,569,288)
Profit before taxation
497,355
580,881
Tax on profit
7
(131,068)
(125,341)
Profit for the financial year
366,287
455,540

The income statement has been prepared on the basis that all operations are continuing operations.

AIRINMAR LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
8
1,169,062
1,861,214
Tangible assets
9
102,313
122,102
1,271,375
1,983,316
Current assets
Debtors
10
32,156,472
31,153,400
Cash at bank and in hand
112,820
239,113
32,269,292
31,392,513
Creditors: amounts falling due within one year
11
(430,491)
(631,940)
Net current assets
31,838,801
30,760,573
Net assets
33,110,176
32,743,889
Capital and reserves
Called up share capital
14
1,000,588
1,000,588
Profit and loss reserves
32,109,588
31,743,301
Total equity
33,110,176
32,743,889
The financial statements were approved by the board of directors and authorised for issue on 23 December 2024 and are signed on its behalf by:
E Pachapa
Director
Company Registration No. 03125944
AIRINMAR LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 June 2022
1,000,588
31,287,761
32,288,349
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
455,540
455,540
Balance at 31 May 2023
1,000,588
31,743,301
32,743,889
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
366,287
366,287
Balance at 31 May 2024
1,000,588
32,109,588
33,110,176
AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
1
Accounting policies
Company information

Airinmar Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Ivanhoe Road, Hogwood Industrial Estate, Finchampstead, Berkshire, England, RG40 4QQ.

1.1
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.

The financial statements are prepared in sterling, which is the functional 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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of AAR CORP. These consolidated financial statements are available from its registered office, One AAR Place, 1100 N. Wood Dale Road, Wood Dale, Illinois 60191, USA.

1.2
Going concern

As at 31 May 2024, the company had net current assets of £31,838,801 (2023: £30,760,573), including cash of £112,820 (2023: £239,113), net assets of £33,110,176 (2023: £32,743,889) and reported a profit after tax for the financial year of £366,287 (2023: £455,540). The financial statements have been prepared on a going concern basis as the directors consider this to be appropriate for the following reasons. true

The company meets its day-to-day working capital requirements by using existing cash and cash generated from operations. As a member of the group cash pooling facility managed by AAR CORP, the cash balance of the company is swept into an intercompany bank account.

Consequently, the Directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the finical statements and therefore have prepared the financial statements on a going concern basis.

1.3
Turnover

Turnover represents the total amount receivable by the company for services provided less value added tax and trade discounts. Turnover is recognised when the service has been rendered. Service delivery is assessed with reference to either one or a combination of several criteria and is dependant on the scope of services provided. Service delivery is typically quantified by one or a combination of the following mechanism: the performance of services against service level targets, the value of cost savings generated, the period over which the services are provided and the volume of repairs managed

AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its estimated useful economic life.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Software
4-7 years straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation 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:

Leasehold improvements
Over the lease term
Fixtures and fittings
20-25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
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.

1.9
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 statement of financial position 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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 income statement, 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.

1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
1.15
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.

1.16

Research and development expenditure

Expenditure on research activities is recognised in the profit and loss account as an expense as incurred.

Expenditure on development activities may be capitalised if the product or process is technically and commercially feasible and the company intends and has the technical ability and sufficient resources to complete development, future economic benefits are probable and if the company can measure reliably the expenditure attributable to the intangible asset during its development. Development activities involve design for, construction or testing of the production of new or substantially improved products or processes. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads and capitalised borrowing costs. Other development expenditure is recognised in the profit and loss account as an expense is incurred. Capitalised development expenditure is stated at cost less accumulated amortisation and less accumulated impairment losses.

2
Judgements and key sources of estimation uncertainty

The preparation of the finical statement requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The reported amounts and disclosures reflect management’s best estimate of the most probable set of economic conditions and planned course of actions, accordingly actual results may differ from such estimates.

