Sabeti Wain Aerospace Limited 02094671 false 2023-08-01 2024-07-31 2024-07-31 The principal activity of the company is manufacture and supply of furnishings for the aerospace industry. Digita Accounts Production Advanced 6.30.9574.0 true true true true true 02094671 2023-08-01 2024-07-31 02094671 2024-07-31 02094671 bus:OrdinaryShareClass1 2024-07-31 02094671 core:RetainedEarningsAccumulatedLosses 2024-07-31 02094671 core:ShareCapital 2024-07-31 02094671 core:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-07-31 02094671 core:CurrentFinancialInstruments 2024-07-31 02094671 core:CurrentFinancialInstruments core:WithinOneYear 2024-07-31 02094671 core:FinancialLiabilitiesFairValueThroughProfitOrLoss 2024-07-31 02094671 core:BetweenTwoFiveYears 2024-07-31 02094671 core:WithinOneYear 2024-07-31 02094671 core:LandBuildings 2024-07-31 02094671 core:MotorVehicles 2024-07-31 02094671 core:OtherPropertyPlantEquipment 2024-07-31 02094671 core:DeferredTaxation 2024-07-31 02094671 core:OtherProvisionsContingentLiabilities 2024-07-31 02094671 bus:FRS102 2023-08-01 2024-07-31 02094671 bus:Audited 2023-08-01 2024-07-31 02094671 bus:FullAccounts 2023-08-01 2024-07-31 02094671 bus:RegisteredOffice 2023-08-01 2024-07-31 02094671 bus:CompanySecretaryDirector1 2023-08-01 2024-07-31 02094671 bus:Director3 2023-08-01 2024-07-31 02094671 bus:Director4 2023-08-01 2024-07-31 02094671 bus:Director5 2023-08-01 2024-07-31 02094671 bus:Director6 2023-08-01 2024-07-31 02094671 bus:OrdinaryShareClass1 2023-08-01 2024-07-31 02094671 bus:PrivateLimitedCompanyLtd 2023-08-01 2024-07-31 02094671 core:RetainedEarningsAccumulatedLosses 2023-08-01 2024-07-31 02094671 core:ShareCapital 2023-08-01 2024-07-31 02094671 core:LandBuildingsUnderOperatingLeases 2023-08-01 2024-07-31 02094671 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-08-01 2024-07-31 02094671 core:LandBuildings 2023-08-01 2024-07-31 02094671 core:MotorVehicles 2023-08-01 2024-07-31 02094671 core:OtherPropertyPlantEquipment 2023-08-01 2024-07-31 02094671 core:PlantMachinery 2023-08-01 2024-07-31 02094671 core:DeferredTaxation 2023-08-01 2024-07-31 02094671 core:OtherProvisionsContingentLiabilities 2023-08-01 2024-07-31 02094671 core:UKTax 2023-08-01 2024-07-31 02094671 1 2023-08-01 2024-07-31 02094671 2 2023-08-01 2024-07-31 02094671 1 2023-08-01 2024-07-31 02094671 countries:EnglandWales 2023-08-01 2024-07-31 02094671 2023-07-31 02094671 core:RetainedEarningsAccumulatedLosses 2023-07-31 02094671 core:ShareCapital 2023-07-31 02094671 core:LandBuildings 2023-07-31 02094671 core:MotorVehicles 2023-07-31 02094671 core:OtherPropertyPlantEquipment 2023-07-31 02094671 core:DeferredTaxation 2023-07-31 02094671 core:OtherProvisionsContingentLiabilities 2023-07-31 02094671 2022-08-01 2023-07-31 02094671 2023-07-31 02094671 bus:OrdinaryShareClass1 2023-07-31 02094671 core:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-07-31 02094671 core:CurrentFinancialInstruments 2023-07-31 02094671 core:CurrentFinancialInstruments core:WithinOneYear 2023-07-31 02094671 core:FinancialLiabilitiesFairValueThroughProfitOrLoss 2023-07-31 02094671 core:BetweenTwoFiveYears 2023-07-31 02094671 core:WithinOneYear 2023-07-31 02094671 core:LandBuildings 2023-07-31 02094671 core:MotorVehicles 2023-07-31 02094671 core:OtherPropertyPlantEquipment 2023-07-31 02094671 core:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 02094671 core:ShareCapital 2022-08-01 2023-07-31 02094671 core:LandBuildingsUnderOperatingLeases 2022-08-01 2023-07-31 02094671 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-08-01 2023-07-31 02094671 core:UKTax 2022-08-01 2023-07-31 02094671 2022-07-31 02094671 core:RetainedEarningsAccumulatedLosses 2022-07-31 02094671 core:ShareCapital 2022-07-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 02094671

