Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-316535truetruetruetruetrue2023-01-01falsemanufacturing and installation of double-glazed windows95107truefalse 01238359 2023-01-01 2023-12-31 01238359 2022-01-01 2022-12-31 01238359 2023-12-31 01238359 2022-12-31 01238359 2022-01-01 01238359 1 2023-01-01 2023-12-31 01238359 1 2022-01-01 2022-12-31 01238359 6 2023-01-01 2023-12-31 01238359 6 2022-01-01 2022-12-31 01238359 d:Director1 2023-01-01 2023-12-31 01238359 d:RegisteredOffice 2023-01-01 2023-12-31 01238359 e:Buildings e:ShortLeaseholdAssets 2023-01-01 2023-12-31 01238359 e:Buildings e:ShortLeaseholdAssets 2023-12-31 01238359 e:Buildings e:ShortLeaseholdAssets 2022-12-31 01238359 e:LandBuildings 2023-12-31 01238359 e:LandBuildings 2022-12-31 01238359 e:PlantMachinery 2023-01-01 2023-12-31 01238359 e:PlantMachinery 2023-12-31 01238359 e:PlantMachinery 2022-12-31 01238359 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01238359 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01238359 e:MotorVehicles 2023-01-01 2023-12-31 01238359 e:MotorVehicles 2023-12-31 01238359 e:MotorVehicles 2022-12-31 01238359 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01238359 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01238359 e:FurnitureFittings 2023-01-01 2023-12-31 01238359 e:FurnitureFittings 2023-12-31 01238359 e:FurnitureFittings 2022-12-31 01238359 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01238359 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01238359 e:ComputerEquipment 2023-01-01 2023-12-31 01238359 e:ComputerEquipment 2023-12-31 01238359 e:ComputerEquipment 2022-12-31 01238359 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01238359 e:ComputerEquipment e:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01238359 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01238359 e:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 01238359 e:Goodwill 2023-01-01 2023-12-31 01238359 e:Goodwill 2023-12-31 01238359 e:Goodwill 2022-12-31 01238359 e:CurrentFinancialInstruments 2023-12-31 01238359 e:CurrentFinancialInstruments 2022-12-31 01238359 e:Non-currentFinancialInstruments 2023-12-31 01238359 e:Non-currentFinancialInstruments 2022-12-31 01238359 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 01238359 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 01238359 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 01238359 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 01238359 e:UKTax 2023-01-01 2023-12-31 01238359 e:UKTax 2022-01-01 2022-12-31 01238359 e:ShareCapital 2023-01-01 2023-12-31 01238359 e:ShareCapital 2023-12-31 01238359 e:ShareCapital 2022-01-01 2022-12-31 01238359 e:ShareCapital 2022-12-31 01238359 e:ShareCapital 2022-01-01 01238359 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 01238359 e:RetainedEarningsAccumulatedLosses 2023-12-31 01238359 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 01238359 e:RetainedEarningsAccumulatedLosses 2022-12-31 01238359 e:RetainedEarningsAccumulatedLosses 2022-01-01 01238359 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 01238359 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 01238359 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 01238359 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 01238359 d:OrdinaryShareClass1 2023-01-01 2023-12-31 01238359 d:OrdinaryShareClass1 2023-12-31 01238359 d:OrdinaryShareClass1 2022-12-31 01238359 d:FRS102 2023-01-01 2023-12-31 01238359 d:Audited 2023-01-01 2023-12-31 01238359 d:FullAccounts 2023-01-01 2023-12-31 01238359 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 01238359 e:WithinOneYear 2023-12-31 01238359 e:WithinOneYear 2022-12-31 01238359 e:BetweenOneFiveYears 2023-12-31 01238359 e:BetweenOneFiveYears 2022-12-31 01238359 e:HirePurchaseContracts e:WithinOneYear 2023-12-31 01238359 e:HirePurchaseContracts e:WithinOneYear 2022-12-31 01238359 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-12-31 01238359 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-12-31 01238359 2 2023-01-01 2023-12-31 01238359 6 2023-01-01 2023-12-31 01238359 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-12-31 01238359 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2022-12-31 01238359 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-12-31 01238359 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2022-12-31 01238359 e:LeasedAssetsHeldAsLessee 2023-12-31 01238359 e:LeasedAssetsHeldAsLessee 2022-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 01238359









ARKAY WINDOWS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
ARKAY WINDOWS LIMITED
 
 
COMPANY INFORMATION


Director
R R Radia 




Registered number
01238359



Registered office
36-38 Caxton Way
Watford

WD18 8QZ




Independent auditors
Adler Shine LLP
Chartered Accountants and Statutory Auditor

Aston House

Cornwall Avenue

London

N3 1LF





 
ARKAY WINDOWS LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Director's Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10 - 11
Statement of Changes in Equity
12 - 13
Notes to the Financial Statements
14 - 31


 
ARKAY WINDOWS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The director presents his strategic report for the year ended 31st December 2023.

Business review
 
The company's performance during the period ended 31st December 2023 was satisfactory. 
Revenue decreased by 8.4% to £17,980,577. However the gross profit margin increased to 26.05% from 20.14% following a review of pricing structure in light of cost increases by suppliers and increase in labour costs. Since the year end,  the pressure on input costs have subsequently eased.
Towards the year end, the company solely focuses with the manufacture of alumnium doors and windows. UPVC doors and windows are now provided by the company's fellow subsidiary Quantum Windows Limited.

Principal risks and uncertainties
 
Principal risks and uncertainties the business have are as follows:
The company's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and hire purchase creditors. The main purpose of these instruments is to fund the company's ongoing working capital. Due to the nature of these instruments the company is not exposed to price risk. The company's approach to managing other risks applicable to these finance instruments concerned is shown below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the funding requirements to support operational and other activities and the banking facilities available from the banker. The company's liquidity risk management includes short-term cash projections and considering the level of liquid assets in relation thereto, and monitoring balance sheet liquidity on a frequent basis.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by balancing purchases in line with sales and by ensuring sufficient funds are available to meet amounts due.

Financial key performance indicators
 
Key performance indicators were as follows:
Sales    £18m (2022: £19.6m)
Gross profit margin 26.0% (2022: 20.1%)
Profit after tax £1m (2022: £0.8m)

Other key performance indicators
 
No other key  performance measures are used other than those stated above.

Page 1

 
ARKAY WINDOWS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.





R R Radia
Director

Date: 18 September 2024

Page 2

 
ARKAY WINDOWS LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £972,100 (2022 - £809,441).

Divdiends paid in the year amounted to £845,000 (2022 - £1,689,283).

Director

The director who served during the year was:

R R Radia 

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 3

 
ARKAY WINDOWS LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

The auditorsAdler Shine LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





R R Radia
Director

Date: 18 September 2024

Page 4

 
ARKAY WINDOWS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY WINDOWS LIMITED
 

Opinion


We have audited the financial statements of Arkay Windows Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
ARKAY WINDOWS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY WINDOWS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The director is 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
ARKAY WINDOWS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY WINDOWS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and then design and perform audit procedures responsive to those risks, including obtaining audit
evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we have:
• considered the nature of the industry and sectors, control environment and business performance;
• made enquires of management about their own identification and assessment of the risk of irregularities;
• performed audit work over the risk of management override of controls, including testing of journal entries
  and other adjustments for appropriateness, and reviewing accounting estimates for bias;
• undertaken appropriate sample based testing of bank transactions;
• identified and evaluated compliance with relevant laws and regulations and made enquiries of any instances
  of non-compliance;
• discussed matters among the audit engagement team regarding how and where fraud might occur in the
   financial statements and potential indicators of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
ARKAY WINDOWS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY WINDOWS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Engin Zekia BSc FCA (Senior Statutory Auditor)
  
for and on behalf of
Adler Shine LLP
 
Chartered Accountants and Statutory Auditor
  
Aston House
Cornwall Avenue
London
N3 1LF

18 September 2024
Page 8

 
ARKAY WINDOWS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
17,980,577
19,629,190

Cost of sales
  
(13,296,931)
(15,675,667)

Gross profit
  
4,683,646
3,953,523

Administrative expenses
  
(3,722,155)
(3,085,054)

Other operating income
 4 
103,639
101,092

Fair value movements
  
41,099
-

Operating profit
 5 
1,106,229
969,561

Interest receivable and similar income
 9 
101,602
62,085

Interest payable and similar expenses
 10 
(24,843)
(13,927)

Profit before tax
  
1,182,988
1,017,719

Tax on profit
 11 
(210,888)
(208,278)

Profit for the financial year
  
972,100
809,441

Other comprehensive income for the year
  

Total comprehensive income for the year
  
972,100
809,441

The notes on pages 14 to 31 form part of these financial statements.

Page 9

 
ARKAY WINDOWS LIMITED
REGISTERED NUMBER: 01238359

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
  
1
1

Tangible assets
 14 
1,001,840
888,541

Investments
 15 
174,872
141,765

  
1,176,713
1,030,307

Current assets
  

Stocks
 16 
2,064,882
1,651,804

Debtors: amounts falling due within one year
 17 
3,753,010
3,993,026

Cash at bank and in hand
 18 
1,685,956
2,084,473

  
7,503,848
7,729,303

Creditors: amounts falling due within one year
 19 
(3,189,651)
(3,291,286)

Net current assets
  
 
 
4,314,197
 
 
4,438,017

Total assets less current liabilities
  
5,490,910
5,468,324

Creditors: amounts falling due after more than one year
  
(255,615)
(366,937)

Provisions for liabilities
  

Deferred tax
 23 
(186,162)
(179,354)

  
 
 
(186,162)
 
 
(179,354)

Net assets
  
5,049,133
4,922,033


Capital and reserves
  

Called up share capital 
 24 
180,000
180,000

Profit and loss account
 25 
4,869,133
4,742,033

  
5,049,133
4,922,033


Page 10

 
ARKAY WINDOWS LIMITED
REGISTERED NUMBER: 01238359
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




R R Radia
Director

Date: 18 September 2024

The notes on pages 14 to 31 form part of these financial statements.

Page 11

 
ARKAY WINDOWS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
180,000
4,742,033
4,922,033


Comprehensive income for the year

Profit for the year

-
972,100
972,100


Contributions by and distributions to owners

Dividends: Equity capital
-
(845,000)
(845,000)


Total transactions with owners
-
(845,000)
(845,000)


At 31 December 2023
180,000
4,869,133
5,049,133


The notes on pages 14 to 31 form part of these financial statements.

Page 12

 
ARKAY WINDOWS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
180,000
5,621,875
5,801,875


Comprehensive income for the year

Profit for the year

-
809,441
809,441


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,689,283)
(1,689,283)


Total transactions with owners
-
(1,689,283)
(1,689,283)


At 31 December 2022
180,000
4,742,033
4,922,033


The notes on pages 14 to 31 form part of these financial statements.
Page 13

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Arkay Windows Limited is a private company, limited by shares, registered in Engand and Wales. The company's registered number and registered office address can be found on the company information page. The principal activity of the company is the fabricator and supplier of aluminium windows and doors.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Arkay Group London Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

Page 14

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 15

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 17

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Short-term leasehold property
-
2%
over duration of lease
Plant and machinery
-
15%
on reducing balance
Motor vehicles
-
25%
on reducing balance
Fixtures and fittings
-
15%
on reducing balance
Computer equipment
-
25%
straight line method

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 18

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.19

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
at fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Page 19

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting practice requires
management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.
Depreciation
There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.
Deferred Taxation
There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of.
Bad debt provision
There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.
Work in progresss
There is estimation uncertainity in calculating how complete various partially constructed windows and doors are at the year end. Whist every effort is made to calculate this as accurately as possible there remains a risk that the work in progress may be over or understated.

Page 20

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Other operating income

2023
2022
£
£

Other operating income
67,639
64,591

Net rents receivable
36,000
36,000

Government grants receivable
-
501

103,639
101,092



5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
7,992
-

Other operating lease rentals
520,227
549,892


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
31,500
28,900

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 21

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including director's remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,922,576
3,013,984

Social security costs
290,073
292,875

Cost of defined contribution scheme
57,288
57,185

3,269,937
3,364,044


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Sales
2
3



Production
66
79



Administration
27
25

95
107


8.


Director's remuneration

2023
2022
£
£

Director's emoluments
44,000
46,034

Company contributions to defined contribution pension schemes
1,133
1,133

45,133
47,167


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022
£
£


Other interest receivable
101,602
62,085

101,602
62,085

Page 22

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Finance leases and hire purchase contracts
24,843
13,927

24,843
13,927


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
204,080
123,242

Adjustments in respect of previous periods
-
4,682


204,080
127,924


Total current tax
204,080
127,924

Deferred tax


Origination and reversal of timing differences
6,808
80,354

Total deferred tax
6,808
80,354


Taxation on profit on ordinary activities
210,888
208,278
Page 23

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,182,988
1,017,719


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
295,747
193,367

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
12,942
4,359

Capital allowances for year in excess of depreciation
-
(52,288)

Depreciation in excess of capital allowances
2,231
-

Adjustments to tax charge in respect of prior periods
-
4,682

Short-term timing difference leading to an increase (decrease) in taxation
-
910

Group relief
(77,021)
(23,106)

Deferred tax provision
(6,808)
80,354

Marginal relief
(16,203)
-

Total tax charge for the year
210,888
208,278


12.


Dividends

2023
2022
£
£


Dividends paid
845,000
1,689,283

845,000
1,689,283

Page 24

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
53,543



At 31 December 2023

53,543



Amortisation


At 1 January 2023
53,542



At 31 December 2023

53,542



Net book value



At 31 December 2023
1



At 31 December 2022
1



Page 25

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
90,912
1,595,233
320,785
313,476
395,754
2,716,160


Additions
-
68,625
20,069
174,140
165,001
427,835



At 31 December 2023

90,912
1,663,858
340,854
487,616
560,755
3,143,995



Depreciation


At 1 January 2023
56,054
1,176,043
127,891
168,639
298,992
1,827,619


Charge for the year on owned assets
6,535
44,164
8,313
40,932
65,288
165,232


Charge for the year on financed assets
-
72,592
76,712
-
-
149,304



At 31 December 2023

62,589
1,292,799
212,916
209,571
364,280
2,142,155



Net book value



At 31 December 2023
28,323
371,059
127,938
278,045
196,475
1,001,840



At 31 December 2022
34,858
419,190
192,894
144,837
96,762
888,541




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Short leasehold
28,323
34,858

28,323
34,858


Page 26

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           14.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
88,019
160,611

Motor vehicles
102,999
179,711

191,018
340,322


15.


Fixed asset investments





Listed investments

£



Cost or valuation


At 1 January 2023
141,765


Revaluations
33,107



At 31 December 2023
174,872





16.


Stocks

2023
2022
£
£

Raw materials and consumables
1,708,819
1,199,126

Work in progress
63,027
83,631

Finished goods and goods for resale
293,036
369,047

2,064,882
1,651,804


Page 27

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Debtors

2023
2022
£
£


Trade debtors
1,207,959
1,091,682

Amounts owed by group undertakings
1,073,797
1,381,635

Other debtors
1,245,737
1,268,532

Prepayments and accrued income
225,517
251,177

3,753,010
3,993,026



18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,685,956
2,084,473

1,685,956
2,084,473



19.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,788,596
1,499,646

Amounts owed to group undertakings
140,998
304,418

Corporation tax
131,585
69,747

Other taxation and social security
499,624
408,541

Obligations under finance lease and hire purchase contracts
104,831
109,210

Other creditors
125,480
114,989

Accruals and deferred income
398,537
784,735

3,189,651
3,291,286


Page 28

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
100,972
197,695

Other creditors
154,643
169,242

255,615
366,937



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
104,831
109,210

Between 1-5 years
100,972
197,695

205,803
306,905


22.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,860,828
2,226,238




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand and listed investments.

Page 29

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Deferred taxation




2023


£






At beginning of year
(179,354)


Charged to profit or loss
(6,808)



At end of year
(186,162)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(186,162)
(179,354)

(186,162)
(179,354)


24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



180,000 (2022 - 180,000) Ordinary shares of £1.00 each
180,000
180,000



25.


Reserves

Profit and loss account

The profit and loss accounts represents the cumulative net gains and losses made by the Company less distributions made.


26.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £57,288 (2022 - £57,185) .Contributions totalling £11,339 (2022 - £11,181) were payable to the fund at the balance sheet date and are included in creditors.

Page 30

 
ARKAY WINDOWS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

27.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
654,202
504,202

Later than 1 year and not later than 5 years
1,187,522
1,192,410

1,841,724
1,696,612


28.


Transactions with directors

At the year end the Director owed the company £6,159 (2022: £Nil).


29.


Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
The director holds the unlisted shares and the cash with the investment brokers on behalf of the Company.
The company undertook the following transactions with companies with common director and shareholder.


2023
2022
£
£

Sales
2,213,614
1,246,595
Purchases
657,638
64,392
Recharge of expenses
215,767
-
Rent charged
36,000
36,000
Net trade balance due from related party at balance sheet date
295,269
165,026
Net loan balance due from related party at balance sheet date
1,153,792
1,241,657


30.


Controlling party

The immediate and ultimate parent undertaking is Arkay Group London Limited. Its consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
The company was controlled throughout the current and previous years by Mr R R Radia.

 
Page 31