Company registration number 00493783 (England and Wales)
ARVILLE TEXTILES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
ARVILLE TEXTILES LIMITED
COMPANY INFORMATION
Directors
Mr J W F Wight
Mr A D Stewart
Company number
00493783
Registered office
Arville House
Sandbeck Way
Wetherby
LS22 7DQ
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
ARVILLE TEXTILES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 28
ARVILLE TEXTILES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Fair review of the business
Arville Textiles is a specialist manufacturer of technical textiles, involved in the design, manufacture, finishing, coating, fabrication and testing of technical textile fabrics and products. The company supplies technical textiles to major automotive, aerospace, food manufacturing, and general industrial companies and is focused on the growth of this customer base.
The company’s business model is to generate profitable growth through product innovation, high levels of customer service and a focus on product quality. In addition, there is an ongoing focus on improvements in productivity across all aspects of the business.
The economic environment remains challenging with low levels of GDP growth across major economies, supply chain challenges and continued geo-political uncertainty affecting confidence in domestic and global trade. In addition, the company operates in a dynamic and competitive market, particularly for larger volume business.
Against this economic and competitive backdrop, the business has performed steadily, consolidating the significant turnover growth of 49% achieved in the previous financial year, and delivering an increase in turnover of 1.8% for the financial year £11.0m (2023: £10.8m). In a year of high cost inflation this level of revenue growth was insufficient to mitigate the growth in the company’s cost base and therefore levels of profit reduced from the previous year.
The board of directors believe that the company remains well positioned for future growth. Our focus is on driving revenue and profit through investment into sales and marketing resources, continuous improvement in quality standards, and enhancing operational capabilities and efficiencies. Our commitment to outstanding customer service remains unchanged and underpins all our activities.
Principal risks and uncertainties
The board of directors considers the principal risks and uncertainties facing the company on an annual basis and management takes action to mitigate these risks.
The continuing global economic instability, supply-chain challenges and low levels of economic growth present risks to the company’s customers and suppliers and could further impact demand for the group’s products. Arville maintains close contact with its major customers and suppliers to understand demand and market health and has identified alternative suppliers for key products to guard against supply chain disruptions.
The availability of skilled labour presents a risk to the business, particularly as it looks to grow. Levels of unemployment within the UK remain at historical lows and recruitment of people is challenging. Management work hard to ensure the company remains an attractive place to work and regularly reviews the overall employment package and benefits to ensure they remain competitive.
Over 50% of the company’s turnover is derived from customers outside of the UK and as such it is likely that, in the short term, further disruption caused by the geo-political climate could have an adverse impact on the company’s business. Management maintains a close dialogue with major customers to ensure that any impact is mitigated wherever possible.
The company has significant foreign currency flows due to overseas customers and suppliers. Wherever possible the risk of these flows is mitigated by balancing foreign currency inflows and outflows in order to reduce the net exposure. The company does not use financial products to hedge its risk.
The continued availability of the specialist yarns that the company uses in its technical textile products is a risk, particularly at times of shortages where physical availability and pricing can be significantly impacted, often at short notice. The company looks to reduce this risk by the use of multiple suppliers wherever possible.
ARVILLE TEXTILES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Key performance indicators
Management use a variety of Key Performance Indicators (KPI’s) to manage the business including turnover growth, gross margin, operating margin, contribution per machine hour and machine efficiencies. In addition, the capital required to run the business is an important KPI.
Turnover in the period increased by 1.8% to £11.0m, with gross margin decreasing from 31.2% in 2023 to 26.0% and net margin decreasing from 7.6% in 2023 to 1.5%. The reduced gross and net margins reflect the fact that the subdued levels of turnover growth were insufficient to offset the high rate of cost inflation that the company experienced in the year.
From a capital management perspective, during the year the business achieved a 22.4% reduction in stock levels from £3.5m at 30 April 2023 to £2.7m at 30 April 2024, despite turnover levels growing by 1.8%. Active management of working capital is an important strategy for the business and is balanced against our desire not to be exposed to raw material price fluctuations on major customer contracts.
