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Registered number: 01505037
Trade-Air Airline Support Limited
Annual Report and Financial Statements
For the Year Ended 31 December 2024
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Trade-Air Airline Support Limited
Company Information
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Statutory Auditor & Chartered Accountants
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Trade-Air Airline Support Limited
Contents
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Changes in Equity
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Notes to the Financial Statements
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Trade-Air Airline Support Limited
Strategic Report
For the Year Ended 31 December 2024
The directors have pleasure in presenting their strategic report for the year ended 31 December 2024.
The directors aim to present a balanced and comprehensive review of the development and performance of the company’s business during the year and its position at the year end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the company faces.
The profit for the financial year after taxation was £2,317,622 which has resulted in an increase in net assets of 14.08%.
Equity dividends on certain classes of ordinary share totalling £576,985 were paid during the year.
The turnover in the year decreased by 5.73% and there was a decrease in the gross profit margin from 24.03%% in 2023 to 20.64% in 2024. The decrease in turnover has however, coupled with prudent controls on cash, resulted in a year end increase in cash reserves of 73.75% whereas the year-end debtors decreased by 25.04%. The net current asset position has increased from the previous year by 14.07%.
During the year the pound strengthened against the US Dollar by circa. 1% and against the Euro by 4.31%. As almost the entire trading business of the company is operated in US dollars, a strong pound against the dollar results in a lower figure when converting to sterling. As most of the business is conducted in US Dollars and the business returns profits in sterling, the effect of a strong pound decreases the sterling equivalent values of assets and liabilities that are held in US dollars at the balance sheet date. The result of this is that overall losses on exchange in the year totalled £84,534, whereas in 2023, resultant from a weaker pound than in 2024, losses on conversion totalled £138,403.
Principal risks and uncertainties
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The key business risks and uncertainties affecting the company are considered to relate to the recessive influence on customers and the scale of supplies entering the market, competitive strategies from international service providers and exchange rate fluctuations to reported results, although this year’s currency fluctuations have, as explained above, resulted in a marginal decrease to the company’s financial reporting. Logistical difficulties are still being encountered following Brexit when dealing with countries within the European Union and the HMRC’s Customs Declaration Service seems not to have eased the burden exacted by an increase in paperwork.
Because the company has shown that it can still provide its usual high standard of customer care, the current order book is extremely healthy and the management is optimistic that the company will continue to progress, albeit with appropriate caution and controlled expenditure. The company remains debt free and the nature of the company’s customer base, being mainly sovereign states based in the middle east, mitigates any likelihood of there being any going concern issues.
The liquidity requirements of the company are managed by the directors through the use, as and when required, of an overdraft facility from Lloyds Bank plc, secured by a floating charge in the form of an unlimited debenture over the assets of the company. The company has no loans or finance arrangements other than this.
The company trades in a US Dollar-based industry and as such is subject to the effect of exchange rate fluctuations when reporting in sterling. The political uncertainty both in the UK with a change in government last year and the USA this year, coupled with the war in Ukraine and tensions in the Middle East, do result in some concerns.
However, given the nature of the company’s mainly middle eastern sovereign state clients, who are therefore, not in the main commercially based airline sector, the directors are confident that the company’s future, whilst continuing to be challenging, will be secure.
Page 1
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Trade-Air Airline Support Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
Other key performance indicators
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Given the straightforward nature of the business, the directors rely on the gross profit margin, turnover, liquidity, and net assets reported in the business review. Weekly meetings between the directors and the staff focus on these areas of the business.
As mentioned earlier, during the year the gross profit percentage showed a decrease of 3.39% on the previous year. This is in part due to an exceptional specific contract during 2023 which increased the margins beyond the normally expected range. Notwithstanding that fact, 2024 has proved to be a very successful year. The overall profitability after tax, showed a decrease from 2023 of 26.24% mainly resultant from the decrease in turnover as previously reported.
The directors continue to monitor all aspects of the business and considering the global impact of the war in Ukraine coupled with the tensions in the Middle East and general economic uncertainties, they are pleased to report that sales, whilst not matching the exceptional 2023 figure, have continued to be maintained at a high level in the company’s well established regions of operation such as, in particular, the Middle East.
This report was approved by the board and signed on its behalf.
Page 2
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Trade-Air Airline Support Limited
Directors' Report
For the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' responsibilities statement
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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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;
∙make judgments 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 to 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.
The profit for the year, after taxation, amounted to £2,317,622 (2023 - £3,142,125).
The directors declared and paid interim dividends totalling £576,985 for the year (2023: £762,450).
