Company registration number 05509896 (England and Wales)
ARCESE UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ARCESE UK LIMITED
COMPANY INFORMATION
Directors
Michele Nascetti
Alberto Dejana
Matteo Arcese
Company number
05509896
Registered office
Thurrock Parkway
Thurrock Park Industrial Estate
Tilbury
Essex
RM18 7HY
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
ARCESE UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
ARCESE UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The group and the company continued the more positive upward trend of 2022 into 2023.

 

The transport and logistic revenues increased around 1% compared to previous year due to volume increase especially on the fashion commodity and tariff increase to major automotive customers.

 

The group has also improved the gross profit margin from 28% to 31%. This was achieved by the firm's continuing practice of controlling both fixed and variable costs.

 

Arcese UK Limited continues to lease its operational trailers through the group as well as continuing to own and operate most of its UK distribution fleet, however this is blended with sub-contracting and other short term rental agreements with the aim of having the security of supply matched with flexibility of cost.

 

The outlook is relatively buoyant for 2024 and beyond as the group and the company continues to strengthen its UK position in the market.

 

The group and the company remain optimistic for its future positive trading and growth, investing in its security infrastructure, sales force and accreditations with customs and government bodies.

Principal risks and uncertainties

The management of the business and the execution of the group's and the company's strategy are subject to a number of risks. These risks are monitored through close monitoring of the company's key performance indicators (KPI's) by senior management.

 

Financial risk management

The group's and the company's operations expose it to a variety of financial risks. The group and the company has in place risk management procedures that seek to limit the adverse effects of the financial performance of the group entities. These risk management procedures include invoice and credit control, cost control and cost accounting.

 

Liquidity risk

The group and the company is financed through a mixture of intercompany debt and cash reserves that are designed to ensure the group and the parent company has sufficient funds for operations. The group and the company has received written confirmation from Arcese Trasporti S.p.A. that it will not call upon the loan payable and will continue to support the group and the company for the foreseeable future, and for a minimum period of at least 12 months from the date of approval of these financial statements, so as to enable the company to meet its liabilities as and when they fall due. The directors have also made enquiries of its immediate parent, and its ability to provide support, and have received appropriate assurances from its immediate parent that it is in a position to provide the necessary support.

 

Credit risk

Credit risk arises from the possibility that counterparties to transactions may default on their obligations, causing financial loss for the company. This risk is mitigated by performing credit checks on prospective customers, to ensure they have the ability to settle their accounts as they become due. Provision for trade receivables is made where it is doubtful that the group and the parent company will not be able to collect all amounts due according to the original terms of the receivables.

 

Price risk

The group and the company is exposed to foreign exchange rate risk and fluctuations in fuel. Whilst all our clients are linked to a fuel surcharge escalator it still has a major impact on profitability as it is not a fully recoverable cost.

ARCESE UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

Foreign currency risk

The group and the company conducts its business in both Sterling and Euro which exposes the company to foreign exchange rate risk. Foreign exchange risk is mitigated through the buying of services in the same currency.

 

Ukrainian War associated risk

The group's and the company's business means that it is exposed to the risk of its performance being impacted by the worsening of the war in Ukraine. The risk is mitigated through the ongoing financial support of the ultimate parent undertaking Arcese S.p.A.

Key performance indicators

The directors monitor progress of the group's performance by reference to the following financial KPIs:

 

 

 

 

 

31 December

31 December

 

2023

2022

Revenue

£36,628,058

£36,146,157

Gross profit

£11,264,553

£10,180,151

Gross margin

30.75%

28.16%

Net assets

£7,712,451

£6,574,789

 

In addition to the above, the performance of the business is monitored through additional checks and balances including:

 

 

The directors believe that the group has achieved its KPIs during the financial period ended 31 December 2023, and will work towards achieving KPIs in 2024 to promote the success of the business.

Promoting the success of the company

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

 

• The likely consequence of any decision in the long term;

 

• The interests of the company’s employees;

 

• The need to foster the company’s business relationships with suppliers, customers and others;

 

• The impact of the company’s operations on the community and the environment;

 

• The desirability of the company maintaining a reputation for high standards of business conduct; and

 

• The need to act fairly as between members of the company.

ARCESE UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

Paul Melanaphy
Director
13 June 2024
ARCESE UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the group and company continued to be that of European and domestic transport, freight forwarding and logistics.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Michele Nascetti
Alberto Dejana
Matteo Arcese
Paolo Varotto
(Resigned 8 April 2024)
Auditor

The auditor, Gerald Edelman LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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.

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.

ARCESE UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Going Concern

Having reviewed the group’s financial forecasts and expected future cash flows and assuming continued support from the company's ultimate parent undertaking, Arcese S.p.A., the directors have a reasonable expectation that the group has adequate resources available to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of approval of these financial statements.

 

Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 December 2023. Further details regarding adoption of the going concern basis can be found in note 1.4 to the financial statements.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Paul Melanaphy
Director
13 June 2024
ARCESE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARCESE UK LIMITED
- 6 -
Opinion

We have audited the financial statements of Arcese UK Limited (the 'parent company') and its subsidiary (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of 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 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:

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:

ARCESE UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARCESE UK LIMITED
- 7 -
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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Our audit procedures were primarily directed towards testing the accounting systems in operation upon which we have based our assessment of the financial statements for the year ended 31 December 2023.

 

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

 

The extent to which the audit was considered capable of detecting irregularities including fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

ARCESE UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARCESE UK LIMITED
- 8 -

Audit response to risks identified:

Fraud due to management override

To address the risk of fraud through management bias and override of controls, we:

 

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but are not limited to:

 

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

 

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of Arcese UK Limited.

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.

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.

Hiten Patel FCCA (Senior Statutory Auditor)
For and on behalf of Gerald Edelman LLP
13 June 2024
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
ARCESE UK LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
33,736,479
33,502,666
Cost of sales
(22,553,716)
(23,322,515)
Gross profit
11,182,763
10,180,151
Administrative expenses
(9,961,738)
(6,929,453)
Other operating income
388,162
32,717
Operating profit
5
1,609,187
3,283,415
Interest receivable and similar income
9
36,740
1,015
Interest payable and similar expenses
10
(39,009)
(66,730)
Profit before taxation
1,606,918
3,217,700
Tax on profit
11
(453,699)
(634,686)
Profit for the financial year
1,153,219
2,583,014
Profit for the financial year is all attributable to the owners of the parent company.
ARCESE UK LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
1,153,219
2,583,014
Other comprehensive income
-
-
Total comprehensive income for the year
1,153,219
2,583,014
Total comprehensive income for the year is all attributable to the owners of the parent company.
ARCESE UK LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
218,825
243,137
Tangible assets
13
2,319,025
1,630,740
2,537,850
1,873,877
Current assets
Stocks
16
26,400
26,900
Debtors
17
9,951,013
7,757,401
Cash at bank and in hand
3,213,146
2,670,311
13,190,559
10,454,612
Creditors: amounts falling due within one year
18
(7,638,358)
(5,549,158)
Net current assets
5,552,201
4,905,454
Total assets less current liabilities
8,090,051
6,779,331
Creditors: amounts falling due after more than one year
19
-
(94,319)
Provisions for liabilities
Deferred tax liability
22
362,043
110,223
(362,043)
(110,223)
Net assets
7,728,008
6,574,789
Capital and reserves
Called up share capital
24
1,400,000
1,400,000
Share premium account
1,657,356
1,657,356
Equity reserve
3,850,000
3,850,000
Profit and loss reserves
820,652
(332,567)
Total equity
7,728,008
6,574,789

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 13 June 2024 and are signed on its behalf by:
13 June 2024
Paul Melanaphy
Director
Company registration number 05509896 (England and Wales)
ARCESE UK LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,318,616
1,189,847
Investments
14
593,137
593,137
1,911,753
1,782,984
Current assets
Stocks
16
26,400
26,900
Debtors
17
7,699,185
6,168,055
Cash at bank and in hand
1,926,383
1,463,107
9,651,968
7,658,062
Creditors: amounts falling due within one year
18
(6,199,556)
(4,348,590)
Net current assets
3,452,412
3,309,472
Total assets less current liabilities
5,364,165
5,092,456
Creditors: amounts falling due after more than one year
19
-
(94,319)
Provisions for liabilities
Deferred tax liability
22
111,941
-
0
(111,941)
-
Net assets
5,252,224
4,998,137
Capital and reserves
Called up share capital
24
1,400,000
1,400,000
Share premium account
1,657,356
1,657,356
Equity reserve
3,850,000
3,850,000
Profit and loss reserves
(1,655,132)
(1,909,219)
Total equity
5,252,224
4,998,137

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 £254,087 (2022 - £2,154,190 profit).

The financial statements were approved by the board of directors and authorised for issue on 13 June 2024 and are signed on its behalf by:
13 June 2024
Paul Melanaphy
Director
Company registration number 05509896 (England and Wales)
ARCESE UK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Equity reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
1,400,000
1,657,356
3,850,000
(2,915,581)
3,991,775
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
2,583,014
2,583,014
Balance at 31 December 2022
1,400,000
1,657,356
3,850,000
(332,567)
6,574,789
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
1,153,219
1,153,219
Balance at 31 December 2023
1,400,000
1,657,356
3,850,000
820,652
7,728,008
ARCESE UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Equity reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
1,400,000
1,657,356
3,850,000
(4,063,409)
2,843,947
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
2,154,190
2,154,190
Balance at 31 December 2022
1,400,000
1,657,356
3,850,000
(1,909,219)
4,998,137
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
254,087
254,087
Balance at 31 December 2023
1,400,000
1,657,356
3,850,000
(1,655,132)
5,252,224
ARCESE UK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,096,830
2,086,022
Interest paid
(39,009)
(66,730)
Income taxes paid
(765,491)
-
Net cash inflow from operating activities
2,292,330
2,019,292
Investing activities
Purchase of tangible fixed assets
(1,558,834)
(315,390)
Proceeds from disposal of tangible fixed assets
-
173,110
Interest received
36,740
1,015
Net cash used in investing activities
(1,522,094)
(141,265)
Financing activities
Repayment of bank loans
(115,562)
(403,170)
Payment of finance leases obligations
(111,839)
(118,127)
Net cash used in financing activities
(227,401)
(521,297)
Net increase in cash and cash equivalents
542,835
1,356,730
Cash and cash equivalents at beginning of year
2,670,311
1,313,581
Cash and cash equivalents at end of year
3,213,146
2,670,311
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Arcese UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Thurock Parkway, Thurock Park Industrial Estate, Tilbury, Essex, RM18 7HY.

 

The group consists of Arcese UK Limited and its subsidiary.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “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 £.

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 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Arcese UK Limited together with all entities controlled by the parent company (its subsidiary) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of the subsidiary to bring the accounting policies used into line with 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.

1.4
Going concern

The financial statements have been prepared on a going concern basis which the directors believe to be appropriate for the following reasons.

The directors have prepared cash flow forecasts which show that the group and the parent company will have sufficient cash to continue to operate, whilst servicing its debt interest and settling all liabilities that become due for the next 12 months from the date of the approval of these financial statements.

Additionally, the directors have received written confirmation from Arcese S.p.A., the ultimate parent undertaking,  that it will not call upon the amounts owed by the group and the parent company and will continue to support the group and the parent company for the foreseeable future, and for a minimum period of at least 12 months from the date of approval of these financial statements, so as to enable the group and the parent company to meet its liabilities as and when they fall due.

The directors have, at the time of approving the financial statements, a reasonable expectation that the group and the parent company have adequate resources to continue in operational existence for the foreseeable future and will have sufficient liquidity to meet its commitments as and when the liabilities fall due for the next 12 months from the date of the approval of these financial statements.

1.5
Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed and value added taxes.

 

Turnover is recognised when the significant risks and rewards of ownership have been transferred to the buyer, the entity retains no continuing involvement or control over the goods, the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity as described below.

The group provides transport logistic services to customers. Turnover is recognised when the risks and rewards of the inventory is passed to the customer which is at the point of delivery where acceptance of the goods by the customer is accepted.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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.

 

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.

1.7
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:

Leasehold improvements
10% on cost
Plant and machinery
25% on cost
Motor vehicles
25% on cost
IT equipment
25% on cost
Motor vehicles
25% on cost
Motor vehicles - trucks and trailers
20% on cost

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.

1.8
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately 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.

1.9
Impairment of fixed assets

At each reporting period 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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 at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
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.

1.11
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.

1.12
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.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 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.

Derecognition of financial liabilities

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

1.13
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.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 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 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.

1.15
Employee benefits

The group has a defined contribution pension scheme of which all full time employees, subject to pension fund rules, are eligible to become members. Short-term benefits, and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. The pension cost charge disclosed in note 7 represents contributions payable by the group to the fund.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.17
Leases

At inception the group assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.

 

i) Finance leased assets

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases.

 

Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined the company’s incremental borrowing rate is used. Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset.

 

Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.

 

The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective

 

Interest rate method to produce a constant rate of charge on the balance of the capital repayments outstanding.

 

ii) Operating leased assets

Leases that do not transfer all risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the statement of income and retained earnings on a straight-line basis over the period of the lease.

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 leased asset are consumed.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
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.

Bad debts provison

The group makes an estimate of the recoverable amount of trade and other debtors. When assessing the provision for bad debts of trade and other receivables, management considers factors including the credit rating of the receivable, the age profile of receivables, estimates of credits required for returns and year end discounts and historical experience.

Amortisation and depreciation

The directors estimate the useful lives and residual values of goodwill and tangible fixed assets in order to calculate the amortisation and depreciation charges. Changes in these estimates could result in changes being required to the annual charges in the Statement of Comprehensive Income and the carrying values of these assets in the Balance Sheet.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Transport, freight forwarding and logistics
33,736,479
33,502,666
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
22,770,841
25,022,658
Europe
10,965,638
8,480,008
33,736,479
33,502,666
2023
2022
£
£
Other revenue
Interest income
36,740
1,015
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item - Admin costs (incl in Admin range)
-
100,000

The exceptional items relates to the provision for potential security costs to be incurred by the group and the company.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(8,114)
(4,992)
Depreciation of owned tangible fixed assets
831,065
569,593
Depreciation of tangible fixed assets held under finance leases
-
139,142
Loss/(profit) on disposal of tangible fixed assets
39,484
(13,545)
Amortisation of intangible assets
24,312
-
Operating lease charges
3,396,231
2,335,424
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
31,500
27,000
Audit of the financial statements of the company's subsidiaries
20,500
18,000
52,000
45,000
For other services
Taxation compliance services
2,000
1,000
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Office and management
67
60
61
54
Warehouse staff
104
78
26
28
Drivers
53
56
53
56
Total
224
194
140
138
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
8,539,761
7,435,339
6,077,269
5,417,141
Social security costs
632,593
576,331
468,404
437,072
Pension costs
183,404
165,913
138,516
129,974
9,355,758
8,177,583
6,684,189
5,984,187
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
129,054
154,352
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
36,740
1,015
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
24,706
37,433
Interest payable to group undertakings
7,887
7,784
Interest on finance leases and hire purchase contracts
6,366
11,328
Other interest
50
10,185
Total finance costs
39,009
66,730
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
201,879
497,742
Adjustments in respect of prior periods
-
0
(14,633)
Total current tax
201,879
483,109
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
2023
2022
£
£
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
251,820
125,123
Changes in tax rates
-
0
26,454
Total deferred tax
251,820
151,577
Total tax charge
453,699
634,686

The actual 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:

2023
2022
£
£
Profit before taxation
1,606,918
3,217,700
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
377,626
611,363
Tax effect of expenses that are not deductible in determining taxable profit
20,947
(1,706)
Gains not taxable
4,356
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(130,714)
Permanent capital allowances in excess of depreciation
(399,548)
(115,861)
Depreciation on assets not qualifying for tax allowances
195,301
134,660
Other permanent differences
8,352
-
0
Under/(over) provided in prior years
(5,155)
(14,633)
Deferred tax movements
251,820
151,577
Taxation charge
453,699
634,686
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
243,137
Amortisation and impairment
At 1 January 2023
-
0
Amortisation charged for the year
24,312
At 31 December 2023
24,312
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 December 2023
218,825
At 31 December 2022
243,137
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Leasehold improvements
Plant and machinery
Motor vehicles
IT equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
167,513
1,648,676
47,818
275,307
2,960,418
5,099,732
Additions
18,544
1,001,815
6,486
234,353
297,636
1,558,834
Disposals
(14,648)
(379,092)
(24,160)
(109,871)
-
0
(527,771)
At 31 December 2023
171,409
2,271,399
30,144
399,789
3,258,054
6,130,795
Depreciation and impairment
At 1 January 2023
57,524
1,118,746
46,646
227,939
2,018,137
3,468,992
Depreciation charged in the year
18,369
312,103
2,180
49,399
449,014
831,065
Eliminated in respect of disposals
(7,678)
(360,653)
(24,168)
(95,788)
-
0
(488,287)
At 31 December 2023
68,215
1,070,196
24,658
181,550
2,467,151
3,811,770
Carrying amount
At 31 December 2023
103,194
1,201,203
5,486
218,239
790,903
2,319,025
At 31 December 2022
109,989
529,930
1,172
47,368
942,281
1,630,740
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 28 -
Company
Leasehold improvements
Plant and machinery
Motor vehicles
IT equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
167,513
624,795
47,818
275,307
2,960,418
4,075,851
Additions
18,544
188,394
6,486
234,353
297,636
745,413
Disposals
(14,648)
(369,487)
(24,160)
(109,871)
-
0
(518,166)
At 31 December 2023
171,409
443,702
30,144
399,789
3,258,054
4,303,098
Depreciation and impairment
At 1 January 2023
57,524
535,758
46,646
227,939
2,018,137
2,886,004
Depreciation charged in the year
18,369
65,602
2,180
49,399
449,014
584,564
Eliminated in respect of disposals
(7,678)
(358,452)
(24,168)
(95,788)
-
0
(486,086)
At 31 December 2023
68,215
242,908
24,658
181,550
2,467,151
2,984,482
Carrying amount
At 31 December 2023
103,194
200,794
5,486
218,239
790,903
1,318,616
At 31 December 2022
109,989
89,037
1,172
47,368
942,281
1,189,847

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles - trucks and trailers
137,018
273,637
137,018
273,637
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiary
15
-
0
-
0
593,137
593,137
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiary
£
Cost or valuation
At 1 January 2023 and 31 December 2023
593,137
Carrying amount
At 31 December 2023
593,137
At 31 December 2022
593,137
15
Subsidiary

Details of the company's subsidiary at 31 December 2023 is as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Textile Logistics Limited
United Kingdom
Freight forwarding
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
26,400
26,900
26,400
26,900
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,981,747
5,380,529
3,459,071
3,666,094
Corporation tax recoverable
65,871
-
0
34,122
-
0
Amounts owed by group undertakings
2,062,208
1,197,484
2,422,563
1,512,032
Other debtors
117,872
79,306
117,874
53,911
Prepayments and accrued income
1,723,315
1,100,082
1,665,555
936,018
9,951,013
7,757,401
7,699,185
6,168,055
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
-
0
115,564
-
0
115,564
Obligations under finance leases
21
100,686
118,206
100,686
118,206
Trade creditors
2,447,962
1,909,728
1,877,806
1,534,557
Amounts owed to group undertakings
4,232,635
2,073,120
3,662,131
1,651,345
Corporation tax payable
-
0
497,741
-
0
178,581
Other taxation and social security
392,463
237,637
184,381
199,105
Other creditors
8,355
10,046
-
0
1,145
Accruals and deferred income
456,257
587,116
374,552
550,087
7,638,358
5,549,158
6,199,556
4,348,590
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
-
0
94,319
-
0
94,319
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
0
115,564
-
0
115,564
Payable within one year
-
0
115,564
-
0
115,564
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
100,686
118,206
100,686
118,206
In two to five years
-
0
94,319
-
0
94,319
100,686
212,525
100,686
212,525

The finance leases primarily relate to trucks used in the group's and the company's operations. There are no contingent rental, renewal or purchase option clauses.

 

Obligations under finance lease and hire purchase are secured on the related assets.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
362,043
110,223
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
111,941
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
110,223
-
Charge to profit or loss
251,820
111,941
Liability at 31 December 2023
362,043
111,941
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
183,404
165,913

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

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,400,000
1,400,000
1,400,000
1,400,000

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. 100% of the shares are held by the parent company Arcese Trasporti S.p.A.

ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
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
2023
2022
2023
2022
£
£
£
£
Within one year
3,480,168
1,472,429
1,736,040
828,843
Between two and five years
11,486,925
65,925
7,133,774
65,925
14,967,093
1,538,354
8,869,814
894,768
26
Related party transactions

Group and parent company

 

The group and parent company have taken advantage of the exemption under terms of FRS102 not to disclose related party transactions with the wholly owned subsidiary within the group.

27
Controlling party

The group and the company is a wholly owned subsidiairy of Arcese Trasporti S.p.A. and its ultimate parent company is Arcese S.p.A., both companies are incorporated in Italy. The ultimate controlling party is Mr M Arcese.

28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,153,219
2,583,014
Adjustments for:
Taxation charged
453,699
634,686
Finance costs
39,009
66,730
Investment income
(36,740)
(1,015)
Loss/(gain) on disposal of tangible fixed assets
39,484
(13,545)
Amortisation and impairment of intangible assets
24,312
-
Depreciation and impairment of tangible fixed assets
831,065
708,735
Movements in working capital:
Decrease/(increase) in stocks
500
(6,700)
(Increase)/decrease in debtors
(2,127,741)
511,042
Increase/(decrease) in creditors
2,720,023
(2,396,925)
Cash generated from operations
3,096,830
2,086,022
ARCESE UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,670,311
542,835
3,213,146
Borrowings excluding overdrafts
(115,564)
115,564
-
Obligations under finance leases
(212,525)
111,839
(100,686)
2,342,222
770,238
3,112,460
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