ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

MI AVIATION HOLDINGS LIMITED - Company Information

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Registered number: 12749537

MI AVIATION HOLDINGS LIMITED

CONSOLIDATED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

MI AVIATION HOLDINGS LIMITED

COMPANY INFORMATION

Directors	I R Burgess (appointed 17 July 2020)
	M G Kearns (appointed 17 July 2020)


Registered number	12749537


Registered office	Aviation House
	Bearwaldens Business Park
	Wendens Ambo
	Saffton Walden
	CB11 4JX


Independent auditors	Haslers
	Chartered Accountants & Statutory Auditor
	Old Station Road
	Loughton
	Essex
	IG10 4PL

MI AVIATION HOLDINGS LIMITED

CONTENTS

	Page
Group Strategic Report	1
Directors' Report	2
Directors' Responsibilities Statement	3
Independent Auditors' Report	4 - 7
Consolidated Statement of Comprehensive Income	8
Consolidated Balance Sheet	9 - 10
Company Balance Sheet	11
Consolidated Statement of Changes in Equity	12
Company Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14 - 15
Consolidated Analysis of Net Debt	16
Notes to the Financial Statements	17 - 34

MI AVIATION HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE PERIOD ENDED 30 APRIL 2021

Introduction

The principal activity of the Group in the year under review was that of repair and maintenance of aircraft components.

Business review

The group has had a successful year despite the level of turnover and gross profit decreasing but this is in line with expectations.
The group has remained a medium sized group for financial reporting purposes due to its growth in recent years.

Principal risks and uncertainties

The risks managed by the company are market and price related, these risks are managed through the extensive experience of the Directors and senior managers. This is supported by job having a detailed repair quotation presented to the customer before proceeding, this quotation details all the work required person-hours for the task along with a price list for all the required spare parts. No work commences until we have received the customer signed copy of the quotation, this limits our risk for losses on component repairs.
The other main risk within the group is that of Foreign Currency, and this is managed by maintaining foreign currency bank accounts. The group regularly monitors the currencies we deal in and along with the advice from the financial exchange companies we use, sometimes we hedge fund if we feel any uncertainties in currency fluctuation minimising the risk to the group.

Financial key performance indicators

The Directors monitor the Groups performance on a monthly basis and believe the following measures to be the Key Financial Indicators:
2021 2020
Sales £11.2m £17.1m
Gross Profit Margin 34.5% 47.1%
Return on Capital Employed 13.3% 38.5%
Current Liquidity Ratio 10.4 6.6

This report was approved by the board on 29 April 2022 and signed on its behalf.

M G Kearns

Director

Page 1

MI AVIATION HOLDINGS LIMITED

DIRECTORS' REPORT

FOR THE PERIOD ENDED 30 APRIL 2021

The directors present their report and the financial statements for the period ended 30 April 2021.

Results and dividends

The profit for the period, after taxation and minority interests, amounted to £1,973,321 (2020 - £4,775,743).

Dividends amounting to £1,300,000 (2020: £990,000) were paid during the year.

Directors

The directors who served during the period were:

I R Burgess (appointed 17 July 2020)

M G Kearns (appointed 17 July 2020)

Future developments

We are also establishing a base in Ireland which is/was to deal with Brexit originally we are hoping to have this facility approved by the Irish Aviation Authority this year, although there have been some delays.
Also we are looking at establishing a European base in Malpensa Italy at the request of some of our customers. The reason for this is if a component from an airline is damaged in Europe it stays in Europe for repair and is not returned to the UK.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, Haslers, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 April 2022 and signed on its behalf.

M G Kearns

Director

Page 2

MI AVIATION HOLDINGS LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE PERIOD ENDED 30 APRIL 2021

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

MI AVIATION HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MI AVIATION HOLDINGS LIMITED

Opinion

We have audited the financial statements of MI Aviation Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 30 April 2021, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, 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 Group's and of the parent Company's affairs as at 30 April 2021 and of the Group's profit for the period 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 directors' 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 Group's or the parent 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 directors with respect to going concern are described in the relevant sections of this report.

Page 4

MI AVIATION HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MI AVIATION HOLDINGS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 Group Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Directors' 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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

∙the parent Company 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.

