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REGISTERED NUMBER: 11266871 (England and Wales)












GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

FOR

ARROW COMMERCIAL HOLDINGS LIMITED

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Income Statement 10

Consolidated Other Comprehensive Income 11

Consolidated Balance Sheet 12

Company Balance Sheet 14

Consolidated Statement of Changes in Equity 16

Company Statement of Changes in Equity 17

Consolidated Cash Flow Statement 18

Notes to the Consolidated Cash Flow Statement 19

Notes to the Consolidated Financial Statements 21


ARROW COMMERCIAL HOLDINGS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: Mr R E Hill
Mr J R Hill
Mrs R E Hill-Birtles



REGISTERED OFFICE: Grove Garage
Guy Edge
Linthwaite
Huddersfield
West Yorkshire
HD7 5TQ



REGISTERED NUMBER: 11266871 (England and Wales)



AUDITORS: Gibson Booth Limited
Statutory Auditor
12 Victoria Road
Barnsley
South Yorkshire
S70 2BB



BANKERS: HSBC Bank PLC
Carmel House
49-63 Fargate
Sheffield
South Yorkshire
S1 2HD

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their strategic report of the company and the group for the year ended 31 March 2024.

REVIEW OF BUSINESS
The group hires out commercial vehicles and cars throughout the Yorkshire region. The company purchases new vehicles for the hire fleet, the purchasing decisions are made by looking at customer demand, vehicle price, residual value, vehicle availability, vehicle specification, vehicle quality, manufacturer warranty and manufacturer support. We are also now beginning to see some demand for electric vehicles.

As a business we look to purchase robust quality vehicles that will give our customers the best experience while on hire. The decisions on disposal of vehicles are based on market conditions, residual value, customer demand and running costs. The disposal of vehicles from our fleet is done mainly through trade channels with a select number of vehicles sold through retail channels.

The results for the year end are consistent with the expectations of the board of directors.

Within the financial year the group has purchased some commercial land in Huddersfield, which once developed will be occupied by our subsidiary company.

VEHICLE HIRE MARKET

The vehicle hire market has remained strong throughout this financial year. Due to the increases in new vehicle cost our rental rates have also followed this trend. We have seen new vehicle availability begin to return to reasonable timescales.

OBJECTIVES

The group is looking to expand in a very controlled manor by dealing with local businesses who appreciate a higher level of personal service that a national company cannot offer. The group looks to deal with well established, financially strong businesses.

STRATEGY

The group will continue to use the above model to meet its objectives.

PRINCIPAL RISKS AND UNCERTAINTIES
The group's operations expose it to a variety of financial risks including the effects of interest rate changes and credit risk. As a business we have a platform in place to ensure that all clients financial information is monitored ensuring credit limits are appropriate for the customer. Most new customers pay via direct debit which ensures prompt payment terms.


ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

KEY PERFORMANCE INDICATORS
The group uses a number of KPI's to ensure that the business is on target to meet its objectives. These KPI's include rate per day, utilisation, whole life vehicle cost and profit per unit. We continue to work to the standards of ISO 9001 2008 which ensures that we have the correct quality assurance methods in place.

ON BEHALF OF THE BOARD:





Mr J R Hill - Director


15 August 2024

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of car and commercial vehicle hire and sales.

DIVIDENDS
The total distribution of dividends for the year ended 31 March 2024 will be £ 324,640 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

Mr R E Hill
Mr J R Hill
Mrs R E Hill-Birtles

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


AUDITORS
The auditors, Gibson Booth Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr J R Hill - Director


15 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARROW COMMERCIAL HOLDINGS LIMITED

Opinion
We have audited the financial statements of Arrow Commercial Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARROW COMMERCIAL HOLDINGS LIMITED


Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARROW COMMERCIAL HOLDINGS LIMITED


Auditors' 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 a Report of the Auditors 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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We design audit procedures to respond to the risk, recognising that 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 through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to the Companies Act 2006. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARROW COMMERCIAL HOLDINGS LIMITED


Use of our report
This report is made solely to the company's members, as a body, 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 members those matters we are required to state to them in a Report of the Auditors 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 members as a body, for our audit work, for this report, or for the opinions we have formed.