The key areas of judgment in applying accounting polices and significant areas of estimation uncertainty that may impact on the amounts in the financial statements are set out below:

Critical accounting judgments in applying the company’s accounting policies

There are no critical accounting judgements that may cause material adjustments to carrying values of assets or liabilities within the next financial year within the company’s accounts.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Intercompany Sales
815,182
475,133
Other Sales
4,274,300
3,107,750
5,089,482
3,582,883
AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
3
Turnover
(Continued)
- 17 -
2024
2023
£
£
Turnover analysed by geographical market
Asia Pacific
1,122,520
557,693
Europe, Middle East and Africa
1,111,149
646,838
USA and Canada
1,915,137
1,689,086
Rest of World
940,676
689,266
5,089,482
3,582,883
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
251,261
(112,226)
Depreciation of owned tangible fixed assets
53,554
58,220
Amortisation of intangible assets
815,626
810,381
Auditors remuneration - audit of financial statements
37,000
37,000
Auditors remuneration - other services
4,500
4,500
Operating lease charges
80,322
75,278
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
33
28

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,648,744
1,382,409
Social security costs
136,135
175,625
Pension costs
57,641
54,409
1,842,520
1,612,443
6
Directors' remuneration

No directors remuneration is paid directly by the company as they are remunerated elsewhere in the AAR Group.

AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
131,068
125,341

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
497,355
580,881
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
124,339
116,176
Tax effect of expenses that are not deductible in determining taxable profit
296
1,748
Permanent capital allowances in excess of depreciation
8,909
7,417
Amend tax creditor to reflect trivial movements in previous years
(2,476)
-
0
Taxation charge for the year
131,068
125,341
8
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 June 2023
1,566,590
5,131,102
6,697,692
Additions - internally developed
-
0
123,474
123,474
At 31 May 2024
1,566,590
5,254,576
6,821,166
Amortisation and impairment
At 1 June 2023
1,566,590
3,269,888
4,836,478
Amortisation charged for the year
-
0
815,626
815,626
At 31 May 2024
1,566,590
4,085,514
5,652,104
Carrying amount
At 31 May 2024
-
0
1,169,062
1,169,062
At 31 May 2023
-
0
1,861,214
1,861,214
AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
8
Intangible fixed assets
(Continued)
- 19 -

Purchased goodwill was acquired on the purchase of the assets and the business of Airinmar Limited on 18 July 1996. The goodwill has been amortised over its useful economic life.

 

Development costs are being amortised over their estimated useful economic life which ranges from 4-7 years.

 

One of the key judgments in the financial statements is the determining whether there are any indicators of impairment associated with the intangible assets held on the balance sheet. In management’s consideration of the short-and long-term assessment of the market no such indicators were identified.

 

9
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 June 2023
41,734
1,438,668
1,480,402
Additions
33,765
-
0
33,765
At 31 May 2024
75,499
1,438,668
1,514,167
Depreciation and impairment
At 1 June 2023
1,999
1,356,301
1,358,300
Depreciation charged in the year
7,050
46,504
53,554
At 31 May 2024
9,049
1,402,805
1,411,854
Carrying amount
At 31 May 2024
66,450
35,863
102,313
At 31 May 2023
39,735
82,367
122,102
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
609,968
558,968
Other debtors
18,574
23,934
Prepayments and accrued income
348,217
173,888
976,759
756,790
Deferred tax asset (note 12)
1,014
1,014
977,773
757,804
AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Debtors
(Continued)
- 20 -
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
31,178,699
30,395,596
Total debtors
32,156,472
31,153,400

Amounts owed by group undertakings have no fixed repayment term, and are therefore repayable on demand. However, the amounts are not expected to be repaid within one year and are therefore considered as being non-current.

 

Interest is not charged on intercompany balances.

11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
4,023
60,233
Corporation tax
36,227
187,586
Other taxation and social security
62,818
59,077
Other creditors
47,752
23,002
Accruals and deferred income
279,671
302,042
430,491
631,940
12
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(3,479)
(3,479)
Short term timing differences
4,493
4,493
1,014
1,014
There were no deferred tax movements in the year.
AIRINMAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
13
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,641
54,409

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At 31 May 2024 there was £22,538 (2023: £23,002) pension creditor due from the company.

14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,000,588
1,000,588
1,000,588
1,000,588
15
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
55,000
55,000
Between one and two years
66,220
55,000
Between two and five years
-
0
66,220
121,220
176,220
16
Immediate and ultimate parent company

The immediate parent undertaking is AAR International, Inc. The ultimate parent undertaking and controlling party is AAR CORP., a company incorporation in the United States of America. The consolidated financial statements of the group are available to the public and may be obtained from One AAR Place, 1100 N. Wood Dale Road, Wood Dale, Illinois 60191, USA.

17
Related party transactions

The ultimate controlling party is identified as AAR Corporation. As a wholly owned subsidiary undertaking of a parent undertaking whose financial statements are publicly available, the company has taken advantage of the exemption under FRS102, Related Party Disclosures, and has not disclose transactions with its parent or fellow subsidiary undertakings. There were no other transactions with related parties which require disclosure.

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