ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

AEROSPACE TOOLING LIMITED - Company Information

Caseware UK (AP4) 2021.0.152 2021.0.152 2022-06-302022-06-30truetruetrue2021-07-01falsemanufacture and repair of turbine components.8484truefalse 06045956 2021-07-01 2022-06-30 06045956 2020-07-01 2021-06-30 06045956 2022-06-30 06045956 2021-06-30 06045956 2020-07-01 06045956 6 2021-07-01 2022-06-30 06045956 6 2020-07-01 2021-06-30 06045956 d:Director1 2021-07-01 2022-06-30 06045956 d:Director7 2021-07-01 2022-06-30 06045956 d:Director9 2021-07-01 2022-06-30 06045956 d:Director10 2021-07-01 2022-06-30 06045956 d:Director11 2021-07-01 2022-06-30 06045956 d:RegisteredOffice 2021-07-01 2022-06-30 06045956 d:Agent1 2021-07-01 2022-06-30 06045956 e:PlantMachinery 2021-07-01 2022-06-30 06045956 e:PlantMachinery 2022-06-30 06045956 e:PlantMachinery 2021-06-30 06045956 e:PlantMachinery e:OwnedOrFreeholdAssets 2021-07-01 2022-06-30 06045956 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2021-07-01 2022-06-30 06045956 e:MotorVehicles 2021-07-01 2022-06-30 06045956 e:MotorVehicles 2022-06-30 06045956 e:MotorVehicles 2021-06-30 06045956 e:MotorVehicles e:OwnedOrFreeholdAssets 2021-07-01 2022-06-30 06045956 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2021-07-01 2022-06-30 06045956 e:FurnitureFittings 2021-07-01 2022-06-30 06045956 e:FurnitureFittings 2022-06-30 06045956 e:FurnitureFittings 2021-06-30 06045956 e:FurnitureFittings e:OwnedOrFreeholdAssets 2021-07-01 2022-06-30 06045956 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2021-07-01 2022-06-30 06045956 e:OwnedOrFreeholdAssets 2021-07-01 2022-06-30 06045956 e:LeasedAssetsHeldAsLessee 2021-07-01 2022-06-30 06045956 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-06-30 06045956 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2021-06-30 06045956 e:CurrentFinancialInstruments 2022-06-30 06045956 e:CurrentFinancialInstruments 2021-06-30 06045956 e:Non-currentFinancialInstruments 2022-06-30 06045956 e:Non-currentFinancialInstruments 2021-06-30 06045956 e:CurrentFinancialInstruments e:WithinOneYear 2022-06-30 06045956 e:CurrentFinancialInstruments e:WithinOneYear 2021-06-30 06045956 e:Non-currentFinancialInstruments e:AfterOneYear 2022-06-30 06045956 e:Non-currentFinancialInstruments e:AfterOneYear 2021-06-30 06045956 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-06-30 06045956 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2021-06-30 06045956 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-06-30 06045956 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2021-06-30 06045956 f:UnitedKingdom 2021-07-01 2022-06-30 06045956 f:UnitedKingdom 2020-07-01 2021-06-30 06045956 f:RestWorldOutsideUK 2021-07-01 2022-06-30 06045956 f:RestWorldOutsideUK 2020-07-01 2021-06-30 06045956 e:UKTax 2021-07-01 2022-06-30 06045956 e:UKTax 2020-07-01 2021-06-30 06045956 e:ShareCapital 2022-06-30 06045956 e:ShareCapital 2021-06-30 06045956 e:ShareCapital 2020-07-01 06045956 e:RetainedEarningsAccumulatedLosses 2021-07-01 2022-06-30 06045956 e:RetainedEarningsAccumulatedLosses 2022-06-30 06045956 e:RetainedEarningsAccumulatedLosses 2020-07-01 2021-06-30 06045956 e:RetainedEarningsAccumulatedLosses 2021-06-30 06045956 e:RetainedEarningsAccumulatedLosses 2020-07-01 06045956 d:OrdinaryShareClass1 2021-07-01 2022-06-30 06045956 d:OrdinaryShareClass1 2022-06-30 06045956 d:OrdinaryShareClass1 2021-06-30 06045956 d:FRS102 2021-07-01 2022-06-30 06045956 d:Audited 2021-07-01 2022-06-30 06045956 d:FullAccounts 2021-07-01 2022-06-30 06045956 d:PrivateLimitedCompanyLtd 2021-07-01 2022-06-30 06045956 e:WithinOneYear 2022-06-30 06045956 e:WithinOneYear 2021-06-30 06045956 e:BetweenOneFiveYears 2022-06-30 06045956 e:BetweenOneFiveYears 2021-06-30 06045956 e:HirePurchaseContracts e:WithinOneYear 2022-06-30 06045956 e:HirePurchaseContracts e:WithinOneYear 2021-06-30 06045956 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-06-30 06045956 e:HirePurchaseContracts e:BetweenOneFiveYears 2021-06-30 06045956 e:DevelopmentCostsCapitalisedDevelopmentExpenditure e:ExternallyAcquiredIntangibleAssets 2021-07-01 2022-06-30 06045956 2 2021-07-01 2022-06-30 06045956 e:AcceleratedTaxDepreciationDeferredTax 2022-06-30 06045956 e:AcceleratedTaxDepreciationDeferredTax 2021-06-30 06045956 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2022-06-30 06045956 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2021-06-30 06045956 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2022-06-30 06045956 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2021-06-30 06045956 e:LeasedAssetsHeldAsLessee 2022-06-30 06045956 e:LeasedAssetsHeldAsLessee 2021-06-30 06045956 e:DevelopmentCostsCapitalisedDevelopmentExpenditure e:OwnedIntangibleAssets 2021-07-01 2022-06-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06045956

