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REGISTERED NUMBER: 08488525 (England and Wales)












STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

FOR

MEL AVIATION COMPONENTS LIMITED

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 October 2024




Page

Company Information 1

Strategic Report 2

Directors' Report 4

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


MEL AVIATION COMPONENTS LIMITED

COMPANY INFORMATION
for the year ended 31 October 2024







DIRECTORS: Mr N G Harvey
Mr M J Levick



REGISTERED OFFICE: Unit 2 Centron
Crompton Way
Crawley
West Sussex
RH10 9QR



REGISTERED NUMBER: 08488525 (England and Wales)



SENIOR STATUTORY AUDITOR: Mr Paul Dell FCA



AUDITORS: Xeinadin Audit Limited, Statutory Auditor
8th Floor, Becket House
36 Old Jewry
London
EC2R 8DD

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

STRATEGIC REPORT
for the year ended 31 October 2024

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

REVIEW OF BUSINESS
The company has had a successful year with turnover increasing by 17% to £34.4m (2023: £29.3m) as business continues to improve. Gross margin decreased slightly in the year to 27.0% (2023: 29.7%)

Operating profit was £6.9m (2023: £6.6m). The state of affairs at the balance sheet date is considered to be satisfactory with net assets of £13.0m (2023: £9.6m).

The key financial performance indicators for the company are as follows:-

2024 2023 Measure
Gross Profit Margin 27.0% 29.7% Gross Profit/Turnover
Debtors days 56 days 73 days Trade Debtors/Turnover
Creditor days 66 days 107 days Trade Creditors / Cost of Sales


Debtor and creditor days exclude related party balances.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties affecting the business include:-
- Regulatory - the company operates in a highly regulated area. It maintains extremely high standards of quality control over its products and services.
- Retention of customers - the company maintains strong relationships with each of its key customers and has established procedures for monitoring performance and service levels.
- Competitive risk - the company's reliance on any single customer has reduced over the past few years as part of its strategy to mitigate its risk in this area.
- Market conditions - the company's ability to adapt quickly to changes in the marketplace, mitigates the risk of this area.
- Exchange rate risk - the company trades in dollars and maintains its banking and financing in dollar denominated accounts where possible to mitigate any exchange rate risk. There are translation differences at each year end but these are accounting adjustments for statutory reporting purposes.

The directors believe that the company has adequate financial resources in place to meet its forecast trading requirements and all risks and uncertainties are managed appropriately.

FUTURE DEVELOPMENTS
The company will continue to expand its product range whilst concentrating on products and services that deliver higher margins.

The directors are confident of delivering sustainable future growth in its sector.

The directors remain confident in growth over the next 12 months, and will be continuing to invest into stock via the new facilities we have with HSBC. We expect margins to remain consistent with the last year.


MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

STRATEGIC REPORT
for the year ended 31 October 2024

FINANCIAL INSTRUMENTS
The company had banking facilities in place with IGF Business Credit during the year. Since the year end, a refinancing has taken place with HSBC to provide additional funding to the business in accordance with its growth plans..

The company has not entered into any hedging arrangements as the directors perceive the exchange rate risk to the business to be low. Although the reporting currency is in sterling, the operational currency is predominantly the US dollar. There are accounting adjustments in the accounts in relation to the translation of currency balances at the period end.

ON BEHALF OF THE BOARD:





Mr N G Harvey - Director


7 May 2025

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

DIRECTORS' REPORT
for the year ended 31 October 2024

The directors present their report with the financial statements of the company for the year ended 31 October 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of supplying components and equipment to the aviation sector.

DIVIDENDS
An interim dividend of £6012.43 per share was paid on 30 June 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 October 2024 will be £ 1,202,485 .

DIRECTORS
Mr N G Harvey has held office during the whole of the period from 1 November 2023 to the date of this report.

Other changes in directors holding office are as follows:

Mr R W B Argent - resigned 30 April 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Directors' 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 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.

