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 |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditor |
12 Victoria Road |
Barnsley |
South Yorkshire |
S70 2BB |
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 |
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 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
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 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
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 |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2024 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
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 |
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 |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
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 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Grove Garage, Guy Edge, Linthwaite, Huddersfield, HD7 5TQ |
Nature of business: |
% |
Class of shares: | holding |
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 | - | - |
Prepayments and accrued income | 670,769 | 645,496 |
2,962,787 | 2,157,732 |
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 |
Hire purchase contracts (see note 19) | 6,214,048 | 6,530,886 |
Trade creditors | 707,342 | 682,618 |
Amounts owed to group undertakings | - | - |
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 |
8,567,845 | 8,879,660 |
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 |
Hire purchase contracts (see note 19) | 7,813,294 | 8,789,291 |
8,146,627 | 9,222,624 |
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 |
Amounts falling due between two and | five years: |
Other loans - 2-5 years | 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 | 3,928,977 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 March 2024 | 3,923,536 |