Company registration number 03598083 (England and Wales)
M.T.I. (1998) LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
M.T.I. (1998) LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
M.T.I. (1998) LTD
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
1
1
Current assets
Stocks
5
1,065,559
912,502
Debtors
6
1,259,998
1,128,243
Cash at bank and in hand
47,884
317,645
2,373,441
2,358,390
Creditors: amounts falling due within one year
7
(1,018,853)
(548,618)
Net current assets
1,354,588
1,809,772
Net assets
1,354,589
1,809,773
Capital and reserves
Called up share capital
8
64,540
64,540
Profit and loss reserves
1,290,049
1,745,233
Total equity
1,354,589
1,809,773
For the financial year ended 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 24 March 2025 and are signed on its behalf by:
P Broido
Director
Company registration number 03598083 (England and Wales)
M.T.I. (1998) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
1
Accounting policies
Company information
M.T.I. (1998) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 8 Paramount Industrial Estate, Sandown Road, Watford, Hertfordshire, WD24 7XA.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the
goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of
the goods.
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract.
The stage of completion of a contract is measured by comparing the costs incurred for work performed to date
to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when
the outcome of a contract cannot be estimated reliably.
1.3
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 expected life.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.5
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.
M.T.I. (1998) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 3 -
1.6
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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.
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.
1.7
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.
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
M.T.I. (1998) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
Average number of employees, including directors, during the year was as follows :
2024
2023
Number
Number
Office and Administration
6
6
Sales, Marketing and Distribution
2
2
Manufacturing
30
28
Total
38
36
4
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
134,209
Amortisation and impairment
At 1 July 2023 and 30 June 2024
134,208
Carrying amount
At 30 June 2024
1
At 30 June 2023
1
5
Stocks
2024
2023
£
£
Stock - materials and work in progress
1,065,559
912,502
M.T.I. (1998) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
684,178
621,394
Amounts owed by group undertakings
477,015
412,921
Other debtors
33,280
3,080
Prepayments and accrued income
65,525
90,848
1,259,998
1,128,243
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
735,188
258,125
Taxation and social security
47,249
89,047
Other creditors
236,416
201,446
1,018,853
548,618
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares A of £1 each
27,000
27,000
27,000
27,000
Ordinary shares C of £1 each
10
10
10
10
Ordinary shares B of £1 each
10
10
10
10
Ordinary shares of £1 each
37,500
37,500
37,500
37,500
Ordinary shares E of £1 each
10
10
10
10
Ordinary shares F of £1 each
10
10
10
10
64,540
64,540
64,540
64,540
9
Controlling party
The company was controlled by MTI Aerospace Limited in the year. The ultimate controlling party is Conduit Aerospace Limited.
10
Related party transactions
At the year end date, the company was owed £477,015 (2023: £412,921) by MTI Aerospace Limited, its parent undertaking. No Interest was receivable from this loan.