Aeroservices is a leading global business specialising in the distribution of services and hardware to the aviation industry including aviation lubricants & consumables, spares & Components, repair and maintenance, Safety and GSE, tooling and tyres.
The company provides ‘Nose to Tail’ management primarily for commercial operators with more than 50% of the business being contractual. Headquartered in Leeds, Aeroservices has a global presence with offices in Dubai and Shanghai.
The business challenge
2020 was the worst year on record for the aviation history. Countries around the world shut their borders, governments imposed multiple lockdowns and travel restrictions were imposed in response to COVID-19. The impact on the aviation industry was devastating, with a 60.2 percent decline in the number of passengers flying in 2020 (1.8 billion), compared to the previous year (4.5 billion).
Fortunately, Aeroservices avoided the worst by anticipating the impact of COVID-19 back in March 2020 and successfully implementing a mitigation and contingency plan. Nonetheless, the company knew that there was still more work to be done to ensure the company not only survived, but then also thrived post-pandemic.
The business, however, had concerns that their existing local accounting firm lacked the depth of technical expertise and strategic insight to help the business scale. In particular, Aeroservices was most concerned with the capabilities of their previous advisor in the following areas:
- Providing a comprehensive and accurate assessment of record keeping and suitable adjustments
- Advising on complex adjustments an area they struggled with previously
- Understanding the varied HMRC requirements and meeting deadlines
So, Aeroservices sought out the guidance and support of BDO to help them gain greater control of their business, deliver operational efficiencies and support its international expansion plans.
As Aeroservices looks to stay competitive and grow in the coming years, it had a clear vision for where it needed to focus:
- Implementing SAP
- Investing in people
- Office refurbishment
- Opening a new office in China
Most importantly, the company isn’t willing to let the challenges of 2020 stop it from setting ambitious goals. To that end, Aeroservices is targeting £50 million turnover by 2026. Meanwhile, the company has also set its sights on restructuring the business to fall under one group company, which will require specialised tax expertise.
To ensure Aeroservices doesn’t encounter any surprises with these plans, BDO’s team has provided a detailed overview of and advice on available tax deductions. BDO has also advising on the complex transactions that may arise as the company looks to transition to one group company.
Despite the ongoing recruitment demands and differing payroll requirements across multiple territories, including China and the United Arab Emirates, BDO’s Business Services & Outsourcing and Tax teams have given the company peace of mind that all their accounting practices are comprehensive, accurate and completed within the required timelines.
Why Aeroservices chose BDO
The drivers for Aeroservices selecting BDO as its business advisor came down to four key points:
- BDO’s reputation was best-in-class and one that stood out above other accounting and advisory firms. Aeroservices was able to talk to existing BDO clients as part of the vetting process.
- BDO demonstrated they had the expertise, track record and people to handle all Aeroservices accounting and tax needs.
- BDO’s ability to stay on top of changing regulations and guidelines and keep Aeroservices informed
- BDO’s data-driven approach tied in with Aeroservices emphasis on accuracy.
"Whether it’s keeping us organised, ensuring we get all the necessary paperwork filed for opening new office locations, or finding areas for growth that we may not have otherwise noticed, BDO gives us peace of mind that we can and will grow consistently, regardless of what challenges may come.
But what we have really appreciated is the added-value BDO’s services have had on our business, such as improving our customer retention rates and winning new business.”
- Mashood Akmal, Director, Innovation & Strategy, Aeroservices
|Opening of Dubai office resulted in annual net profit growth of 10%
||Peace of mind that compliance (UK/overseas) is taken care of
||Increased organic growth by 20%
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