Company registration number 07219475 (England and Wales)
ARVILLE HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
ARVILLE HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr J W F Wight
Mr D J Salter
Mr A D Stewart
Company number
07219475
Registered office
Arville House
Sandbeck Way
Wetherby
LS22 7DQ
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
ARVILLE HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 37
ARVILLE HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report and financial statements for the year ended 30 April 2024.

Review of the business

The Arville Group is a specialist manufacturer of technical textiles, involved in the design, manufacture, finishing, coating, fabrication and testing of technical textile fabrics and products. The group supplies technical textiles to major automotive, aerospace, food manufacturing, and general industrial companies and is focused on the growth of this customer base.

 

The group’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 group operates in a dynamic and competitive market, particularly for larger volume business.

 

Trading has continued the upward trajectory seen in the latter part of the previous financial year with the business recording turnover of £13.1m (2023: £13.4m) for the financial year, a slight decrease of 2%.

 

The board of directors believe that the group remains well positioned for future growth. Our focus is on driving revenue and profit through investment into sales & 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 group 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 group’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 group 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 group does not use financial products to hedge its risk.

 

The continued availability of the specialist yarns that the group 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 group looks to reduce this risk by the use of multiple suppliers wherever possible.

ARVILLE HOLDINGS 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) in order 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 decreased by 2% to £13.1m with gross margin decreasing to 29.2% from 32.8% in 2023. The reduced gross margin reflects 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 19% reduction in stock levels from £3.9m at 30 April 2023 to £3.2m at 30 April 2024, despite turnover levels decreasing by 2%. 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 group, wherever possible retraining and promoting people internally when vacancies arise and internal candidates have the necessary skills.

 

The group operates its sites in accordance with the environmental standard ISO 14001, and continues to look for further ways to improve environmental performance.

Future developments

The group 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 and 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.

 

 

On behalf of the board

Mr J W F Wight
Director
16 August 2024
ARVILLE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The group's principal activities continued to be the design, weaving, finishing, coating and fabrication of technical industrial 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. These have been treated as a distributions and capital contributions in their respective companies accounts.

Results and dividends

The results for the year are set out on page 8.

No ordinary interim dividends were paid in the year. The directors recommend payment of a final dividend.

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 D J Salter
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr J W F Wight
Director
16 August 2024
ARVILLE HOLDINGS 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

ARVILLE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARVILLE HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Arville Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the consolidated statement of total comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 FRS 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:

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

Other information

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:

ARVILLE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARVILLE HOLDINGS LIMITED
- 6 -
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 their 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:

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 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 parent 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 HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARVILLE HOLDINGS 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:

 

 

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.

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 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 HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,120,986
13,391,943
Cost of sales
(9,289,715)
(8,996,429)
Gross profit
3,831,271
4,395,514
Administrative expenses
(3,693,373)
(3,523,015)
Other operating income
24,694
140,697
Operating profit
4
162,592
1,013,196
Interest receivable and similar income
7
69,556
41,501
Interest payable and similar expenses
8
(45,752)
(26,354)
Fair value movements on investments
9
23,253
(21,803)
Profit before taxation
209,649
1,006,540
Tax on profit
10
44,000
(29,404)
Profit for the financial year
253,649
977,136
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
482,649
894,810
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ARVILLE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
160,533
188,168
Other intangible assets
12
99,563
97,607
Total intangible assets
260,096
285,775
Tangible assets
13
2,192,579
1,896,444
Investments
14
1,009,392
953,810
3,462,067
3,136,029
Current assets
Stocks
16
3,173,951
3,919,876
Debtors
17
3,157,431
3,132,653
Cash at bank and in hand
601,088
470,594
6,932,470
7,523,123
Creditors: amounts falling due within one year
20
(2,359,545)
(2,713,342)
Net current assets
4,572,925
4,809,781
Total assets less current liabilities
8,034,992
7,945,810
Creditors: amounts falling due after more than one year
21
(13,173)
-
Provisions for liabilities
Deferred tax liability
22
199,000
159,000
(199,000)
(159,000)
Net assets excluding pension surplus
7,822,819
7,786,810
Defined benefit pension surplus
23
625,000
424,000
Net assets
8,447,819
8,210,810
Capital and reserves
Called up share capital
24
2,047
2,047
Share premium account
4,548,353
4,548,353
Profit and loss reserves
3,897,419
3,660,410
Total equity
8,447,819
8,210,810
ARVILLE HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 10 -
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:
16 August 2024
Mr J W F Wight
Mr A D Stewart
Director
Director
Company registration number 07219475 (England and Wales)
ARVILLE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
950,000
-
0
Investments
14
8,157,058
8,079,152
9,107,058
8,079,152
Current assets
Debtors
17
32,974
910,853
Cash at bank and in hand
99
279
33,073
911,132
Creditors: amounts falling due within one year
20
(33,670)
(16,250)
Net current (liabilities)/assets
(597)
894,882
Net assets
9,106,461
8,974,034
Capital and reserves
Called up share capital
24
2,047
2,047
Share premium account
4,548,353
4,548,353
Revaluation reserve
1,943,462
1,595,529
Profit and loss reserves
2,612,599
2,828,105
Total equity
9,106,461
8,974,034

