Company registration number 01492026 (England and Wales)
ARCTREND LIMITED
T/A ARCFLEX
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
ARCTREND LIMITED
T/A ARCFLEX
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
ARCTREND LIMITED
T/A ARCFLEX
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
42,746
51,826
Tangible assets
4
735,330
719,934
Investments
5
2
2
778,078
771,762
Current assets
Stocks
1,604,810
1,517,930
Debtors
7
1,400,030
1,480,623
Cash at bank and in hand
8,417
10,559
3,013,257
3,009,112
Creditors: amounts falling due within one year
8
(2,277,179)
(2,245,786)
Net current assets
736,078
763,326
Total assets less current liabilities
1,514,156
1,535,088
Creditors: amounts falling due after more than one year
9
(412,975)
(194,444)
Provisions for liabilities
10
(30,884)
(64,917)
Net assets
1,070,297
1,275,727
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
1,069,297
1,274,727
Total equity
1,070,297
1,275,727
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 10 March 2023
Mr I Scutt
Director
Company Registration No. 01492026
ARCTREND LIMITED
T/A ARCFLEX
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
1,000
200,205
1,136,552
1,337,757
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(52,396)
(52,396)
Dividends
-
-
(9,634)
(9,634)
Transfers
-
(200,205)
200,205
-
Balance at 31 December 2021
1,000
1,274,727
1,275,727
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(205,430)
(205,430)
Balance at 31 December 2022
1,000
1,069,297
1,070,297
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
Arctrend Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Tower Road, Meaford Business Park, Stone, Staffordshire, ST15 0WQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirement:
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Arctrend Limited is a wholly owned subsidiary of Rattay Holding Limited and the results of Arctrend Limited are included in the consolidated financial statements of Rattay Holding Limited which are available from 3 Tower Road, Meaford Business Park, Stone, Staffordshire ST15 0WQ.
1.2
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In making this assessment, the director has considered trading levels since the year end and has prepared budgets to December 2025. There is an expectation that revenues will continue to grow and the company will return to profit from the Financial Year 2024. Further, the director has received a letter of support from the company's ultimate parent company, Rattay Group GmbH, that it intends to continue to support the company for the foreseeable future. However, there is no legally binding agreement that guarantees that support.
Thus, the director continues to adopt the going concern basis of accounting in preparing these financial statements.
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website development costs
5 years straight line
Development costs
10 years straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 7 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 8 -
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
37
37
3
Intangible fixed assets
Other
£
Cost
At 1 January 2022 and 31 December 2022
102,705
Amortisation and impairment
At 1 January 2022
50,879
Amortisation charged for the year
9,080
At 31 December 2022
59,959
Carrying amount
At 31 December 2022
42,746
At 31 December 2021
51,826
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
517,221
1,381,651
1,898,872
Additions
8,501
124,582
133,083
Disposals
(26,335)
(26,335)
At 31 December 2022
525,722
1,479,898
2,005,620
Depreciation and impairment
At 1 January 2022
113,622
1,065,316
1,178,938
Depreciation charged in the year
52,147
48,454
100,601
Eliminated in respect of disposals
(9,249)
(9,249)
At 31 December 2022
165,769
1,104,521
1,270,290
Carrying amount
At 31 December 2022
359,953
375,377
735,330
At 31 December 2021
403,599
316,335
719,934
5
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
2
2
6
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Arcflex Limited
i).
Ordinary
100.00
Registered office address:
i).
3 Tower Road, Meaford Business Park, Stone, Staffordshire, ST15 0WQ
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
738,826
715,638
Corporation tax recoverable
39,798
90,653
Amounts owed by group undertakings
530,471
559,180
Other debtors
8,269
8,269
Prepayments and accrued income
82,666
106,883
1,400,030
1,480,623
8
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
103,780
171,626
Other borrowings
531,713
713,075
Trade creditors
559,388
545,734
Amounts owed to group undertakings
387,085
409,122
Taxation and social security
320,718
214,024
Other creditors
65,604
8,419
Accruals and deferred income
308,891
183,786
2,277,179
2,245,786
Other borrowings includes amounts due in respect of an invoice discounting facility of £513,713 (2021: £713,075). The amount has been secured against the book debts of the company.
Bank overdrafts and loans are secured by way of a fixed and floating charge over all assets of the company.
9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
38,889
194,444
Loan from parent undertaking
374,086
412,975
194,444
Bank loans and borrowings are secured by way of fixed and floating charge over all assets of the company.
The loan from the company's parent company bears interest at 3% and is repayable by 31 January 2025.
ARCTREND LIMITED
T/A ARCFLEX
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
10
Provisions for liabilities
2022
2021
£
£
Dilapidations
20,000
20,000
Deferred tax liabilities
10,884
44,917
30,884
64,917
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Paul Maberly FCA
Statutory Auditor:
Mercer & Hole LLP
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
1,253,579
1,468,450
13
Related party transactions
The company has taken advantage of the exemption under FRS 102 section 33.1A, as a wholly owned subsidiary of Rattay Holding Limited and has not disclosed details of any transactions with any group companies.
14
Parent company
The company is a 100% owned subsidiary of Rattay Holding Limited, a company incorporated in England and Wales whose registered office is 3 Meaford Business Park, Meaford, Stone, Staffordshire ST15 0WQ..
The company's ultimate controlling entity is Rattay Group GmbH, a company incorporated in Germany. The registered office of Rattay Group GmbH is In der Beckuhl 20, 46569 Hünxe, Germany.
The smallest group within which the company's financial statements are consolidated are those of Rattay Holding Limited. The largest group within which the company's financial statements are consolidated are those of Rattay Group GmbH.
2022-12-312022-01-01false10 March 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityThis audit opinion is unqualifiedMr I ScuttMrs M Lawrence014920262022-01-012022-12-31014920262022-12-31014920262021-12-3101492026core:IntangibleAssetsOtherThanGoodwill2022-12-3101492026core:IntangibleAssetsOtherThanGoodwill2021-12-3101492026core:LandBuildings2022-12-3101492026core:OtherPropertyPlantEquipment2022-12-3101492026core:LandBuildings2021-12-3101492026core:OtherPropertyPlantEquipment2021-12-3101492026core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3101492026core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3101492026core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3101492026core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3101492026core:CurrentFinancialInstruments2022-12-3101492026core:CurrentFinancialInstruments2021-12-3101492026core:Non-currentFinancialInstruments2022-12-3101492026core:Non-currentFinancialInstruments2021-12-3101492026core:ShareCapital2022-12-3101492026core:ShareCapital2021-12-3101492026core:RetainedEarningsAccumulatedLosses2022-12-3101492026core:RetainedEarningsAccumulatedLosses2021-12-3101492026core:ShareCapital2020-12-3101492026core:RevaluationReserve2020-12-3101492026core:RetainedEarningsAccumulatedLosses2020-12-3101492026core:RevaluationReserve2021-12-3101492026core:RevaluationReserve2022-12-3101492026bus:Director12022-01-012022-12-3101492026core:RetainedEarningsAccumulatedLosses2021-01-012021-12-31014920262021-01-012021-12-3101492026core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3101492026core:RevaluationReserve2021-01-012021-12-3101492026core:IntangibleAssetsOtherThanGoodwill2022-01-012022-12-3101492026core:ComputerSoftware2022-01-012022-12-3101492026core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-01-012022-12-3101492026core:LeaseholdImprovements2022-01-012022-12-3101492026core:PlantMachinery2022-01-012022-12-3101492026core:FurnitureFittings2022-01-012022-12-3101492026core:IntangibleAssetsOtherThanGoodwill2021-12-3101492026core:LandBuildings2021-12-3101492026core:OtherPropertyPlantEquipment2021-12-31014920262021-12-3101492026core:LandBuildings2022-01-012022-12-3101492026core:OtherPropertyPlantEquipment2022-01-012022-12-3101492026core:Subsidiary12022-01-012022-12-3101492026core:Subsidiary112022-01-012022-12-3101492026bus:PrivateLimitedCompanyLtd2022-01-012022-12-3101492026bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-3101492026bus:FRS1022022-01-012022-12-3101492026bus:Audited2022-01-012022-12-3101492026bus:CompanySecretary12022-01-012022-12-3101492026bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP