REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
BRITISH INTERNATIONAL INDUSTRIES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
BRITISH INTERNATIONAL INDUSTRIES LIMITED |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Statement of Income and Retained Earnings | 8 |
Balance Sheet | 9 |
Cash Flow Statement | 10 |
Notes to the Cash Flow Statement | 11 |
Notes to the Financial Statements | 12 |
BRITISH INTERNATIONAL INDUSTRIES LIMITED |
COMPANY INFORMATION |
For The Year Ended 30 June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
STRATEGIC REPORT |
For The Year Ended 30 June 2024 |
The Directors present their strategic report along with audited financial statements for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The business is engaged in the supply of certified aircraft spare parts to the commercial aviation industry. Bii is a global supplier with customers in over 50 countries worldwide. The business' focus on quality and customer service, makes it a trusted supplier for airlines, lessors and associated suppliers. |
In the past year we have strengthened our position with an expansion of our warehousing facility, directly adjacent to Gatwick airport. The expanded warehouse provides the business with the additional capacity to provide a wider range of products and to its customer base, and to attract new customers for the provision of storage and associated inventory management services. |
Sales performance continued to grow in the last year, rising to a total £18,404,283 through YE 30.06.2024, up from £17,793,026 the previous year (an increase of 3%). Pleasingly, profitability also improved, with net profit before tax rising to £1,371,763, up from £1,220,734 the previous year, and this in spite of significant bad debts. |
The financial KPIs demonstrate the business' strong performance, with an increase in revenue and profitability whilst also investing in inventory and infrastructure, all with the view of providing a foundation for future growth. |
MARKET OVERVIEW |
The commercial aviation sector is fully recovered since Covid, and commercial air traffic grew again in 2023 over 2022. These macroeconomic tailwinds continue to drive strong demand for aircraft spare parts. Supply chain delays continue to persist, which in turn offer further strength to the market. Extended lead times for production of new and overhaul of removed parts have contributed to an increase in value of parts. Delays to the delivery of new aircraft from major suppliers Boeing and Airbus have caused the extension of operation of older aircraft, with higher failure rate parts. |
The extension of aircraft leases has led to a decline in the number of redeliveries and or lessor led maintenance events in the last year, and in turn a drop off in business with lessor customers. However, once new aircraft deliveries begin to climb, demand is expected to surge in 2025 by way of a 'bull whip effect.' |
KEY FINANCIAL PERFORMANCE INDICATORS |
2024 | 2023 | % change |
Revenue | 18,404,283 | 17,793,026 | 3% |
Gross Profit | 4,614,319 | 3,376,226 | 37% |
Gross Profit Margin % | 25% | 19% |
Net Pre Tax Profit | 1,371,763 | 1,220,734 | 12% |
Net Pre Tax Profit Margin % | 7% | 7% |
Inventory | 2,547,336 | 2,351,922 | 8% |
RISKS & MANAGEMENT |
The business faces various risks associated with global trading activities. Primary amongst these are: the potential for fast evolving geo-political situations, international trade restrictions, and currency fluctuations. Credit control risks also remain present and require careful management to avoid bad debt. |
The ongoing Ukraine - Russia war continues to affect the market for aviation spares, resulting in frequently updated sanction lists as Western governments closely monitor the unauthorised supply of parts to Russian operators, directly or via third party suppliers. A focus on KYC procedures remains crucial to protect the business against any liability for supply of parts that are trans shipped to sanctioned parties. |
The business trades almost exclusively in US Dollars, whilst payroll and other infrastructural business expenses are all payable in GB Pounds. This leaves the business exposed to fluctuation of the exchange rate between the two currencies, which has experienced volatility as a result of the economic fallout since the Covid pandemic. In recent times the US Dollar has been strong versus historic pricing, resulting in stronger cashflow and profitability for the business. Any strengthening of the Dollar poses a risk to the business' performance by way of the associated relative increase in the cost of overheads. Whilst prediction of exchange rate fluctuations is commonly difficult, the business takes steps to reduce its exposure to a rapidly weakening Dollar by hedging a percentage of its forecast FX requirements. This allows the Directors to forecast business performance with more confidence and therefore make better educated decisions. |
Credit control poses a continual risk to the business as even larger customers can experience financial difficulties that may result in delayed payments and in some cases bad debt. In the last year the business has moved to expand its credit insurance coverage and build out its credit control procedures. This includes setting hard credit limits for customers, and requirement for either full or partial payment in advance of release of goods, as well as the retention of security deposits where appropriate. |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
STRATEGIC REPORT |
For The Year Ended 30 June 2024 |
FUTURE PLANS |
With the continued strong performance and growth of the business, the Directors have undertaken careful consideration as to how the business may be grown further and in a sustainable manner so as to capitalise on the significant headroom within the market. |
Significant time has been devoted to refinement of the company structure and strengthening key positions within the business. With a solid foundation of staff, quality control / processes, infrastructure and customer base, the business now seeks growth capital investment in order to realise its growth ambitions. |
Key areas of potential growth have been identified with a view to efficient implantation of any funding raised, with a focus on efficiency of revenue generation. The business has allocated targets for deployment of funding which aims to significantly grow revenues and profit whilst requiring relatively lower increase in overhead costs. |
If successful in onboarding funding as currently under discussion, the Directors expect to achieve transformative growth in the next 12 - 18 months. |
ON BEHALF OF THE BOARD: |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
REPORT OF THE DIRECTORS |
For The Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 June 2024 will be £570,000. |
DIRECTORS |
Other changes in directors holding office are as follows: |
POLITICAL DONATIONS AND EXPENDITURE |
During the year ended 30 June 2024, the company made donations totalling £1,340. No donations of a political nature were made. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Caldwell Penn Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRITISH INTERNATIONAL INDUSTRIES LIMITED |
Opinion |
We have audited the financial statements of British International Industries Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 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 Auditors' 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 matters |
This is the first year that the company has required a full statutory audit. Therefore the comparative figures, for the year ended 30 June 2023, are unaudited. However, as the directors were able to anticipate the for requirement for an audit, we were appointed as auditors during the year ended 30 June 2023. As a result we were able to attend the stocktake at that date and undertake sufficient work on the comparative figures to enable us to obtain sufficient appropriate audit evidence that the opening balances did not contain material misstatements which would materially affect the current period's financial statements. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRITISH INTERNATIONAL INDUSTRIES LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRITISH INTERNATIONAL INDUSTRIES LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- ensuring that the team collectively had appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations; |
- considering the nature of the industry and control environment affecting the company; |
- undertaking a review of business performance including consideration of key drivers for directors’ remuneration, commission, bonus levels and performance targets; |
- enquiring of management about their identification and assessment of risks, how they detect and respond to risk, the internal controls established to mitigate risks of fraud or non-compliance with laws and whether they have any knowledge of actual, suspected or alleged fraud; |
- identification of laws and regulations impacting the company and enquiring of management whether they were aware of any instances of non-compliance; |
- reviewing the company’s documentation of their policies and procedures relevant to the above. |
In addition to the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and undertaking testing to assess compliance with provisions of relevant laws and regulations; |
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- testing the appropriateness of journal entries and other adjustments; |
- performing analytical procedures to identify large, unusual or unexpected transactions and investigating any large variances from the prior year; |
- assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and |
- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, no key audit matters were identified that related to the potential risk of fraud. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
7a Abbey Business Park |
Monks Walk |
Farnham |
Surrey |
GU9 8HT |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
STATEMENT OF INCOME AND RETAINED EARNINGS |
For The Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,383,491 | 1,219,420 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,416,264 | 1,259,459 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 8 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
BALANCE SHEET |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
CASH FLOW STATEMENT |
For The Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of intangible fixed assets |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) |
Amount introduced by directors | 378,076 | - |
Amount withdrawn by directors | (45,000 | ) | (15,779 | ) |
