IRIS Accounts Production v24.2.0.383 11422132 Board of Directors 1.10.22 30.9.23 30.9.23 Freight transport by road true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh114221322022-09-30114221322023-09-30114221322022-10-012023-09-30114221322021-09-30114221322021-10-012022-09-30114221322022-09-3011422132ns15:EnglandWales2022-10-012023-09-3011422132ns14:PoundSterling2022-10-012023-09-3011422132ns10:Director12022-10-012023-09-3011422132ns10:PrivateLimitedCompanyLtd2022-10-012023-09-3011422132ns10:FRS1022022-10-012023-09-3011422132ns10:Audited2022-10-012023-09-3011422132ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-10-012023-09-3011422132ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-10-012023-09-3011422132ns10:FullAccounts2022-10-012023-09-3011422132ns10:OrdinaryShareClass12022-10-012023-09-3011422132ns10:Director32022-10-012023-09-3011422132ns10:RegisteredOffice2022-10-012023-09-3011422132ns10:Director22022-10-012023-09-3011422132ns5:CurrentFinancialInstruments2023-09-3011422132ns5:CurrentFinancialInstruments2022-09-3011422132ns5:Non-currentFinancialInstruments2023-09-3011422132ns5:Non-currentFinancialInstruments2022-09-3011422132ns5:ShareCapital2023-09-3011422132ns5:ShareCapital2022-09-3011422132ns5:RetainedEarningsAccumulatedLosses2023-09-3011422132ns5:RetainedEarningsAccumulatedLosses2022-09-3011422132ns5:ShareCapital2021-09-3011422132ns5:RetainedEarningsAccumulatedLosses2021-09-3011422132ns5:RetainedEarningsAccumulatedLosses2021-10-012022-09-3011422132ns5:RetainedEarningsAccumulatedLosses2022-10-012023-09-3011422132ns5:FurnitureFittings2022-10-012023-09-3011422132ns5:MotorVehicles2022-10-012023-09-3011422132ns5:ComputerEquipment2022-10-012023-09-3011422132ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-10-012023-09-3011422132ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2021-10-012022-09-3011422132ns5:OwnedAssets2022-10-012023-09-3011422132ns5:OwnedAssets2021-10-012022-09-301142213212022-10-012023-09-301142213212021-10-012022-09-3011422132ns5:LongLeaseholdAssetsns5:LandBuildings2022-09-3011422132ns5:FurnitureFittings2022-09-3011422132ns5:MotorVehicles2022-09-3011422132ns5:ComputerEquipment2022-09-3011422132ns5:LongLeaseholdAssetsns5:LandBuildings2022-10-012023-09-3011422132ns5:LongLeaseholdAssetsns5:LandBuildings2023-09-3011422132ns5:FurnitureFittings2023-09-3011422132ns5:MotorVehicles2023-09-3011422132ns5:ComputerEquipment2023-09-3011422132ns5:LongLeaseholdAssetsns5:LandBuildings2022-09-3011422132ns5:FurnitureFittings2022-09-3011422132ns5:MotorVehicles2022-09-3011422132ns5:ComputerEquipment2022-09-3011422132ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-09-3011422132ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-09-3011422132ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-09-3011422132ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-09-3011422132ns10:OrdinaryShareClass12023-09-3011422132ns5:RetainedEarningsAccumulatedLosses2022-09-3011422132ns10:Director222022-09-3011422132ns10:Director222021-09-3011422132ns10:Director222022-10-012023-09-3011422132ns10:Director222021-10-012022-09-3011422132ns10:Director222023-09-3011422132ns10:Director222022-09-30114221321ns10:Director12022-09-30114221321ns10:Director12021-09-30114221321ns10:Director12022-10-012023-09-30114221321ns10:Director12021-10-012022-09-30114221321ns10:Director12023-09-30114221321ns10:Director12022-09-30
REGISTERED NUMBER: 11422132 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 September 2023

for

ARRA Distribution Ltd

ARRA Distribution Ltd (Registered number: 11422132)