Sabeti Wain Aerospace Limited

Annual Report and Financial Statements

for the Year Ended 31 July 2024

 

Sabeti Wain Aerospace Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 25

 

Sabeti Wain Aerospace Limited

Company Information

Directors

Mr Parviz Sabeti

Mr Paymen Sabeti

Mrs Mahnoush Sabeti Wain

Mr Nicholas Wain

Mrs Mehranguiz Sabeti

Company secretary

Mr Parviz Sabeti

Registered office

Diamond House
120 Lane End Road
Sands
High Wycombe
Buckinghamshire
HP12 4HX

Auditors

Sterling Grove Accountants Limited
Chartered Certified Accountants
Fawley House
2 Regatta Place
Marlow Road
Bourne End
Buckinghamshire
SL8 5TD

 

Sabeti Wain Aerospace Limited

Strategic Report for the Year Ended 31 July 2024

The directors present their strategic report for the year ended 31 July 2024.

Principal activity

The principal activity of the company is manufacture and supply of furnishings for the aerospace industry.

Fair review of the business

The results for the company for the year, as set out on page 11, show a profit on ordinary activities before tax of £7,980,325 (2023: £4,224,254). The shareholders’ funds of the company total £15,293,494 (2023: £11,298,644).

Turnover increased 33.0% (2023: 71.5%) year on year to £28,645,760 (2023: £21,533,131). Pre-tax profit increased by 88.9% (2023: 996.4% increase). The gross margin for the year has gone up by 6.9% to 43.7% (2023: 36.8%). Administrative expenses have increased by 25.1% (2023: 12.9%).

The company’s stock holding has increased and stands at £3,878,125 (2023: £2,541,366).

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

28,645,760

21,533,131

Gross profit

£

12,504,819

7,923,359

Gross profit margin

%

44

37

Profit before tax

£

7,980,325

4,224,254

Principal risks and uncertainties

The traditional risks to the business of competition from the UK and international companies continues to exist. However with a growing international demand for our products we are focusing on closer relations with our customers to assist them at an early stage in their branding and with improved technology to ensure their orders are completed in a timely manner.

Approved and authorised by the Board on 5 March 2025 and signed on its behalf by:
 

.........................................
Mr Paymen Sabeti
Director

 

Sabeti Wain Aerospace Limited

Directors' Report for the Year Ended 31 July 2024

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

Directors of the company

The directors who held office during the year were as follows:

Mr Parviz Sabeti - Company secretary and director

Mr Paymen Sabeti

Mrs Mahnoush Sabeti Wain

Mr Nicholas Wain

Mrs Mehranguiz Sabeti

Financial instruments

Objectives and policies

The company largely sources its raw materials from overseas suppliers and the majority of customers are overseas thus we are exposed to to the financial risk of changes in foreign currency exchange rates and interest rates.

The company's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the management of the company bank funds in sterling and other currencies.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts as they fall due.

 

Sabeti Wain Aerospace Limited

Directors' Report for the Year Ended 31 July 2024

Price risk, credit risk, liquidity risk and cash flow risk

Currency risk

The company is exposed to translation and transaction foreign exchange risk.

Some of the company's purchases are transacted in non-sterling. Foreign exchange differences on retranslation of these liabilities are taken to the profit and loss account of the company.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.

Interest rate risk

The company finances its operations through retained profits.

The interest rate exposure of the financial assets and liabilities of the company as at 31 July 2024 is shown in the financial statements.

The balance sheet includes trade debtors and creditors which do not attract interest and are therefore subject to fair value interest rate risk.

Credit risk

The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises, therefore, from trade debtors.

In order to manage credit risk, management set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed periodically by the financial controller.

Employment of disabled persons

Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should, for whatever reason, an employee of the company become disabled whilst in employment, every step, where appropriate will be taken to assist with rehabilitation and suitable retraining. It is company policy that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

Within the bounds of commercial confidentiality, the company endeavours to keep staff at all levels informed of matters that affect the progress of the company and are of interest to them as employees.

The company's aim is to ensure that equality and diversity is a priority. We endeavour to ensure that everyone employed by the company feels an equal sense of belonging in a manner which is fair and free from any form of discrimination.