The directors who served during the year were:
Matters covered in the Strategic Report
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Items required to be disclosed in the Directors’ report are set out in the Strategic Report in accordance with s.414C(11) CA 2006.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Page 3
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Trade-Air Airline Support Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
The auditor, Kreston Reeves LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 4
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Trade-Air Airline Support Limited
Independent Auditor's Report to the Members of Trade-Air Airline Support Limited
We have audited the financial statements of Trade-Air Airline Support Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 December 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.
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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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
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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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
Page 5
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Trade-Air Airline Support Limited
Independent Auditor's Report to the Members of Trade-Air Airline Support Limited (continued)
Opinion on other matters prescribed by the Companies Act 2006
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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.
Matters on which we are required to report by exception
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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 in relation to which 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
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As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 is 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.
Page 6
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Trade-Air Airline Support Limited
Independent Auditor's Report to the Members of Trade-Air Airline Support Limited (continued)
Auditor's responsibilities for the audit of the financial statements
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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 an Auditor's Report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, employment law and aviation regulations. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure. Audit procedures performed by the engagement team included:
∙Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety, employment law and aviation regulations) and fraud, and review of the reports made by management; and
∙Assessment of identified fraud risk factors; and
∙Challenging assumptions and judgements made by management in its significant accounting estimates; and
∙Checking and reperforming the reconciliation of key control accounts; and
∙Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
∙Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
∙Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant tax and regulatory authorities; and
∙Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
∙Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation; and
∙A sample of year end trade debtor balances have been agreed to after date cash received
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.
Page 7
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Trade-Air Airline Support Limited
Independent Auditor's Report to the Members of Trade-Air Airline Support Limited (continued)
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 an Auditor's Report 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.
Allan Pinner FCCA (Senior Statutory Auditor)
for and on behalf of
Kreston Reeves LLP
Statutory Auditor
Chartered Accountants
Horsham
29 September 2025
Page 8
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Trade-Air Airline Support Limited
Statement of Comprehensive Income
For the Year Ended 31 December 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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There was no other comprehensive income for 2024 (2023:£NIL).
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The notes on pages 13 to 26 form part of these financial statements.
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Page 9
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Trade-Air Airline Support Limited
Registered number: 01505037
Balance Sheet
As at 31 December 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 26 form part of these financial statements.
Page 10
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Trade-Air Airline Support Limited
Statement of Changes in Equity
For the Year Ended 31 December 2024
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Comprehensive income for the year
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Dividends: Equity capital
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Shares issued during the year
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Comprehensive income for the year
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Dividends: Equity capital
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The notes on pages 13 to 26 form part of these financial statements.
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Page 11
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Trade-Air Airline Support Limited
Statement of Cash Flows
For the Year Ended 31 December 2024
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Decrease/(increase) in debtors
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(Decrease)/increase in creditors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 13 to 26 form part of these financial statements.
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Page 12
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Trade-Air Airline Support Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is 4 Cinema Buildings, Poole Road, Bournemouth, BH4 9DW. The address of the principal place of business is The Merlin Centre, County Oak Way, Crawley, West Sussex, RH11 7XA.
The Company's principal activity during the year was that of providing a global spare parts maintenance service for state, corporate and private airlines.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
All of the company’s subsidiary undertakings have been dormant throughout the current and previous accounting periods, and are considered by the directors to be immaterial in obtaining an understanding of the results and financial position of the company. Therefore the company is exempt from the requirement to prepare group accounts by virtue of section 402 of the Companies Act 2006. These financial statements are therefore the company's separate financial statements, and present information about the company as an individual undertaking and not about its group.
The following principal accounting policies have been applied:
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover in respect of parts supplied both as outright sales and on exchange is recognised on delivery to the customer.
Turnover for services supplied, such as repair charges, is recognised on completion of the repair.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 13
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and on a reducing balance basis.
Depreciation is provided on the following basis:
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Short-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. The cost of rotable parts is based on the specific cost to the Company of the original rotable item. Where items are issued under exchange terms for a customer's unserviceable unit which is then regenerated under indemnified terms at the customer’s cost, the refurbished item is returned to the stock pool. The cost of refurbishment and recovery thereof is expensed.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Page 14
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 15
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.
Page 16
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In preparing these financial statements, the directors have had to make the following judgments:
The company provides spare parts for aircraft and is subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated future usage. See note 13 for the net carrying value of stocks.
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the aging profile of debtors and historical experience. See note 14 for the net carrying amount of debtors.
Page 17
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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An analysis of turnover by class of business is as follows:
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Sales of parts and exchange and repair services
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Analysis of turnover by country of destination:
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The operating profit is stated after charging:
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Other operating lease rentals
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Page 18
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of £320,528 (2023 - £309,664).
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Other interest receivable
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Page 19
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Current tax on profits for the year
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Origination and reversal of timing differences
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
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Capital allowances for year in excess of depreciation
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Preference dividends paid
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Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
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Changes in provisions leading to an increase (decrease) in the tax charge
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Total tax charge for the year
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Factors that may affect future tax charges
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There are capital tax losses of £10,015 (2023: £10,015) available to utilise against future capital gains of
the company. A deferred tax asset has not been recognised in respect of these losses due to uncertainty about future recoverability.
Page 20
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Preference dividends paid
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Interim dividends paid on ordinary shares
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Short-term leasehold property
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Charge for the year on owned assets
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Page 21
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Finished goods and goods for resale
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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Page 22
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Creditors: Amounts falling due after more than one year
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Share capital treated as debt
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Disclosure of the terms and conditions attached to the non-equity shares is made in note 19.
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Page 23
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Shares classified as equity
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Allotted, called up and fully paid
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1,250,000 (2023 - 1,250,000) Ordinary class B shares of £0.0001 each
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100,000 Ordinary class C shares of £0.0001 each
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100,000 Ordinary class D shares of £0.0001 each
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100,000 Ordinary class E shares of £0.0001 each
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100,000 Ordinary class F shares of £0.0001 each
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75,000 (2023 - 75,000) Ordinary class G shares of £0.0001 each
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1,500 (2023 - 1,500) Ordinary class H shares of £0.0001 each
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Allotted, called up and partly paid
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170,000 (2023 - 170,000) Ordinary class B shares of £0.0001 each
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Shares classified as debt
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Allotted, called up and fully paid
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10,000 (2023 - 10,000) Preference class A shares of £0.0001 each
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Preference shares represent non-equity interests stated at par value. Dividends, unless waived, are payable quarterly at £4.75 per share, net of tax credit and are cumulative. In addition, the company has the right to make discretionary additional dividends to preference share holders. The shares carry sole voting rights and have priority over ordinary shares in the event of winding up of their par value and any arrears of dividend. The preference shares are wholly owned by Mr N Webb.
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Profit and loss account
The profit and loss account fully comprises current and prior period retained profits and losses after deducting any distributions made to the company's shareholders. The profit and loss account is all distributable at each year end.
Page 24
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £21,264 (2023 - £16,104). Contributions totalling £NiI (2023 - £NiI) were payable to the fund at the balance sheet date.
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Commitments under operating leases
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At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Page 25
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Trade-Air Airline Support Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Related party transactions
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During the year dividends totalling £521,985 (2023: £942,500) were paid to two of the company's directors (T Smith and D Parks). In addition, net amounts totalling £57,957 were repaid to three directors (N Webb, T Smith and D Parks) during the year (2023: £19,460). At the year end the balance owed by the company to these three directors was £804,098 (2023: £862,054).
The company rents its trading premises from The Gatwick Pension Fund, an entity set up for the benefit of Mr N Webb. During the year the company paid rent of £86,250 (2023: £86,250) to The Gatwick Pension Fund. At the year end the balance owed by the company to The Gatwick Pension Fund was £Nil (2023: £nil).
The company trades with Trade Air Inc, a company incorporated in The United States of America and wholly owned by Mr N Webb. During the year the company made acquisitions from Trade Air Inc totalling £329,933 (2023: £233,246) and paid management charges of £263,734 (2023: £272,628) to Trade Air Inc. At the year end no amounts were owed by the company to Trade Air Inc (2023: £nil).
Included in administrative expenses is advertising and promotion costs totalling £250,000 (2023: £240,000) that were incurred from No. 6 Racing Limited, the business interest of a close family member of N Webb. During the year payments totalling £316,000 (2023: £320,000) were made to No. 6 Racing Limited. At the year end £nil was owed to the company by No. 6 Racing Limited (2023: £80,000).
All directors of the company are considered to be key management personnel. Total remuneration in respect of key management personnel was £951,442 (2023: £1,055,012).
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Company name Country Percentage shareholding Description
319 CJ Aerospace Limited England and Wales 100 Dormant
319 CJ Aviation Limited England and Wales 100 Dormant
319 CJ Corporate Aviation Limited England and Wales 100 Dormant
Mr N Webb is the controlling party by virtue of his majority share holding in the company.
Page 26
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