Company registration number 01582704 (England and Wales)
ARCTIC HAYES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
ARCTIC HAYES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
ARCTIC HAYES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
255,724
71,297
Current assets
Stocks
1,679,798
1,606,816
Debtors
4
7,738,485
6,324,247
Cash at bank and in hand
242,763
110,884
9,661,046
8,041,947
Creditors: amounts falling due within one year
5
(4,163,791)
(3,176,895)
Net current assets
5,497,255
4,865,052
Total assets less current liabilities
5,752,979
4,936,349
Creditors: amounts falling due after more than one year
6
(79,530)
(11,953)
Provisions for liabilities
(57,506)
(14,756)
Net assets
5,615,943
4,909,640
Capital and reserves
Called up share capital
89
89
Capital redemption reserve
11
11
Profit and loss reserves
5,615,843
4,909,540
Total equity
5,615,943
4,909,640
The directors of the company have 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 by the board of directors and authorised for issue on 31 July 2023 and are signed on its behalf by:
Mr L Parsons
Director
Company Registration No. 01582704
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Arctic Hayes Limited is a private company limited by shares incorporated in England and Wales. The registered office is 9 Millshaw Park Avenue, Leeds, LS11 0LR.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. true
Since the balance sheet date the company has further utilised its increased capacity and skill base to deliver profitable trading results, continuing the theme of recent years. Whilst certain macro economic uncertainties abound, the company has demonstrated through its response to recent global disruptions that it is agile and will successfully adapt to changing circumstances to maintain profitability. The company is well positioned with cash available and an experienced management team is in place, capable of managing the business through any challenges.
The directors have prepared and made reference to financial budgets covering more than twelve months from the date of approving these financial statements. The budgets support the view that the company will have sufficient liquid resources to discharge all liabilities as they fall due for payment. Consequently the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.
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.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5 years straight line
Plant and machinery
5 years straight line
Office equipment
4 years straight line
Computer equipment
3 to 5 years straight line
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stock is valued using the first in first out method of accounting. During the current year the company amended its valuation of stock by incorporating landed costs as they are necessarily incurred in bringing stock to the location and condition for onward sale. This is a change in accounting estimate and not a change in accounting policy, stated above, resulting in an increased balance sheet stock value of £104,332.
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
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 and loans from fellow group companies, are initially recognised at transaction price. 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. Trade creditors are recognised initially at transaction price.
1.10
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.
1.11
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.
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.15
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
27
26
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
3
Tangible fixed assets
Leasehold improvements
Plant and machinery
Office equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2022
93,377
26,093
188,740
308,210
Additions
153,269
84,621
2,200
14,200
254,290
At 31 December 2022
153,269
177,998
28,293
202,940
562,500
Depreciation and impairment
At 1 January 2022
62,078
24,916
149,919
236,913
Depreciation charged in the year
20,125
25,940
470
23,328
69,863
At 31 December 2022
20,125
88,018
25,386
173,247
306,776
Carrying amount
At 31 December 2022
133,144
89,980
2,907
29,693
255,724
At 31 December 2021
31,299
1,177
38,821
71,297
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
3,136,001
2,330,998
Amounts owed by group undertakings
4,443,655
3,882,355
Other debtors
158,829
110,894
7,738,485
6,324,247
5
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
1,707,978
1,065,239
Trade creditors
642,607
301,945
Amounts owed to group undertakings
50,100
Taxation and social security
604,378
538,194
Other creditors
1,208,828
1,221,417
4,163,791
3,176,895
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
5
Creditors: amounts falling due within one year
(Continued)
- 7 -
Bank loans and overdrafts include an ID facility totalling £1,087,303 (2021: £814,861) secured against the debtors to which they relate, trade finance loans totalling £554,966 (2021: £250,378) and bank loans totalling £57,422 (2021: £Nil) secured by way of a fixed and floating charge over all current and future assets of the company.
Other creditors include hire purchase agreements totalling £11,943 (2021: £17,696) secured against the assets to which they relate.
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
79,530
Other creditors
11,953
79,530
11,953
Bank loans and overdrafts include bank loans totalling £79,530 (2021: £Nil) secured by way of a fixed and floating charge over all current and future assets of the company.
Other creditors include hire purchase agreements totalling £Nil (2021: £11,953) secured against the assets to which they relate.
7
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:
Joe Sullivan
Statutory Auditor:
MHA Moore and Smalley
8
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
£
£
Within one year
185,476
216,233
Between two and five years
474,199
701,791
In over five years
659,675
918,024
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
9
Related party transactions
The company has taken advantage of the exemption permitted under Section 1AC.35 from disclosing any transactions entered into between two or members of the group, provided that any company which is a party to the transaction is a wholly owned group company.
10
Parent company
The company is a wholly owned subsidiary of A B Outsourcing Limited, a company incorporated in England and Wales. The registered office of A B Outsourcing Limited is 9 Millshaw Park Avenue, Leeds, LS11 0LR.
The largest and smallest group in which the results of the company are consolidated is that headed by A B Outsourcing Limited. Copies of the financial statements can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.