ON BEHALF OF THE BOARD:





Mr N G Harvey - Director


7 May 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MEL AVIATION COMPONENTS LIMITED

Opinion
We have audited the financial statements of MEL Aviation Components Limited (the 'company') for the year ended 31 October 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 31 October 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 information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MEL AVIATION COMPONENTS 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 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 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
MEL AVIATION COMPONENTS 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 company's 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, employment, 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 where necessary.

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 transactions;
- tested the appropriateness of journal entries;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

To address the risk that revenue could be misstated due to fraud, we:
- obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard;
- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions;
- tested a sample of revenue transactions to supporting evidence; and
- tested, on a sample basis, revenue related balances in the balance sheet.

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;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and relevant regulators.

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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MEL AVIATION COMPONENTS 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 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.




Mr Paul Dell FCA (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited, Statutory Auditor
8th Floor, Becket House
36 Old Jewry
London
EC2R 8DD

7 May 2025

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

INCOME STATEMENT
for the year ended 31 October 2024

2024 2023
Notes £    £   

TURNOVER 4 34,428,122 29,344,962

Cost of sales (25,157,792 ) (20,618,090 )
GROSS PROFIT 9,270,330 8,726,872

Administrative expenses (2,530,336 ) (2,320,115 )
6,739,994 6,406,757

Other operating income 133,649 200,482
OPERATING PROFIT 6 6,873,643 6,607,239


Interest payable and similar expenses 7 (708,029 ) (300,391 )
PROFIT BEFORE TAXATION 6,165,614 6,306,848

Tax on profit 8 (1,535,189 ) (1,429,603 )
PROFIT FOR THE FINANCIAL YEAR 4,630,425 4,877,245

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

OTHER COMPREHENSIVE INCOME
for the year ended 31 October 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 4,630,425 4,877,245


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

4,630,425

4,877,245

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

BALANCE SHEET
31 October 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 10 70,803 53,531

CURRENT ASSETS
Stocks 11 23,974,811 15,442,945
Debtors 12 11,132,104 10,367,256
Cash at bank 200,813 100,320
35,307,728 25,910,521
CREDITORS
Amounts falling due within one year 13 22,352,537 16,352,815
NET CURRENT ASSETS 12,955,191 9,557,706
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,025,994

9,611,237

CREDITORS
Amounts falling due after more than one
year

14

(6,667

)

(16,667

)

PROVISIONS FOR LIABILITIES 18 (6,743 ) (9,926 )
NET ASSETS 13,012,584 9,584,644

CAPITAL AND RESERVES
Called up share capital 19 200 200
Retained earnings 20 13,012,384 9,584,444
SHAREHOLDERS' FUNDS 13,012,584 9,584,644

The financial statements were approved by the Board of Directors and authorised for issue on 7 May 2025 and were signed on its behalf by:





Mr N G Harvey - Director


MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 October 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 November 2022 200 4,707,199 4,707,399

Changes in equity
Total comprehensive income - 4,877,245 4,877,245
Balance at 31 October 2023 200 9,584,444 9,584,644

Changes in equity
Dividends - (1,202,485 ) (1,202,485 )
Total comprehensive income - 4,630,425 4,630,425
Balance at 31 October 2024 200 13,012,384 13,012,584

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

CASH FLOW STATEMENT
for the year ended 31 October 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (2,224,426 ) 1,413,644
Interest paid (708,029 ) (300,391 )
Tax paid (571,708 ) (52,069 )
Net cash from operating activities (3,504,163 ) 1,061,184

Cash flows from investing activities
Purchase of tangible fixed assets (52,689 ) (3,790 )
Net cash from investing activities (52,689 ) (3,790 )

Cash flows from financing activities
New loans in year 5,301,948 450,309
Loan repayments in year (10,000 ) (35,833 )
Loan to parent company (402,803 ) (316,755 )
Amount introduced by directors 1,261,785 -
Amount withdrawn by directors (1,291,100 ) (1,135,680 )
Equity dividends paid (1,202,485 ) -
Net cash from financing activities 3,657,345 (1,037,959 )

Increase in cash and cash equivalents 100,493 19,435
Cash and cash equivalents at beginning of
year

