Company registration number 08785322 (England and Wales)
ARK MEP PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
ARK MEP PLC
COMPANY INFORMATION
Directors
M J Finlay
A Stanton
A J Collinge
Secretary
A Stanton
Company number
08785322
Registered office
Unit 12 Loughton Business Centre
Langston Road
Loughton
Essex
United Kingdom
IG10 3FL
Auditor
HJS Accountants Limited
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
ARK MEP PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
ARK MEP PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

The last year has been a very difficult trading period in terms of inflationary pressures and supply chain interruptions albeit this seems to be calming in recent months in some areas still remain a problem. We are now used to the to these trading conditions and by having clear communications with both our clients and supply chain we are getting through most issues. We feel that in the circumstances the Company has performed well in a difficult period.

 

The contracts that we fulfilled during the year were not all profitable, and a readjustment of our fixed costs to help with the cost-of-living issues we have made a small loss over all. We have also taken on more technical staff to bolster our existing team and help deliver the many projects we are to complete in the coming year.

 

Going forward we anticipate an increase in turnover to be in excess of £2.5m, with our overheads under control and good partnerships with our suppliers we look forward to in the following year.

 

Principal risks and uncertainties

 

Economic Market

The company has deliberately been very selective of the works it is taking on and indeed the clients it works for. This policy is proving to be successful and resulted in an increase in net profit for the year ending March 2022. This trajectory is continuing in the current year and it is hoped that with the increased turnover we can easily build on last year’s profitability.

 

Our risks and uncertainties for the next 12 months as with all other businesses are will be fuel and energy which will affect all costs be it materials, energy or labour. Our pricing therefore becomes much more critical. An understanding from day one of where our risks exist on the project and who ultimately takes ownership of this allows us to plan and manage the project to minimise risks.

 

Key performance indicators

Our turnover for the year 2023 was £2,213,395, 2022 was of £1,902,236. This was mainly due to the selective tendering policy and some larger projects.

 

Our aim is to continue producing excellent quality work and collaborative working with our client base which we anticipate will help us maintain our position and continue our profitability moving forward.

Promoting the success of the company

The stakeholder being Michael Finlay who is also the Managing Director ensured that any key decisions made during would not be detrimental to either himself or the business as a whole.

 

There were no major changes that would affect the Company made and it continued on the same path.

 

Decisions taken during the year were to try and maintain the profitability of the Company during COVID. Consideration was also given to keeping all employees, be it on furlough or as direct working.

 

No major changes were made during the year in respect of the company’s current or future position within the industry

 

Suppliers were maintained with very little change in terms or delivery

 

ARK MEP PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

A Stanton
Director
29 September 2023
ARK MEP PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company continued to be that of electrical contractors.

 

Results and dividends

The results for the year are set out on page 8.

 

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M J Finlay
A Stanton
A J Collinge
Post reporting date events

Unfortunately, due to the vagaries of the construction market and inflation within our supply chain we have to report a loss for the year of 5.83%. I am pleased to report that turnover has increased in line with our forecast. We have seen a settling of the turbulent market and supply chain costs in the last few months and this will hold us in good stead going forward. The company has a solid forward order book and the prospects for this year in terms of growth and profit appear much stronger. With a focused management team we are well placed to deal with these challenges ahead.

 

Future developments

Going forward we anticipate an increase in our turnover which should be in excess of £2.5m. Our overheads are well controlled so we would look forward to a profitable year.

 

Auditor

In accordance with the company's articles, a resolution proposing that HJS Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
A Stanton
Director
29 September 2023
ARK MEP PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ARK MEP PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ARK MEP PLC
- 5 -
Opinion

We have audited the financial statements of Ark MEP Plc (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ARK MEP PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ARK MEP PLC
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as those governed by the relevant Health & Safety and Planning Standards authorities within the UK. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements.

Audit procedures performed by the audit engagement team included:

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though collusion.

