MEL Aviation Components Limited - Limited company accounts 20.1

REGISTERED NUMBER: 08488525 (England and Wales)

STRATEGIC REPORT, DIRECTOR'S REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

FOR

MEL AVIATION COMPONENTS LIMITED

Page

Company Information

1

Strategic Report

2

Director's Report

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTOR:

Mr N G Harvey

SECRETARY:

Mr R W B Argent

REGISTERED OFFICE:

Unit 2 Centron

Crompton Way

Crawley

West Sussex

RH10 9QR

REGISTERED NUMBER:

08488525 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Paul Dell FCA

AUDITORS:

Raffingers LLP, Statutory Auditor

Chartered Certified Accountants

19-20 Bourne Court

Southend Road

Woodford Green

Essex

IG8 8HD

The director presents his strategic report for the year ended 31 October 2021.

REVIEW OF BUSINESS

The company's turnover dropped slightly from £7.46m to £7.43m. Gross margin dropped significantly from 26.3% to 6.2% due to decreased demand and increased availability of rotable components available to our customers due to the pandemic. Towards the end of the year saw a return to normality but not enough to cover the severe drop in requirements of aircraft rotables at the height of the pandemic. We believe margins and trade will return to pre-covid levels during financial year 2022.

The state of affairs at the balance sheet date is considered to be satisfactory with net assets of £3.01m (2020: £3.77m).

The key financial performance indicators for the company are as follows:-

2021

2020

Measure

Gross Profit Margin

6.2%

26.3%

Gross Profit/Turnover

Debtors days

69 days

60 days

Trade Debtors/Turnover

Creditor days

50 days

32 days

Trade Creditors / Cost of Sales

Please note for both the debtor and creditor days, the related parties' balances have been excluded.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting the business include:-

- Regulatory - the company operates in a highly regulated area. It maintains extremely high standards of quality control over its products and services.

- Retention of customers - the company maintains strong relationships with each of its key customers and has established procedures for monitoring performance and service levels.

- Competitive risk - the company's reliance on any single customer has reduced over the past few years as part of its strategy to mitigate its risk in this area.

- Market conditions - the company's ability to adapt quickly to changes in the marketplace, mitigates the risk of this area.

- Exchange rate risk - the company trades in dollars and maintains its banking and financing in dollar denominated accounts where possible to mitigate any exchange rate risk. There are translation differences at each year end but these are accounting adjustments for statutory reporting purposes.

- Coronavirus risk - this obviously had a significant detrimental effect on the worldwide aviation sector. As travel recovers from the pandemic restrictions, the risk has reduced considerably and business levels are expected to return to pre pandemic levels in the latter part of the 2022-23 Financial Year.

The director believes that the company has adequate financial resources in place to meet its forecast trading requirements and all risks and uncertainties are managed appropriately.

FUTURE DEVELOPMENTS

The company will continue to expand its product range whilst concentrating on products and services that deliver higher margins.

The director is confident of delivering sustainable future growth in its sector.

FINANCIAL INSTRUMENTS

The company has banking facilities in place with Clydesdale Bank and operates within its facility limits.

The company has not entered into any hedging arrangements as the director perceives the exchange rate risk to the business to be low. Although the reporting currency is sterling, the operational currency is predominantly the US dollar. There are accounting adjustments in the accounts in relation to the translation of currency balances at the period end.

ON BEHALF OF THE BOARD:

Mr N G Harvey - Director

29 July 2022

The director presents his report with the financial statements of the company for the year ended 31 October 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of supplying components and equipment to the aviation sector.

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2021.

DIRECTOR

Mr N G Harvey held office during the whole of the period from 1 November 2020 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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.

ON BEHALF OF THE BOARD:

Mr N G Harvey - Director

29 July 2022

Opinion

We have audited the financial statements of MEL Aviation Components Limited (the 'company') for the year ended 31 October 2021 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 31 October 2021 and of its loss 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

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Director's Report, 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 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.

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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Director's Report 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 Director's Report.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected transactions;

- tested the appropriateness of journal entries;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Mr Paul Dell FCA (Senior Statutory Auditor)

for and on behalf of Raffingers LLP, Statutory Auditor

Chartered Certified Accountants

19-20 Bourne Court

Southend Road

Woodford Green

Essex

IG8 8HD

29 July 2022

TURNOVER

4

7,429,121

7,457,776

Cost of sales

(6,971,518

)

(5,499,525

)

GROSS PROFIT

457,603

1,958,251

Administrative expenses

(1,371,834

)

(1,491,748

)

(914,231

)

466,503

Other operating income

26,456

52,477

OPERATING (LOSS)/PROFIT

6

(887,775

)

518,980

Interest receivable and similar income

8

1

11

(887,774

)

518,991

Interest payable and similar expenses

9

(52,907

)

(77,914

)

(LOSS)/PROFIT BEFORE TAXATION

(940,681

)

441,077

Tax on (loss)/profit

10

178,459

(82,046

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(762,222

)

359,031

(LOSS)/PROFIT FOR THE YEAR

(762,222

)

359,031

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(762,222

)

359,031

FIXED ASSETS

Tangible assets

11

131,449

176,593

CURRENT ASSETS

Stocks

12

6,439,929

8,013,724

Debtors

13

3,130,400

1,825,480

Cash at bank

66,196

102,342

9,636,525

9,941,546

CREDITORS

Amounts falling due within one year

14

6,700,943

6,291,582

NET CURRENT ASSETS

2,935,582

3,649,964

TOTAL ASSETS LESS CURRENT LIABILITIES

3,067,031

3,826,557

CREDITORS

Amounts falling due after more than one year

15

(35,833

)

(25,147

)

PROVISIONS FOR LIABILITIES

19

(22,304

)

(30,294

)

NET ASSETS

3,008,894

3,771,116

CAPITAL AND RESERVES

Called up share capital

20

200

200

Retained earnings

21

3,008,694

3,770,916

SHAREHOLDERS' FUNDS

3,008,894

3,771,116

The financial statements were approved by the director and authorised for issue on 29 July 2022 and were signed by:

Mr N G Harvey - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2019

200

3,411,885

3,412,085

Changes in equity

Total comprehensive income

-

359,031

359,031

Balance at 31 October 2020

200

3,770,916

3,771,116

Changes in equity

Total comprehensive income

-

(762,222

)

(762,222

)

Balance at 31 October 2021

200

3,008,694

3,008,894

Cash flows from operating activities

Cash generated from operations

1

1,621,723

71,198

Interest paid

(52,907

)

(77,914

)

Tax paid

(90,247

)

(1,516

)

Net cash from operating activities

1,478,569

(8,232

)

Cash flows from investing activities

Purchase of tangible fixed assets

-

(12,553

)

Interest received

1

11

Net cash from investing activities

1

(12,542

)

Cash flows from financing activities

Loan repayments in year

-

(112,257

)

Bank loans repayment in year

(475,348

)

-

Loan to parent company

(976,723

)

-

Hire purchase repayments

(37,645

)

(37,645

)

Amount introduced by directors

-

75,000

Amount withdrawn by directors

(25,000

)

-

Net cash from financing activities

(1,514,716

)

(74,902

)

Decrease in cash and cash equivalents

(36,146

)

(95,676

)

Cash and cash equivalents at beginning of year

2

102,342

198,018

Cash and cash equivalents at end of year

2

66,196

102,342

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

£

(Loss)/profit before taxation

(940,681

)

441,077

Depreciation charges

45,144

44,831

Finance costs

52,907

77,914

Finance income

(1

)

(11

)

(842,631

)

563,811

Decrease/(increase) in stocks

1,573,795

(537,538

)

(Increase)/decrease in trade and other debtors

(157,728

)

228,577

Increase/(decrease) in trade and other creditors

1,048,287

(183,652

)

