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Company registration number: 06011512
Ark Construction (UK) Ltd
Unaudited filleted financial statements
30 September 2023
Ark Construction (UK) Ltd
Contents
Accountants report
Statement of financial position
Statement of changes in equity
Notes to the financial statements
Ark Construction (UK) Ltd
Accountant's Report to the director on the preparation of the
unaudited statutory financial statements of Ark Construction (UK) Ltd
Year ended 30 September 2023
As described on the statement of financial position, the director of the company is responsible for the preparation of the financial statements for the year ended 30 September 2023 which comprise the statement of financial position, statement of changes in equity and related notes.
You consider that the company is exempt from an audit under the Companies Act 2006. In accordance with your instructions we have compiled these unaudited financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and from information and explanations supplied to us.
Purcell & Co
Certified Public Accountants
204 Mauldeth Road
Burnage
Manchester
M19 1AJ
11 March 2024
Ark Construction (UK) Ltd
Statement of financial position
30 September 2023
2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 6 5,538 7,385
_______ _______
5,538 7,385
Current assets
Stocks 249,590 217,938
Debtors 7 63,721 38,965
Cash at bank and in hand 222,768 238,434
_______ _______
536,079 495,337
Creditors: amounts falling due
within one year 8 ( 180,751) ( 72,058)
_______ _______
Net current assets 355,328 423,279
_______ _______
Total assets less current liabilities 360,866 430,664
Provisions for liabilities ( 1,052) ( 1,759)
_______ _______
Net assets 359,814 428,905
_______ _______
Capital and reserves
Called up share capital 2 2
Profit and loss account 359,812 428,903
_______ _______
Shareholders funds 359,814 428,905
_______ _______
For the year ending 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The director acknowledges their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 11 March 2024 , and are signed on behalf of the board by:
Mr Shaun McNally
Director
Company registration number: 06011512
Ark Construction (UK) Ltd
Statement of changes in equity
Year ended 30 September 2023
Called up share capital Profit and loss account Total
£ £ £
At 1 October 2021 2 464,453 464,455
Profit for the year 75,034 75,034
_______ _______ _______
Total comprehensive income for the year - 75,034 75,034
Dividends paid and payable ( 110,584) ( 110,584)
_______ _______ _______
Total investments by and distributions to owners - ( 110,584) ( 110,584)
_______ _______ _______
At 30 September 2022 and 1 October 2022 2 428,903 428,905
Profit for the year 26,909 26,909
_______ _______ _______
Total comprehensive income for the year - 26,909 26,909
Dividends paid and payable ( 96,000) ( 96,000)
_______ _______ _______
Total investments by and distributions to owners - ( 96,000) ( 96,000)
_______ _______ _______
At 30 September 2023 2 359,812 359,814
_______ _______ _______
Ark Construction (UK) Ltd
Notes to the financial statements
Year ended 30 September 2023
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Ark Construction (UK) Ltd, 106 Towers Road, Poynton, Stockport, SK12 1DF.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 25 % reducing balance
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
4. Staff costs
The average number of persons employed by the company during the year amounted to 3 (2022: 2 ).
The aggregate payroll costs incurred during the year were:
2023 2022
£ £
Wages and salaries 33,042 20,682
Social security costs 967 578
_______ _______
34,009 21,260
_______ _______
5. Tax on profit
Major components of tax expense
2023 2022
£ £
Current tax:
UK current tax expense 6,579 18,184
_______ _______
Deferred tax:
Origination and reversal of timing differences ( 707) ( 112)
_______ _______
Tax on profit 5,872 18,072
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 19.00 % (2022: 19.00%).
2023 2022
£ £
Profit before taxation 32,781 93,106
_______ _______
Profit multiplied by rate of tax 6,228 17,690
Effect of expenses not deductible for tax purposes - 26
Effect of capital allowances and depreciation 351 468
_______ _______
Tax on profit 6,579 18,184
_______ _______
6. Tangible assets
Plant and machinery Motor vehicles Total
£ £ £
Cost
At 1 October 2022 and 30 September 2023 9,037 18,670 27,707
_______ _______ _______
Depreciation
At 1 October 2022 7,560 12,763 20,323
Charge for the year 369 1,477 1,846
_______ _______ _______
At 30 September 2023 7,929 14,240 22,169
_______ _______ _______
Carrying amount
At 30 September 2023 1,108 4,430 5,538
_______ _______ _______
At 30 September 2022 1,477 5,907 7,384
_______ _______ _______
7. Debtors
2023 2022
£ £
Trade debtors 38,364 38,022
Other debtors 25,357 943
_______ _______
63,721 38,965
_______ _______
8. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 71,037 1,222
Trade creditors 74,731 17,621
Corporation tax 6,579 18,184
Social security and other taxes 6,586 8,647
Other creditors 21,818 26,384
_______ _______
180,751 72,058
_______ _______
9. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023 2022
£ £
Included in provisions (note ) 1,052 1,759
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2023 2022
£ £
Accelerated capital allowances ( 707) ( 112)
_______ _______
10. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2023 2022
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 38,364 38,022
Cash at bank 222,768 238,434
_______ _______
261,132 276,456
_______ _______
Financial liabilities measured at amortised cost
Bank and other loans 71,037 1,222
Trade creditors & accruals 77,744 20,460
Other creditors 1,057 1,380
_______ _______
149,838 23,062
_______ _______
11. Directors advances, credits and guarantees
During the year the director entered into the following advances and credits with the company:
2023
Balance brought forward Advances /(credits) to the director Amounts repaid Balance o/standing
£ £ £ £
Mr Shaun McNally ( 1,380) - 323 ( 1,057)
_______ _______ _______ _______
2022
Balance brought forward Advances /(credits) to the director Amounts repaid Balance o/standing
£ £ £ £
Mr Shaun McNally 35,072 ( 36,452) - ( 1,380)
_______ _______ _______ _______
12. Controlling party
The company is controlled by Mr S McNally as he is a director and 50% shareholder in the company.