Contents of the Financial Statements
for the Year Ended 30 September 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Statement of Comprehensive Income 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Statement of Cash Flows 14

Notes to the Statement of Cash Flows 15

Notes to the Financial Statements 17


ARRA Distribution Ltd

Company Information
for the Year Ended 30 September 2023







DIRECTORS: Mr R A Evans
Mr R J Taylor





REGISTERED OFFICE: Unit 1 Llwyn Yr Eos
Parc Menter
Cross Hands
Carmarthenshire
SA14 6RA





REGISTERED NUMBER: 11422132 (England and Wales)





AUDITORS: Ashmole & Co
First Floor
1 St John's Court
Upper Fforest Way
Enterprise Park
Swansea
SA6 8QQ

ARRA Distribution Ltd (Registered number: 11422132)

Strategic Report
for the Year Ended 30 September 2023

The directors present their strategic report for the year ended 30 September 2023.

REVIEW OF BUSINESS
Principle activity

The company's principle activity is the provision of transport and distribution services throughout the United Kingdom.

Results

Turnover for the year ended 30 September 2023 amounted to £17 million compared to £20 million in the year ended 30 September 2022. The company incurred losses before tax of £313,970 for the year ended 30 September 2023 (2022 losses of £116,112).

Outlook

Whilst trading conditions have remained challenging, the directors are pleased to report that as a result of their cost reduction programme and focus on improving gross margins the business has seen an improvement in performance and the business has returned to profitability in 2024 with further improvement plans still to be implemented.


ARRA Distribution Ltd (Registered number: 11422132)

Strategic Report
for the Year Ended 30 September 2023

PRINCIPAL RISKS AND UNCERTAINTIES
Financial Risk

The company uses various financial instruments which include cash and other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.

The main risk arising from the company's financial instruments are interest rate risk, credit risk and liquidity risk.

Liquidity Risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Short-tern flexibility is achieved by overdraft facilities and sales financing.

Interest Rate Risk

The company finances its operations through a combination of sales financing and long term loans. The interest rate on sales financing is variable and the company manages liquidity risk by ensuring there are sufficient funds to meet the payments.

Credit Risk

The company's principle financial assets are cash and trade debtors. The principle credit risk arises from its trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Trading Risks

Fuel Prices

From a trading perspective fuel represents a significant cost to the business and as such fluctuations in price can have a significant effect on trading performance. In order to mitigate this risk the company has implemented a set of wide ranging fuel price escalators within customer contracts.

Driver Availability

The availability of sufficient skilled drivers continues to be a risk to the sector as a whole and it would seem likely that this will continue to be an issue for the foreseeable future. We are confident however that the measures we have put in place in terms of recruitment, training, and driver retention will be sufficient to mitigate this risk enabling us to place less reliance on external agency drivers going forward.

Increased Inflation

The UK has seen high levels of inflation in the past year which has led to increased fuel, energy costs and costs in general. In order to mitigate this risk the company has escalators within contracts and looked to fix prices.

Government Legislation


ARRA Distribution Ltd (Registered number: 11422132)

Strategic Report
for the Year Ended 30 September 2023

The business operates under a variety of controls and regulations implemented by government bodies. These regulations set stringent operational standards and enhance the safety and environmental characteristics of the industry. Management ensures it has sufficient , robust procedures and controls in place to remain compliant with existing legislation and to enable it to react quickly to implement changes.

Information Technology

The business continues to rely heavily on its IT Infrastructure and systems to enable it to function efficiently. A continuing policy of appraisal and development ensures we keep pace with this ever changing environment. As a means to safeguard the integrity of our data we have invested in additional infrastructure and software and have policies in place to keep our systems safe. Our back ups are both on-site and off-site.

Health & Safety

The business has in place a rigorous and far reaching health & safety policy, and is committed to adhering to all legislation requirements imposed on it through the various enforcing authorities

ON BEHALF OF THE BOARD:





Mr R A Evans - Director


24 September 2024

ARRA Distribution Ltd (Registered number: 11422132)

Report of the Directors
for the Year Ended 30 September 2023

The directors present their report with the financial statements of the company for the year ended 30 September 2023.

DIVIDENDS
No dividends will be distributed for the year ended 30 September 2023.

DIRECTORS
Mr R A Evans has held office during the whole of the period from 1 October 2022 to the date of this report.

Other changes in directors holding office are as follows:

Mr R J Taylor was appointed as a director after 30 September 2023 but prior to the date of this report.

Mr A R Brooker ceased to be a director after 30 September 2023 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE
The company made no political donations during the year (2022: £nil)

CONTINGENT LIABILITY
We have no contingent liabilities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ARRA Distribution Ltd (Registered number: 11422132)

Report of the Directors
for the Year Ended 30 September 2023


AUDITORS
The auditors, Ashmole & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr R A Evans - Director


24 September 2024

Report of the Independent Auditors to the Members of
ARRA Distribution Ltd

Opinion
We have audited the financial statements of ARRA Distribution Ltd (the 'company') for the year ended 30 September 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its loss 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 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.

Material uncertainty relating to going concern
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures made in note 19 to the financial statements concerning the company's ability to continue as a going concern.

At the balance sheet date the company had net current liabilities of £799,387 (2022: £487,326) and negative shareholders funds of £794,275 (2022: £480,305).

The company 's ability to continue as a going concern is dependent on the continuous support of all providers of working capital support on similar terms and conditions to those currently in existence.

This suggests the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. The financial statements do not include any adjustments that would result if the company was unable to continue as a going concern.

Report of the Independent Auditors to the Members of
ARRA Distribution Ltd


Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' 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 Statement of Directors' Responsibilities set out on page five, 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 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.

Report of the Independent Auditors to the Members of
ARRA Distribution Ltd


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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statement, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- Obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
- inquired of management, and those charged with governance, about their own identification and assessments of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, and the Companies Act 2006. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
ARRA Distribution Ltd


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 a Report of the Auditors 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.




S K Keith (Senior Statutory Auditor)
for and on behalf of Ashmole & Co
First Floor
1 St John's Court
Upper Fforest Way
Enterprise Park
Swansea
SA6 8QQ

25 September 2024

ARRA Distribution Ltd (Registered number: 11422132)

Statement of Comprehensive
Income
for the Year Ended 30 September 2023

2023 2022
Notes £    £    £    £   

TURNOVER 17,224,765 19,971,975

Cost of sales 15,585,846 17,722,254
GROSS PROFIT 1,638,919 2,249,721

Distribution costs 1,235,559 1,728,059
Administrative expenses 496,742 466,953
1,732,301 2,195,012
(93,382 ) 54,709

Other operating income 2,400 3,796
OPERATING (LOSS)/PROFIT 4 (90,982 ) 58,505

Interest receivable and similar income 2,381 3,944
(88,601 ) 62,449

Interest payable and similar expenses 5 225,369 178,561
LOSS BEFORE TAXATION (313,970 ) (116,112 )

Tax on loss 6 - 70,000
LOSS FOR THE FINANCIAL YEAR (313,970 ) (186,112 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR

(313,970

)

(186,112

)

ARRA Distribution Ltd (Registered number: 11422132)

Statement of Financial Position
30 September 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 21,779 33,688

CURRENT ASSETS
Stocks 8 96,858 27,440
Debtors 9 2,666,982 2,976,984
Cash at bank 55,316 132,315
2,819,156 3,136,739
CREDITORS
Amounts falling due within one year 10 3,618,543 3,624,065
NET CURRENT LIABILITIES (799,387 ) (487,326 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(777,608

)

(453,638

)

CREDITORS
Amounts falling due after more than one
year

11

16,667

26,667
NET LIABILITIES (794,275 ) (480,305 )

CAPITAL AND RESERVES
Called up share capital 14 100 100
Retained earnings 15 (794,375 ) (480,405 )
SHAREHOLDERS' FUNDS (794,275 ) (480,305 )

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2024 and were signed on its behalf by:





Mr R A Evans - Director


ARRA Distribution Ltd (Registered number: 11422132)

Statement of Changes in Equity
for the Year Ended 30 September 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 October 2021 100 (294,293 ) (294,193 )

Changes in equity
Total comprehensive income - (186,112 ) (186,112 )
Balance at 30 September 2022 100 (480,405 ) (480,305 )

Changes in equity
Total comprehensive income - (313,970 ) (313,970 )
Balance at 30 September 2023 100 (794,375 ) (794,275 )

ARRA Distribution Ltd (Registered number: 11422132)

Statement of Cash Flows
for the Year Ended 30 September 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 121,838 267,652
Interest paid (225,369 ) (178,561 )
Tax paid 32,888 1
Net cash from operating activities (70,643 ) 89,092

Cash flows from investing activities
Purchase of tangible fixed assets (6,463 ) (20,128 )
Interest received 2,381 3,944
Net cash from investing activities (4,082 ) (16,184 )

Cash flows from financing activities
Amount withdrawn by directors (2,274 ) (3,944 )
Net cash from financing activities (2,274 ) (3,944 )

(Decrease)/increase in cash and cash equivalents (76,999 ) 68,964
Cash and cash equivalents at
beginning of year

2

132,315

63,351

Cash and cash equivalents at end of
year

2

55,316

132,315

ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Statement of Cash Flows
for the Year Ended 30 September 2023

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Loss before taxation (313,970 ) (116,112 )
Depreciation charges 18,374 16,265
Finance costs 225,369 178,561
Finance income (2,381 ) (3,944 )
(72,608 ) 74,770
(Increase)/decrease in stocks (69,418 ) 1,688
Decrease/(increase) in trade and other debtors 312,276 (416,305 )
(Decrease)/increase in trade and other creditors (48,412 ) 607,499
Cash generated from operations 121,838 267,652

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 September 2023
30/9/23 1/10/22
£    £   
Cash and cash equivalents 55,316 132,315
Year ended 30 September 2022
30/9/22 1/10/21
£    £   
Cash and cash equivalents 132,315 63,351


ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Statement of Cash Flows
for the Year Ended 30 September 2023

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/10/22 Cash flow At 30/9/23
£    £    £   
Net cash
Cash at bank 132,315 (76,999 ) 55,316
132,315 (76,999 ) 55,316
Debt
Debts falling due within 1 year (10,000 ) - (10,000 )
Debts falling due after 1 year (26,667 ) 10,000 (16,667 )
(36,667 ) 10,000 (26,667 )
Total 95,648 (66,999 ) 28,649

ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Financial Statements
for the Year Ended 30 September 2023

1. STATUTORY INFORMATION

ARRA Distribution Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on cost
Computer equipment - 20% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,939,818 4,679,537
Social security costs 399,856 518,466
Other pension costs 78,832 95,058
4,418,506 5,293,061

The average number of employees during the year was as follows:
2023 2022

Total staff 120 131

2023 2022
£    £   
Directors' remuneration 140,806 170,880

4. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 15,153 2,223
Depreciation - owned assets 18,372 16,265
Auditors' remuneration 15,000 20,000

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 202,975 178,561
Other interest 22,394 -
225,369 178,561

ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

6. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2023 2022
£    £   
Deferred tax - 70,000
Tax on loss - 70,000

7. TANGIBLE FIXED ASSETS
Fixtures
Long and Motor Computer
leasehold fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 October 2022 - 6,506 46,213 21,992 74,711
Additions 3,942 - 880 1,641 6,463
At 30 September 2023 3,942 6,506 47,093 23,633 81,174
DEPRECIATION
At 1 October 2022 - 3,043 21,868 16,112 41,023
Charge for year 910 1,497 11,210 4,755 18,372
At 30 September 2023 910 4,540 33,078 20,867 59,395
NET BOOK VALUE
At 30 September 2023 3,032 1,966 14,015 2,766 21,779
At 30 September 2022 - 3,463 24,345 5,880 33,688

8. STOCKS
2023 2022
£    £   
Stocks 96,858 27,440

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,422,001 2,364,579
Other debtors 61,197 27,645
Directors' current accounts 89,974 87,700
Prepayments 93,810 497,060
2,666,982 2,976,984

ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 12) 10,000 10,000
Trade creditors 600,724 958,702
Factoring creditor 1,446,908 1,260,995
Tax 32,889 1
Social security and other taxes 262,801 360,982
VAT 658,384 516,432
Other creditors 138,013 199,165
Accrued expenses 468,824 317,788
3,618,543 3,624,065

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2023 2022
£    £   
Bank loans (see note 12) 16,667 26,667

12. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,000 10,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 16,667 26,667

13. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Factoring Creditor 1,446,908 1,260,995

Ecapital commercial finance Ltd hold by way of a first fixed and floating charge dated 6 December 2018 all the assets of the company. The company is precluded without the consent in writing of Ecapital commercial finance Ltd from creating any further charge upon all or any of the book and other debts due to its ranking either in priority to or pari passu with this charge.

ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary 1 100 100

15. RESERVES
Retained
earnings
£   

At 1 October 2022 (480,405 )
Deficit for the year (313,970 )
At 30 September 2023 (794,375 )

16. PENSION COMMITMENTS

The company operates a defined contribution 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 £78,832 (2022: £95,058). Contributions totalling £12,229 (2022: £15,385) were payable to the fund at the reporting date and are included in creditors.

17. FINANCIAL COMMITMENTS

At 30 September 2022 the company had future minimum lease payments due under non-cancellable operating leases as follows:

20232022
£   £   
Other operating leases

Not later than 1 year1,453,5531,536,034
Later than 1 year and not later than 5 years262,8611,053,940
1,716,4142,589,974

ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

18. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 September 2023 and 30 September 2022:

2023 2022
£    £   
Mr A R Brooker
Balance outstanding at start of year (43,913 ) (42,000 )
Amounts advanced (887 ) (1,913 )
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (44,800 ) (43,913 )

Mr R A Evans
Balance outstanding at start of year (43,787 ) (41,756 )
Amounts advanced (1,387 ) (2,031 )
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (45,174 ) (43,787 )

ARRA Distribution Ltd (Registered number: 11422132)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2023

19. GOING CONCERN

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

The directors have reviewed the balance sheet the likely level of future cash flows of the business and have considered the facilities that are in place at the date of signing the report. The directors have considered based on this review that it is appropriate to prepare the financial statements on a going concern basis.

The company 's ability to continue as a going concern is dependent on the continuous support of all providers of working capital support on similar terms and conditions to those currently in existence and in particular with regard to the following specific providers :

- The company has existing factoring arrangements in place to fund its debtor book and to provide working capital funding for the company. At present the company operates within the financial limits provided by this facility and have complied with these limits throughout the period in which such facilities have been made available.

- The company has informal arrangements in place to clear extended credit that has been taken from government agencies. To date the company has under these arrangements reduced its liability to these agencies and over the last 12 months been meeting the in period liabilities as and when they fall due in addition to making regular payments to reduce the backlog.

The Directors are pleased to announce that, as anticipated in last year's Annual Accounts they have been successful in introducing a new shareholder to the Company who is an experienced national operator and this has added significant expertise in the transport and warehousing sectors and increases in levels of activity and further rationalisation and efficiencies. This has led to the business returning to profitability in 2024 with additional opportunities for further improvements in 2025.