2

100,320

80,885

Cash and cash equivalents at end of year 2 200,813 100,320

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE CASH FLOW STATEMENT
for the year ended 31 October 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 6,165,614 6,306,848
Depreciation charges 35,417 43,488
Finance costs 708,029 300,391
6,909,060 6,650,727
Increase in stocks (8,531,866 ) (6,139,310 )
Increase in trade and other debtors (332,730 ) (3,803,116 )
(Decrease)/increase in trade and other creditors (268,890 ) 4,705,343
Cash generated from operations (2,224,426 ) 1,413,644

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 31 October 2024
31.10.24 1.11.23
£    £   
Cash and cash equivalents 200,813 100,320
Year ended 31 October 2023
31.10.23 1.11.22
£    £   
Cash and cash equivalents 100,320 80,885


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.11.23 Cash flow At 31.10.24
£    £    £   
Net cash
Cash at bank 100,320 100,493 200,813
100,320 100,493 200,813
Debt
Debts falling due within 1 year (2,733,184 ) (5,301,948 ) (8,035,132 )
Debts falling due after 1 year (16,667 ) 10,000 (6,667 )
(2,749,851 ) (5,291,948 ) (8,041,799 )
Total (2,649,531 ) (5,191,455 ) (7,840,986 )

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 October 2024

1. STATUTORY INFORMATION

MEL Aviation Components 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.

The presentation currency of the financial statements is the Pound Sterling (£).


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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 which, requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3). The following principal accounting policies have been applied:

Turnover
Turnover represents the invoiced value of goods and services supplied to external customers, excluding value added tax. Turnover is recognised and a debtor recorded as accrued income once all obligations under the sales order have been performed.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - Straight line over 10 years
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on cost
Computer equipment - 20% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. The company assesses at each reporting date whether tangible fixed assets are fully impaired.

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company's obligations are discharged, expire or cancelled.

The company holds the following financial instruments, all of which meet the conditions to be classified as basic instruments:

- Cash, short term trade debtors and creditors

Such instruments are initially measured at transaction price, transaction costs, and are subsequently carried at the undiscounted amount of cash or other consideration expected to be paid or received, after taking account of impairment adjustment.

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.

Foreign currencies
The financial statements are presented in sterling. The company's functional currency is the US dollar. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All resulting translation differences are taken to the profit and loss account.

Pension costs and other post-retirement benefits
The company operates a fully insured defined contribution pension scheme for certain members of staff and the pension charge represents the amounts paid by the company to the fund during the year. These contributions are invested separately from the company's assets.

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets that are held by the company under leases which transfer to the company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the company's policy on borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight­ line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Related parties
For the purposes of these financial statements, a party is considered to be related to the company if:
- the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; or
- the company and the party are subject to common control; or
- the party is an associate of the company or a joint venture in which the company is a venturer; or
- the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; or
- the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or
- the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company; or
- the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these judgements and estimates have been made include:
• assessing the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge, and
• the provision required for any bad or doubtful debts, and
• the provision required for any slow moving or obsolete stock.

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2024

4. TURNOVER

An analysis of turnover by class of business is given below:
2024 2023
£ £
Outright sales11,361,28024,179,541
Repairs8,951,3123,160,928
Exchange14,115,530 2,004,493
34,428,122 29,344,962

An analysis of turnover by geographical market is given below:
2024 2023
£ £
United Kingdom5,508,5004,011,267
European Union16,869,78010,155,705
Rest of the World12,049,84215,177,990
34,428,12229,344,962

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,084,631 792,036
Social security costs 140,300 74,307
Other pension costs 22,658 26,076
1,247,589 892,419

The average number of employees during the year was as follows:
2024 2023

Administration and management 7 6
Operations 7 6
Sales 8 7
22 19

2024 2023
£    £   
Directors' remuneration 349,667 230,400


Information regarding the highest paid director for the year ended 31 October 2024 is as follows:
2024 2023
£    £   
Emoluments etc. 260,000 116,400




MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2024

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 24,725 14,495
Other operating leases 349,885 309,130
Depreciation - owned assets 35,417 43,489
Auditors' remuneration 31,000 30,000
Foreign exchange differences (129,356 ) (198,255 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Interest payable 708,029 300,391