ARK MEP PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ARK MEP PLC
- 7 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Angela Trainor
Senior Statutory Auditor
For and on behalf of HJS Accountants Limited
29 September 2023
Chartered Accountants and Statutory Auditor
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
ARK MEP PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
2,213,395
1,902,235
Cost of sales
(2,006,570)
(1,209,346)
Gross profit
206,825
692,889
Administrative expenses
(324,781)
(530,547)
Operating (loss)/profit
4
(117,956)
162,342
Interest payable and similar expenses
7
(64)
(43)
(Loss)/profit before taxation
(118,020)
162,299
Tax on (loss)/profit
8
18,281
(33,892)
(Loss)/profit for the financial year
(99,739)
128,407

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ARK MEP PLC
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Tangible assets
9
11,000
-
0
Current assets
Debtors
10
857,680
530,888
Cash at bank and in hand
98,485
135,536
956,165
666,424
Creditors: amounts falling due within one year
11
(783,093)
(382,613)
Net current assets
173,072
283,811
Net assets
184,072
283,811
Capital and reserves
Called up share capital
13
50,000
50,000
Profit and loss reserves
134,072
233,811
Total equity
184,072
283,811
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
A Stanton
Director
Company Registration No. 08785322
ARK MEP PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
50,000
105,404
155,404
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
128,407
128,407
Balance at 31 March 2022
50,000
233,811
283,811
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
(99,739)
(99,739)
Balance at 31 March 2023
50,000
134,072
184,072
ARK MEP PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
10,973
95,311
Interest paid
(64)
(43)
Income taxes paid
(35,960)
(2,555)
Net cash (outflow)/inflow from operating activities
(25,051)
92,713
Investing activities
Purchase of tangible fixed assets
(12,000)
-
0
Loans made to other entities
-
0
(6,380)
Net cash used in investing activities
(12,000)
(6,380)
Net (decrease)/increase in cash and cash equivalents
(37,051)
86,333
Cash and cash equivalents at beginning of year
135,536
49,203
Cash and cash equivalents at end of year
98,485
135,536
ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information

Ark MEP Plc is a private company limited by shares incorporated in England and Wales. The registered office is Unit 12 Loughton Business Centre, Langston Road, Loughton, Essex, United Kingdom, IG10 3FL.

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.

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

Atruet 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
Turnover

Turnover represents net invoiced sales of services, excluding value added tax, valued by quantity surveyors on a project by project basis. Where part of the project has been completed but not invoiced this is included in accrued income.

1.4
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:

Motor vehicles
25% and 33% 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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets. A provision is made for any impairment loss and taken to the profit and loss account.

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.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
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.

1.7
Financial instruments

The company only enters into Basic financial instrument transactions.

 

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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
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.

1.9
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Current tax

The current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in the tax assessments.

 

Unrelieved tax losses and other 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.

 

The company's liability for current and deferred tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 income 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 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.

 

The only key judgement and estimation in the year is the valuation of the works carried out as at the year end by surveyors.

ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
3
Turnover

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Projects
2,213,395
1,902,235
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,850
4,878
Depreciation of owned tangible fixed assets
1,000
-
Operating lease charges
3,855
6,195
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
1
1
Adminstration
1
1
Direct Costs
2
2
Total
4
4

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
396,923
409,812
Social security costs
39,019
31,013
Pension costs
5,441
4,296
441,383
445,121
ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
172,000
257,667
Company pension contributions to defined contribution schemes
1,321
1,321
173,321
258,988

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
-
141,000

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
64
43
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
33,886
Adjustments in respect of prior periods
(18,281)
6
Total current tax
(18,281)
33,892

In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase to 25%. This was substantively enacted on 24 May 2021. This rate has not been used as there is no deferred tax.

ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Taxation
(Continued)
- 18 -

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(118,020)
162,299
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(22,424)
30,837
Tax effect of expenses that are not deductible in determining taxable profit
-
0
3,049
Tax effect of utilisation of tax losses not previously recognised
4,143
-
0
Under/(over) provided in prior years
-
0
6
Taxation (credit)/charge for the year
(18,281)
33,892
9
Tangible fixed assets
Motor vehicles
£
Cost
At 1 April 2022
10,673
Additions
12,000
At 31 March 2023
22,673
Depreciation and impairment
At 1 April 2022
10,673
Depreciation charged in the year
1,000
At 31 March 2023
11,673
Carrying amount
At 31 March 2023
11,000
At 31 March 2022
-
0
ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
85,792
9,456
Unpaid share capital
37,500
37,500
Corporation tax recoverable
25,501
-
0
Other debtors
96,026
119,973
Prepayments and accrued income
612,861
363,959
857,680
530,888
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
287,635
74,814
Corporation tax
-
0
28,740
Other taxation and social security
16,632
17,925
Other creditors
272,343
6,740
Accruals and deferred income
206,483
254,394
783,093
382,613
12
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,441
4,296

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the year end the company owed £855 (2021: £766) to the pension fund.

13
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary of £1 each
50,000
50,000
50,000
50,000

The company has one class of ordinary shares which carry no right to fixed income.

There are 50,000 Ordinary shares issued with 12,500 being fully paid and 37,500 being unpaid.

ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
14
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
-
0
16,693
15
Related party transactions
Remuneration of key management personnel

The key management personel is that of the directors only.

Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
2023
2022
£
£
Entities under common control
2,018,956
1,820,382

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities under common control
275,332
279,764
16
Directors' transactions

 

Description
% Rate
Opening balance
Closing balance
£
£
M J Finlay - Directors' Loan Account
-
6,380
6,380
6,380
6,380
17
Ultimate controlling party

The ultimate controlling party is that of the director, M J Finlay.

ARK MEP PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
18
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(99,739)
128,407
Adjustments for:
Taxation (credited)/charged
(18,281)
33,892
Finance costs
64
43
Depreciation and impairment of tangible fixed assets
1,000
-
0
Movements in working capital:
Increase in debtors
(301,291)
(126,446)
Increase in creditors
429,220
59,415
Cash generated from operations
10,973
95,311
19
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
135,536
(37,051)
98,485
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200M J FinlayA J CollingeA J CollingeA Stanton087853222022-04-012023-03-3108785322bus:Director12022-04-012023-03-3108785322bus:CompanySecretaryDirector12022-04-012023-03-3108785322bus:Director22022-04-012023-03-3108785322bus:CompanySecretary12022-04-012023-03-3108785322bus:Director32022-04-012023-03-3108785322bus:RegisteredOffice2022-04-012023-03-31087853222023-03-31087853222021-04-012022-03-31087853222022-03-3108785322core:MotorVehicles2023-03-3108785322core:MotorVehicles2022-03-3108785322core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3108785322core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3108785322core:CurrentFinancialInstruments2023-03-3108785322core:CurrentFinancialInstruments2022-03-3108785322core:ShareCapital2023-03-3108785322core:ShareCapital2022-03-3108785322core:RetainedEarningsAccumulatedLosses2023-03-3108785322core:RetainedEarningsAccumulatedLosses2022-03-3108785322core:ShareCapital2021-03-3108785322core:RetainedEarningsAccumulatedLosses2021-03-31087853222022-03-31087853222021-03-3108785322core:MotorVehicles2022-04-012023-03-3108785322core:UKTax2022-04-012023-03-3108785322core:UKTax2021-04-012022-03-310878532212022-04-012023-03-310878532212021-04-012022-03-3108785322core:MotorVehicles2022-03-3108785322core:WithinOneYear2023-03-3108785322core:WithinOneYear2022-03-3108785322bus:PrivateLimitedCompanyLtd2022-04-012023-03-3108785322bus:FRS1022022-04-012023-03-3108785322bus:Audited2022-04-012023-03-3108785322bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP