Swift Aerospace Services Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02724904 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2019

for

Swift Aerospace Services Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

Reconciliation of Equity

20

Reconciliation of Profit

22

DIRECTORS:

R Gerber

B C Stephens

SECRETARY:

R Gerber

REGISTERED OFFICE:

Unit B

City Park

Watchmead

Welwyn Garden City

Hertfordshire

AL7 1LT

REGISTERED NUMBER:

02724904 (England and Wales)

SENIOR STATUTORY AUDITOR:

D H Malyon

AUDITORS:

Pawley & Malyon

14 Austin Friars

London

EC2N 2HE

The directors present their strategic report for the year ended 30 June 2019.

The principal activity of the company continued to be that of selling aircraft parts. The two key

strategies for success are to exceed customer expectations with service and delivery, and to

ensure a comprehensive range of items are made available to customers, each with the necessary

strict certification requirements of the aerospace industry.

REVIEW OF BUSINESS

The 1% increase in sales during the current year and previous financial years, provides just reward

for the success in both strategic areas. In addition, there is a higher proportion of work gained on

long term contracts, enabling a more stable and predictable future cash generation, albeit at

smaller margins. The order book remains robust.

Stock increase slowed to 3% during the year as the business becomes more capable of servicing

long term agreements from the existing stock base.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk to the company is a downturn in the global aerospace industry. The main drivers

for the current high growth levels remain the emerging markets and the rate of increase very much

depends on the global economy. To mitigate this, the company is growing its market share within

the MRO markets. During a downturn, airlines may delay the replacement of older aircraft,

increasing spend in the MRO.

To mitigate concentration in particular markets, the sales and marketing team continues to be

expanded into new geographic areas.

In addition, where possible, the company continues to sign new long term agreements to provide a

stable basis for sales and stock turnover.

KEY PERFORMANCE INDICATORS

The main performance indicators are turnover at £10.3m (12 months to June 2018 £10.2m) and

Gross Profit at £2.6m (12 months to June 2018 £2.7m).

ON BEHALF OF THE BOARD:

R Gerber - Director

25 February 2020

The directors present their report with the financial statements of the company for the year ended 30 June 2019.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2018 to the

date of this report.

R Gerber

B C Stephens

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and

the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under

that law the directors have elected to prepare the financial statements in accordance with United

Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and

applicable law). Under company law the directors must not approve the financial statements unless

they are satisfied that they give a true and fair view of the state of affairs of the company and of

the profit or loss of the company for that period. In preparing these financial statements, the

directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show

and explain the company's transactions and disclose with reasonable accuracy at any time the

financial position of the company and enable them to ensure that the financial statements comply

with the Companies Act 2006. They are also responsible for safeguarding the assets of the

company and hence for taking reasonable steps for the prevention and detection of fraud and

other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418

of the Companies Act 2006) of which the company's auditors are unaware, and each director has

taken all the steps that he ought to have taken as a director in order to make himself aware of any

relevant audit information and to establish that the company's auditors are aware of that

information.

AUDITORS

The auditors, Pawley & Malyon, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

R Gerber - Director

25 February 2020

Opinion

We have audited the financial statements of Swift Aerospace Services Limited (the 'company') for

the year ended 30 June 2019 which comprise the Income Statement, Other Comprehensive

Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the

Cash Flow Statement, Notes to the Financial Statements, including a summary of significant

accounting policies. The financial reporting framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard

102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United

Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 June 2019 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))

and applicable law. Our responsibilities under those standards are further described in the

Auditors' responsibilities for the audit of the financial statements section of our report. We are

independent of the company in accordance with the ethical requirements that are relevant to our

audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe that

the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK)

require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the

information in the Strategic Report and the Report of the Directors, but does not include the

financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the

extent otherwise explicitly stated in our report, we do not express any form of assurance

conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the audit or otherwise appears to be

materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the

financial statements or a material misstatement of the other information. If, based on the work we

have performed, we conclude that there is a material misstatement of this other information, we

are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Strategic Report or

the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006

requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the

directors are responsible for the preparation of the financial statements and for being satisfied that

they give a true and fair view, and for such internal control as the directors determine necessary to

enable the preparation of financial statements that are free from material misstatement, whether

due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless the directors either intend to liquidate the

company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue a Report of

the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is

not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description

forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of

Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to

the company's members those matters we are required to state to them in a Report of the Auditors

and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the company and the company's members as a body, for our

audit work, for this report, or for the opinions we have formed.

D H Malyon (Senior Statutory Auditor)

for and on behalf of Pawley & Malyon

14 Austin Friars

London

EC2N 2HE

24 March 2020

TURNOVER

3

10,330,489

10,243,504

Cost of sales

7,666,322

7,531,285

GROSS PROFIT

2,664,167

2,712,219

Administrative expenses

2,152,625

2,301,564

OPERATING PROFIT

5

511,542

410,655

Interest payable and similar expenses

6

95,980

53,319

PROFIT BEFORE TAXATION

415,562

357,336

Tax on profit

7

79,710

(2,489

)