 

Sabeti Wain Aerospace Limited

Directors' Report for the Year Ended 31 July 2024

Branches outside the United Kingdom

The company operates a branch in the Free Trade Zone in Dubai.

Research and development

The company operates in an ever changing industry environment effected by market trends and fashion. We need to constantly innovate our design and manufacturing techniques to keep ourselves in the forefront of the airline industry.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 5 March 2025 and signed on its behalf by:
 

.........................................
Mr Paymen Sabeti
Director

 

Sabeti Wain Aerospace Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Sabeti Wain Aerospace Limited

Independent Auditor's Report to the Members of Sabeti Wain Aerospace Limited

Opinion

We have audited the financial statements of Sabeti Wain Aerospace Limited (the 'company') for the year ended 31 July 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 the financial statements:

give a true and fair view of the state of the company's affairs as at 31 July 2024 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 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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Sabeti Wain Aerospace Limited

Independent Auditor's Report to the Members of Sabeti Wain Aerospace Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

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 director' responsibilities, 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 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 misstements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Sabeti Wain Aerospace Limited

Independent Auditor's Report to the Members of Sabeti Wain Aerospace Limited

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:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the manufacturing sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

 

Sabeti Wain Aerospace Limited

Independent Auditor's Report to the Members of Sabeti Wain Aerospace 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 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.

......................................
Mr Gino Paolo Amasanti FCCA (Senior Statutory Auditor)
For and on behalf of Sterling Grove Accountants Limited, Statutory Auditor

Fawley House
2 Regatta Place
Marlow Road
Bourne End
Buckinghamshire
SL8 5TD

5 March 2025

 

Sabeti Wain Aerospace Limited

Profit and Loss Account for the Year Ended 31 July 2024

Note

2024
£

2023
£

Turnover

3

28,645,760

21,533,131

Cost of sales

 

(16,140,941)

(13,609,772)

Gross profit

 

12,504,819

7,923,359

Administrative expenses

 

(4,697,961)

(3,755,548)

Other operating income

37,382

46,591

Operating profit

4

7,844,240

4,214,402

Other interest receivable and similar income

5

136,085

9,852

Profit before tax

 

7,980,325

4,224,254

Tax on profit

9

(1,895,475)

(900,101)

Profit for the financial year

 

6,084,850

3,324,153

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Sabeti Wain Aerospace Limited

(Registration number: 02094671)
Balance Sheet as at 31 July 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

10

5,801,820

5,385,572

Current assets

 

Stocks

11

3,878,125

2,541,366

Debtors

12

6,624,281

5,943,788

Cash at bank and in hand

 

7,426,509

4,014,320

 

17,928,915

12,499,474

Creditors: Amounts falling due within one year

14

(8,232,707)

(6,445,906)

Net current assets

 

9,696,208

6,053,568

Total assets less current liabilities

 

15,498,028

11,439,140

Provisions for liabilities

15

(204,534)

(140,496)

Net assets

 

15,293,494

11,298,644

Capital and reserves

 

Called up share capital

99,996

99,996

Retained earnings

15,193,498

11,198,648

Shareholders' funds

 

15,293,494

11,298,644

Approved and authorised by the Board on 5 March 2025 and signed on its behalf by:
 

.........................................
Mr Paymen Sabeti
Director

.........................................
Mrs Mahnoush Sabeti Wain
Director

.........................................
Mr Nicholas Wain
Director

 

Sabeti Wain Aerospace Limited

Statement of Changes in Equity for the Year Ended 31 July 2024

Share capital
£

Retained earnings
£

Total
£

At 1 August 2023

99,996

11,198,648

11,298,644

Profit for the year

-

6,084,850

6,084,850

Dividends

-

(2,090,000)

(2,090,000)

At 31 July 2024

99,996

15,193,498

15,293,494

Share capital
£

Retained earnings
£

Total
£

At 1 August 2022

99,996

9,824,495

9,924,491

Profit for the year

-

3,324,153

3,324,153

Dividends

-

(1,950,000)

(1,950,000)

At 31 July 2023

99,996

11,198,648

11,298,644

 

Sabeti Wain Aerospace Limited

Statement of Cash Flows for the Year Ended 31 July 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

6,084,850

3,324,153

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

280,575

171,326

Loss on disposal of tangible assets

-

845

Finance income

5

(136,085)

(9,852)

Corporation tax

9

1,895,475

900,101

 

8,124,815

4,386,573

Working capital adjustments

 