AEROSPACE TOOLING LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

AEROSPACE TOOLING LIMITED

COMPANY INFORMATION

Directors	M Rutten Esq
	W K Picken Esq
	D W Harris Esq
	D J Halliday Esq
	D M MacLeod Esq


Registered number	06045956


Registered office	Charles Lake House
	Claire Causeway
	Crossways Business Park
	Dartford
	Kent
	DA2 6QA


Independent auditors	Barnes Roffe LLP
	Chartered Accountants & Statutory Auditor
	Charles Lake House
	Claire Causeway
	Crossways Business Park
	Dartford
	Kent
	DA2 6QA


Bankers	HSBC
	39 High Street
	Ashford
	Kent
	TN24 8TG

AEROSPACE TOOLING LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 7
Statement of comprehensive income	8
Balance sheet	9 - 10
Statement of changes in equity	11
Notes to the financial statements	12 - 28

AEROSPACE TOOLING LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 JUNE 2022

Introduction

The directors present their strategic report to accompany the financial statements for the year ended 30 June 2022.

Business review

Turnover increased by £15k on the previous year’s level. The company's continued focus on responsiveness and customer service continued to enable growth in what was a challenging year for the world economy. We look forward to making further progress in the coming year.

Principal risks and uncertainties

The directors regularly monitor and review the key risks of the business. These are considered to relate to:
- competition within the sector
- the stability of the UK economy
- the ongoing impact of Brexit

Financial key performance indicators

The directors consider that disclosure is not required of any key financial performance indicators for an understanding of the business other than is given by the information within these financial statements.

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

D W Harris Esq

Director

Date: 28 March 2023

Page 1

AEROSPACE TOOLING LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 JUNE 2022

The directors present their report and the financial statements for the year ended 30 June 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 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 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 for the company'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 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £967,353 (2021 - £1,341,460).

No dividends were voted during the year (2021 - £3,131,859).

Directors

The directors who served during the year were:

D M MacLeod Esq

M Rutten Esq

W K Picken Esq

D W Harris Esq

D J Halliday Esq

Future developments

We intend to expand our services to offer complementary products which will contribute to the growth in turnover.

Page 2

AEROSPACE TOOLING LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2022

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'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's auditors are aware of that information.

Post balance sheet events

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

Auditors

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

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

D W Harris Esq

Director

Date: 28 March 2023

Page 3

AEROSPACE TOOLING LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEROSPACE TOOLING LIMITED

Opinion

We have audited the financial statements of Aerospace Tooling Limited (the 'company') for the year ended 30 June 2022, which comprise the Statement of comprehensive income, the Balance sheet, the 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 company's affairs as at 30 June 2022 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 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 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

AEROSPACE TOOLING LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEROSPACE TOOLING 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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 Directors' responsibilities statement set out on page 2, 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 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.