PROFIT FOR THE FINANCIAL YEAR

335,852

359,825

PROFIT FOR THE YEAR

335,852

359,825

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

335,852

359,825

FIXED ASSETS

Tangible assets

8

8,435

11,776

Investments

9

28,260

28,260

36,695

40,036

CURRENT ASSETS

Stocks

10

4,767,760

4,605,181

Debtors

11

3,521,266

2,507,512

Cash at bank and in hand

185,012

582,425

8,474,038

7,695,118

CREDITORS

Amounts falling due within one year

12

4,490,358

4,050,631

NET CURRENT ASSETS

3,983,680

3,644,487

TOTAL ASSETS LESS CURRENT LIABILITIES

4,020,375

3,684,523

CAPITAL AND RESERVES

Called up share capital

14

10,000

10,000

Retained earnings

15

4,010,375

3,674,523

SHAREHOLDERS' FUNDS

4,020,375

3,684,523

The financial statements were approved by the Board of Directors on 25 February 2020 and were signed on its behalf by:

R Gerber - Director

B C Stephens - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2017

10,000

3,314,698

3,324,698

Changes in equity

Total comprehensive income

-

359,825

359,825

Balance at 30 June 2018

10,000

3,674,523

3,684,523

Changes in equity

Total comprehensive income

-

335,852

335,852

Balance at 30 June 2019

10,000

4,010,375

4,020,375

Cash flows from operating activities

Cash generated from operations

1

(688,221

)

682,648

Interest paid

(95,980

)

(53,319

)

Finance costs paid

(102,163

)

109,266

Tax paid

(70,621

)

(168,603

)

Net cash from operating activities

(956,985

)

569,992

Cash flows from investing activities

Purchase of tangible fixed assets

(6,400

)

-

Purchase of fixed asset investments

-

(9,259

)

Net cash from investing activities

(6,400

)

(9,259

)

Cash flows from financing activities

Amount withdrawn by directors

-

(14,182

)

Net cash from financing activities

-

(14,182

)

(Decrease)/increase in cash and cash equivalents

(963,385

)

546,551

Cash and cash equivalents at beginning of year

2

(215,158

)

(761,711

)

Cash and cash equivalents at end of year

2

(1,178,543

)

(215,158

)

1.	Reconciliation of profit before taxation to cash generated from operations

30/6/19

30/6/18

£

£

Profit before taxation

415,562

357,336

Depreciation charges

9,740

11,239

Finance costs

95,980

53,319

521,282

421,894

(Increase)/decrease in stocks

(162,579

)

471,384

(Increase)/decrease in trade and other debtors

(1,013,753

)

231,823

Decrease in trade and other creditors

(33,171

)

(442,453

)

Cash generated from operations

(688,221

)

682,648

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents

are in respect of these Balance Sheet amounts:

Year ended 30 June 2019

30/6/19

1/7/18

£

£

Cash and cash equivalents

185,012

582,425

Bank overdrafts

(1,363,555

)

(797,583

)

(1,178,543

)

(215,158

)

Year ended 30 June 2018

30/6/18

1/7/17

£

£

Cash and cash equivalents

582,425

213,982

Bank overdrafts

(797,583

)

(975,693

)

(215,158

)

(761,711

)

1.	Statutory information

Swift Aerospace Services 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

on cost over the term of the lease

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Computer equipment

-

25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income

Statement, except to the extent that it relates to items recognised in other comprehensive

income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that

have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not

reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in

periods different from those in which they are recognised in financial statements. Deferred

tax is measured using tax rates and laws that have been enacted or substantively enacted

by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it

is probable that they will be recovered against the reversal of deferred tax liabilities or other

future taxable profits.

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.

3.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the

company.

An analysis of turnover by geographical market is given below:

30/6/19

30/6/18

£

£

United Kingdom

3,779,855

3,659,145

Rest of the World

6,550,634

6,584,359

10,330,489

10,243,504

4.	Employees and directors

30/6/19

30/6/18

£

£

Wages and salaries

1,300,661

1,319,261

Social security costs

126,505

124,110

Other pension costs

36,075

38,810

1,463,241

1,482,181

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

30/6/19

30/6/18

Staff

38

35

30/6/19

30/6/18

£

£

Directors' remuneration

112,723

111,232

Directors' pension contributions to money purchase schemes

6,485

6,773

5.	Operating profit

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

30/6/19

30/6/18

£

£

Depreciation - owned assets

9,741

11,240

Auditing of accounts

9,235

17,527

Foreign exchange differences

(19,602

)

(17,996

)

6.

Interest payable and similar expenses

30/6/19

30/6/18

£

£

Bank interest

39,755

37,201

Other interest

56,225

16,118

95,980

53,319

7.

Taxation

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

30/6/19

30/6/18

£

£

Current tax:

UK corporation tax

79,710

(9,322

)

Foreign taxes

-

6,833

Tax on profit

79,710

(2,489

)

8.	Tangible fixed assets

Fixtures

Long

Plant and

and

Computer

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

Cost

At 1 July 2018

274,130

7,500

56,531

76,217

414,378

Additions

-

-

6,400

-

6,400

At 30 June 2019

274,130

7,500

62,931

76,217

420,778

Depreciation

At 1 July 2018

274,130

4,531

54,322

69,619

402,602

Charge for year

-

1,875

2,729

5,137

9,741

At 30 June 2019

274,130

6,406

57,051

74,756

412,343

Net book value

At 30 June 2019

-

1,094

5,880

1,461

8,435

At 30 June 2018

-

2,969

2,209

6,598

11,776

9.	Fixed asset investments

Shares in

group

undertakings

£

Cost

At 1 July 2018

and 30 June 2019

28,260

Net book value

At 30 June 2019

28,260

At 30 June 2018

28,260

10.

Stocks

30/6/19

30/6/18

£

£

Stocks

4,767,760

4,605,181

The replacement cost of raw materials and consumables as at 30 June 2019 is estimated at

£8,700,000 (30 June 2018 : £7,800,000).