Increase in stocks

11

(1,336,759)

(809,183)

Increase in trade debtors

12

(680,493)

(496,370)

Increase in trade creditors

14

1,101,549

1,279,004

Decrease in provisions

15

(48,302)

(105,000)

Cash generated from operations

 

7,160,810

4,255,024

Corporation tax (paid)/received

9

(1,097,883)

356,170

Net cash flow from operating activities

 

6,062,927

4,611,194

Cash flows from investing activities

 

Interest received

5

136,085

9,852

Acquisitions of tangible assets

(696,823)

(154,707)

Net cash flows from investing activities

 

(560,738)

(144,855)

Cash flows from financing activities

 

Dividends paid

19

(2,090,000)

(1,950,000)

Net increase in cash and cash equivalents

 

3,412,189

2,516,339

Cash and cash equivalents at 1 August

 

4,014,320

1,497,981

Cash and cash equivalents at 31 July

 

7,426,509

4,014,320

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales, registration number 02094671.

The address of its registered office is:
Diamond House
120 Lane End Road
Sands
High Wycombe
Buckinghamshire
HP12 4HX
United Kingdom

These financial statements were authorised for issue by the Board on 5 March 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Amounts recoverable on contracts represent the value of sales not invoiced, but which work was completed at the balance sheet date by reference to the stage of completion of the contract. The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from sale of goods is recognised when all of the following conditions are satisfied:
- The company has transferred the significant risks and rewards of ownership to the buyer;
- The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- The amount of revenue can be measured reliably;
- It is probable that the company will receive the consideration due under the transaction; and
- The costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

1% on cost

Plant and machinery

20% on reducing balance

Motor vehicles

25% on reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

Financial instruments

Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
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.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.


 Financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.


 Offsetting
Financial assets and liabilities are offset and 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.The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
 £

2023
 £

Sale of goods

28,645,760

21,533,131

In the opinion of the directors it would be seriously prejudicial to the company to disclose the geographical analysis of turnover.

4

Operating profit

Arrived at after charging/(crediting)

2024
 £

2023
 £

Depreciation expense

280,575

171,326

Foreign exchange losses

88,142

194,634

Operating lease expense - rent

519,889

604,006

Operating lease expense - equipment hire

24,310

14,419

Loss on disposal of property, plant and equipment

-

845

Auditor's remuneration - The audit of the company's annual accounts

21,301

18,750

Auditor's remuneration - Tax services

1,750

1,750

Auditor's remuneration - Other services

6,364

22,411

5

Other interest receivable and similar income

2024
 £

2023
 £

Interest income on bank deposits

118,703

1,020

Other finance income

17,382

8,832

136,085

9,852

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

7,468,048

5,152,345

Social security costs

532,211

321,475

Pension costs, defined contribution scheme

83,081

69,759

8,083,340

5,543,579

The average number of persons employed by the company during the year, was as follows:

2024
No.

2023
No.

Directors

5

5

Staff

383

292

388

297

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
 £

2023
 £

Remuneration

40,625

41,667

8

Auditors' remuneration

2024
 £

2023
 £

Audit of the financial statements

21,301

18,750

Other fees to auditors

Taxation compliance services

1,750

1,750

All other assurance services

6,364

22,411

8,114

24,161


 

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

9

Taxation

Tax charged/(credited) in the income statement

2024
 £

2023
 £

Current taxation

UK corporation tax

1,916,904

889,000

UK corporation tax adjustment to prior periods

(133,769)

(752)

1,783,135

888,248

Deferred taxation

Arising from origination and reversal of timing differences

112,340

11,853

Tax expense in the income statement

1,895,475

900,101

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 21%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

7,980,325

4,224,254

Corporation tax at standard rate

1,995,081

887,093

Tax (decrease)/increase from effect of capital allowances and depreciation

(80,899)

2,037

Effect of expense not deductible in determining taxable profit (tax loss)

2,722

(882)

Deferred tax expense from unrecognised tax loss or credit

112,340

11,853

Tax decrease from effect of adjustment in research and development tax credit

(133,769)

-

Total tax charge

1,895,475

900,101

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021. For the financial year ended 31 July 2023, the current weighted averaged tax rate was 21%.
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

10

Tangible assets

Land and buildings
£

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 August 2023

5,222,592

89,678

1,331,496

6,643,766

Additions

89,710

223,160

383,953

696,823

At 31 July 2024

5,312,302

312,838

1,715,449

7,340,589

Depreciation

At 1 August 2023

305,281

65,257

887,656

1,258,194

Charge for the year

53,122

61,895

165,558

280,575

At 31 July 2024

358,403

127,152

1,053,214

1,538,769

Carrying amount

At 31 July 2024

4,953,899

185,686

662,235

5,801,820

At 31 July 2023

4,917,311

24,421

443,840

5,385,572

Included within the net book value of land and buildings above is £4,654,396 (2023 - £4,614,266) in respect of freehold land and buildings and £299,503 (2023 - £303,045) in respect of long leasehold land and buildings.
 

