REGISTERED NUMBER: 04794306 (England and Wales)

Financial Statements for the Year Ended 31 August 2025

for

HSM Aero Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

D F Hammond

SECRETARY:

D F Hammond

REGISTERED OFFICE:

Aerospace Logistics Centre

Unit 2B

Dunhams Lane

Letchworth Garden City

Hertfordshire

SG6 1BE

REGISTERED NUMBER:

04794306 (England and Wales)

AUDITORS:

Godfrey Laws Audit Limited

65 Knowl Piece

Wilbury Way

Hitchin

Hertfordshire

SG4 0TY

FIXED ASSETS

Tangible assets

4

690,333

881,213

CURRENT ASSETS

Stocks

489,447

1,247,246

Debtors

5

1,414,259

1,661,819

Cash at bank

9,168

96,263

1,912,874

3,005,328

CREDITORS

Amounts falling due within one year

6

1,878,782

2,204,922

NET CURRENT ASSETS

34,092

800,406

TOTAL ASSETS LESS CURRENT LIABILITIES

724,425

1,681,619

CREDITORS

Amounts falling due after more than one year

7

-

(200,263

)

PROVISIONS FOR LIABILITIES

(134,824

)

(169,397

)

NET ASSETS

589,601

1,311,959

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

589,501

1,311,859

SHAREHOLDERS' FUNDS

589,601

1,311,959

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

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

The financial statements were approved by the director and authorised for issue on 26 May 2026 and were signed by:

D F Hammond - Director

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Following a decision by the directors to cease trading after the year end, the financial statements have been prepared on a realisation basis rather than the going concern basis. Under this basis, assets are stated at their estimated realisable values and liabilities are stated at the amounts expected to be settled.

Turnover

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

Turnover consists of precision engineering and manufacture of mechanical equipment.

Tangible fixed assets

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

Improvements to property

15% on reducing balance

Plant and machinery

25% on reducing balance

Fixtures and fittings

15% on reducing balance

Motor vehicles

20% on cost

Office equipment

15% on reducing balance

Due to the decision to cease trading after the year the fixed assets have been reviewed for impairment. No indicators of impairment were identified requiring adjustments and therefore no impairment loss has been recognised.

Stocks

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

As a result of the cessation of operations after the year end , all remaining inventory held at the reporting date was subsequently assessed. Accordingly, a write-off of stock totalling £927, 373 has been recognised.

Taxation

Taxation for the year comprises of current 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 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 at the reporting date.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted at the reporting date and that are expected to apply when the related deferred tax assets are realised or deferred tax liabilities are settled. Deferred tax balances are not discounted.

Research and development

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

Hire purchase and leasing commitments

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

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

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Discounted debts

At 31st August 2025 trade debtors totalling £1,266,733 (2024 - £1,341,382) had been discounted and an amount of £477,095 (2024 - £944,661) had been advanced to the company under this financing agreement. The financial statements reflect a separate presentation i.e. gross discounted debts are included within assets and proceeds received from factors are included within liabilities. The factor's charges are accrued as arising and included within the profit and loss account.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2024 - 51 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Office

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 September 2024

228,650

2,618,587

282,584

91,304

3,221,125

Additions

-

27,863

-

1,760

29,623

Disposals

-

(24,824

)

-

-

(24,824

)

At 31 August 2025

228,650

2,621,626

282,584

93,064

3,225,924

DEPRECIATION

At 1 September 2024

156,405

1,964,010

179,273

40,224

2,339,912

Charge for year

10,802

167,164

15,430

7,871

201,267

Eliminated on disposal

-

(5,588

)

-

-

(5,588

)

At 31 August 2025

167,207

2,125,586

194,703

48,095

2,535,591

NET BOOK VALUE

At 31 August 2025

61,443

496,040

87,881

44,969

690,333

At 31 August 2024

72,245

654,577

103,311

51,080

881,213

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

At 1 September 2024

308,311

Transfer to ownership

(117,490

)

At 31 August 2025

190,821

DEPRECIATION

At 1 September 2024

65,560

Charge for year

60,688

Transfer to ownership

(40,527

)

At 31 August 2025

85,721

NET BOOK VALUE

At 31 August 2025

105,100

At 31 August 2024

242,751

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.25

31.8.24

£

£

Trade debtors

1,266,733

1,341,382

Amounts owed by group undertakings

-

164,166

Other debtors

147,526

156,271

1,414,259

1,661,819

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.25

31.8.24

£

£

Hire purchase contracts (see note 8)

118,496

63,906

Trade creditors

212,694

956,366

Taxation and social security

264,466

132,020

Other creditors

1,283,126

1,052,630

1,878,782

2,204,922

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.25

31.8.24

£

£

Hire purchase contracts (see note 8)

-

200,263

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

31.8.25

31.8.24

£

£

Net obligations repayable:

Within one year

118,496

63,906

Between one and five years

-

200,263

118,496

264,169

Non-cancellable

operating leases

31.8.25

31.8.24

£

£

Within one year

77,669

204,889

Between one and five years

-

77,668

77,669

282,557

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.8.25

31.8.24

£

£

Hire purchase contracts

118,496

264,169

Discounted debts

477,095

944,661

595,591

1,208,830

Securities include:

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

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

Fixed and floating charge created in favour of Aldermore Bank PLC to cover all property or undertaking of the company. After the year end the security was discharged.

The company has a cross guarantee with it's fellow group companies:

Cabinair Services Ltd

SATTO Solutions Ltd

Specialist Aviation Holding Ltd

Specialist Aviation Ltd

Specialist Aviation Properties Ltd

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

The Report of the Auditors was unqualified.

Howard Ashmore FCA (Senior Statutory Auditor)

for and on behalf of Godfrey Laws Audit Limited

11.	PROVISIONS

A provision has been recognised for redundancy costs in respect of employees whose roles became redundant following the decision to cease trading. The provision represents the directors’ best estimate of the Company’s statutory and contractual obligations at the reporting date.

12.	RELATED PARTY DISCLOSURES

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

31.8.25

31.8.24

£

£

SATTO Solutions Limited

-

63,144

Cabinair Services Limited

-

55,765

Specialist Aviation Holdings Limited

-

45,257

The ultimate controlling party is D F Hammond.

13.	ULTIMATE PARENT COMPANY

During the year, the ultimate parent company and controlling party was Specialist Aviation Holdings Limited.

Subsequent to the year end, the ultimate parent company was changed to DH Holdings Limited.

The registered office of the ultimate parent company is:

Aerospace Logistics Centre

Fifth Avenue

Letchworth Garden City

Herts

SG6 2TS

The ultimate parent company is incorporated in England and Wales.