ACCOUNTS - Final Accounts

Hire purchase and finance leases

Minimum lease payments under hire purchase fall due as follows:

As restated 2024

Registered number: 04462335

AEI SYSTEMS LIMITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2025

AEI SYSTEMS LIMITED

REGISTERED NUMBER: 04462335

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2025

		2025		As restated 2024
Note	£	£	£	£

Fixed assets
Intangible assets	4		103,450		20,602
Tangible assets	5		886,791		1,166,868
			990,241		1,187,470
Current assets
Stocks	6	5,536,020		4,789,110
Debtors: amounts falling due within one year	7	937,611		2,160,823
Cash at bank and in hand	8	93,762		460,571
		6,567,393		7,410,504
Creditors: amounts falling due within one year	9	(7,155,315)		(7,353,366)
Net current (liabilities)/assets			(587,922)		57,138
Total assets less current liabilities			402,319		1,244,608
Creditors: amounts falling due after more than one year	10		(152,486)		(419,134)
Provisions for liabilities
Other provisions	13		(100,000)		(100,000)
Net assets			149,833		725,474

Capital and reserves
Called up share capital	14	731,738	731,738
Profit and loss account		(581,905)	(6,264)
		149,833	725,474

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AEI SYSTEMS LIMITED

REGISTERED NUMBER: 04462335

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2025

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the Statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 July 2026.

S N T Angel

Director

The notes on pages 3 to 13 form part of these financial statements.

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

AEI Systems Limited is a company limited by shares, incorporated in England and Wales. The address of the registered office is Unit 3 Brook Business Centre, Cowley Mill Road, Cowley, Uxbridge, UB8 2FX.
The company specialises in design, development, manufacture and supply of small to medium calibre gun systems and solutions plus military aircraft support.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 requirements and the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

2.2

Going concern

The directors have assessed the Statement of financial position and likely future cash flows at the date of approving these financial statements. The directors note that the business has net assets of £149,833 (2024 - £725,474). The company is supported through loans from a parent company. The directors have received assurances that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the parent company will continue to support the company. After making enquiries and considering the cash flow forecast, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Foreign currency translation

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 year 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 year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'other operating income'.

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Sale of goods

Revenue 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 revenue 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.

Revenue from sale of goods is recognised on despatch of goods to the customer.

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight-line basis over the lease term.

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.6

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

2.7

Finance costs

Finance costs are charged to the Statement of comprehensive income 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.

2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.10

Tangible fixed assets

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.

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.

Depreciation is provided on the following basis:

Leasehold improvements	-	5 years straight line
Plant and machinery	-	3 - 5 years straight line
Motor vehicles	-	5 years straight line
Fixtures and fittings	-	5 years straight line

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 Statement of comprehensive income.

2.11

Stocks

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 reporting 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 Statement of comprehensive income.

2.12

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.

2.13

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.

2.14

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.

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to the Statement of comprehensive income.

Employees

The average monthly number of employees, including directors, during the year was 23 (2024 - 20).

4.	Intangible assets

		Trademarks, Patents and licences
		£
	Cost
	At 1 January 2025	23,707
	Additions	122,636
	At 31 December 2025	146,343
	Amortisation
	At 1 January 2025	3,105
	Charge for the year	39,788
	At 31 December 2025	42,893
	Net book value
	At 31 December 2025	103,450
	At 31 December 2024	20,602

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		AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

Tangible fixed assets

	Leasehold improvements	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost
At 1 January 2025	340,074	3,446,229	69,276	89,332	3,944,911
Additions	-	268,884	-	-	268,884
Disposals	-	(128,092)	-	-	(128,092)
At 31 December 2025	340,074	3,587,021	69,276	89,332	4,085,703
Depreciation
At 1 January 2025	312,547	2,309,891	67,807	87,798	2,778,043
Charge for the year	3,146	537,340	1,469	530	542,485
Disposals	-	(121,616)	-	-	(121,616)
At 31 December 2025	315,693	2,725,615	69,276	88,328	3,198,912
Net book value
At 31 December 2025	24,381	861,406	-	1,004	886,791
At 31 December 2024	27,527	1,136,338	1,469	1,534	1,166,868