Capital reduction | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | 807,652 |
Cash and cash equivalents at end of year | 2 | 1,588,921 | 843,209 |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE CASH FLOW STATEMENT |
For The Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 44,501 | 38,725 |
Finance income | (151 | ) | - |
1,463,456 | 1,300,596 |
(Increase)/decrease in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 1,588,921 | 843,209 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 843,209 | 871,135 |
Bank overdrafts | ( |
) |
843,209 | 807,652 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 843,209 | 745,712 | 1,588,921 |
843,209 | 1,588,921 |
Debt |
Finance leases | (50,819 | ) | 13,026 | (37,793 | ) |
Debts falling due within 1 year | (194,000 | ) | - | (194,000 | ) |
Debts falling due after 1 year | (404,167 | ) | 194,000 | (210,167 | ) |
(648,986 | ) | 207,026 | (441,960 | ) |
Total | 194,223 | 952,738 | 1,146,961 |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
British International Industries Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The functional currency of the company is USD ($) which the directors consider to be most appropriate as the main currency in which the company conducts its business. However, for the purposes of preparing and presenting these financial statements, the results are translated into GBP (£) at the balance sheet date. |
Critical accounting judgements and key sources of estimation uncertainty |
The company makes accounting estimates and judgements, which are reliant upon assumptions regarding the future of the business. These estimates and judgements are based on historical experience and expectations of future events that are believed to be reasonable in light of knowledge available at the time these are made. Actual results may differ from these estimates. |
These estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision only affects that year, or in the year of revision and subsequent years if impacting both current and future periods. |
The following are the critical judgments, apart from those involving estimations, made by directors during the application of the company's accounting policies and that have the most significant impact on the amounts recognised in the financial statements: |
Impairment of Tangible and Intangible assets |
In the process of the evaluation of the potential impairment of tangible and intangible assets, the company is required to make subjective judgement in determining the independent cash flows, useful lives, expected future revenue and expenses related to the specific asset groups. |
Valuation of Inventory |
Inventories are stated at the lower of net realisable value and cost, and the company uses judgement and estimate to determine the net realisable value of inventory at the end of each reporting period. |
At the end of the reporting period, the company estimates the net realisable value of inventory for obsolete and unmarketable items, subsequently adjusting the inventory cost to reflect this value. Determination of the net realizable value primarily relies on assumptions regarding future demand within a specified time frame. |
Provision for Bad Debts |
In the process of the evaluation of the bad debt provision, the involved company is required to make subjective judgments regarding the recoverability of trade debtors. |
Turnover |
Turnover represents corporate aircraft component parts sales, service and repair, excluding value added tax. Revenue in respect of parts supplied both as outright sales and on part exchanges is recognised when control passes on shipment to the customer. Revenue from servicing and repair is recognised once the work has been completed. |
Intangible assets |
Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives, and is calculated on the following bases: |
Leasehold improvements | - | 20% on cost |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended by management. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and machinery | - | 15% reducing balance |
Fixtures and fittings | - | 15% reducing balance |
Computer equipment | - | 25% on cost |
Stocks |
Stocks are valued at the lower of cost and net realisable value. |
Net realisable value is based on the estimated selling price in the ordinary course of business less the estimated costs to bring the stock item into a saleable condition, which include service and repair costs. |
Impairment |
Once stock becomes 3 years old, the likelihood of selling becomes almost nil and therefore the company policy is to include a provision for all stock once it reaches 3 years old. |
The company also makes provision for other specific categories of stock where there is sufficient evidence to indicate that these categories will not be sold in the future. |
At each reporting date, an impairment assessment is undertaken. This assessment works in two ways. Firstly, to undertake a re-assessment of items which have previously been impaired as above to consider whether there are any reasons why the impairment no longer applies. Secondly, to undertake an assessment of other items or categories of stock where evidence has come to light to suggest that an impairment provision has become necessary. |
An adjustment to the impairment provision will then be made as a result. |
Financial instruments |
The company enters into basic financial instruments, which result in the recognition of financial assets and liabilities. Financial instruments are recognised at amortised cost. At the end of each reporting period financial instruments are assessed for evidence of impairment, and changes are recognised in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. |
Deferred tax represents the future tax consequences of material transactions and events recognised in the financial statements of current and previous periods. |
Current and deferred tax assets and liabilities are not discounted and are recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Foreign currencies |
The functional currency of the company is USD ($) which the directors consider to be most appropriate as the main currency in which the company conducts its business. Transactions which occur in currencies other than $ are translated into $ at the rate of exchange ruling at the date of the transaction. |
For the purposes of preparing and presenting the financial statements, balances are translated into GBP (£ sterling) at the balance sheet date, using the rate of exchange at that date. |
Hire purchase and leasing commitments |
Assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. Payments are apportioned between the finance charge and the capital amount and the related obligations, net of future finance charges, are included in creditors. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable are charged to the profit and loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Europe |
United States of America |
Asia |
Africa | 43,250 | - |
4. | EMPLOYEES AND DIRECTORS |
The average monthly number of employees during the year was as follows: |
2024 | 2023 |
Employees | 20 | 15 |
Directors | 4 | 2 |
24 | 17 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Leasehold improvements amortisation |
Foreign exchange differences |
Auditors remuneration - Audit |
Auditors remuneration - Non-audit |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Hire purchase interest |
Bank loan interest |
Interest on late HMRC payment |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances | ( |
) |
Deferred tax charge | ( |
) |
Total tax charge | 426,726 | 234,637 |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
9. | INTANGIBLE FIXED ASSETS |
Leasehold |
improvements |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
Amortisation for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Directors' loan accounts | - | 15,779 |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Directors' loan accounts | 317,297 | - |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - More than 1 year |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
A charge over all the undertaking, property and assets of the company was created on 17 June 2020, by Barclays Security Trustees Limited to secure all moneys and liabilities due. |
Fixed and floating charges have been raised on the property and undertaking of the company. |
A charge over all the undertaking, property and assets of the company was created on 19 December 2022 by Cynergy Business Finance Limited to secure all moneys and liabilities due. |
Fixed and floating charges have been raised on the property and undertaking of the company. |
18. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 39,016 | 15,692 |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Provided during year |
Balance at 30 June 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100,000 | 1,000,100 |
During the year ended 30 June 2024, the company passed a special resolution, under section 641 of the Companies Act 2006, to undertake a reduction of share capital. As a result, the company's share capital was reduced from £1,000,100 shares to £100,000 by repaying the amount paid up on £900,100 shares. |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 June 2024 |
21. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £570,000 were paid to the directors . |
BRITISH INTERNATIONAL INDUSTRIES LIMITED (REGISTERED NUMBER: 03194808) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
21. | RELATED PARTY DISCLOSURES - continued |
During the year, the company undertook transactions with a number of companies which are deemed to be related parties because they are owned by one or more of the directors of this company. Details of these are as follows: |
BII Pipe Limited |
Consultancy fees paid since 2 February 2024 - £55,000 |
Amount owed by British International Industries Limited at 30 June 2024 - £nil |
Commercial Freehold & Investments Limited |
Rental charges paid - £127,025 |
Amount owed by British International Industries Limited at 30 June 2024 - £24,800 |
Dunsfold Services Limited |
Amount owing at 1 July 2023 - £15,228 |
Amounts repaid - £15,228 |
Amount owing to British International Industries Limited at 30 June 2024 - £nil |
Jets United Limited |
Consultancy fees paid since 2 February 2024 - £13,500 |
Amount owed by British International Industries Limited at 30 June 2024 - £nil |
Lonestar Aviation Limited |
Consultancy fees paid since 2 February 2024 - £280,000 |
Amount owed by British International Industries Limited at 30 June 2024 - £nil |
MRO Services Limited |
Goods and services provided since 9 February 2024 - £411,467 |
Amount owed by British International Industries Limited at 30 June 2024 - £16,691 |