People and the environment |
The board is committed to providing a safe and fulfilling place of work for its employees in order to allow them to develop and grow within the company, wherever possible retraining and promoting people internally when vacancies arise and internal candidates have the necessary skills. The company operates its sites in accordance with the environmental standard ISO 14001, and continues to look for further ways to improve environmental performance. |
|
|
The company continues to invest in its people, products and equipment to provide a platform to deliver future growth of shareholder value. There is a renewed focus on sales & marketing skills and resources as we look to capitalise on our available production capacity across the business. This is supported by our on-going focus on production efficiencies and productivity. The combination of these initiatives, coupled with a well-controlled cost base will be key to maximising profitability. Conclusion |
The reduced levels of profitability in the business during the year reflect the challenges presented by a high inflationary cost environment coupled with a period of low economic growth. After a year of consolidation at the turnover growth line, we are putting in place a better resourced sales and marketing function to allow us to exploit currently under-utilised production capacity. These initiatives should deliver increased levels of profitability and a stronger and more robust business. The board wishes to thank each of Arville’s employees for their dedication and hard work over the year and their participation in the changes we are seeking to make within the business. |
Mr J W F Wight
Director
16 August 2024
ARVILLE TEXTILES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their report and financial statements for year ended 30 April 2024.
Principal activities
The principal activity of the company continues to be the manufacture, finishing, coating and fabrication of technical textile fabrics and products.
As part of a group wide reorganisation, the entity formally waived some intercompany debtor and creditor balances due to/from sister companies during the year. This has been treated as a distribution and capital contribution respectively.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid during the period of £1,054,738 of which £954,918 related to the forgiveness of an intercompany creditor.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J W F Wight
Mr A D Stewart
Auditor
The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr J W F Wight
Director
16 August 2024
ARVILLE TEXTILES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
The directors are responsible for preparing the annual report 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 of the profit or loss of the company 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ARVILLE TEXTILES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARVILLE TEXTILES LIMITED
- 5 -
Opinion
We have audited the financial statements of Arville Textiles Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 company's affairs as at 30 April 2024 and of its 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.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ARVILLE TEXTILES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARVILLE TEXTILES LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
ARVILLE TEXTILES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARVILLE TEXTILES LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
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. This 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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 an auditor's report 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.
Chris Butt
Senior Statutory Auditor
For and on behalf of Azets Audit Services Limited
16 August 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
ARVILLE TEXTILES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,966,863
10,768,792
Cost of sales
(8,113,314)
(7,411,253)
Gross profit
2,853,549
3,357,539
Administrative expenses
(2,680,138)
(2,574,004)
Other operating income
24,694
140,697
Operating profit
4
198,105
924,232
Interest receivable and similar income
6
77,663
38,916
Interest payable and similar expenses
7
(115,356)
(57,688)
Profit before taxation
160,412
905,460
Tax on profit
8
15,500
(87,874)
Profit for the financial year
175,912
817,586
Other comprehensive income
Actuarial gain/(loss) on defined benefit pension schemes
296,000
(93,326)
Tax relating to other comprehensive income
(67,000)
11,000
Total comprehensive income for the year
404,912
735,260
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ARVILLE TEXTILES LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
99,563
97,607
Tangible assets
11
1,754,307
1,752,424
1,853,870
1,850,031
Current assets
Stocks
12
2,787,560
3,593,511
Debtors
13
2,627,259
3,298,156
Cash at bank and in hand
477,565
262,300
5,892,384
7,153,967
Creditors: amounts falling due within one year
16
(2,042,620)
(3,673,618)
Net current assets
3,849,764
3,480,349
Total assets less current liabilities
5,703,634
5,330,380
Creditors: amounts falling due after more than one year
17
(13,173)
Provisions for liabilities
Deferred tax liability
18
210,000
168,000
(210,000)
(168,000)
Net assets excluding pension surplus
5,480,461
5,162,380
Defined benefit pension surplus
19
625,000
424,000
Net assets
6,105,461
5,586,380
Capital and reserves
Called up share capital
20
50,000
50,000
Capital contribution reserve
1,168,907
Profit and loss reserves
4,886,554
5,536,380
Total equity
6,105,461
5,586,380
The financial statements were approved by the board of directors and authorised for issue on 16 August 2024 and are signed on its behalf by:
Mr J W F Wight
Mr A D Stewart
Director
Director
Company Registration No. 00493783
ARVILLE TEXTILES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
50,000
-
4,801,120
4,851,120
Year ended 30 April 2023:
Profit for the year
-
-
817,586
817,586
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
(93,326)
(93,326)
Tax relating to other comprehensive income
-
-
11,000
11,000
Total comprehensive income for the year
-
-
735,260
735,260
Balance at 30 April 2023
50,000
-
5,536,380
5,586,380
Year ended 30 April 2024:
Profit for the year
-
-
175,912
175,912
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
296,000
296,000
Tax relating to other comprehensive income
-
-
(67,000)
(67,000)
Total comprehensive income for the year
-
-
404,912
404,912
Dividends
9
-
-
(1,054,738)
(1,054,738)
Capital contribution reserve increase
-
1,168,907
1,168,907
Balance at 30 April 2024
50,000
1,168,907
4,886,554
6,105,461
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information
Arville Textiles Limited is a private company limited by shares incorporated in England and Wales. The registered office is Arville House, Sandbeck Way, Wetherby, LS22 7DQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The ultimate parent company is Arville Holdings Limited which is the smallest and largest group into which these financial statements are consolidated.
The registered office of Arville Holdings Limited is Arville House, Sandbeck Way, Wetherby, LS22 7DQ.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the invoice value of goods and services net of VAT and is recognised on dispatch of goods.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33% straight line
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
5% straight line
Plant and machinery
15% / 33% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.15
Retirement benefits
The company operates defined contribution and defined benefit pension schemes. The assets of the schemes are held separately from those of the company. With effect from February 2006, pension rights under the defined benefit scheme were frozen so that no further increase in benefits will accrue.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Depreciation and amortisation
The depreciation and amortisation policies have been set according to managements experience of the useful lives of a typical asset in each category, something which is reviewed annually. The depreciation and amortisation charged during the year was £476,243 (2023: £447,033) which the directors feel is a fair reflection of the benefits derived from the consumption of the intangible and tangible fixed assets in use during the period.
Bad debt provision
Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and are therefore able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).
Stock provisions
The company converts raw materials to finished goods as part of its production operations. Stock values include any costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting.
At each reporting date an assessment is made for provisions required to properly recognise wastage, damaged goods and over absorbed overheads. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss and provided for in the balance sheet. Reversals of impairment losses are also recognised in profit or loss where these arise.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
10,966,863
10,768,792
2024
2023
£
£
Turnover analysed by geographical market
UK
5,192,912
5,597,543
Europe
4,452,767
3,501,946
Rest of the World
1,321,184
1,669,303
10,966,863
10,768,792
2024
2023
£
£
Other revenue
Interest income
77,663
38,916
Grants received
-
108,710
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
22,964
39,949
Research and development costs
27,143
6,459
Government grants
-
(108,710)
Fees payable to the company's auditor for the audit of the company's financial statements
12,670
12,200
Depreciation of owned tangible fixed assets
304,752
234,165
Depreciation of tangible fixed assets held under finance leases
98,054
136,360
Profit on disposal of tangible fixed assets
-
(2,160)
Amortisation of intangible assets
73,436
76,508
Operating lease charges
48,787
46,793
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
2
2
Production staff
38
36
Administration staff
18
18
Total
58
56
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,521,869