11

Stocks

2024
 £

2023
 £

Other inventories

3,878,125

2,541,366

12

Debtors

Current

2024
£

2023
£

Trade debtors

3,740,592

3,081,715

Other debtors

1,844,326

1,740,572

Prepayments

414,601

555,959

Gross amount due from customers for contract work

624,762

565,542

 

6,624,281

5,943,788

13

Cash and cash equivalents

2024
 £

2023
 £

Cash at bank

7,426,509

4,014,320

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

14

Creditors

2024
 £

2023
 £

Due within one year

Trade creditors

1,210,851

1,412,904

Directors' current accounts

126,242

-

Social security and other taxes

145,711

78,261

Other payables

3,055,497

1,579,766

Accrued expenses

2,158,332

2,524,153

Corporation tax

1,536,074

850,822

8,232,707

6,445,906

15

Provisions for liabilities

Deferred tax
£

Other provisions
£

Total
£

At 1 August 2023

81,095

59,401

140,496

Increase (decrease) in existing provisions

112,340

(48,302)

64,038

At 31 July 2024

193,435

11,099

204,534

The deferred tax provision relates to differences between accumulated depreciation and capital allowances. The amount of the net reversal of deferred tax expected to occur next year is £42,992 (2023: £17,317), relating to the reversal of existing timing differences on tangible fixed assets.

The other provision relates to an agreed fee for Property Consultancy Services of 1.5% on the total cost associated with the property purchased in the year ended 31 July 2020. The remaining fee is payable on completion of the project the timing of which is currently uncertain.

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £83,081 (2023 - £69,759).

 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

17

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

99,996

99,996

99,996

99,996

       

Rights, preferences and restrictions

Ordinary shares of £1 each have the following rights, preferences and restrictions:
Shares are non-redeemable and rank equally in terms of voting rights - one vote for each share; rights to participate in all approved dividend distributions for that class of share; and rights to participate in any capital distribution on winding up.

18

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

83,636

282,571

Later than one year and not later than five years

-

83,540

83,636

366,111

The amount of non-cancellable operating lease payments recognised as an expense during the year was £384,889 (2023 - £469,006).

19

Dividends

2024

2023

£

£

Interim dividend of £2,090,000.00 (2023 - £1,950,000.00)

2,090,000

1,950,000

 

 
 

Sabeti Wain Aerospace Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

20

Related party transactions

Other transactions with directors

The company leases one of its trading premises from the directors' at an annual cost of £135,000 (2023: £135,000).

Two of the directors had a joint overdrawn directors' loan account at the balance sheet date of £542,597 (2023: £521,800). Advances to these directors during the year totalled £1,097,175 (2023: £1,057,844) and repayments made by these directors totalled £1,076,378 (2023: £910,165).

Two of the directors had a joint overdrawn directors' loan acount at the balance sheet date of £nil (2023: £565). Repayments made by these directors totalled £565.

Another director had an overdrawn directors' loan account at the balance sheet date of £619,601 (2023: £556,227). Advances to this director during the year totalled £877,368 (2023: £842,680) and repayments made by this director totalled £813,994 (2023: £707,939).

During the year interest of £10,734 (2023: £8,832) was charged on these loans at a rate of 2% pa (2023: 2% pa). These loans are unsecured and repayable on demand.

21

Financial instruments

Categorisation of financial instruments

2024
 £

2023
 £

Financial assets measured at amortised cost

13,011,427

8,836,606

Financial liabilities measured at amortised cost

8,086,996

6,367,647

22

Parent and ultimate parent undertaking

The ultimate controlling party is the directors.

23

Non adjusting events after the financial period

On 29th October 2024 the company purchased a warehouse unit for £2,000,000 from a partnership where the directors are partners.

On 5th November 2024 the company entered into a non-cancellable operating lease for rent for one of its warehouse facilities totalling £302,782 and expiring on 31st December 2025.