Company registration number 12263538 (England and Wales)
COVINGTON AIRCRAFT EU, LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2024
PAGES FOR FILING WITH REGISTRAR
10 Bridge Street
Christchurch
Dorset
BH23 1EF
COVINGTON AIRCRAFT EU, LTD
CONTENTS
Page
Company information
1
Balance sheet
2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
COVINGTON AIRCRAFT EU, LTD
COMPANY INFORMATION
- 1 -
Directors
Mr K E Withers
Mr A Abbott
Abbott Industries, Inc. (Corporate Director)
Company number
12263538
Registered office
10 Bridge Street
Christchurch
Dorset
BH23 1EF
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
COVINGTON AIRCRAFT EU, LTD
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
279,132
347,379
Current assets
Stocks
320,887
979
Debtors
5
27,110
29,105
Cash at bank and in hand
31,666
15,647
379,663
45,731
Creditors: amounts falling due within one year
6
(1,152,066)
(609,526)
Net current liabilities
(772,403)
(563,795)
Total assets less current liabilities
(493,271)
(216,416)
Creditors: amounts falling due after more than one year
7
(1,404)
Net liabilities
(493,271)
(217,820)
Capital and reserves
Called up share capital
100
100
Capital contribution reserve
592,376
482,951
Profit and loss reserves
(1,085,747)
(700,871)
Total equity
(493,271)
(217,820)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 17 April 2025 and are signed on its behalf by:
Mr A Abbott
Director
Company Registration No. 12263538
The notes on pages 4 to 11 form part of these financial statements
COVINGTON AIRCRAFT EU, LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
100
306,644
(331,169)
(24,425)
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(369,702)
(369,702)
Related party loan waiver
-
176,307
176,307
Balance at 30 September 2023
100
482,951
(700,871)
(217,820)
Year ended 30 September 2024:
Loss for the year
-
-
(414,649)
(414,649)
Other comprehensive income:
Currency translation differences
-
-
29,773
29,773
Total comprehensive income for the year
(384,876)
(384,876)
Related party loan waiver
-
109,425
109,425
Balance at 30 September 2024
100
592,376
(1,085,747)
(493,271)
The notes on pages 4 to 11 form part of these financial statements
COVINGTON AIRCRAFT EU, LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
1
Accounting policies
Company information
Covington Aircraft EU, Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 10 Bridge Street, Christchurch, Dorset, BH23 1EF.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources available to continue in operational existence for the foreseeable future. The company is reliant on the continued financial support of the wider group for funding, as demonstrated by the closing balance sheet position. The parent company has expressed it's willingness to continue with financial support as required. For the current period, the parent undertaking formally forgave by deed of release an element of the amounts owing to it from Covington Aircraft EU, Limited. The parent undertaking has confirmed that for the remaining amounts owing to it, there is no intention for these balances to be recalled at the detriment of the company. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
COVINGTON AIRCRAFT EU, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 5 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the term of the lease - 6 years
Plant and equipment
20% Reducing balance
Computer equipment
20% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
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.
COVINGTON AIRCRAFT EU, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 6 -
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
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.
COVINGTON AIRCRAFT EU, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 7 -
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are described below.
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
The fixed asset depreciation charge is derived from the estimated useful economic life and residual value of the asset. These are reviewed annually alongside any impairment indicators.
Accruals for goods or services not yet invoiced are estimated based on historic activity with the supplier or quotations received ahead of invoicing. Accrued management fee charges are recognised at the invoice value raised post year end by the third party.
Prepayments are based on actual invoices received and costs allocated across the relevant accounting period on a straight line basis of the time period in which the service relates to.
There were no other key sources of estimation uncertainty.
COVINGTON AIRCRAFT EU, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
2
4
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 October 2023
26,509
471,058
29,564
527,131
Additions
7,183
7,183
At 30 September 2024
26,509
478,241
29,564
534,314
Depreciation and impairment
At 1 October 2023
11,720
150,957
17,075
179,752
Depreciation charged in the year
4,418
65,099
5,913
75,430
At 30 September 2024
16,138
216,056
22,988
255,182
Carrying amount
At 30 September 2024
10,371
262,185
6,576
279,132
At 30 September 2023
14,789
320,101
12,489
347,379
The net book value of tangible fixed assets under a finance lease agreement is £1,404. The depreciation charged on such assets in the year was £1,404.
