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REGISTERED NUMBER: 07290596 (England and Wales)





















RED ARCH MANUFACTURING LIMITED

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023






RED ARCH MANUFACTURING LIMITED (REGISTERED NUMBER: 07290596)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3 to 7


RED ARCH MANUFACTURING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2023







DIRECTORS: M R Theaker
Dr M Gore
D J Wykes
S A Fletcher





REGISTERED OFFICE: March House
Long March Industrial Estate
Daventry
Northamptonshire
NN11 4NR





REGISTERED NUMBER: 07290596 (England and Wales)





AUDITORS: Phipps Henson McAllister
Chartered Accountants
and Statutory Auditors
22-24 Harborough Road
Kingsthorpe
Northampton
NN2 7AZ

RED ARCH MANUFACTURING LIMITED (REGISTERED NUMBER: 07290596)

BALANCE SHEET
31 JULY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 1,017,340 985,730

CURRENT ASSETS
Stocks 1,296,559 1,196,808
Debtors 5 3,802,846 2,160,700
Cash at bank 355,136 498,516
5,454,541 3,856,024
CREDITORS
Amounts falling due within one year 6 2,953,922 2,129,947
NET CURRENT ASSETS 2,500,619 1,726,077
TOTAL ASSETS LESS CURRENT LIABILITIES 3,517,959 2,711,807

CREDITORS
Amounts falling due after more than one
year

7

(180,000

)

(270,000

)

PROVISIONS FOR LIABILITIES 10 (211,399 ) (149,052 )
NET ASSETS 3,126,560 2,292,755

CAPITAL AND RESERVES
Called up share capital 11 9 9
Share premium 8,515 8,515
Capital redemption reserve 2 2
Retained earnings 3,118,034 2,284,229
SHAREHOLDERS' FUNDS 3,126,560 2,292,755

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 9 November 2023 and were signed on its behalf by:





M R Theaker - Director


RED ARCH MANUFACTURING LIMITED (REGISTERED NUMBER: 07290596)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023


1. STATUTORY INFORMATION

Red Arch Manufacturing Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from long term contracts is recognised by reference to the stage of completion of the contract. The stage of completion is determined according to the nature of the specific contract concerned. Profit attributable to the contract activity is recognised if the final outcome of such contracts can be reliably assessed.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 10% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - Straight line over 3 years

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.

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.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


RED ARCH MANUFACTURING LIMITED (REGISTERED NUMBER: 07290596)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off 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.

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 53 (2022 - 45 ) .

RED ARCH MANUFACTURING LIMITED (REGISTERED NUMBER: 07290596)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


4. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 August 2022 24,371 1,551,301 270,127
Additions - 127,670 -
At 31 July 2023 24,371 1,678,971 270,127
DEPRECIATION
At 1 August 2022 7,311 664,948 195,312
Charge for year 4,874 75,417 14,963
At 31 July 2023 12,185 740,365 210,275
NET BOOK VALUE
At 31 July 2023 12,186 938,606 59,852
At 31 July 2022 17,060 886,353 74,815

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 August 2022 24,645 65,685 1,936,129
Additions - 879 128,549
At 31 July 2023 24,645 66,564 2,064,678
DEPRECIATION
At 1 August 2022 18,613 64,215 950,399
Charge for year 1,508 177 96,939
At 31 July 2023 20,121 64,392 1,047,338
NET BOOK VALUE
At 31 July 2023 4,524 2,172 1,017,340
At 31 July 2022 6,032 1,470 985,730

Included in the carrying value of Tangible Fixed Assets is £nil (2022: £134,632) in respect of machinery purchased using asset finance arrangements.

RED ARCH MANUFACTURING LIMITED (REGISTERED NUMBER: 07290596)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,097,778 1,059,551
Amounts recoverable on contract 291,327 320,157
Other debtors 413,741 780,992
3,802,846 2,160,700

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 90,000 125,467
Trade creditors 2,396,401 1,368,378
Taxation and social security 241,362 68,096
Other creditors 226,159 568,006
2,953,922 2,129,947

The bank borrowings are secured by fixed and floating charges over the assets of the business.

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans 180,000 270,000

The bank borrowings are secured by fixed and floating charges over the assets of the business.

8. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 210,278 207,449
Between one and five years 158,738 369,016
369,016 576,465

9. SECURED DEBTS

The bank borrowings are secured by fixed and floating charges over the assets of the business.

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 211,399 149,052

RED ARCH MANUFACTURING LIMITED (REGISTERED NUMBER: 07290596)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023


10. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 August 2022 149,052
Charge to Income Statement during year 62,347
Balance at 31 July 2023 211,399

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
850 Ordinary 0.01 9 9

12. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Stuart Armstrong FCCA (Senior Statutory Auditor)
for and on behalf of Phipps Henson McAllister

13. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £9,914 (2022: £8,182) were payable to the fund at the balance sheet date and are included in Other creditors.

14. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 37,982

15. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The Directors have provided personal guarantees totalling £45,000 in respect of the company's borrowings.

16. POST BALANCE SHEET EVENTS

On 1 August 2023, the entire share capital of the company was acquired by Red Arch Holdings Limited (company number 14926558).

17. ULTIMATE CONTROLLING PARTY

Following the successful acquisition of 100% of Red Arch Manufacturing Limited shares by Red Arch Holdings Limited on 1 August 2023, the ultimate controlling party is Dr M Gore by virtue of his majority shareholding in Red Arch Holdings Limited.