Page 5

AEROSPACE TOOLING LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEROSPACE TOOLING LIMITED (CONTINUED)

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 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law 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 discussion with directors and other management, and from our commercial knowledge and experience.
• The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows;
  o Companies Act 2006;
  o FRS102;
  o Health and Safety legislation;
  o Employment legislation;
  o Tax legislation;
  o Scottish Environmental Protection Agency; and
  o Control of substances hazardous to health compliant.
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes, inspecting legal correspondence and certificates of compliance;
• Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
• Making enquires of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
• Reviewing the financial statements and testing the disclosures against supporting documentation;
• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates, including stock provisions, were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.

Page 6

AEROSPACE TOOLING LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AEROSPACE TOOLING LIMITED (CONTINUED)

The areas that we identified as being susceptible to misstatement through fraud were:
• Management bias in the estimates and judgements made;
• Management override of controls; and
• Posting of unusual journals or transactions.
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.

Mario Cientanni (Senior statutory auditor)

for and on behalf of

Barnes Roffe LLP

Chartered Accountants

Statutory Auditor

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA

Date: 29 March 2023

Page 7

AEROSPACE TOOLING LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2022

	2022	2021
Note	£	£


Turnover	4	7,406,168	7,391,060
Cost of sales		(2,863,156)	(2,867,294)
Gross profit		4,543,012	4,523,766
Administrative expenses		(3,491,039)	(3,281,417)
Other operating income	5	-	41,893
Operating profit	6	1,051,973	1,284,242
Interest receivable and similar income	10	40	-
Interest payable and similar expenses	11	(21,444)	(30,366)
Profit before tax		1,030,569	1,253,876
Tax on profit	12	(63,216)	87,584
Profit for the financial year		967,353	1,341,460

There were no recognised gains and losses for 2022 or 2021 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 12 to 28 form part of these financial statements.

Page 8

AEROSPACE TOOLING LIMITED

REGISTERED NUMBER: 06045956

BALANCE SHEET

AS AT 30 JUNE 2022

		2022		2021
Note		£		£

Fixed assets
Intangible assets	14		1,188,991		1,165,009
Tangible assets	15		1,186,280		1,265,241
			2,375,271		2,430,250
Current assets
Stocks	16	391,799		310,129
Debtors	17	8,770,915		7,831,327
Cash at bank and in hand	18	610,953		909,031
		9,773,667		9,050,487
Creditors: amounts falling due within one year	19	(1,224,328)		(1,360,379)
Net current assets			8,549,339		7,690,108
Total assets less current liabilities			10,924,610		10,120,358
Creditors: amounts falling due after more than one year	20		(181,675)		(328,357)
Provisions for liabilities
Deferred tax	23		(219,498)		(235,917)
Net assets			10,523,437		9,556,084

Capital and reserves
Called up share capital	24	1,000	1,000
Profit and loss account		10,522,437	9,555,084
		10,523,437	9,556,084

Page 9

AEROSPACE TOOLING LIMITED

REGISTERED NUMBER: 06045956

BALANCE SHEET (CONTINUED)

AS AT 30 JUNE 2022

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

D W Harris Esq	D M MacLeod Esq
Director	Director

Date: 28 March 2023

The notes on pages 12 to 28 form part of these financial statements.

Page 10

AEROSPACE TOOLING LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2022

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 July 2021	1,000	9,555,084	9,556,084

Profit for the year	-	967,353	967,353
At 30 June 2022	1,000	10,522,437	10,523,437

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2021

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 July 2020	1,000	11,345,483	11,346,483

Profit for the year	-	1,341,460	1,341,460
Dividends: Equity capital	-	(3,131,859)	(3,131,859)
At 30 June 2021	1,000	9,555,084	9,556,084

The notes on pages 12 to 28 form part of these financial statements.

Page 11

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

1.	General information

The company is a private company limited by shares and incorporated in England and Wales. It has its principal place of business at Site 4, Piper Street, Baldovie Industrial Estate, Dundee DD4 0NT. The company's principal activity is the manufacture and repair of turbine components.

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 management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Aerospace Tooling Corporation Limited as at 30 June 2022 and these financial statements may be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

Page 12

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

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 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'.

