Archway Green Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 11625769 (England and Wales)
Archway Green Limited
Company Information
Directors
R A Critchley
J F Devenish
Secretary
R A Critchley
Company number
11625769
Registered office
York House City Fields Business Park
City Fields Way
Tangmere
Chichester
West Sussex
England
PO20 2FR
Auditors
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Archway Green Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 26
Archway Green Limited
Strategic Report
For the year ended 31 December 2023
Page 1

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

Business Review

Archway Green Limited aims to be the leading provider of sustainable and innovative landscaping solutions, transforming outdoor spaces to enhance the quality of life for our clients and communities. We are committed to environmental stewardship, exceptional service, and fostering a culture of creativity and excellence.

Archway Green Limited specialises in comprehensive landscaping, fencing and grounds maintenance services, for the primary markets of housebuilding, commercial, local authority and public spaces.

Principal Risks and Uncertainties

The continued growth of the business and the executions of the Company’s strategy are subject to a number of risks, any of which are common in other companies. Key risks and mitigation of these are listed below

Credit Risk:

Credit risk arises from clients or partners failing to meet financial obligations, potentially causing financial losses. To mitigate this, we introduced new credit assessments, require deposits and progress payments, maintain strong client relationships, and closely monitor accounts receivable.

Economic Environment/Downturn:

Economic downturns and continued inflationary pressure can reduce spending on landscaping services, impacting revenue. We mitigate this by diversifying our client portfolio, offering various service packages and maintaining tight fiscal discipline.

Competition:

The landscaping industry is well developed and highly competitive. To mitigate competitive risks, we focus on exceptional quality, superior customer service, continuous professional development, digital marketing, and maintaining high customer satisfaction.

Health and Safety:

Landscaping work involves physical activities and machinery use, posing health and safety risks. We mitigate these risks through comprehensive training, updated safety protocols, routine safety audits, proper use of personal protective equipment (PPE), and fostering a safety-first culture among employees. We are members of and achieve ongoing compliance with industry recognised safety schemes such as SMAS, Construction Line Gold and CHAS Advanced.

Financial Key Performance Indicators

Revenue Growth:

Archway Green has experienced strong revenue growth over the past three years, driven by continued client relations and increased project volumes. In the FY23, revenue grew by 36% to £15,462,208.

Profit Margin:

Our profit margins have suffered due to the inflationary market environment and changes in the management structure resulting in a loss of £73,154 (-0.47%). The business had returned to consistent monthly profit for the second half of the year.

Cash Flow:

Archway Green Limited maintains a healthy cash flow, with a 52% increase in operating cash flow year-on-year. This has enabled us to fund our expansion plans without external financing.

Archway Green Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2
Employment Policy and Employee Communication

The company recognises that employees are the company’s key asset. The business promotes the desired behaviours through our values and policies (including equality, diversity & inclusiveness, learning & development, modern slavery), supported by our leadership and HR team.

The directors would like to thank all of our staff from their efforts throughout 2023.

Archway Green Limited is well-positioned for continued growth and success in the landscaping industry. Our commitment to innovation, quality, and service drives our business strategy, enabling us to navigate challenges and capitalize on opportunities. We remain focused on delivering exceptional value to our clients and contributing positively to the environment and communities we serve.

On behalf of the board

R A Critchley
Director
13 September 2024
Archway Green Limited
Directors' Report
For the year ended 31 December 2023
Page 3

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

Principal activities

The principal activity of the company continued to be that of new build landscaping.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not 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:

R A Critchley
J F Devenish
Auditor

Moore Kingston Smith LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Archway Green Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 4
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
R A Critchley
Director
13 September 2024
Archway Green Limited
Independent Auditor's Report
To the Members of Archway Green Limited
Page 5
Opinion

We have audited the financial statements of Archway Green Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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.

Archway Green Limited
Independent Auditor's Report (Continued)
To the Members of Archway Green Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Archway Green Limited
Independent Auditor's Report (Continued)
To the Members of Archway Green Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Archway Green Limited
Independent Auditor's Report (Continued)
To the Members of Archway Green Limited
Page 8

Explanation as to what extent 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, 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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Archway Green Limited
Independent Auditor's Report (Continued)
To the Members of Archway Green Limited
Page 9

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.

Steven Rushmer
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
18 September 2024
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Archway Green Limited
Profit and Loss Account
For the year ended 31 December 2023
Page 10
2023
2022
Notes
£
£
Turnover
15,462,208
11,388,146
Cost of sales
(12,386,076)
(8,800,839)
Gross profit
3,076,132
2,587,307
Administrative expenses
(3,074,306)
(1,792,485)
Operating profit
3
1,826
794,822
Interest payable and similar expenses
6
(99,848)
(25,633)
(Loss)/profit before taxation
(98,022)
769,189
Tax on (loss)/profit
7
24,868
(307,233)
(Loss)/profit for the financial year
(73,154)
461,956

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Archway Green Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
Page 11
2023
2022
£
£
(Loss)/profit for the year
(73,154)
461,956
Other comprehensive income
-
-
Total comprehensive income for the year
(73,154)
461,956
Archway Green Limited
Balance Sheet
As at 31 December 2023
Page 12
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
8
-
0
48,061
Tangible assets
9
1,729,386
1,122,102
1,729,386
1,170,163
Current assets
Stock
10
270,123
231,226
Debtors
11
4,780,303
3,823,230
Cash at bank and in hand
501,071
142,816
5,551,497
4,197,272
Creditors: amounts falling due within one year
12
(4,597,417)
(2,905,895)
Net current assets
954,080
1,291,377
Total assets less current liabilities
2,683,466
2,461,540
Creditors: amounts falling due after more than one year
13
(687,010)
(367,062)
Provisions for liabilities
Deferred tax liability
15
(254,756)
(279,624)
(254,756)
(279,624)
Net assets
1,741,700
1,814,854
Capital and reserves
Called up share capital
17
60
60
Profit and loss reserves
1,741,640
1,814,794
Total equity
1,741,700
1,814,854
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
R A Critchley
Director
Company Registration No. 11625769
Archway Green Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 13
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
60
1,352,838
1,352,898
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
461,956
461,956
Balance at 31 December 2022
60
1,814,794
1,814,854
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(73,154)
(73,154)
Balance at 31 December 2023
60
1,741,640
1,741,700
Archway Green Limited
Statement of Cash Flows
For the year ended 31 December 2023
Page 14
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
942,408
621,028
Interest paid
(99,848)
(25,633)
Income taxes refunded/(paid)
74,473
(213,892)
Net cash inflow from operating activities
917,033
381,503
Investing activities
Purchase of tangible fixed assets
(1,127,787)
(827,928)
Proceeds from disposal of tangible fixed assets
60,656
63,167
Net cash used in investing activities
(1,067,131)
(764,761)
Financing activities
Payment of finance leases obligations
508,353
355,708
Net cash generated from financing activities
508,353
355,708
Net increase/(decrease) in cash and cash equivalents
358,255
(27,550)
Cash and cash equivalents at beginning of year
142,816
170,366
Cash and cash equivalents at end of year
501,071
142,816
Archway Green Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 15
1
Accounting policies
Company information

Archway Green Limited is a private company limited by shares incorporated in England and Wales. The registered office is York House City Fields Business Park, City Fields Way, Tangmere, Chichester, West Sussex, England, PO20 2FR

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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 16
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
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
over the period of the lease
Plant and equipment
20% reducing balance
Fixtures and fittings
15% reducing balance
Computers
25% reducing balance
Motor vehicles
20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Stock

Stock 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 stock to their present location and condition.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 17
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 18
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 19
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.

1.11
Retirement benefits

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
16,750
Depreciation of owned tangible fixed assets
489,069
196,300
(Profit)/loss on disposal of tangible fixed assets
(29,222)
5,726
Amortisation of intangible assets
48,061
21,020
Operating lease charges
164,541
100,950
Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 20
4
Employees

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

2023
2022
Number
Number
Head office
28
19
Fencing
31
22
Landscaping
50
49
Maintenance
11
8
Yard & care
3
1
Unallocated
1
-
Total
124
99

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,584,523
3,415,627
Social security costs
455,540
349,345
Pension costs
64,118
49,797
5,104,181
3,814,769
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
75,589
-
0
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
34,969
9,051
Other finance costs:
Interest on finance leases and hire purchase contracts
64,879
16,582
99,848
25,633
Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 21
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
27,609
Deferred tax
Origination and reversal of timing differences
(24,868)
279,624
Total tax (credit)/charge
(24,868)
307,233

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(98,022)
769,189
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(18,624)
146,146
Tax effect of expenses that are not deductible in determining taxable profit
1,512
42,727
Permanent capital allowances in excess of depreciation
17,112
(161,264)
Deferred tax adjustments in respect of prior years
(24,868)
279,624
Taxation (credit)/charge for the year
(24,868)
307,233
8
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
105,101
Amortisation and impairment
At 1 January 2023
57,040
Amortisation charged for the year
48,061
At 31 December 2023
105,101
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
48,061
Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 22
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
3,424
197,574
3,438
55,578
1,188,262
1,448,276
Additions
3,798
221,483
4,070
32,141
866,295
1,127,787
Disposals
-
0
-
0
-
0
-
0
(137,838)
(137,838)
At 31 December 2023
7,222
419,057
7,508
87,719
1,916,719
2,438,225
Depreciation and impairment
At 1 January 2023
-
0
39,969
666
19,154
266,385
326,174
Depreciation charged in the year
-
0
51,439
711
12,335
424,584
489,069
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(106,404)
(106,404)
At 31 December 2023
-
0
91,408
1,377
31,489
584,565
708,839
Carrying amount
At 31 December 2023
7,222
327,649
6,131
56,230
1,332,154
1,729,386
At 31 December 2022
3,424
157,605
2,772
36,424
921,877
1,122,102
10
Stock
2023
2022
£
£
Finished goods and goods for resale
270,123
231,226
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,544,168
2,964,334
Amounts owed by group undertakings
-
0
11,700
Other debtors
154,795
157,981
Prepayments and accrued income
1,081,340
689,215
4,780,303
3,823,230
Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 23
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
14
648,241
352,342
Trade creditors
963,608
1,588,694
Amounts owed to group undertakings
2,061,881
35,000
Corporation tax
8,190
-
0
Other taxation and social security
159,013
180,243
Other creditors
559,432
408,248
Accruals and deferred income
197,052
341,368
4,597,417
2,905,895
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
14
579,516
367,062
Other creditors
107,494
-
0
687,010
367,062
14
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
648,241
352,342
In two to five years
579,516
367,062
1,227,757
719,404

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 24
15
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
254,756
279,624
2023
Movements in the year:
£
Liability at 1 January 2023
279,624
Credit to profit or loss
(24,868)
Liability at 31 December 2023
254,756
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,118
49,797

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

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
60
60
60
60
Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 25
18
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
71,684
112,339
Between two and five years
66,905
152,691
138,589
265,030
19
Related party transactions

The following entities are related by virtue of common control: White Square Holdings Limited, Greenwood South Ltd, Greenwood Group Limited and Greenwood Holland BV.

 

During the year the company made purchases of £444 (2022: £nil) from Ox Tools Ltd, a company with a director in common, Mr R Critchley.

 

During the year the company made sales of £687,500 (2022: £4,869) to White Square Holdings Limited, and made purchases of £237,780 (2022: £12,805) from White Square Holdings Limited.

 

At the year end included in creditors is £1,251,268 (2022: £819,684) owed to Greenwood Group Limited, and included in debtors is £7,903 (2022: £nil). During the year the company made sales of £6,586 (2022: £40,000) to Greenwood Group Limited, and made purchases of £2,906,089 (2022: £2,019,638) from Greenwood Group Limited.

 

At the year end included in creditors is £15,766 (2022: £nil) owed to Greenwood South Limited. During the year the company made sales of £11,819 (2022: £5,000) to Greenwood South Limited, and made purchases of £300,085 (2022: £58,158) from Greenwood South Limited.

20
Ultimate controlling party

The company's ultimate and immediate parent company is White Square Holdings Limited, a company registered in England and Wales.

 

White Square Holdings Limited is the smallest and largest group for which consolidated accounts including this company are prepared. The registered address of White Square Holdings Ltd is Chancery House, 30 St Johns Road, Woking, GU21 7SA.

Archway Green Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 26
21
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(73,154)
461,956
Adjustments for:
Taxation (credited)/charged
(24,868)
307,233
Finance costs
99,848
25,633
(Gain)/loss on disposal of tangible fixed assets
(29,222)
5,726
Amortisation and impairment of intangible assets
48,061
21,020
Depreciation and impairment of tangible fixed assets
489,069
196,300
Movements in working capital:
Increase in stock
(38,897)
(93,516)
Increase in debtors
(1,023,356)
(954,376)
Increase in creditors
1,494,927
651,052
Cash generated from operations
942,408
621,028
22
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
142,816
358,255
501,071
Obligations under finance leases
(719,404)
(508,353)
(1,227,757)
(576,588)
(150,098)
(726,686)
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