Robert Watson FCA (Senior Statutory Auditor)
for and on behalf of Gibson Booth Limited
Statutory Auditor
12 Victoria Road
Barnsley
South Yorkshire
S70 2BB

15 August 2024

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

31.3.24 31.3.23
Notes £    £   

TURNOVER 3 13,597,013 13,137,331

Cost of sales 8,825,861 8,759,047
GROSS PROFIT 4,771,152 4,378,284

Administrative expenses 2,999,154 2,804,187
OPERATING PROFIT 5 1,771,998 1,574,097

Interest receivable and similar income 64,201 17,448
1,836,199 1,591,545

Interest payable and similar expenses 7 33,845 25,968
PROFIT BEFORE TAXATION 1,802,354 1,565,577

Tax on profit 8 432,859 332,213
PROFIT FOR THE FINANCIAL YEAR 1,369,495 1,233,364
Profit attributable to:
Owners of the parent 1,369,495 1,233,364

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

31.3.24 31.3.23
Notes £    £   

PROFIT FOR THE YEAR 1,369,495 1,233,364


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,369,495

1,233,364

Total comprehensive income attributable to:
Owners of the parent 1,369,495 1,233,364

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

CONSOLIDATED BALANCE SHEET
31 MARCH 2024

31.3.24 31.3.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 644,168 795,736
Tangible assets 12 18,647,378 18,131,256
Investments 13 - -
19,291,546 18,926,992

CURRENT ASSETS
Stocks 14 84,846 91,602
Debtors 15 2,962,787 2,157,732
Cash at bank and in hand 2,655,537 4,186,059
5,703,170 6,435,393
CREDITORS
Amounts falling due within one year 16 8,567,845 8,879,660
NET CURRENT LIABILITIES (2,864,675 ) (2,444,267 )
TOTAL ASSETS LESS CURRENT LIABILITIES 16,426,871 16,482,725

CREDITORS
Amounts falling due after more than one
year

17

(8,146,627

)

(9,222,624

)

PROVISIONS FOR LIABILITIES 22 - (24,712 )
NET ASSETS 8,280,244 7,235,389

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

CONSOLIDATED BALANCE SHEET - continued
31 MARCH 2024

31.3.24 31.3.23
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 23 10 10
Share premium 24 3,923,278 3,923,278
Retained earnings 24 4,356,956 3,312,101
SHAREHOLDERS' FUNDS 8,280,244 7,235,389


The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2024 and were signed on its behalf by:





Mr J R Hill - Director


ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

COMPANY BALANCE SHEET
31 MARCH 2024

31.3.24 31.3.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 1,037,042 -
Investments 13 7,846,556 7,846,556
8,883,598 7,846,556

CURRENT ASSETS
Debtors 15 194,758 -
Cash at bank 278 180
195,036 180
CREDITORS
Amounts falling due within one year 16 4,821,755 3,484,416
NET CURRENT LIABILITIES (4,626,719 ) (3,484,236 )
TOTAL ASSETS LESS CURRENT LIABILITIES 4,256,879 4,362,320

CREDITORS
Amounts falling due after more than one
year

17

333,333

433,333
NET ASSETS 3,923,546 3,928,987

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

COMPANY BALANCE SHEET - continued
31 MARCH 2024

31.3.24 31.3.23
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 23 10 10
Share premium 3,923,278 3,923,278
Retained earnings 258 5,699
SHAREHOLDERS' FUNDS 3,923,546 3,928,987

Company's profit for the financial year 319,199 318,371


The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2024 and were signed on its behalf by:





Mr J R Hill - Director


ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 April 2022 10 2,397,877 3,923,278 6,321,165

