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REGISTERED NUMBER: 04794306 (England and Wales)















Financial Statements for the Year Ended 31 August 2024

for

HSM Aero Limited

HSM Aero Limited (Registered number: 04794306)






Contents of the Financial Statements
for the Year Ended 31 August 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


HSM Aero Limited

Company Information
for the Year Ended 31 August 2024







DIRECTOR: D F Hammond





SECRETARY: D F Hammond





REGISTERED OFFICE: Aerospace Logistics Centre
Unit 2B
Dunhams Lane
Letchworth Garden City
Hertfordshire
SG6 1BE





REGISTERED NUMBER: 04794306 (England and Wales)





AUDITORS: Godfrey Laws Audit Limited
65 Knowl Piece
Wilbury Way
Hitchin
Hertfordshire
SG4 0TY

HSM Aero Limited (Registered number: 04794306)

Balance Sheet
31 August 2024

31.8.24 31.8.23
Notes £    £    £   
FIXED ASSETS
Tangible assets 4 881,213 943,038

CURRENT ASSETS
Stocks 1,247,246 1,173,688
Debtors 5 1,661,819 1,300,452
Cash at bank 96,263 13,893
3,005,328 2,488,033
CREDITORS
Amounts falling due within one year 6 2,204,922 1,861,296
NET CURRENT ASSETS 800,406 626,737
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,681,619

1,569,775

CREDITORS
Amounts falling due after more than one
year

7

(200,263

)

(201,516

)

PROVISIONS FOR LIABILITIES (169,397 ) (173,441 )
NET ASSETS 1,311,959 1,194,818

CAPITAL AND RESERVES
Called up share capital 100 100
Retained earnings 1,311,859 1,194,718
SHAREHOLDERS' FUNDS 1,311,959 1,194,818

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 28 May 2025 and were signed by:





D F Hammond - Director


HSM Aero Limited (Registered number: 04794306)

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

1. STATUTORY INFORMATION

HSM Aero Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover consists of precision engineering and manufacture of mechanical equipment.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property 15% on reducing balance
Plant and machinery 25% on reducing balance
Fixtures and fittings 15% on reducing balance
Motor vehicles 20% on cost
Office equipment 15% on reducing balance

Government grants
Grants are accounted for under the accruals model.
Grants of a revenue nature are recognised in 'other income' within profit and loss in the same period as the related expenditure.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 or deferred taxation assets and liabilities are not discounted.

Current tax is 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.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

HSM Aero Limited (Registered number: 04794306)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Discounted debts
At 31st August 2024 trade debtors totalling £1,232,793 (2023 - £909,476) had been discounted and an amount of £944,661 (2023 - £759,504) had been advanced to the company under this financing agreement. The financial statements reflect a separate presentation i.e. gross discounted debts are included within assets and proceeds received from factors are included within liabilities. The factor's charges are accrued as arising and included within the profit and loss account.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 51 (2023 - 49 ) .

4. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 September 2023 221,860 2,503,983 240,191
Additions 6,790 114,604 42,393
Disposals - - -
At 31 August 2024 228,650 2,618,587 282,584
DEPRECIATION
At 1 September 2023 143,997 1,776,115 162,653
Charge for year 12,408 187,895 16,620
Eliminated on disposal - - -
At 31 August 2024 156,405 1,964,010 179,273
NET BOOK VALUE
At 31 August 2024 72,245 654,577 103,311
At 31 August 2023 77,863 727,868 77,538

HSM Aero Limited (Registered number: 04794306)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

4. TANGIBLE FIXED ASSETS - continued

Motor Office
vehicles equipment Totals
£    £    £   
COST
At 1 September 2023 25,170 91,035 3,082,239
Additions - 269 164,056
Disposals (25,170 ) - (25,170 )
At 31 August 2024 - 91,304 3,221,125
DEPRECIATION
At 1 September 2023 25,170 31,266 2,139,201
Charge for year - 8,958 225,881
Eliminated on disposal (25,170 ) - (25,170 )
At 31 August 2024 - 40,224 2,339,912
NET BOOK VALUE
At 31 August 2024 - 51,080 881,213
At 31 August 2023 - 59,769 943,038

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 September 2023 1,387,099
Additions 57,999
Transfer to ownership (1,136,787 )
At 31 August 2024 308,311
DEPRECIATION
At 1 September 2023 920,786
Charge for year 117,134
Transfer to ownership (972,360 )
At 31 August 2024 65,560
NET BOOK VALUE
At 31 August 2024 242,751
At 31 August 2023 466,313

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.24 31.8.23
£    £   
Trade debtors 1,341,382 1,167,102
Amounts owed by group undertakings 164,166 32,242
Other debtors 156,271 101,108
1,661,819 1,300,452

HSM Aero Limited (Registered number: 04794306)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.24 31.8.23
£    £   
Hire purchase contracts (see note 8) 63,906 82,177
Trade creditors 956,366 850,150
Amounts owed to group undertakings - 20,830
Taxation and social security 132,020 70,977
Other creditors 1,052,630 837,162
2,204,922 1,861,296

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.8.24 31.8.23
£    £   
Hire purchase contracts (see note 8) 200,263 201,516

8. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.8.24 31.8.23
£    £   
Net obligations repayable:
Within one year 63,906 82,177
Between one and five years 200,263 201,516
264,169 283,693

Non-cancellable operating leases
31.8.24 31.8.23
£    £   
Within one year 204,889 167,429
Between one and five years 77,668 182,700
282,557 350,129

HSM Aero Limited (Registered number: 04794306)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

9. SECURED DEBTS

The following secured debts are included within creditors:

31.8.24 31.8.23
£    £   
Hire purchase contracts 264,169 283,693
Discounted debts 944,661 759,504
1,208,830 1,043,197

Securities include:
Fixed and floating charge created in favour of LLoyds Bank to cover all property or undertaking of the company. The charge includes a negative pledge.

Fixed charge over non- vesting debts within the Invoice finance facility.

Fixed and floating charge created in favour of Aldermore Bank PLC to cover all property or undertaking of the company. The charge includes a negative pledge.

The company has a cross guarantee with it's fellow group companies:
Cabinair Services Ltd
SATTO Solutions Ltd
Specialist Aviation Holding Ltd
Specialist Aviation Ltd
Specialist Aviation Properties Ltd

10. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Howard Ashmore FCA (Senior Statutory Auditor)
for and on behalf of Godfrey Laws Audit Limited

11. RELATED PARTY DISCLOSURES

At the balance sheet date the following amounts are due from companies under common control:
31.8.24 31.8.23
£ £
SATTO Solutions Limited 63,144 22,376
Cabinair Services Limited 55,765 9,866
Specialist Aviation Holdings Limited 45,257 -

At the balance sheet date the following amounts are due to companies under common control:


31.8.24 31.8.23
£ £
Specialist Aviation Holdings Limited - 20,830

The ultimate controlling party is D F Hammond.

12. ULTIMATE PARENT COMPANY

The ultimate parent company is Specialist Aviation Holdings Limited, the registered office is: Aerospace Logistics Centre, Unit 2B Dunhams Lane, Letchworth Garden City, Herts SG6 1BE