|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARCC INNOVATIONS LIMITED |
|
Financial Statements |
|
for the Year Ended 31 May 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARCC INNOVATIONS LIMITED |
|
Financial Statements |
|
for the Year Ended 31 May 2021 |
|
|
|
|
|
ARCC INNOVATIONS LIMITED (REGISTERED NUMBER: 08028128) |
|
Contents of the Financial Statements |
for the year ended 31 May 2021 |
|
|
|
|
|
|
|
|
|
|
Page |
|
Company Information | 1 |
|
Balance Sheet | 2 |
|
Notes to the Financial Statements | 3 |
|
ARCC INNOVATIONS LIMITED |
|
Company Information |
for the year ended 31 May 2021 |
|
|
|
|
|
|
|
Directors: |
|
|
|
|
|
|
|
|
Secretary: |
|
|
|
|
|
|
Registered office: |
|
|
|
|
|
|
|
|
Registered number: |
|
|
|
|
|
|
Accountants: |
|
Chartered Accountants |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
ARCC INNOVATIONS LIMITED (REGISTERED NUMBER: 08028128) |
|
Balance Sheet |
31 May 2021 |
|
2021 | 2020 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 4 |
|
|
|
Current assets |
Stocks | 5 |
|
|
Debtors | 6 |
|
|
Cash at bank and in hand |
|
|
|
|
Creditors |
Amounts falling due within one year | 7 |
|
|
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities | ( |
) | ( |
) |
|
Creditors |
Amounts falling due after more than one
year |
8 |
|
|
Net liabilities | ( |
) | ( |
) |
|
Capital and reserves |
Called up share capital | 9 |
|
|
Retained earnings | 10 | ( |
) | ( |
) |
Shareholders' funds | ( |
) | ( |
) |
|
|
|
|
|
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
|
|
|
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
ARCC INNOVATIONS LIMITED (REGISTERED NUMBER: 08028128) |
|
Notes to the Financial Statements |
for the year ended 31 May 2021 |
|
|
1. | Statutory information |
|
ARCC Innovations Limited is a
|
|
2. | Accounting policies |
|
Basis of preparing the financial statements |
|
|
Going concern |
Due to the climate created by coronavirus (COVID-19), the directors have had to examine the effects on the business of the company and believe its impact to have been minimal with no disruption to operations. |
|
The company meets its day-to-day working capital requirements through its directors' loans. The directors will provide the necessary financial support to enable the company to continue in operational existence and meet its liabilities as they fall due for the foreseeable future. The directors, therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, the directors continue to adopt the going concern basis in preparing the financial statements. |
|
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
Turnover |
Turnover comprises revenue recognised by the company in respect of goods exclusive of value added tax and trade discount. Turnover is recognised on despatch of goods from the warehouse. |
|
Tangible fixed assets |
Tangible assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the costs less estimated residual value of each asset over its expected useful life, as follows: |
|
Plant and machinery | 15% straight line |
Fixtures and fittings | 15% straight line |
Motor vehicles | 15% straight line |
Computer equipment | 25% straight line |
|
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
|
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
|
Research and development |
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit. |
ARCC INNOVATIONS LIMITED (REGISTERED NUMBER: 08028128) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2021 |
|
|
2. | Accounting policies - continued |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
|
Pension costs and other post-retirement benefits |
Short term employee benefits including holiday pay and annual bonuses are accrued as services are rendered. Contributions to defined contribution pension schemes are charged to profit or loss as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments in the balance sheet. |
|
Financial instruments policy |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
|
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
|
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management. |
|
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
|
Key sources of estimation uncertainty and judgements |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
|
There is uncertainty in calculating stock provisions. Slow moving and obsolete stocks are monitored during the year. Individual sales margins are reviewed to identify any stock sold at less than cost and provisions raised where necessary. Whilst every attempt is made to ensure that the stock provisions are as accurate as possible, there remain a risk that the provisions do not match the ultimate unrealised value of stock held. |
|
3. | Employees and directors |
|
The average number of employees during the year was
|
ARCC INNOVATIONS LIMITED (REGISTERED NUMBER: 08028128) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2021 |
|
|
4. | Tangible fixed assets |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 June 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31 May 2021 |
|
|
|
|
|
Depreciation |
At 1 June 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
At 31 May 2021 |
|
|
|
|
|
Net book value |
At 31 May 2021 |
|
|
|
|
|
At 31 May 2020 |
|
|
|
|
|
|
5. | Stocks |
2021 | 2020 |
£ | £ |
Raw materials |
|
|
Work-in-progress |
|
|
Finished goods |
|
|
|
|
|
6. | Debtors: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
|
|
|
7. | Creditors: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Taxation and social security |
|
|
Other creditors |
|
|
|
|
|
8. | Creditors: amounts falling due after more than one year |
2021 | 2020 |
£ | £ |
Other creditors |
|
|
ARCC INNOVATIONS LIMITED (REGISTERED NUMBER: 08028128) |
|
Notes to the Financial Statements - continued |
for the year ended 31 May 2021 |
|
|
9. | Called up share capital |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary | £1 | 100 | 100 |
|
10. | Reserves |
Retained |
earnings |
£ |
|
At 1 June 2020 | ( |
) |
Deficit for the year | ( |
) |
At 31 May 2021 | ( |
) |
|
11. | Related party disclosures |
|
As at the balance sheet date, ARCC Innovations Limited owed £3,825,635 (2020: £3,825,635) to a company controlled by the directors. |
|
Included within other creditors falling due after more than one year is £2,850,000 (2020: £1,950,000) owed to the directors of the company. The loan is unsecured and no interest is accruing on the loan. |
|
12. | Ultimate controlling party |
|
The company's parent company and largest group to consolidate these financial statements is Welbourne Holdings Limited, a company registered in England and Wales. |