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

5.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£


Plant and machinery	492,167	814,833
	492,167	814,833

6.	Stocks
		2025	2024
		£	£

Work in progress	1,092,728	1,092,243
Finished goods	4,443,292	3,696,867
	5,536,020	4,789,110

Debtors

					2025	2024
					£	£


Trade debtors	43,095	1,363,822
Other debtors	50,810	42,833
Prepayments and accrued income	448,058	446,354
Deferred taxation	395,648	307,814
	937,611	2,160,823

8.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	93,762	460,571
	93,762	460,571

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

9.	Creditors: Amounts falling due within one year
		2025	As restated 2024
		£	£

Trade creditors	186,929	516,971
Amounts owed to group undertakings	6,358,888	6,207,607
Other taxation and social security	38,880	32,016
Obligations under finance lease and hire purchase contracts	266,648	240,539
Other creditors	265,000	243,000
Accruals and deferred income	38,970	113,233
	7,155,315	7,353,366

10.	Creditors: Amounts falling due after more than one year
		2025	As restated 2024
		£	£

Obligations under finance leases and hire purchase contracts	152,486	419,134
	152,486	419,134

Within one year	266,648	240,538
Between 1-5 years	152,486	419,134
	419,134	659,672

Obligations under hire purchase contracts are secured over the assets to which they relate.

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.	Deferred taxation

		2025
		£

	Asset at beginning of year	307,814
	Credited to the Statement of comprehensive income	87,834
	Asset at end of year	395,648

The deferred tax asset is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances	(268,173)	(290,276)
Tax losses carried forward	663,821	598,090
	395,648	307,814

13.	Provisions

		Other provision
		£

	At 1 January 2025	100,000
	At 31 December 2025	100,000

The other provision above is in relation to potential dilapidation provisions for the company's property at the end of the respective lease. This provision is expected to be utilised when the works are carried out.

14.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

731,738 Ordinary shares of £1 each	731,738	731,738

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

15.	Prior year adjustment

The financial statements have been restated to reclassify the split of obligations under finance leases and hire purchase contracts between creditor amounts falling within one year and amounts falling due after more than one year. There has been no impact on profits or net assets as a result of this restatement.

16.	Pension commitments

The Company operates a defined contributions 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 £75,625 (2024 - £70,713).

Not later than 1 year	231,672	231,672
Later than 1 year and not later than 5 years	926,688	926,688
Later than 5 years	654,394	886,066
	1,812,754	2,044,426

18.	Transactions with directors

Included within other debtors is an amount of £814 (2024 - £711) due from a director. No interest is charged on this loan.

19.

Related party transactions

The company has taken advantage of the exemption permitted by FRS 102 not to disclose any transactions with its parent company on the basis that they are wholly owned.

At the year end, the company owed £3,399,391 (2024 - £3,248,110) to Samsun Yurt Savunma Sanayi AS, the ultimate parent undertaking.

During the year, the company made sales of £2,118,481 (2024 - £463,578) to Samsun Yurt Savunma Sanayi AS, the ultimate parent undertaking.
Included within other debtors is an amount of £33 (2024 - £Nil) due from a close family member of a director. No interest is charged on this loan.

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AEI SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

20.	Ultimate parent undertaking and controlling party

The immediate parent undertaking is AEI AIR (Holdings) Limited, a company incorporated in England and Wales.
The ultimate parent undertaking is Samsun Yurt Savunma Sanayi AS, a company incorporated in Turkey. This is the smallest and largest company in which the results of this company are consolidated. Consolidated accounts can be obtained from the registered office of the ultimate parent undertaking, Sabanoglu OSB Mahallesi Ulubatli Caddesi No:2B/B 55330 Tekkekoy - Samsun /Türkiye.
The ultimate controlling party is H Z Aral.

21.	Auditors' information

The auditors' report on the financial statements for the year ended 31 December 2025 was unqualified.

The audit report was signed on 2 July 2026 by Elliot S J Arwas (Senior statutory auditor) on behalf of Barnes Roffe Audit Limited.

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