Changes in equity
Dividends - (319,140 ) - (319,140 )
Total comprehensive income - 1,233,364 - 1,233,364
Balance at 31 March 2023 10 3,312,101 3,923,278 7,235,389

Changes in equity
Dividends - (324,640 ) - (324,640 )
Total comprehensive income - 1,369,495 - 1,369,495
Balance at 31 March 2024 10 4,356,956 3,923,278 8,280,244

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 April 2022 10 6,468 3,923,278 3,929,756

Changes in equity
Dividends - (319,140 ) - (319,140 )
Total comprehensive income - 318,371 - 318,371
Balance at 31 March 2023 10 5,699 3,923,278 3,928,987

Changes in equity
Dividends - (324,640 ) - (324,640 )
Total comprehensive income - 319,199 - 319,199
Balance at 31 March 2024 10 258 3,923,278 3,923,546

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

31.3.24 31.3.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 7,123,595 6,978,968
Interest paid (33,845 ) (25,968 )
Interest element of hire purchase
payments paid

(969,533

)

(590,963

)
Tax paid (480,817 ) (494,697 )
Net cash from operating activities 5,639,400 5,867,340

Cash flows from investing activities
Purchase of tangible fixed assets (8,721,869 ) (8,315,667 )
Sale of tangible fixed assets 3,182,474 3,072,559
Interest received 64,201 17,448
Net cash from investing activities (5,475,194 ) (5,225,660 )

Cash flows from financing activities
Loan repayments in year (100,000 ) (100,000 )
Interest charged in year 5,240 8,952
Capital repayments in year (1,292,835 ) (260,719 )
Amount introduced by directors 210,000 229,141
Amount withdrawn by directors (192,493 ) (304,377 )
Equity dividends paid (324,640 ) (319,140 )
Net cash from financing activities (1,694,728 ) (746,143 )

Decrease in cash and cash equivalents (1,530,522 ) (104,463 )
Cash and cash equivalents at beginning
of year

2

4,186,059

4,290,522

Cash and cash equivalents at end of
year

2

2,655,537

4,186,059

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.3.24 31.3.23
£    £   
Profit before taxation 1,802,354 1,565,577
Depreciation charges 6,709,949 6,422,154
Profit on disposal of fixed assets (1,786,775 ) (1,501,011 )
Hire purchase charges 969,533 590,964
Transfer motor vehicles to trade debtors 251,667 -
Finance costs 33,845 25,968
Finance income (64,201 ) (17,448 )
7,916,372 7,086,204
Decrease/(increase) in stocks 6,756 (6,080 )
(Increase)/decrease in trade and other debtors (670,838 ) 43,771
Decrease in trade and other creditors (128,695 ) (144,927 )
Cash generated from operations 7,123,595 6,978,968

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 2,655,537 4,186,059
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 4,186,059 4,290,522


ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank and in hand 4,186,059 (1,530,522 ) 2,655,537
4,186,059 (1,530,522 ) 2,655,537
Debt
Finance leases (15,320,177 ) 1,292,835 (14,027,342 )
Debts falling due within 1 year (120,809 ) (5,240 ) (126,049 )
Debts falling due after 1 year (433,333 ) 100,000 (333,333 )
(15,874,319 ) 1,387,595 (14,486,724 )
Total (11,688,260 ) (142,927 ) (11,831,187 )

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1. STATUTORY INFORMATION

Arrow Commercial Holdings 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 General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling which is the functional currency of the entity and rounded to the nearest pound.

Basis of consolidation
The consolidated financial statements comprise the results of the parent company, Arrow Commercial Holdings Limited and its subsidiary Arrow Commercial Centre (Huddersfield) Limited.

Significant judgements and estimates
In the process of applying the group's accounting policies as described below, the directors have made the following judgement concerning motor vehicles for hire that has the most significant effect on the amounts recognised in the financial statements and will have an impact on the next 12 months.

Depreciation:
Vehicles for hire are depreciated on a straight line basis using depreciation rates that reflect economic lives of between four and six years.These depreciation rates have been determined by consideration of many factors including used car market conditions, anticipating holding periods, vehicle models and historical experience. Management regularly monitor depreciation charges and the need, if any to adjust the annual charge based on vehicle mileage, used condition and other industry factors.

There are no other key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year.

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

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

Sale of vehicles
Turnover from the sale of vehicles is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually at the point that the customer has signed the vehicle log book.

Rendering of services
When the outcome of a transaction can be estimated reliably, turnover from vehicle hire is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to length of the contract completed.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Fixed assets are all initially recorded at original cost. Depreciation is calculated so as to write off the cost of an asset over the useful economic life of that asset as follows:

Plant and equipment - 20% straight line
Motor vehicles - 16.7% to 25% straight line
Computer equipment - 33.3% straight line
Freehold property - 2% straight line

Freehold land (included within freehold property) is not depreciated.

Vehicles subject to a manufacturer or dealer buy-back commitment, that have a contractual holding period of less than 12 months, are recognised as current assets and are recognised at the contractual buy-back price, under trade debtors.

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

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

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

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.

Employee benefits
Short term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is applied monthly at variable rates and is released to the profit and loss account.

Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

31.3.24 31.3.23
£    £   
Vehicle sales and repair 648,405 721,123
Vehicle hire 12,948,608 12,416,208
13,597,013 13,137,331

4. EMPLOYEES AND DIRECTORS
31.3.24 31.3.23
£    £   
Wages and salaries 1,902,546 1,938,620
Social security costs 188,396 200,492
Other pension costs 140,045 58,075
2,230,987 2,197,187

The average number of employees during the year was as follows:
31.3.24 31.3.23

Mechanics, drivers and valeters 38 42
Administration and sales 26 30
Directors 3 3
67 75

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

4. EMPLOYEES AND DIRECTORS - continued

31.3.24 31.3.23
£    £   
Directors' remuneration 70,953 126,436
Directors' pension contributions to money purchase schemes 81,000 6,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.3.24 31.3.23
£    £   
Depreciation - owned assets 6,558,381 6,270,586
Profit on disposal of fixed assets (1,786,775 ) (1,501,011 )
Goodwill amortisation 151,568 151,569

6. AUDITORS' REMUNERATION

31.3.24 31.3.23
£ £
Fees payable to the company's auditors for the audit of
the company's and consolidated financial statements


1,000


1,200
Audit fees of subsidiaries 17,000 16,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.24 31.3.23
£ £
Other interest 33,845 25,967
Hire purchase charges 969,533 590,964

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.3.24 31.3.23
£    £   
Current tax:
UK corporation tax 591,788 414,202

Deferred tax (158,929 ) (81,989 )
Tax on profit 432,859 332,213

UK corporation tax has been charged at 25 % (2023 - 19 %).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.24 31.3.23
£    £   
Profit before tax 1,802,354 1,565,577
Profit multiplied by the standard rate of corporation tax in the UK of
25 % (2023 - 19 %)

450,589

297,460

Effects of:
Expenses not deductible for tax purposes 838 3,429
Depreciation in excess of capital allowances 549,163 369,707
Profit on disposal of fixed assets (446,694 ) (285,192 )
Deferred tax adjustment (158,929 ) (81,989 )
Amortisation of goodwill 37,892 28,798

carried forward
Total tax charge 432,859 332,213

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

10. DIVIDENDS
31.3.24 31.3.23
£    £   
Ordinary shares of 1p each
Interim 324,640 319,140

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 April 2023
and 31 March 2024 1,515,688
AMORTISATION
At 1 April 2023 719,952
Amortisation for year 151,568
At 31 March 2024 871,520
NET BOOK VALUE
At 31 March 2024 644,168
At 31 March 2023 795,736