As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes. The Company’s profit for the year was £30,134 (2023 - £9,024 profit).

 

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:
16 August 2024
Mr J W F Wight
Mr A D Stewart
Director
Director
Company registration number 07219475 (England and Wales)
ARVILLE HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
2,047
4,548,353
2,765,600
7,316,000
Year ended 30 April 2023:
Profit for the year
-
-
977,136
977,136
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
-
-
894,810
894,810
Balance at 30 April 2023
2,047
4,548,353
3,660,410
8,210,810
Year ended 30 April 2024:
Profit for the year
-
-
253,649
253,649
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
-
-
482,649
482,649
Dividends
11
-
-
(245,640)
(245,640)
Balance at 30 April 2024
2,047
4,548,353
3,897,419
8,447,819
ARVILLE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
2,047
4,548,353
704,237
2,819,081
8,073,718
Year ended 30 April 2023:
Profit for the year
-
-
-
9,024
9,024
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
891,292
-
891,292
Total comprehensive income
-
-
891,292
9,024
900,316
Balance at 30 April 2023
2,047
4,548,353
1,595,529
2,828,105
8,974,034
Year ended 30 April 2024:
Profit for the year
-
-
-
30,134
30,134
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
347,933
-
347,933
Total comprehensive income
-
-
347,933
30,134
378,067
Dividends
11
-
-
-
(245,640)
(245,640)
Balance at 30 April 2024
2,047
4,548,353
1,943,462
2,612,599
9,106,461
ARVILLE HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
1,227,165
177,423
Interest paid
(45,752)
(26,354)
Income taxes refunded
116,596
-
Net cash inflow from operating activities
1,298,009
151,069
Investing activities
Purchase of intangible assets
(69,492)
(57,651)
Purchase of tangible fixed assets
(809,154)
(379,128)
Proceeds from disposal of tangible fixed assets
21,623
31,759
Purchase of investments
(154,409)
(192,416)
Proceeds from disposal of investments
122,080
180,679
Interest received
26,050
19,000
Dividends received
43,506
22,501
Net cash used in investing activities
(819,796)
(375,256)
Financing activities
Proceeds from borrowings
38,253
268,908
Payment of finance leases obligations
(140,332)
(205,805)
Dividends paid to equity shareholders
(245,640)
-
0
Net cash (used in)/generated from financing activities
(347,719)
63,103
Net increase/(decrease) in cash and cash equivalents
130,494
(161,084)
Cash and cash equivalents at beginning of year
470,594
631,678
Cash and cash equivalents at end of year
601,088
470,594
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information

Arville Holdings Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Arville House, Sandbeck Way, Wetherby, LS22 7DQ.

 

The Group consists of Arville Holdings Limited and all of its subsidiaries.

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. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a parent of a group that prepares publicly available consolidated financial statements, which are intended to give a true and fair view of the assets, liabilities, balance sheet and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Arville Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

The directors have considered all factors, including in the wider economy, as part of their assessment of going concern. Budgets and cashflows have been prepared using assumptions for customer demand and supply chain costs as well as expectations for legal and regulatory environmental impacts. These budgets and cashflows indicate continuing profitability and cash generation, consequently the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements. Accordingly, these financial statements have been prepared on the going concern basis.

1.4
Turnover

Turnover represents the invoice value of goods and services net of VAT and is recognised on dispatch of goods.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -

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.

1.5
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.

1.6
Intangible fixed assets - goodwill

Goodwill includes the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. Such goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. It 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, such 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.

 

Goodwill also includes goodwill on consolidation. Goodwill on consolidation is valued at cost less accumulated amortisation and accumulated impairment provisions. Amortisation is calculated to write off the cost in equal annual instalments over its estimated useful life of twenty years. Impairment reviews of goodwill are carried out where there is any indication of impairment.

1.7
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
Customer list
33% straight line
1.8
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.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -

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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity instruments which are measured at fair value through profit or loss (FVTPL) except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements investments in subsidiaries are measured at net asset value.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

 

Investments comprise investments in quoted securities which are measured at fair value. Changes in fair value are recognised in profit or loss. Fair value is based on the last available prices quoted as at close of business on the valuation date. If the valuation falls on a non business day, the prices quoted will be those as at the close of business on the last business day before the valuation date.

1.10
Impairment of fixed assets

At each reporting end date, the group 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 HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -

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.

1.11
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 stock 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.

1.12
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.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
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.

 

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’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 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 if, and only if, there is 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.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
1.16
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.

1.17
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 such 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.

1.18
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 income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the pattern in which economic benefits from the leased asset are consumed over time.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
1.19
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.

1.20
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 date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting date. Gains and losses arising on translation are included in the profit and loss account for the period.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 management's 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 £586,506 (2023: £551,440) 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 group 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 of 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 HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
3
Turnover

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Textile sales
13,120,986
13,391,943
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
6,606,655
7,389,324
Rest of Europe
4,634,433
3,756,020
Rest of the World
1,879,898
2,246,599
13,120,986
13,391,943
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
27,924
50,528
Research and development costs
30,772
17,433
Government grants
-
(108,710)
Depreciation of owned tangible fixed assets
387,381
310,937
Depreciation of tangible fixed assets held under finance leases
98,054
136,360
Loss/(profit) on disposal of tangible fixed assets
61
(2,185)
Amortisation of intangible assets
101,071
104,143
Operating lease charges
133,345
112,164
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,800
4,150
Audit of the financial statements of the company's subsidiaries
22,870
24,250
27,670
28,400
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

2024
2023
Number
Number
Directors
3
3
Production
73
69
Sales and administration
27
27
103
99

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,940,797
3,828,120
Social security costs
384,047
351,745
Pension costs
237,550
228,636
4,562,394
4,408,501
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
50
-
0
Other interest income
26,000
19,000
Total interest revenue
26,050
19,000
Other income from investments
Dividends received
43,506
22,501
Total income
69,556
41,501
2024
2023
Investment income includes the following:
£
£
Dividends from financial assets measured at fair value through profit or loss
43,506
22,501
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
36,524
5,286
Interest on finance leases and hire purchase contracts
9,228
20,968
Other interest
-
100
Total finance costs
45,752
26,354
9
Fair value movments on investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Change in fair value of financial assets held at fair value through profit or loss
23,253
(21,803)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
84,000
Adjustments in respect of prior periods
(84,000)
(116,596)
Total current tax
(84,000)
(32,596)
Deferred tax
Origination and reversal of timing differences
40,000
62,648
Changes in tax rates
-
0
(648)
Total deferred tax
40,000
62,000
Total tax (credit)/charge
(44,000)
29,404
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 26 -

The credit for the year can be reconciled to the loss per the profit and loss account as follows:

2024
2023
£
£
Profit before taxation
209,649
1,006,540
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
52,412
191,243
Tax effect of expenses that are not deductible in determining taxable profit
564
165
Tax effect of utilisation of tax losses not previously recognised
-
0
(5,130)
Adjustments in respect of prior years
(84,000)
(116,596)
Depreciation on assets not qualifying for tax allowances
13,545
11,395
Amortisation on assets not qualifying for tax allowances
4,272
3,247
Other
(37,793)
(43,957)
Pension scheme relief
7,000
(9,690)
Non trade loan relationships
-
0
(1,273)
Taxation (credit)/charge
(44,000)
29,404

In addition to the amount credited 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)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
245,640
-
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
12
Intangible fixed assets
Group
Goodwill
Software
Customer list
Total
£
£
£
£
Cost
At 1 May 2023
581,346
428,004
16,000
1,025,350
Additions
-
0
69,492
-
0
69,492
Transfers
-
0
5,900
-
0
5,900
At 30 April 2024
581,346
503,396
16,000
1,100,742
Amortisation and impairment
At 1 May 2023
393,178
330,397
16,000
739,575
Amortisation charged for the year
27,635
73,436
-
0
101,071
At 30 April 2024
420,813
403,833
16,000
840,646
Carrying amount
At 30 April 2024
160,533
99,563
-
0
260,096
At 30 April 2023
188,168
97,607
-
0
285,775
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
13
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
3,149,519
26,210
9,662,656
77,584
12,915,969
Additions
243,808
50,885
473,511
40,950
809,154
Disposals
-
0
-
0
(1,837,047)
-
0
(1,837,047)
Transfers
-
0
(5,900)
-
0
-
0
(5,900)
At 30 April 2024
3,393,327
71,195
8,299,120
118,534
11,882,176
Depreciation and impairment
At 1 May 2023
2,416,366
-
0
8,594,489
8,670
11,019,525
Depreciation charged in the year
65,519
-
0
397,107
22,809
485,435
Eliminated in respect of disposals
-
0
-
0
(1,815,363)
-
0
(1,815,363)
At 30 April 2024
2,481,885
-
0
7,176,233
31,479
9,689,597
Carrying amount
At 30 April 2024
911,442
71,195
1,122,887
87,055
2,192,579
At 30 April 2023
733,153
26,210
1,068,167
68,914
1,896,444
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold land and buildings
£
Cost
At 1 May 2023
-
0
Additions
950,000
At 30 April 2024
950,000
Depreciation and impairment
At 1 May 2023 and 30 April 2024
-
0
Carrying amount
At 30 April 2024
950,000

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
207,720
344,153
-
0
-
0

Included within freehold land and buildings is land of £94,060 (2023: £94,060) which is not depreciated.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
29
-
0
-
0
7,147,666
7,125,342
Listed investments
1,009,392
953,810
1,009,392
953,810
1,009,392
953,810
8,157,058
8,079,152
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
14
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 May 2023
953,810
Additions
154,409
Valuation changes
23,254
Disposals
(122,081)
At 30 April 2024
1,009,392
Carrying amount
At 30 April 2024
1,009,392
At 30 April 2023
953,810
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 May 2023
7,125,342
953,810
8,079,152
Additions
-
154,409
154,409
Valuation changes
22,324
23,254
45,578
Disposals
-
(122,081)
(122,081)
At 30 April 2024
7,147,666
1,009,392
8,157,058
Carrying amount
At 30 April 2024
7,147,666
1,009,392
8,157,058
At 30 April 2023
7,125,342
953,810
8,079,152
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,009,392
953,810
1,009,392
953,810
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,128,721
1,809,710
-
-
Work in progress
112,248
262,560
-
-
Finished goods and goods for resale
1,932,982
1,847,606
-
0
-
0
3,173,951
3,919,876
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,574,337
2,540,794
-
0
-
0
Corporation tax recoverable
-
0
32,596
-
0
-
0
Amounts owed by group undertakings
-
-
32,974
910,853
Other debtors
205,219
226,472
-
0
-
0
Prepayments and accrued income
377,875
332,791
-
0
-
0
3,157,431
3,132,653
32,974
910,853
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
532,317
494,064
-
0
-
0
Payable within one year
532,317
494,064
-
0
-
0

Bank loans are secured over group assets.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
43,111
195,427
-
0
-
0
In two to five years
13,543
-
0
-
0
-
0
56,654
195,427
-
-
Less: future finance charges
(3,647)
(2,088)
-
0
-
0
53,007
193,339
-
0
-
0

Finance lease payments represent rentals payable by Arville Textiles Limited 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.

20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
532,317
494,064
-
0
-
0
Obligations under finance leases
19
39,834
193,339
-
0
-
0
Trade creditors
1,023,352
1,228,299
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
9,600
-
0
Corporation tax payable
-
0
-
0
-
0
8,000
Other taxation and social security
224,063
161,046
-
-
Other creditors
4,538
4,279
-
0
-
0
Accruals and deferred income
535,441
632,315
24,070
8,250
2,359,545
2,713,342
33,670
16,250

Bank loans are secured as detailed in note 18.

 

Obligations under finance leases are secured as detailed in note 19.

21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
13,173
-
0
-
0
-
0

Obligations under finance leases are secured as detailed in note 19.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or 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
Group
£
£
Accelerated capital allowances
205,000
172,000
Other provisions
(6,000)
(13,000)
199,000
159,000
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
159,000
-
Credit to profit or loss
(2,000)
-
Effect of change in tax rate - profit or loss
42,000
-
Liability at 30 April 2024
199,000
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
237,550
204,108

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

Defined benefit schemes

The group 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.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
23
Retirement benefit schemes
(Continued)
- 33 -
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

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2024
2023
Group
£
£
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 relating to pension schemes
(208,000)
(141,000)
Total asset recognised
625,000
424,000
Group
2024
2023

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability/(asset)
(26,000)
(19,000)
Other costs and income
54,000
21,000
Total costs
28,000
2,000
ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
23
Retirement benefit schemes
(Continued)
- 34 -
Group
2024
2023

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
21,000
781,000
Less: 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 (costs)/income
(296,000)
93,000
Group
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.

Group
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).

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
23
Retirement benefit schemes
(Continued)
- 35 -

Fair value of plan assets at the reporting period end

Group
2024
2023
£
£
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
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,047
2,047
2,047
2,047
25
Financial commitments, guarantees and contingent liabilities

The group is party to a cross company guarantee in respect of the bank facilities with Arville Textiles Limited, P&S Textiles Limited and Multiple Fabric Company 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.

26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
83,295
91,306
-
-
Between two and five years
40,148
101,223
-
-
123,443
192,529
-
-

The company has no operating lease commitments.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 36 -

The group 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.

28
Controlling party

The directors of Arville Holdings Limited do not consider there to be an ultimate controlling party.

29
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Arville Textiles Limited
England and Wales
Manufacture of industrial fabrics
Ordinary
100.00
Heathermist Limited
England and Wales
Dormant company
Ordinary
100.00
Arville Belting Limited
England and Wales
Manufacture of industrial fabrics
Ordinary
100.00
Arville Fabrication Limited
England and Wales
Manufacture of industrial fabric products
Ordinary
100.00
Arville Coating Limited
England and Wales
Manufacture of industrial textiles
Ordinary
100.00

The registered offices of these companies are all as per Arville Holdings Limited.

30
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
329,797
347,348
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
259,297
282,733
31
Events after the reporting date

At 30 April 2024, and as part of a group wide reorganisation, the groupc split the trading of its subsidiary undertaking, Arville Beltings Limited, into two trading divisions, belting and coating, and the wider group incoporated a new company, Arvile Coating Limited. The assets for the coating division of the business transferred on this date and the trade transferred from 1 May 2024.

ARVILLE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 37 -
32
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
253,649
977,136
Adjustments for:
Taxation (credited)/charged
(44,000)
29,404
Finance costs
45,752
26,354
Investment income
(69,556)
(41,501)
Loss/(gain) on disposal of tangible fixed assets
61
(2,185)
Amortisation and impairment of intangible assets
101,071
104,143
Depreciation and impairment of tangible fixed assets
485,435
447,297
Other gains and losses
(23,253)
21,803
Pension scheme non-cash movement
28,000
(82,326)
Movements in working capital:
Decrease/(increase) in stocks
745,925
(1,035,337)
Increase in debtors
(57,374)
(846,200)
(Decrease)/increase in creditors
(238,545)
578,835
Cash generated from operations
1,227,165
177,423
33
Analysis of changes in net funds/(debt) - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
470,594
130,494
601,088
Borrowings excluding overdrafts
(494,064)
(38,253)
(532,317)
Obligations under finance leases
(193,339)
140,332
(53,007)
(216,809)
232,573
15,764
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