2,416,931
Social security costs
260,187
241,292
Pension costs
155,875
153,290
2,937,931
2,811,513
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
51,663
19,916
Other interest income
26,000
19,000
Total income
77,663
38,916
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
36,524
5,286
Interest payable to group undertakings
69,604
32,634
Interest on finance leases and hire purchase contracts
9,228
19,768
115,356
57,688
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
76,000
Adjustments in respect of prior periods
(76,000)
(85,126)
Group tax relief
18,500
26,000
Total current tax
(57,500)
16,874
Deferred tax
Origination and reversal of timing differences
42,000
69,493
Changes in tax rates
1,507
Total deferred tax
42,000
71,000
Total tax (credit)/charge
(15,500)
87,874
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
160,412
905,460
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
40,103
172,037
Tax effect of expenses that are not deductible in determining taxable profit
560
165
Tax effect of utilisation of tax losses not previously recognised
(5,130)
Adjustments in respect of prior years
(76,000)
(85,126)
Effect of change in corporation tax rate
1,507
Depreciation on assets not qualifying for tax allowances
13,545
10,588
Pension scheme relief
7,000
(9,690)
Other tax adjustments
(708)
3,523
Taxation (credit)/charge for the year
(15,500)
87,874
In addition to the amount (credited)/charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
67,000
(11,000)
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
9
Dividends
2024
2023
£
£
Interim paid
1,054,738
10
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 May 2023
134,119
428,004
562,123
Additions
69,492
69,492
Transfers
5,900
5,900
At 30 April 2024
134,119
503,396
637,515
Amortisation and impairment
At 1 May 2023
134,119
330,397
464,516
Amortisation charged for the year
73,436
73,436
At 30 April 2024
134,119
403,833
537,952
Carrying amount
At 30 April 2024
99,563
99,563
At 30 April 2023
97,607
97,607
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
11
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
2,764,468
26,210
7,930,360
77,584
10,798,622
Additions
24,879
30,863
313,897
40,950
410,589
Disposals
(1,714,724)
(1,714,724)
Transfers
(5,900)
(5,900)
At 30 April 2024
2,789,347
51,173
6,529,533
118,534
9,488,587
Depreciation and impairment
At 1 May 2023
2,035,096
7,002,432
8,670
9,046,198
Depreciation charged in the year
56,696
323,301
22,809
402,806
Eliminated in respect of disposals
(1,714,724)
(1,714,724)
At 30 April 2024
2,091,792
5,611,009
31,479
7,734,280
Carrying amount
At 30 April 2024
697,555
51,173
918,524
87,055
1,754,307
At 30 April 2023
729,372
26,210
927,928
68,914
1,752,424
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
207,720
344,153
Included within freehold land and buildings is land of £94,060 (2023: £94,060) which is not depreciated.
12
Stocks
2024
2023
£
£
Raw materials and consumables
784,638
1,529,958
Work in progress
102,375
260,042
Finished goods and goods for resale
1,900,547
1,803,511
2,787,560
3,593,511
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,135,137
2,170,148
Corporation tax recoverable
9,126
Amounts owed by group undertakings
655,972
Other debtors
205,219
224,391
Prepayments and accrued income
286,903
238,519
2,627,259
3,298,156
Amounts owed by group undertakings are due on demand.
14
Loans and overdrafts
2024
2023
£
£
Bank loans
532,317
494,064
Payable within one year
532,317
494,064
Bank loans are secured over the assets of the company.
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
43,111
195,427
In two to five years
13,543
56,654
195,427
Less: future finance charges
(3,647)
(2,088)
53,007
193,339
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years from inception. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Finance lease obligations are secured on the asset to which they relate.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
532,317
494,064
Obligations under finance leases
15
39,834
193,339
Trade creditors
878,430
1,172,463
Amounts owed to group undertakings
51,474
1,263,777
Taxation and social security
137,447
78,632
Accruals and deferred income
403,118
471,343
2,042,620
3,673,618
Bank loans and overdrafts are secured as detailed in note 14.
Obligations under finance leases are secured as detailed in note 15.
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
13,173
Bank loans and overdrafts are secured as detailed in note 14.
Obligations under finance leases are secured as detailed in note 15.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
216,000
181,000
Other provisions
(6,000)
(13,000)
210,000
168,000
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
18
Deferred taxation
(Continued)
- 25 -
2024
Movements in the year:
£
Liability at 1 May 2023
168,000
Effect of change in tax rate - profit or loss
42,000
Liability at 30 April 2024
210,000
19
Retirement benefit schemes
Defined contribution schemes
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £150,549 (2023: £128,762).