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

12. TANGIBLE FIXED ASSETS

Group
Freehold Short Plant and
property leasehold machinery
£    £    £   
COST
At 1 April 2023 14,077 - 561,678
Additions 1,029,747 7,295 25,765
Disposals - - (5,433 )
Cost on acquisition - - -
At 31 March 2024 1,043,824 7,295 582,010
DEPRECIATION
At 1 April 2023 2,957 - 425,672
Charge for year 282 - 45,771
Eliminated on disposal - - (5,433 )
Depreciation on acquisition - - -
At 31 March 2024 3,239 - 466,010
NET BOOK VALUE
At 31 March 2024 1,040,585 7,295 116,000
At 31 March 2023 11,120 - 136,006

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

12. TANGIBLE FIXED ASSETS - continued

Group

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 April 2023 39,320,070 194,198 40,090,023
Additions 7,655,548 3,514 8,721,869
Disposals (5,968,978 ) (4,351 ) (5,978,762 )
Cost on acquisition (273,387 ) - (273,387 )
At 31 March 2024 40,733,253 193,361 42,559,743
DEPRECIATION
At 1 April 2023 21,339,930 190,208 21,958,767
Charge for year 6,509,700 2,628 6,558,381
Eliminated on disposal (4,573,279 ) (4,351 ) (4,583,063 )
Depreciation on acquisition (21,720 ) - (21,720 )
At 31 March 2024 23,254,631 188,485 23,912,365
NET BOOK VALUE
At 31 March 2024 17,478,622 4,876 18,647,378
At 31 March 2023 17,980,140 3,990 18,131,256

Included within the net book value of £17,478,622 is £16,372,209 relating to motor vehicles held under hire purchase agreements (2023: £17,313,605). The depreciation charged to the financial statements in the year in respect of such assets amounted to £5,215,309 (2023: £5,282,027).

Company
Freehold Short
property leasehold Totals
£    £    £   
COST
Additions 1,029,747 7,295 1,037,042
At 31 March 2024 1,029,747 7,295 1,037,042
NET BOOK VALUE
At 31 March 2024 1,029,747 7,295 1,037,042

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

12. TANGIBLE FIXED ASSETS - continued

Company

Included in cost of land and buildings is freehold land of £ 1,029,747 which is not depreciated.

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 April 2023
and 31 March 2024 7,846,556
NET BOOK VALUE
At 31 March 2024 7,846,556
At 31 March 2023 7,846,556

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Arrow Commercial Centre (Huddersfield) Limited
Registered office: Grove Garage, Guy Edge, Linthwaite, Huddersfield, HD7 5TQ
Nature of business: car and commercial vehicle hire and sales
%
Class of shares: holding
Ordinary 100.00


The consolidated financial statements comprise the results of the parent company: Arrow Commercial Holdings Limited and its subsidiary Arrow Commercial Centre (Huddersfield) Limited.

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

14. STOCKS

Group
31.3.24 31.3.23
£    £   
Stocks 79,273 83,067
Raw materials 5,573 8,535
84,846 91,602

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.3.24 31.3.23 31.3.24 31.3.23
£    £    £    £   
Trade debtors 2,157,801 1,512,236 - -
Deferred tax 134,217 - - -
VAT - - 194,758 -
Prepayments and accrued income 670,769 645,496 - -
2,962,787 2,157,732 194,758 -

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.3.24 31.3.23 31.3.24 31.3.23
£    £    £    £   
Other loans (see note 18) 126,049 120,809 126,049 120,809
Hire purchase contracts (see note 19) 6,214,048 6,530,886 - -
Trade creditors 707,342 682,618 - -
Amounts owed to group undertakings - - 4,694,696 3,362,408
Corporation tax 370,179 259,208 - -
Social security and other taxes 46,704 48,511 - -
VAT 172,928 249,864 - -
Other creditors 63,855 57,881 - -
Directors' current accounts 341,460 323,953 - -
Accruals and deferred income 525,280 605,930 1,010 1,199
8,567,845 8,879,660 4,821,755 3,484,416

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
31.3.24 31.3.23 31.3.24 31.3.23
£    £    £    £   
Other loans (see note 18) 333,333 433,333 333,333 433,333
Hire purchase contracts (see note 19) 7,813,294 8,789,291 - -
8,146,627 9,222,624 333,333 433,333

18. LOANS

An analysis of the maturity of loans is given below:

Group Company
31.3.24 31.3.23 31.3.24 31.3.23
£    £    £    £   
Amounts falling due within one year or on demand:
Other loans 126,049 120,809 126,049 120,809
Amounts falling due between two and five years:
Other loans - 2-5 years 333,333 400,000 333,333 400,000
Amounts falling due in more than five years:
Repayable by instalments
Other loans more 5yrs instal - 33,333 - 33,333

The loans are repayable in instalments and market rate interest is being paid on these amounts.

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
31.3.24 31.3.23
£    £   
Net obligations repayable:
Within one year 6,214,048 6,530,886
Between one and five years 7,813,294 8,789,291
14,027,342 15,320,177

Group
Non-cancellable operating leases
31.3.24 31.3.23
£    £   
Within one year 239,470 177,867
Between one and five years 628,847 565,333
In more than five years - 135,000
868,317 878,200

The hire purchase commercial commitments above relate to capital repayments. Interest is applied monthly at variable rates and is released to the Income Statement in accordance with the accounting policy.

20. SECURED DEBTS

The following secured debts are included within creditors:

Group
31.3.24 31.3.23
£    £   
Hire purchase agreements 14,027,342 15,320,177

Secured on the assets concerned and interest is charged at normal commercial rates.

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

21. FINANCIAL INSTRUMENTS


The carrying amounts of the groups financial instruments are as follows:

Group
31.3.24 31.3.23
Financial assets £ £
Debt instruments measured at amortised cost:
- Trade debtors (note 15) 2,157,801 1,512,236
2,157,801 1,512,236

Cash at bank 2,655,537 4,186,059
Financial Liabilities
Measured at amortised cost
- Trade creditors (note 16) 707,342 682,618
- Hire purchase contracts (notes 16 and 17) 14,027,342 15,320,177
- Other loans (notes 16 and 17) 459,382 554,142
- Directors' current accounts (note 16) 341,460 323,953
15,535,526 16,880,890
Company:

31.3.24 31.3.23
£ £

Cash at bank 278 180
Financial Liabilities
Measured at amortised cost:
- Amounts owed to group undertakings (note 16) 4,694,696 3,362,408
- Other loans (notes 16 and 17) 459,382 554,142
5,154,078 3,916,550

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

22. PROVISIONS FOR LIABILITIES

Group
31.3.24 31.3.23
£    £   
Deferred tax - 24,712

Group
Deferred
tax
£   
Balance at 1 April 2023 24,712
Provided during year (24,712 )
Balance at 31 March 2024 -

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:
Nominal
Value:

31.3.24


31.3.23
£ £
580 A Ordinary 1p 5.80 5.80
200 B Ordinary 1p 2.00 2.00
100 C Ordinary 1p 1.00 1.00
50 D Ordinary 1p 0.50 0.50
50 E Ordinary 1p 0.50 0.50
20 F Ordinary 1p 0.20 0.20
10.00 10.00

ARROW COMMERCIAL HOLDINGS LIMITED (REGISTERED NUMBER: 11266871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

24. RESERVES

Group
Retained Share
earnings premium Totals
£    £    £   

At 1 April 2023 3,312,101 3,923,278 7,235,379
Profit for the year 1,369,495 1,369,495
Dividends (324,640 ) (324,640 )
At 31 March 2024 4,356,956 3,923,278 8,280,234

Company
Retained Share
earnings premium Totals
£    £    £   

At 1 April 2023 5,699 3,923,278 3,928,977
Profit for the year 319,199 319,199
Dividends (324,640 ) (324,640 )
At 31 March 2024 258 3,923,278 3,923,536