COVINGTON AIRCRAFT EU, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
286
Other debtors
1,307
10,070
Prepayments and accrued income
25,517
19,035
27,110
29,105
6
Creditors: amounts falling due within one year
2024
2023
£
£
Obligations under finance leases
1,404
1,404
Trade creditors
358,375
4,963
Amounts owed to group undertakings
714,961
589,545
Taxation and social security
9,427
4,290
Other creditors
67,139
7,661
Accruals and deferred income
760
1,663
1,152,066
609,526
The finance lease liability is secure against the asset.
7
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
1,404
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Dean Pullen FCCA
Statutory Auditor:
TC Group
Date of audit report:
22 April 2025
COVINGTON AIRCRAFT EU, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
45,813
82,463
COVINGTON AIRCRAFT EU, LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
10
Related party transactions
There are no formal agreements in place regarding the settlement of related party balances and they are treated as repayable on demand. The balances are not secured and no interest is charged on these balances within the financial statements.
On 30 September 2024 the company had amounts owing to fellow group undertakings of £714,961 (2023 - £589,545). This is subsequent to amounts that were formally forgiven by a deed of a release, totalling £109,425 (2023 - £179,307).
11
Parent company
The company is controlled by Abbott Industries, Inc, a company registered in the United States. Copies of the consolidated accounts may be obtained from 201 E Airport Rd, Okmulgee, OK 74447, United States.
2024-09-302023-10-01falsefalsefalse22 April 2025CCH SoftwareCCH Accounts Production 2025.100No description of principal activityMr K E WithersMr A AbbottAbbott Industries, Inc. (Corporate Director)122635382023-10-012024-09-3012263538bus:Director12023-10-012024-09-3012263538bus:Director22023-10-012024-09-3012263538bus:Director32023-10-012024-09-3012263538bus:RegisteredOffice2023-10-012024-09-30122635382024-09-30122635382023-09-3012263538core:LeaseholdImprovements2024-09-3012263538core:PlantMachinery2024-09-3012263538core:ComputerEquipment2024-09-3012263538core:LeaseholdImprovements2023-09-3012263538core:PlantMachinery2023-09-3012263538core:ComputerEquipment2023-09-3012263538core:CurrentFinancialInstrumentscore:WithinOneYear2024-09-3012263538core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3012263538core:Non-currentFinancialInstrumentscore:AfterOneYear2024-09-3012263538core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-3012263538core:ShareCapital2024-09-3012263538core:ShareCapital2023-09-3012263538core:OtherMiscellaneousReserve2024-09-3012263538core:OtherMiscellaneousReserve2023-09-3012263538core:RetainedEarningsAccumulatedLosses2024-09-3012263538core:RetainedEarningsAccumulatedLosses2023-09-3012263538core:ShareCapital2022-09-3012263538core:OtherMiscellaneousReserve2022-09-3012263538core:RetainedEarningsAccumulatedLosses2022-09-30122635382022-09-3012263538core:RetainedEarningsAccumulatedLosses2022-10-012023-09-30122635382022-10-012023-09-3012263538core:RetainedEarningsAccumulatedLosses2023-10-012024-09-3012263538core:ShareCapital2023-10-012024-09-3012263538core:OtherMiscellaneousReserve2023-10-012024-09-3012263538core:LeaseholdImprovements2023-10-012024-09-3012263538core:PlantMachinery2023-10-012024-09-3012263538core:ComputerEquipment2023-10-012024-09-3012263538core:LeaseholdImprovements2023-09-3012263538core:PlantMachinery2023-09-3012263538core:ComputerEquipment2023-09-30122635382023-09-3012263538core:CurrentFinancialInstruments2024-09-3012263538core:CurrentFinancialInstruments2023-09-3012263538core:Non-currentFinancialInstruments2024-09-3012263538core:Non-currentFinancialInstruments2023-09-3012263538bus:PrivateLimitedCompanyLtd2023-10-012024-09-3012263538bus:FRS1022023-10-012024-09-3012263538bus:Audited2023-10-012024-09-3012263538bus:SmallCompaniesRegimeForAccounts2023-10-012024-09-3012263538bus:FullAccounts2023-10-012024-09-30xbrli:purexbrli:sharesiso4217:GBP