Defined benefit schemes
The company operates a defined benefit pension scheme; The Arville Textiles Limited Pension and Assurance Plan. The scheme was discontinued on 26 February 2006 and has been closed to future accruals of benefits since this date. A full actuarial valuation of the scheme was carried out as at 5 April 2022.
The following disclosures, required by FRS102, have been based on the most recent actuarial valuation as at 30 April 2024 carried out by First Actuarial using the following assumptions.
The scheme valuation as 30 April 2024 shows a surplus based on the assumptions set out below. The directors have determined that it is appropriate to recognise the surplus as, having reviewed the rules, they are of the opinion that the employer has an unconditional right to these surpluses.
2024
2023
Key assumptions
%
%
Discount rate
5.3
4.8
Expected rate of increase of pensions in payment
3.2
3.1
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
87
87
- Females
89
90
Retiring in 20 years
- Males
87
88
- Females
90
91
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
19
Retirement benefit schemes
(Continued)
- 26 -
2024
2023
Amounts recognised in the profit and loss account
£
£
Net interest on net defined benefit (assets)/liability
(26,000)
(19,000)
Other costs
54,000
21,000
Total costs/(income)
28,000
2,000
2024
2023
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
21,000
781,000
Add: calculated interest element
170,000
133,000
Return on scheme assets excluding interest income
191,000
914,000
Actuarial changes related to obligations
(487,000)
(821,000)
Total (income)/costs
(296,000)
93,000
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2024
2023
£
£
Present value of defined benefit obligations
(2,619,000)
(3,035,000)
Fair value of plan assets
3,452,000
3,600,000
Surplus in scheme
833,000
565,000
Deferred taxation balance
(208,000)
(141,000)
Total asset recognised
625,000
424,000
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 May 2023
3,035,000
Benefits paid
(73,000)
Actuarial gains and losses
(487,000)
Interest cost
144,000
At 30 April 2024
2,619,000
The defined benefit obligations arise from plans which are wholly or partly funded.
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
19
Retirement benefit schemes
(Continued)
- 27 -
2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 May 2023
3,600,000
Interest income
170,000
Return on plan assets (excluding amounts included in net interest)
(191,000)
Benefits paid
(73,000)
Other
(54,000)
At 30 April 2024
3,452,000
The actual deficit on plan assets was £21,000 (2023: £781,000).
2024
2023
Fair value of plan assets at the reporting period end
£
£
Secure income asset fund
833,000
756,000
Gilts
1,015,000
1,029,000
Diversified Credit Funds
610,000
638,000
Liability Driven Investment (LDI)
762,000
775,000
Annuities
168,000
181,000
Cash
64,000
221,000
3,452,000
3,600,000
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 25p each
200,000
200,000
50,000
50,000
21
Capital contribution reserve
2024
2023
£
£
At the beginning of the year
-
-
Additions
1,168,907
-
At the end of the year
1,168,907
-
ARVILLE TEXTILES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
22
Financial commitments, guarantees and contingent liabilities
The company is party to a cross company guarantee in respect of the bank facilities with Arville Holdings Limited, Arville Belting Limited and Arville Fabrication Limited. At the year end net bank indebtedness across these companies totalled £Nil (2023: £23,470).
As at the date of approval of the financial statements, no default has occurred which would trigger the above liabilities, nor is one anticipated. As such, the directors consider that the fair value of these obligations is £nil and there is no recognition of a liability on the balance sheet.
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
39,046
46,840
Between two and five years
29,164
45,772
68,210
92,612
24
Related party transactions
Remuneration of key management personnel
The company has taken advantage of the exemption granted by paragraph 33.1A of FRS 102 not to disclose related party transactions with Arville Holdings Limited group companies.
25
Ultimate controlling party
The ultimate parent company and controlling party is Arville Holdings Limited. Arville Holdings Limited prepares group accounts. The registered office of Arville Holdings Limited is Arville House, Sandbeck Way, Wetherby, LS22 7DQ.