Cash generated from operations

1,621,723

71,198

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 31 October 2021

31.10.21

1.11.20

£

£

Cash and cash equivalents

66,196

102,342

Year ended 31 October 2020

31.10.20

1.11.19

£

£

Cash and cash equivalents

102,342

198,018

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.20

Cash flow

At 31.10.21

£

£

£

Net cash

Cash at bank

102,342

(36,146

)

66,196

102,342

(36,146

)

66,196

Debt

Finance leases

(62,792

)

37,645

(25,147

)

Debts falling due within 1 year

(1,638,725

)

511,181

(1,127,544

)

Debts falling due after 1 year

-

(35,833

)

(35,833

)

(1,701,517

)

512,993

(1,188,524

)

Total

(1,599,175

)

476,847

(1,122,328

)

1.	STATUTORY INFORMATION

MEL Aviation Components 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The preparation of financial statements in compliance with FRS 102 which, requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

Going concern

The director has also considered the effects of Covid-19 on its operations for the foreseeable future. After making appropriate enquiries and assessing the support available, the director has formed a judgement that the entity will have sufficient resources available to neutralise the effect of the pandemic.

Turnover

Turnover represents the invoiced value of goods and services supplied to external customers, excluding value added tax.

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.

Short leasehold

-

Straight line over 10 years

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

20% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. The company assesses at each reporting date whether tangible fixed assets are fully impaired.

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Financial instruments

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company's obligations are discharged, expire or cancelled.

The company holds the following financial instruments, all of which meet the conditions to be classified as basic instruments:

- Cash, short term trade debtors and creditors

Such instruments are initially measured at transaction price, transaction costs, and are subsequently carried at the undiscounted amount of cash or other consideration expected to be paid or received, after taking account of impairment adjustment.

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.

Foreign currencies

The financial statements are presented in sterling. The company's functional currency is the dollar. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All resulting translation differences are taken to the profit and loss account as exceptional items if material.

Pension costs and other post-retirement benefits

The company operates a fully insured defined contribution pension scheme for certain members of staff and the pension charge represents the amounts paid by the company to the fund during the year. These contributions are invested separately from the company's assets.

Hire purchase and leasing commitments

Assets that are held by the company under leases which transfer to the company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the company's policy on borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight­ line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these judgements and estimates have been made include:

• assessing the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge, and

• the provision required for any bad or doubtful debts, and

• the provision required for closing stock.

4.

TURNOVER

An analysis of turnover by class of business is given below:

2021

2020

£

£

Outright sales

4,992,947

4,916,079

Repairs

1,948,353

1,835,057

Exchange

487,821

706,640

7,429,121

7,457,776

An analysis of turnover by geographical market is given below:

2021

2020

£

£

United Kingdom

1,642,980

1,052,134

USA

1,356,864

2,225,157

European Union

2,812,193

1,810,849

Rest of the World

1,617,084

2,369,636

7,429,121

7,457,776

5.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

381,478

617,229

Social security costs

42,692

78,656

Other pension costs

14,585

14,042

438,755

709,927

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

2021

2020

Administration and management

4

6

Operations

2

3

Sales

4

5

10

14

2021

2020

£

£

Directors' remuneration

-

90,000

Directors' pension contributions to money purchase schemes

-

2,952

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

-

1

6.	OPERATING (LOSS)/PROFIT

The operating loss (2020 - operating profit) is stated after charging/(crediting):

2021

2020

£

£

Hire of plant and machinery

6,780

6,611

Other operating leases

304,115

303,106

Depreciation - owned assets

16,861

16,547

Depreciation - assets on hire purchase contracts

28,283

28,284

Auditors' remuneration

21,000

20,500

Auditors remuneration - non audit services

-

2,345

Government grants

-

(30,314

)

During the year, the company received £Nil (2020 - £30,314) in government grants from the Coronavirus Job Retention Scheme (CJRS) due to the pandemic.

7.	EXCEPTIONAL ITEMS

2021

2020

£

£

MEL loan written off

(64,683

)

-

The exceptional item relates to the loan written off for MEL Aviation Ltd, a company under common control.