Orange Aero Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—9

1. General Information

Orange Aero Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02990055 . The registered office is Yew Tree House, Lewes Road, Forest Row, East Sussex, RH18 5AA.

The company's principal activity continues to be that of the supply of aero and industrial gas turbine engines and components.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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

2.2. Turnover

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. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.3. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	not depreciated
Plant & Machinery	25% reducing balance
Motor Vehicles	25% reducing balance
Fixtures & Fittings	25% reducing balance
Office Equipment	25% reducing balance

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.

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Orange Aero Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

2.4. Stocks and Work in Progress

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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.

2.5. Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.6. Financial Instruments

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.

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, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

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.

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Orange Aero Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

2.7. Interest Receivable

Interest income is recognised in profit or loss using the effective interest method.

2.8. Interest Payable

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.9. Foreign Currencies

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. Nonmonetary 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.

2.10. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

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Orange Aero Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

2.11. Pensions

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.12. Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.13. Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.14. Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 9 (2024: 8)

4. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Motor Vehicles	Fixtures & Fittings
	£	£	£	£
Cost
As at 1 February 2024	516,841	143,435	206,470	25,745
Additions	-	13,283	105,465	8,131
Disposals	-	-	(28,498 )	-

As at 31 January 2025	516,841	156,718	283,437	33,876

Depreciation
As at 1 February 2024	-	95,294	93,437	21,380
Provided during the period	-	14,534	44,455	2,210
Disposals	-	-	(14,420 )	-

As at 31 January 2025	-	109,828	123,472	23,590

...CONTINUED

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Orange Aero Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

Net Book Value
As at 31 January 2025	516,841	46,890	159,965	10,286

As at 1 February 2024	516,841	48,141	113,033	4,365


	Office Equipment	Total
	£	£
Cost
As at 1 February 2024	37,516	930,007
Additions	8,180	135,059
Disposals	-	(28,498 )

As at 31 January 2025	45,696	1,036,568

Depreciation
As at 1 February 2024	20,263	230,374
Provided during the period	5,481	66,680
Disposals	-	(14,420 )

As at 31 January 2025	25,744	282,634

Net Book Value
As at 31 January 2025	19,952	753,934

As at 1 February 2024	17,253	699,633

5. Stocks

	2025	2024
	£	£
Stock	2,383,938	2,617,055

6. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	414,504	1,199,754
Other debtors	1,909,983	1,345,923

	2,324,487	2,545,677

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Orange Aero Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

7. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	2,785	51,692
Bank loans and overdrafts	300,000	300,000
Other creditors	216,674	116,149
Taxation and social security	195,741	248,390

	715,200	716,231

8. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Bank loans	175,000	475,000

9. Loans

An analysis of the maturity of loans is given below:

	2025	2024
	£	£
Amounts falling due within one year or on demand:
Bank loans	300,000	300,000

	2025	2024
	£	£
Amounts falling due between one and five years:
Bank loans	175,000	475,000

10. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	910	910

11. Pension Commitments

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.

During the year the charge to profit or loss in respect of defined contribution schemes was £7,926.

12. Directors Advances, Credits and Guarantees

Included in other creditors due within one year are loans from the director, Mr S C Jeffs amounting to £(111,864) (2024 - £(7)).

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Orange Aero Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2025

13. Related Party Disclosures

The director and shareholder, Mr S C Jeffs, is also a director and shareholder in Brooklands Watch Company Limited, a company incorporated in England and Wales.

At the end of the year £1,627,357 was due from Brooklands Watch Company Limited. This amount is included in other debtors.

14. Controlling Parties

The directors consider Orange Aero Holdings Limited to be the controlling party, by virtue of the fact that the Company owns all of the ordinary issued share capital in Orange Aero Limited.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		753,934		699,633

			753,934		699,633
CURRENT ASSETS
Stocks	5	2,383,938		2,617,055
Debtors	6	2,324,487		2,545,677
Cash at bank and in hand		2,150,926		1,624,703

		6,859,351		6,787,435
Creditors: Amounts Falling Due Within One Year	7	(715,200 )		(716,231 )

NET CURRENT ASSETS (LIABILITIES)			6,144,151		6,071,204

TOTAL ASSETS LESS CURRENT LIABILITIES			6,898,085		6,770,837

Creditors: Amounts Falling Due After More Than One Year	8		(175,000 )		(475,000 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(49,074 )		-

NET ASSETS			6,674,011		6,295,837

CAPITAL AND RESERVES
Called up share capital	10		910		910
Profit and Loss Account			6,673,101		6,294,927

SHAREHOLDERS' FUNDS			6,674,011		6,295,837