26
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
259,297
282,733
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
259,297
282,733
2024-04-302023-05-01falseCCH SoftwareCCH Accounts Production 2024.100Mr J W F WightMr A D Stewartfalsefalse004937832023-05-012024-04-3000493783bus:Director12023-05-012024-04-3000493783bus:Director22023-05-012024-04-3000493783bus:RegisteredOffice2023-05-012024-04-30004937832024-04-30004937832022-05-012023-04-3000493783core:RetainedEarningsAccumulatedLosses2022-05-012023-04-3000493783core:RetainedEarningsAccumulatedLosses2023-05-012024-04-3000493783core:RevenueReservesInvestmentFundsOnly2022-05-012023-04-3000493783core:OtherResidualIntangibleAssets2024-04-3000493783core:OtherResidualIntangibleAssets2023-04-3000493783core:Goodwill2024-04-3000493783core:ComputerSoftware2024-04-3000493783core:Goodwill2023-04-3000493783core:ComputerSoftware2023-04-30004937832023-04-3000493783core:LandBuildingscore:OwnedOrFreeholdAssets2024-04-3000493783core:ConstructionInProgressAssetsUnderConstruction2024-04-3000493783core:PlantMachinery2024-04-3000493783core:MotorVehicles2024-04-3000493783core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-3000493783core:ConstructionInProgressAssetsUnderConstruction2023-04-3000493783core:PlantMachinery2023-04-3000493783core:MotorVehicles2023-04-3000493783core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-3000493783core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3000493783core:Non-currentFinancialInstrumentscore:AfterOneYear2024-04-3000493783core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3000493783core:CurrentFinancialInstruments2024-04-3000493783core:CurrentFinancialInstruments2023-04-3000493783core:ShareCapital2024-04-3000493783core:ShareCapital2023-04-3000493783core:OtherMiscellaneousReserve2024-04-3000493783core:OtherMiscellaneousReserve2023-04-3000493783core:RetainedEarningsAccumulatedLosses2024-04-3000493783core:RetainedEarningsAccumulatedLosses2023-04-3000493783core:ShareCapital2022-04-3000493783core:RetainedEarningsAccumulatedLosses2022-04-3000493783core:Goodwill2023-05-012024-04-3000493783core:IntangibleAssetsOtherThanGoodwill2023-05-012024-04-3000493783core:ComputerSoftware2023-05-012024-04-3000493783core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-012024-04-3000493783core:PlantMachinery2023-05-012024-04-3000493783core:MotorVehicles2023-05-012024-04-3000493783core:UKTax2023-05-012024-04-3000493783core:UKTax2022-05-012023-04-300049378312023-05-012024-04-300049378312022-05-012023-04-300049378322023-05-012024-04-300049378322022-05-012023-04-300049378332023-05-012024-04-300049378332022-05-012023-04-3000493783core:Goodwill2023-04-3000493783core:ComputerSoftware2023-04-30004937832023-04-3000493783core:Goodwillcore:ExternallyAcquiredIntangibleAssets2023-05-012024-04-3000493783core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2023-05-012024-04-3000493783core:ExternallyAcquiredIntangibleAssets2023-05-012024-04-3000493783core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-3000493783core:ConstructionInProgressAssetsUnderConstruction2023-04-3000493783core:PlantMachinery2023-04-3000493783core:MotorVehicles2023-04-3000493783core:ConstructionInProgressAssetsUnderConstruction2023-05-012024-04-3000493783core:WithinOneYear2024-04-3000493783core:WithinOneYear2023-04-3000493783core:BetweenTwoFiveYears2024-04-3000493783core:BetweenTwoFiveYears2023-04-3000493783core:Non-currentFinancialInstruments2024-04-3000493783core:Non-currentFinancialInstruments2023-04-3000493783bus:PrivateLimitedCompanyLtd2023-05-012024-04-3000493783bus:FRS1022023-05-012024-04-3000493783bus:Audited2023-05-012024-04-3000493783bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP