Company registration number 10246867 (England and Wales)
Arctic Army Limited
Annual report and financial statements
For the period ended 24 April 2022
Pages for filing with registrar
ARCTIC ARMY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
ARCTIC ARMY LIMITED
BALANCE SHEET
AS AT 24 APRIL 2022
24 April 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
Tangible assets
5
54,122
Current assets
Stocks
136,095
Debtors
6
296,479
169,422
Cash at bank and in hand
26,160
5,003
322,639
310,520
Creditors: amounts falling due within one year
7
(130,658)
(843,976)
Net current assets/(liabilities)
191,981
(533,456)
Total assets less current liabilities
191,981
(479,334)
Creditors: amounts falling due after more than one year
8
(1,231,674)
(40,833)
Provisions for liabilities
(27,000)
Net liabilities
(1,066,693)
(520,167)
Capital and reserves
Called up share capital
9
4
4
Profit and loss reserves
(1,066,697)
(520,171)
Total equity
(1,066,693)
(520,167)
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 October 2022 and are signed on its behalf by:
B Banks
Director
Company Registration No. 10246867
ARCTIC ARMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 24 APRIL 2022
- 2 -
1
Accounting policies
Company information
Arctic Army Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Beaufort House, 113 Parson Street, Bristol, BS3 5QH.
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 a
mounts
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.
Arctic Army Limited is a subsidiary of Four (Holdings) Limited and the results of Arctic Army Limited are included in the consolidated financial statements of
Four (Holdings) Limited, the ultimate holding company,
which are available from
Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
1.2
Going concern
The accounts have been prepared on the going concern basis as the directors have confirmed that working capital will continue to be made available by other related entities as and when required to enable the company to meet its liabilities as they fall due for the foreseeable future. The company has a net deficit position of £1,066,693 (2021: £520,167).
true
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The current reporting period is 12 months ending 24 April 2022. The comparative figures are for 10 months ending 25 April 2021 Therefore, caution should be applied when comparing periods.
1.4
Turnover
Turnover
represents
royalties from the sales of own label clothing.
Turnover is recognised in the accounts at the point of sale of the clothing.
1.5
Intangible fixed assets other than goodwill
Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and
accumulated impairment losses.
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:
Trademarks
10 years straight line
ARCTIC ARMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 24 APRIL 2022
1
Accounting policies
(Continued)
- 3 -
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:
Fixtures and Fittings
5 years straight line
Plant and equipment
5 years straight line
Computer equipment
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
.
1.7
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.
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, 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.
1.9
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.
ARCTIC ARMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 24 APRIL 2022
1
Accounting policies
(Continued)
- 4 -
1.10
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 i
s
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 lease
s
asset are consumed.
1.14
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
ARCTIC ARMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 24 APRIL 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 5 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Depreciation and impairment of assets
Calculating depreciation and impairment involves judgement as to the useful life of assets and determining whether assets are impaired requires estimation of an asset's recoverable amount.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2022
2021
Number
Number
Total
5
5
4
Intangible fixed assets
Trademarks
£
Cost
At 26 April 2021
16,091
Additions
22,377
At 24 April 2022
38,468
Amortisation and impairment
At 26 April 2021
16,091
Impairment losses
22,377
At 24 April 2022
38,468
Carrying amount
At 24 April 2022
At 25 April 2021
ARCTIC ARMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 24 APRIL 2022
- 6 -
5
Tangible fixed assets
Plant and Machinery etc
£
Cost
At 26 April 2021 and 24 April 2022
84,739
Depreciation and impairment
At 26 April 2021
30,617
Depreciation charged in the period
16,948
Impairment losses
37,174
At 24 April 2022
84,739
Carrying amount
At 24 April 2022
At 25 April 2021
54,122
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
951
Amounts owed by group undertakings
131,060
Other debtors
165,419
168,471
296,479
169,422
ARCTIC ARMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 24 APRIL 2022
- 7 -
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
10,000
228,321
Trade creditors
22,467
212,548
Amounts owed to group undertakings
244,715
Taxation and social security
17,888
55,138
Other creditors
80,303
103,254
130,658
843,976
SDI Four Limited have a fixed and floating charge over the company's assets in respect of loans advanced to the Four (Holdings) group.
Four (Holdings) have a fixed and floating charge over the company's assets in respect of loans advanced to the company.
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
30,834
40,833
Amounts owed to group undertakings
1,200,840
1,231,674
40,833
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
408 Ordinary Shares of 1p each
408
408
4
4
10
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.
The senior statutory auditor was Sarah Yardley BSc ACA and the auditor was MGR Weston Kay LLP.
ARCTIC ARMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 24 APRIL 2022
- 8 -
11
Events after the reporting date
Post year end
the company exited the lease for their premises. Discussions regarding the exit were conducted at the year end with the company surrendering the lease shortly after in June 2022.
ARCTIC ARMY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 24 APRIL 2022
- 9 -
12
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS 102 Section 33 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company and the other subsidiaries are wholly owned subsidiary undertakings of the group to which they are party to the transactions.
Debtors include advances of £116,989 (2021: £113,500) due from
certain current and former
directors. The amounts are unsecured and repayable on demand. Interest has been charged on these amounts at official rates of interes
t.
During the period, purchases of £496 (2021: £4,762) were made from a related entity. At the period end, there was £Nil outstanding in respect of this (2021: £1,870).
During the period, purchases of £19,500 (2021: Nil) were made from a related entity. At the period end, there was £ Nil outstanding in respect of this (2021:£Nil).
During the period, company expenses totalling £22,632 (2021: £17,211) were paid for by a close family member of one of the directors and then reimbursed. At the period end, there was £Nil outstanding in respect of this (2021: £706).
At the balance sheet date a limited guarantee of £30,000 (2021: £30,000) has been provided by certain directors to the Company's bank.
13
Parent company
The immediate and ultimate parent company is Four (Holdings) Limited, a company incorporated in England & Wales. Copies of Four (Holdings) Limited accounts are available from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ
The smallest and largest group in which the group is consolidated is within Four (Holdings) Limited, whose registered office is 55 Loudoun Road, St John's Wood, London, NW8 0DL