Page 5

MI AVIATION HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MI AVIATION HOLDINGS LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 is 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 Group's and the parent 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 Group or the parent 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 an Auditors' Report 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 Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we have considered those that have a direct and indirect material impact on the financial statements and operations of the company. These include but are not limited to the Companies Act 2006, GDPR, Employment and Health & Safety legislation and tax legislation.
We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations.
We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are described below:
The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates.
Procedures performed to address these were as follows:
• Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud, including known or suspected instances of non-compliance with laws and regulations and fraud,

Page 6

MI AVIATION HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MI AVIATION HOLDINGS LIMITED (CONTINUED)

• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,
• Challenging assumptions and judgements made by management in its significant accounting estimates; and
• Identifying and testing journal entries, in particular any unusual journal entries posted around the year-end and journal entries posted by infrequent system users.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.

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 an Auditors' Report 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.

Charalambos Patsalides (Senior Statutory Auditor)

for and on behalf of

Haslers

Chartered Accountants

Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL

29 April 2022

Page 7

MI AVIATION HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 APRIL 2021

	2021	2020
Note	£	£


Turnover	4	11,215,969	17,101,172
Cost of sales		(7,346,949)	(9,037,092)
Gross profit		3,869,020	8,064,080
Administrative expenses		(1,956,635)	(2,013,057)
Other operating income	5	166,869	-
Fair value movements		9,935	(3,347)
Operating profit	6	2,089,189	6,047,676
Interest receivable and similar income	10	22,752	11,924
Interest payable and similar expenses	11	(552)	(41,832)
Profit before tax		2,111,389	6,017,768
Tax on profit	12	(155,082)	(935,538)
Profit for the financial period		1,956,307	5,082,230

Other comprehensive income for the period

Total comprehensive income for the period	1,956,307	5,082,230

Profit for the year attributable to:
Non-controlling interest	(17,014)	306,487
Owners of the parent company	(1,939,293)	(5,388,717)
	(1,956,307)	(5,082,230)

Total comprehensive income attributable to:

The notes on pages 17 to 34 form part of these financial statements.

Page 8

MI AVIATION HOLDINGS LIMITED

REGISTERED NUMBER: 12749537

CONSOLIDATED BALANCE SHEET

AS AT 30 APRIL 2021

		2021		2020
Note		£		£

Fixed assets
Tangible assets	15		1,831,896		1,924,381
Investment property	17		2,419,880		2,419,880
			4,251,776		4,344,261
Current assets
Stocks	18	3,489,820		4,057,365
Debtors: amounts falling due within one year	19	4,860,298		5,539,716
Current asset investments		17,416		6,322
Cash at bank and in hand	20	4,909,375		4,003,646
		13,276,909		13,607,049
Creditors: amounts falling due within one year	21	(1,168,953)		(2,220,647)
Net current assets			12,107,956		11,386,402
Total assets less current liabilities			16,359,732		15,730,663
Creditors: amounts falling due after more than one year	22		(142,000)		(149,416)
Provisions for liabilities
Deferred taxation	25	(34,082)		(53,906)
			(34,082)		(53,906)
Net assets			16,183,650		15,527,341

Page 9

MI AVIATION HOLDINGS LIMITED

REGISTERED NUMBER: 12749537

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 30 APRIL 2021

		2021		2020
Note		£		£

Capital and reserves
Called up share capital	26	4	2
Profit and loss account	27	15,235,976	14,562,655
Equity attributable to owners of the parent Company		15,235,980	14,562,657
Non-controlling interests		947,670	964,684
		16,183,650	15,527,341

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 April 2022.

M G Kearns

Director

The notes on pages 17 to 34 form part of these financial statements.

Page 10

MI AVIATION HOLDINGS LIMITED

REGISTERED NUMBER: 12749537

COMPANY BALANCE SHEET

AS AT 30 APRIL 2021

		2021		2020
Note		£		£

Fixed assets
Investments	16		2		-
			2		-
Current assets
Debtors: amounts falling due within one year	19	2		-
		2		-
Total assets less current liabilities			4		-


Net assets			4		-

Capital and reserves
Called up share capital	26		4		-
Profit for the period		1,300,000		-
Other changes in the profit and loss account		(1,300,000)		-
			4		-

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 April 2022.

M G Kearns

Director

The notes on pages 17 to 34 form part of these financial statements.