8. 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 1,538,372 1,435,200

Deferred tax:
Origination and reversal of timing differences (3,183 ) (5,597 )
Tax on profit 1,535,189 1,429,603

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 6,165,614 6,306,848
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 22.518%)

1,541,404

1,420,176

Effects of:
Expenses not deductible for tax purposes 19,793 6,872
Depreciation in excess of capital allowances 4,552 8,292
Utilisation of tax losses (22,400 ) -
Deferred tax adjustment (3,183 ) (5,597 )
Other adjustments (4,977 ) (140 )
Total tax charge 1,535,189 1,429,603

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2024

9. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 1,202,485 -

10. TANGIBLE FIXED ASSETS
Fixtures
Short and Motor Computer
leasehold fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 November 2023 34,484 150,288 6,595 62,863 254,230
Additions 1,100 3,375 44,000 4,214 52,689
At 31 October 2024 35,584 153,663 50,595 67,077 306,919
DEPRECIATION
At 1 November 2023 15,230 126,896 6,595 51,978 200,699
Charge for year 3,559 21,001 2,933 7,924 35,417
At 31 October 2024 18,789 147,897 9,528 59,902 236,116
NET BOOK VALUE
At 31 October 2024 16,795 5,766 41,067 7,175 70,803
At 31 October 2023 19,254 23,392 - 10,885 53,531

11. STOCKS
2024 2023
£    £   
Finished goods 23,974,811 15,442,945

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 5,327,732 5,886,888
Amounts owed by group undertakings 2,018,099 1,615,296
Other debtors 2,361,626 1,525,769
Directors' current accounts 1,164,995 1,135,680
VAT 25,929 110,498
Prepayments 233,723 93,125
11,132,104 10,367,256

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2024

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 15) 8,035,132 2,733,184
Trade creditors 5,102,816 6,489,895
Tax 2,588,786 1,622,122
Social security and other taxes 51,131 22,090
Other creditors 4,169,099 4,401,614
Accruals and deferred income 2,405,573 1,083,910
22,352,537 16,352,815

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 15) 6,667 16,667

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 8,035,132 2,733,184

Amounts falling due between one and two years:
Bank loans 6,667 16,667

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 305,626 287,587
Between one and five years 863,489 1,098,206
In more than five years - 91,309
1,169,115 1,477,102

17. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 8,041,799 2,749,851

IGF Business Credit Limited hold fixed and floating charges over the assets of the company in support of banking and invoice discounting facilities.

The finance lease liabilities are secured on the related assets.

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2024

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 6,743 9,926

Deferred
tax
£   
Balance at 1 November 2023 9,926
Provided during year (3,183 )
Balance at 31 October 2024 6,743

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
200 Ordinary £1 200 200

20. RESERVES
Retained
earnings
£   

At 1 November 2023 9,584,444
Profit for the year 4,630,425
Dividends (1,202,485 )
At 31 October 2024 13,012,384

21. PENSION COMMITMENTS

The company operates a fully insured defined contribution pension scheme for certain members of staff and the director. The pension charge represents the amounts paid by the company to the fund during the year. Payments during the year, amounted to £36,389 (2023: £26,076). These contributions are invested separately from the company's assets.

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 October 2024 and 31 October 2023:

2024 2023
£    £   
Mr N G Harvey
Balance outstanding at start of year 1,135,680 -
Amounts advanced 1,241,100 1,135,680
Amounts repaid (1,194,980 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,181,800 1,135,680

MEL AVIATION COMPONENTS LIMITED (REGISTERED NUMBER: 08488525)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2024

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued

Mr M J Levick
Balance outstanding at start of year - -
Amounts advanced 50,000 -
Amounts repaid (66,805 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (16,805 ) -

The above balance will be repaid within 9 months of the balance sheet date.

23. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

24. ULTIMATE CONTROLLING PARTY

The parent company is MACL Holdings Limited. Mr Nicholas Harvey is the ultimate controlling party of MACL Holdings Limited.