Repaircraft PLC

directors present their report for the year ended 30th June 2024. Business review The company's principal activities are: 1) Design, manufacture and support of defence and aerospace equipment. 2) Management and supply of defence and aerospace spare parts. 3) Support and upgrade of armoured fighting vehicles. Turnover increased by some £3.7m from the previous year to £8.3m with was in line with the directors expectations with the commencement of a significant contract in the year. The directors are anticipating that the level of turnover will reduce in the current year FY 2025. There have been no events since the balance sheet date which materially affect the position of the company. The company continues to have a very strong financial base, excellent design engineering solutions and the potential market is large. Going concern Having made appropriate enquiries and considered the geopolitical situation and having reviewed the company's forecasts and projections, the directors are of the opinion that the company has adequate resources to continue in operational existence for the foreseeable future (at least 12 months from the date the accounts are approved and signed) and to meet its obligations and settle its liabilities as they fall due for payment. Accordingly the financial statements are prepared on the going concern basis. Future developments The company will continue to develop its business in line with current activities, and in particular turret upgrade systems. Research and development During the year the company incurred expenditure on Research & Development of £245,861 (2023 - £166,236). The expenditure primarily represents investigation and implementation of Armoured Fighting Vehicles upgrades. Principal risks and uncertainties The market for the supply of defence and aerospace parts and systems remains highly competitive. The company seeks to manage the risk of losing customers to key competitors by providing added value services to customers, improving response times in the supply of products and the handling of customer queries and by maintaining strong relationships and local representation with key customers. Other key risks relate to the political and regulatory environment that the company operates in. The directors manage these risks by meeting on a regular basis to discuss these risks. Key financial performance indicators (KPI's) The Board uses a range of financial performance indicators, reported on a periodic basis, to monitor the company's performance over time. These include: - Reviewing the Sales Order book to establish the balance of outstanding orders received from customers to ensure there is always sufficient business in the pipeline. - Calculating the return on sales, or gross profit margin expressed as a percentage, to ensure the company is continually implementing an acceptable mark up on goods sold by the company. - Cash flow and foreign exchange risks are also strictly monitored. - Markets and business opportunities are continually evaluated and business strategy is amended accordingly. Our financial key performance indicators are as follows: 2024 2023 2022 £ £ £ Turnover 8,283,810 4,590,694 7,341,934 Profit before tax 1,571,897 261,697 291,264 Profit (%) 19 6 4 Key non financial performance indicators (KPI's) Key Non KPI's indicators are the continued high level of services provided to our customers, production of high quality equipment, the reputation of the company and the long term retention of a happy and committed workforce. Section 172 statement Under section 172(1) of the Companies Act 2006 ("Section 172"), the directors must act in the way that they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole and in doing so have regard (amongst other matters) to: - the likely consequences of any decisions in the long-term; - the interests of the company's employees; - the need to foster the company's business relationships with suppliers, customers and others; - the impact of the company's operations on the community and environment; - the desirability of the company maintaining a reputation for high standards of business conduct; - the need to act fairly between members of the company. The directors of the company consider that they have discharged their duties under section 172 in the decisions made during the period ending 30 June 2024. Key decisions made at the company level include approving the level of risk and investment. Our employees The company recognises that long term employees are central to our success. The company is committed to equal opportunities in recruitment and employment. Our partners To survive and prosper for over 70 years, the company develops and maintains long term good relationships with both customers and suppliers. Our communities We are committed to supporting our employees, the local community and the United Kingdom with valuable employment and exports. Additionally, the company is, at all levels, committed to protecting the environment and the planet with genuine actions, including recently, protection of the local environment and electric car charging facilities. Members The company is a wholly owned subsidiary of Repaircraft (UK) Limited. The duties of the directors are exercised in a way that is most likely to promote the success of the company and the group as a whole, while having regard to factors outlined in section 172.