Page 11

MI AVIATION HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 APRIL 2021

	Called up share capital	Profit and loss account	Equity attributable to owners of parent Company	Non-controlling interests	Total equity
	£	£	£	£	£
At 1 May 2020	2	14,562,655	14,562,657	964,684	15,527,341
Comprehensive income for the period
Profit for the period	-	1,973,321	1,973,321	(17,014)	1,956,307
Total comprehensive income for the period	-	1,973,321	1,973,321	(17,014)	1,956,307
Dividends: Equity capital	-	(1,300,000)	(1,300,000)	-	(1,300,000)
Shares issued during the period	2	-	2	-	2
At 30 April 2021	4	15,235,976	15,235,980	947,670	16,183,650

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 APRIL 2020

	Called up share capital	Profit and loss account	Equity attributable to owners of parent Company	Non-controlling interests	Total equity
	£	£	£	£	£
At 1 May 2019	2	10,776,912	10,776,914	658,197	11,435,111
Comprehensive income for the year
Profit for the year	-	4,775,743	4,775,743	306,487	5,082,230
Total comprehensive income for the year	-	4,775,743	4,775,743	306,487	5,082,230
Dividends: Equity capital	-	(990,000)	(990,000)	-	(990,000)
Total transactions with owners	-	(990,000)	(990,000)	-	(990,000)
At 30 April 2020	2	14,562,655	14,562,657	964,684	15,527,341

The notes on pages 17 to 34 form part of these financial statements.

Page 12

MI AVIATION HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 APRIL 2021

	Called up share capital	Profit and loss account	Total equity
	£	£	£
Comprehensive income for the year
Profit for the period	-	1,300,000	1,300,000
Dividends: Equity capital	-	(1,300,000)	(1,300,000)
Shares issued during the period	4	-	4
At 30 April 2021	4	-	4

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 APRIL 2020

	Total equity
	£
Total comprehensive income for the year	-
Total transactions with owners	-

The notes on pages 17 to 34 form part of these financial statements.

Page 13

MI AVIATION HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 APRIL 2021

			2021	2020
			£	£

Cash flows from operating activities
Profit for the financial period	1,956,307	5,082,230
Adjustments for:
Depreciation of tangible assets	152,877	130,853
Loss on disposal of tangible assets	18,995	483
Government grants	(166,869)	-
Interest paid	552	41,832
Interest received	(22,752)	(11,924)
Taxation charge	155,082	935,538
Decrease/(increase) in stocks	567,544	(584,225)
Decrease/(increase) in debtors	829,596	(903,353)
(Decrease)/increase in creditors	(534,171)	198,304
Net fair value (gains)/losses recognised in P&L	(9,935)	3,347
Corporation tax (paid)	(861,210)	(1,043,397)
Net cash generated from operating activities	2,086,016	3,849,688

Cash flows from investing activities
Purchase of tangible fixed assets	(97,399)	(326,994)
Sale of tangible fixed assets	18,013	20,087
Purchase of investment properties	-	(598,932)
Government grants received	166,869	-
Interest received	22,752	11,924
HP interest paid	(552)	(909)
Net cash from investing activities	109,683	(894,824)

Page 14

MI AVIATION HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE PERIOD ENDED 30 APRIL 2021

		2021	2020
		£	£


Cash flows from financing activities
Issue of ordinary shares	2	-
Repayment of loans	-	(1,149,953)
Repayment of/new finance leases	10,028	(7,364)
Dividends paid	(1,300,000)	(990,000)
Interest paid	-	(40,923)
Net cash used in financing activities	(1,289,970)	(2,188,240)
Net increase in cash and cash equivalents	905,729	766,624
Cash and cash equivalents at beginning of period	4,003,646	3,237,022
Cash and cash equivalents at the end of period	4,909,375	4,003,646

Cash and cash equivalents at the end of period comprise:
Cash at bank and in hand	4,909,375	4,003,646
	4,909,375	4,003,646

The notes on pages 17 to 34 form part of these financial statements.

Page 15

MI AVIATION HOLDINGS LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE PERIOD ENDED 30 APRIL 2021


At 1 May 2020	Cash flows	New finance leases	At 30 April 2021
£	£	£	£

Cash at bank and in hand	4,003,646	905,729	-	4,909,375
Debt due after 1 year	(142,000)	-	-	(142,000)
Debt due within 1 year	(7,236)	(107)	-	(7,343)
Finance leases	(15,137)	-	(10,029)	(25,166)
	3,839,273	905,622	(10,029)	4,734,866

The notes on pages 17 to 34 form part of these financial statements.

Page 16

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

1.	General information

MI Aviation Holdings Limited is a private company, limited by shares, domiciled in England and Wales, registration number 12749537. The registered office is Aviation House, Bearwalden Business Park, Royston Road, Wendens Ambo, Saffron Walden, Essex, CB11 4JX. The principal activity of the company is that of a holding company.

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 Companies Act 2006.

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of the business combinations using the merger method. The consolidated statement of comprehensive income and consolidated balance sheet incorporate the figures of the subsidiaries as if the company had owned the subsidiaries for both the current and comparative periods.

Page 17

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

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 period 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 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.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 18

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

2.Accounting policies (continued)

2.5

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

2.7

Government grants

Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

2.8

Interest income

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

2.9

Finance costs

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.

2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 19

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

2.Accounting policies (continued)

2.11

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss 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 balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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;

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

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 balance sheet date.

2.12

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.

Page 20

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

2.Accounting policies (continued)

2.12

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property	-
Long-term leasehold property	-	20%	straight line
Plant and machinery	-	20%	reducing balance
Motor vehicles	-	25%	straight line
Other fixed assets	-	20%	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.

2.13

Investment property

Investment property is carried at fair value determined annually by directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

2.15

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 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.

2.16

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.

Page 21

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

2.Accounting policies (continued)

2.17

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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.18

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.

2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

2.20

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

2.21

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.

Page 22

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
The directors do not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements.

Turnover

All turnover arose within the United Kingdom.

5.	Other operating income
		2021	2020
		£	£

Government grants receivable	166,869	-
	166,869	-

Research & development charged as an expense	708	4,292
Exchange differences	83,747	130,686
Other operating lease rentals	48,354	74,000

Page 23

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

7.	Auditors' remuneration
		2021	2020
		£	£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements

15,450

8.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2021	2020	2021	2020
£	£	£	£


Wages and salaries	1,567,407	1,356,526	-	-
Social security costs	154,740	100,240	-	-
Cost of defined contribution scheme	34,269	27,845	-	-
	1,756,416	1,484,611	-	-

The average monthly number of employees, including the directors, during the period was as follows:

	Group	Group	Company	Company
	2021	2020	2021	2020
	No.	No.	No.	No.

Employees	53	45	2	2

9.	Directors' remuneration
		2021	2020
		£	£

Directors' emoluments	28,307	28,075
	28,307	28,075

Page 24

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

10.	Interest receivable
		2021	2020
		£	£

	Other interest receivable	22,752	11,924
		22,752	11,924

11.	Interest payable and similar expenses
		2021	2020
		£	£

Bank interest payable	-	40,923
Finance leases and hire purchase contracts	552	909
	552	41,832

Corporation tax
Current tax on profits for the year	174,906	906,928

Total current tax	174,906	906,928

Deferred tax
Origination and reversal of timing differences	(19,824)	28,610
Total deferred tax	(19,824)	28,610


	Taxation on profit on ordinary activities	155,082	935,538

Page 25

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

12.Taxation (continued)

Profit on ordinary activities before tax

2,111,389

6,017,768

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	401,164	1,143,376
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	-	6,929
Capital allowances for period/year in excess of depreciation	-	32,333
Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge	(215,227)	(228,392)
Other differences leading to an increase (decrease) in the tax charge	(30,855)	(18,708)
Total tax charge for the period/year	155,082	935,538

Factors that may affect future tax charges

During March 2021 the UK Chancellor announced an expected change to UK's main corporation tax rates from 19% to 25%. After the year-end this was enacted into the Finance Act in June 2021. The main rate will increase to 25% from 1 April 2023 and will impact the corporation tax provision of the Company from that date.
The deferred tax balance will need to be adjusted in recognition of this change in the year-ended 30th April 2022.

13.	Dividends
		2021	2020
		£	£

	Ordinary dividends	1,300,000	990,000
		1,300,000	990,000

Page 26

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

14.	Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the period/year was £1,300,000 (2020 - £NIL).

Page 27

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

15.	Tangible fixed assets
	Group

	Freehold property	Long-term leasehold property	Plant and machinery	Motor vehicles	Total
	£	£	£	£	£
Cost or valuation
At 1 May 2020	1,212,254	46,408	1,241,151	209,258	2,709,071
Additions	-	955	91,044	5,400	97,399
Disposals	-	-	-	(72,112)	(72,112)
At 30 April 2021	1,212,254	47,363	1,332,195	142,546	2,734,358
Depreciation
At 1 May 2020	-	9,095	691,426	84,168	784,689
Charge for the period on owned assets	-	7,463	113,589	15,820	136,872
Charge for the period on financed assets	-	-	5,296	10,709	16,005
Disposals	-	-	-	(35,104)	(35,104)
At 30 April 2021	-	16,558	810,311	75,593	902,462
Net book value
At 30 April 2021	1,212,254	30,805	521,884	66,953	1,831,896
At 30 April 2020	1,212,254	37,313	549,725	125,089	1,924,381

The net book value of land and buildings may be further analysed as follows:
	2021	2020
	£	£

Freehold	1,212,254	1,212,254
Long leasehold	30,805	37,313
	1,243,059	1,249,567

Page 28

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

15.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2021	2020
	£	£


Plant and machinery	15,887	21,182
Motor vehicles	29,449	40,158
	45,336	61,340

16.	Fixed asset investments
	Group

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

Component Recovery Solutions Limited	Ordinary	66.67%
IMT Aviation Scotland Limited	Ordinary	100%
IMT Aviation Limited	Ordinary	100%

The aggregate of the share capital and reserves as at 30 April 2021 and the profit or loss for the period ended on that date for the subsidiary undertakings were as follows:
Name	Aggregate of share capital and reserves	Profit/(Loss)
	£	£

Component Recovery Solutions Limited	1,706,443	(76,042)
IMT Aviation Scotland Limited	1,299,518	72,401
IMT Aviation Limited	13,212,686	1,961,359

Page 29

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

17.	Investment property
	Group

		Freehold investment property
		£
	Valuation
	At 1 May 2020	2,419,880
	At 30 April 2021	2,419,880

The 2021 valuations were made by the directors, on an open market value for existing use basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2021	2020
	£	£

	Historic cost	2,419,880	2,419,880
		2,419,880	2,419,880

18.	Stocks
		Group	Group
		2021	2020
		£	£

Work in progress (goods to be sold)	107,602	232,112
Finished goods and goods for resale	3,382,218	3,825,253
	3,489,820	4,057,365

Page 30

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

19.

Debtors

Group	Group	Company	Company
2021	2020	2021	2020
£	£	£	£


Trade debtors	1,686,590	2,580,037	-	-
Other debtors	1,552,174	1,469,681	2	-
Prepayments and accrued income	1,621,534	1,489,998	-	-
	4,860,298	5,539,716	2	-

20.	Cash and cash equivalents
		Group	Group
		2021	2020
		£	£

Cash at bank and in hand	4,909,375	4,003,646
	4,909,375	4,003,646

21.	Creditors: Amounts falling due within one year
		Group	Group
		2021	2020
		£	£

Trade creditors	953,719	1,469,952
Corporation tax	94,666	629,634
Other taxation and social security	53,316	37,293
Obligations under finance lease and hire purchase contracts	25,166	7,721
Other creditors	4,809	26,946
Accruals and deferred income	37,277	49,101
	1,168,953	2,220,647

Page 31

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

22.	Creditors: Amounts falling due after more than one year
		Group	Group
		2021	2020
		£	£

Net obligations under finance leases and hire purchase contracts	-	7,416
Share capital treated as debt	142,000	142,000
	142,000	149,416

23.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2021	2020
		£	£

Within one year	17,010	7,721
Between 1-5 years	8,156	7,416
	25,166	15,137

24.	Financial instruments
		Group	Group
		2021	2020
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	4,909,375	4,003,646

Financial assets measured at fair value through profit or loss comprise cash at bank and in hand

Page 32

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

25.	Deferred taxation
	Group

		2021
		£

	At beginning of year	(53,906)
	Charged to profit or loss	19,824
	At end of year	(34,082)

The provision for deferred taxation is made up as follows:
	Group	Group
	2021	2020
	£	£

	Accelerated capital allowances	(34,082)	(53,906)
		(34,082)	(53,906)

Allotted, called up and fully paid

4 (2020 - 2) Ordinary shares of £1.00 each	4	2

	2021	2020
	£	£
Shares classified as debt

Allotted, called up and fully paid

142,000 (2020 - 142,000) Ordinary shares of £1.00 each	142,000	142,000

Page 33

MI AVIATION HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 APRIL 2021

27.

Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

28.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge respresents contributions payable by the Company to the fund and amounted to £34,269 (2020: £21,804). Contributions totalling £nil (2020: £nil) were payable to the fund at the balance sheet date and are included in creditors.

29.	Related party transactions
	During the year the following transactions with related parties occurred: The total remuneration paid to key management personnel is £24,480 (2020: £24,480) Key management personnel received dividends totalling £1,300,000 (2020: £990,000) At the blance sheet date, the following amounts were due from/(to) related parties:

		2021	2020
		£	£

	Key management personnel	11,554	(7,236)
		11,554	(7,236)

30.	Controlling party

There is no ultimate controlling party.

Page 34