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

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 company 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 13

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)

2.5

Operating leases: the company 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 are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the 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

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 14

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)

2.11

Pensions

Defined contribution pension plan

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

2.12

Current and deferred taxation

The tax expense for the year 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 operates and generates 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; and

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

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

2.13

Invoice discounting

The company utilises sales invoice discounting as a method of financing. The accounting policy is to include trade debtors discounted with recourse within trade debtors due within one year and the returnable element of proceeds is recorded within other creditors due within one year. Invoice discounting fees and interest are charged to the profit and loss account when paid. Bad debts are borne by the company and are charged to the profit and loss account when incurred.

Page 15

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)

2.14

Intangible assets

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

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

2.15

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Plant and machinery	-	10% straight line
Motor vehicles	-	25% straight line
Fixtures and fittings	-	10/25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.16

Revaluation of tangible fixed assets

As permitted by the transitional provisions of FRS 102, the company has elected not to adopt a policy of continual revaluation of tangible fixed assets. The company will retain the book value of plant and machinery, previously revalued on 23 October 2008, and will not update that valuation.

2.17

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.

Page 16

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

2.Accounting policies (continued)

2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.20

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.

2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the company 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 company 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.

2.22

Financial instruments

The company 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.

2.23

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.

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

No significant judgements have had to be made by management in preparing these financial statements.

Page 17

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

Turnover

Analysis of turnover by geographic destination:

					2022	2021
					£	£

United Kingdom	5,185,075	5,342,541
Rest of the world	2,221,093	2,048,519
	7,406,168	7,391,060

5.	Other operating income
		2022	2021
		£	£

	Government grants receivable	-	41,893

Other operating lease rentals

178,715

147,070

Fees payable to the company's auditors for the audit of the company's financial statements

12,760

12,390

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 18

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

Wages and salaries	2,398,039	2,380,852
Social security costs	286,998	271,176
Cost of defined contribution scheme	79,487	109,086
	2,764,524	2,761,114

The average number of employees, including directors, during the year was 85 (2021 - 84).

9.	Directors' remuneration
		2022	2021
		£	£

Directors' emoluments	371,740	389,403
Company contributions to defined contribution pension schemes	6,981	34,683
	378,721	424,086

	During the year retirement benefits were accruing to 2 directors (2021 - 2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £134,780 (2021 - £152,360).
	The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,321 (2021 - £29,205).

10.	Interest receivable
		2022	2021
		£	£

Other interest receivable

Page 19

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

11.	Interest payable and similar expenses
		2022	2021
		£	£

Bank interest payable	5,320	4,121
Finance leases and hire purchase contracts	9,173	13,608
Other interest payable	6,951	12,637
	21,444	30,366

Corporation tax
Current tax on profits for the year	79,635	11,887
Adjustments in respect of previous periods	-	(137,638)

	Deferred tax
	Origination and reversal of timing differences	(16,419)	38,167


	Taxation on profit/(loss) on ordinary activities	63,216	(87,584)

Page 20

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

12.Taxation (continued)

Profit on ordinary activities before tax

1,030,569

1,253,876

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)	195,808	238,236
Effects of:
Non-allowable amortisation of goodwill and impairment	71,162	64,526
Expenses not deductible/(income not chargeable) for tax purposes, other than goodwill amortisation and impairment	(4)	222
Depreciation for year in excess of/(lower than) capital allowances	7,304	(40,146)
Adjustments to tax charge in respect of prior periods as a result of R&D credits	(177,745)	(341,462)
Group relief	(16,890)	(47,127)
Movement in deferred tax provision	(16,419)	38,167
Total tax charge for the year	63,216	(87,584)

13.	Dividends
		2022	2021
		£	£

Dividends

3,131,859

Page 21

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

14.	Intangible assets

		Development costs
		£
	Cost
	At 1 July 2021	4,701,736
	Additions	596,375
	At 30 June 2022	5,298,111
	Amortisation
	At 1 July 2021	3,536,727
	Charge for the year on owned assets	572,393
	At 30 June 2022	4,109,120
	Net book value
	At 30 June 2022	1,188,991
	At 30 June 2021	1,165,009

Page 22

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

15.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£
Cost or valuation
At 1 July 2021	3,484,802	55,990	427,148	3,967,940
Additions	122,359	-	42,533	164,892
At 30 June 2022	3,607,161	55,990	469,681	4,132,832
Depreciation
At 1 July 2021	2,440,503	26,392	235,804	2,702,699
Charge for the year on owned assets	130,558	-	69,527	200,085
Charge for the year on financed assets	31,520	12,248	-	43,768
At 30 June 2022	2,602,581	38,640	305,331	2,946,552
Net book value
At 30 June 2022	1,004,580	17,350	164,350	1,186,280
At 30 June 2021	1,044,299	29,598	191,344	1,265,241

The net book value of assets held under finance leases or hire purchase contracts, included above, is as follows:
	2022	2021
	£	£


Plant and machinery	207,507	239,027
Motor vehicles	17,351	29,598
	224,858	268,625

Page 23

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

16.	Stocks
		2022	2021
		£	£

Raw materials	190,032	165,543
Work in progress	201,767	144,586
	391,799	310,129

17.

Debtors

					2022	2021
					£	£

Due after more than one year
Amounts owed by group undertakings	7,299,180	6,572,290
Due within one year
Trade debtors	1,357,676	1,197,152
Prepayments and accrued income	114,059	61,885
	8,770,915	7,831,327

18.	Cash and cash equivalents
		2022	2021
		£	£

Cash at bank and in hand	610,953	909,031
Less: bank overdrafts	(82,945)	(137,720)
	528,008	771,311

Page 24

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

19.	Creditors: Amounts falling due within one year
		2022	2021
		£	£

Bank overdrafts	82,945	137,720
Bank loans	92,704	126,929
Trade creditors	500,750	333,129
Corporation tax	79,564	11,816
Other taxation and social security	221,627	258,462
Obligations under finance lease and hire purchase contracts	50,960	48,773
Other creditors	195,778	443,550
	1,224,328	1,360,379

Bank loans and the invoice discounting facility are secured by way of a fixed and floating charge over all the assets and undertakings of the company.
Obligations under hire purchase contracts are secured over the assets to which they relate.

20.	Creditors: Amounts falling due after more than one year
		2022	2021
		£	£

Bank loans	40,629	137,363
Net obligations under finance leases and hire purchase contracts	141,046	190,994
	181,675	328,357

Page 25

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

Amounts falling due within one year
Bank loans	92,704	126,929
Amounts falling due 1-2 years
Bank loans	40,629	96,734
Amounts falling due 2-5 years
Bank loans	-	40,629

	133,333	264,292

Within one year	50,960	48,773
Between 1-5 years	141,046	190,994
	192,006	239,767

23.	Deferred taxation

	2022	2021
	£	£

At beginning of year	235,917	197,750
(Credited)/charged to profit or loss	(16,419)	38,167
At end of year	219,498	235,917

Page 26

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

23.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:
	2022	2021
	£	£

Accelerated capital allowances

219,498

235,917

24.	Share capital
		2022	2021
		£	£

Allotted, called up and fully paid

1,000 (2021 - 1,000) Ordinary shares of £1.00 each	1,000	1,000

25.	Contingent liabilities

The company has given a guarantee in respect of the borrowings of its parent company, the maximum exposure for which was £NIL (2021 - £57,201). This figure is in respect of gross borrowings and does not take into account the underlying assets of Aerospace Tooling Corporation Limited. The directors consider the possibility of a liability arising from this guarantee to be remote and no provision has been made.

26.	Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £79,487 (2021 - £81,196). Contributions totalling £16,344 (2021 - £15,436) were payable to the fund at the balance sheet date.

Land and buildings
Not later than 1 year	129,167	129,167
Later than 1 year and not later than 5 years	320,833	430,833
	450,000	560,000

Page 27

AEROSPACE TOOLING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

28.	Related party transactions
	The company has taken advantage of the exemption afforded by FRS102 from the disclosure of transactions with entities that are part of the group on the grounds that it is a wholly owned subsidiary and consolidated financial statements of the group will be publicly available at Companies House, Crown Way, Cardiff, CF14 3UZ.

29.	Controlling party

The ultimate parent company is Aerospace Tooling Corporation Limited, a company registered in England and Wales. There is no single controlling party of the parent company.

Page 28