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REGISTERED NUMBER: 02235902 (England and Wales)














Unaudited Financial Statements

for the Year Ended 31 May 2023

for

Arrow Engineering Components Limited

Arrow Engineering Components Limited (Registered number: 02235902)






Contents of the Financial Statements
for the Year Ended 31 May 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Arrow Engineering Components Limited

Company Information
for the Year Ended 31 May 2023







DIRECTORS: Mr R Arrowsmith
Mrs J L Arrowsmith





SECRETARY: Mrs J L Arrowsmith





REGISTERED OFFICE: 72 Liverpool Street
Salford
Manchester
M5 4LT





REGISTERED NUMBER: 02235902 (England and Wales)





ACCOUNTANTS: Freedman Frankl & Taylor
Chartered Accountants
Reedham House
31 King Street West
Manchester
M3 2PJ

Arrow Engineering Components Limited (Registered number: 02235902)

Balance Sheet
31 May 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 129,262 123,543

CURRENT ASSETS
Stocks 5 455,000 475,000
Debtors 6 393,808 251,769
Cash in hand 76 -
848,884 726,769
CREDITORS
Amounts falling due within one year 7 586,201 478,155
NET CURRENT ASSETS 262,683 248,614
TOTAL ASSETS LESS CURRENT
LIABILITIES

391,945

372,157

CREDITORS
Amounts falling due after more than one year 8 (159,839 ) (226,852 )

PROVISIONS FOR LIABILITIES (28,797 ) (27,013 )
NET ASSETS 203,309 118,292

CAPITAL AND RESERVES
Called up share capital 165,000 165,000
Retained earnings 38,309 (46,708 )
SHAREHOLDERS' FUNDS 203,309 118,292

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2023 in accordance with Section 476 of the Companies Act 2006.

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.

Arrow Engineering Components Limited (Registered number: 02235902)

Balance Sheet - continued
31 May 2023


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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 February 2024 and were signed on its behalf by:





Mr R Arrowsmith - Director


Arrow Engineering Components Limited (Registered number: 02235902)

Notes to the Financial Statements
for the Year Ended 31 May 2023

1. STATUTORY INFORMATION

Arrow Engineering Components 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.

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 2% on cost
Plant and machinery - 10% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Tangible fixed assets are initially recorded at cost less accumulated depreciation and accumulated impairment losses.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

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.

Arrow Engineering Components Limited (Registered number: 02235902)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Operating lease rentals
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss account over the expected useful lives of the assets concerned. Other grants are credited to the profit and loss account as the related expenditure is incurred.

Going concern
The company's financial statements for the year ended 31 May 2023 have been prepared on a going concern basis as, after making appropriate enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2022 - 19 ) .

Arrow Engineering Components Limited (Registered number: 02235902)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

4. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 June 2022 12,400 372,370 69,946
Additions - 31,010 -
At 31 May 2023 12,400 403,380 69,946
DEPRECIATION
At 1 June 2022 3,424 288,576 66,559
Charge for year 248 19,327 359
At 31 May 2023 3,672 307,903 66,918
NET BOOK VALUE
At 31 May 2023 8,728 95,477 3,028
At 31 May 2022 8,976 83,794 3,387

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 June 2022 21,337 92,355 568,408
Additions - 9,117 40,127
At 31 May 2023 21,337 101,472 608,535
DEPRECIATION
At 1 June 2022 8,506 77,800 444,865
Charge for year 5,334 9,140 34,408
At 31 May 2023 13,840 86,940 479,273
NET BOOK VALUE
At 31 May 2023 7,497 14,532 129,262
At 31 May 2022 12,831 14,555 123,543

Arrow Engineering Components Limited (Registered number: 02235902)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

4. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
Additions 27,785
At 31 May 2023 27,785
DEPRECIATION
Charge for year 2,779
At 31 May 2023 2,779
NET BOOK VALUE
At 31 May 2023 25,006

5. STOCKS
2023 2022
£    £   
Goods for re-sale 455,000 475,000

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 379,736 224,306
Other debtors 14,072 27,463
393,808 251,769

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 86,133 152,924
Hire purchase contracts 8,336 -
Trade creditors 117,446 97,149
Taxation and social security 58,959 15,978
Other creditors 315,327 212,104
586,201 478,155

Arrow Engineering Components Limited (Registered number: 02235902)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans 150,809 226,852
Hire purchase contracts 9,030 -
159,839 226,852

9. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 13,370 84,712
Bank loans 223,572 295,064
Hire purchase contracts 17,366 -
254,308 379,776

10. RELATED PARTY DISCLOSURES

Included within the other creditors is the directors current account balance of £46,373 (2022: £66,634). There are no fixed repayment terms and no interest is chargeable to the company in respect of this balance.

The company's bank borrowings are secured on property owned personally by the directors. During the current and previous year the company occupied these premises. Rent of £30,000 was paid to the directors.

At the year end, the amount due to the Arrow Engineering Components Pension Scheme was £199 (2022: £199).