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Registration number: 05642959

Arc Design Associates (UK) Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Arc Design Associates (UK) Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 9

Detailed Profit and Loss Account

10 to 11

 

Arc Design Associates (UK) Limited

Company Information

Director

Mr Mark Adams

Registered office

590 Green Lanes
Palmers Green
London
N13 5RY

Accountants

Thomas Alexander & Co Ltd
590 Green Lanes
Palmers Green
London
N13 5RY

 

Arc Design Associates (UK) Limited

(Registration number: 05642959)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

10,262

6,047

Current assets

 

Stocks

420

360

Debtors

5

87,897

68,803

Cash at bank and in hand

 

28,869

30,409

 

117,186

99,572

Creditors: Amounts falling due within one year

6

(57,794)

(57,346)

Net current assets

 

59,392

42,226

Total assets less current liabilities

 

69,654

48,273

Provisions for liabilities

(472)

(472)

Net assets

 

69,182

47,801

Capital and reserves

 

Called up share capital

7

100

100

Retained earnings

69,082

47,701

Shareholders' funds

 

69,182

47,801

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 18 September 2024
 

.........................................
Mr Mark Adams
Director

 

Arc Design Associates (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
590 Green Lanes
Palmers Green
London
N13 5RY

The principal place of business is:
11 Fitzwalter Road
Boreham
CM3 3DA

These financial statements were authorised for issue by the director on 18 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

 

Arc Design Associates (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and Fittings

25% Reduced Balance Basis

Office Equipments

15% Reduced Balance Basis

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Useful economic life

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Arc Design Associates (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Arc Design Associates (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 2 (2022 - 3).

 

Arc Design Associates (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

4

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2023

22,855

22,855

Additions

6,063

6,063

At 31 December 2023

28,918

28,918

Depreciation

At 1 January 2023

16,808

16,808

Charge for the year

1,848

1,848

At 31 December 2023

18,656

18,656

Carrying amount

At 31 December 2023

10,262

10,262

At 31 December 2022

6,047

6,047

5

Debtors

Current

2023
£

2022
£

Trade debtors

87,897

68,803

 

87,897

68,803

6

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

37,745

39,045

Trade creditors

 

1,986

3,616

Taxation and social security

 

16,217

8,589

Accruals and deferred income

 

1,750

6,000

Other creditors

 

96

96

 

57,794

57,346

 

Arc Design Associates (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

7

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       
 

Arc Design Associates (UK) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

8

Dividends

2023

2022

£

£

Interim dividend of £20.00 (2022 - £40.00) per ordinary share

2,000

4,000

 

 

9

Related party transactions

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

39,816

51,890

Summary of transactions with other related parties


Included in creditors is an amount of £12,223 (2022: £12,223) owed to the directors of the company.

 
 

 

Arc Design Associates (UK) Limited

Detailed Profit and Loss Account for the Year Ended 31 December 2023

2023
 £

2022
 £

Turnover (analysed below)

124,881

135,929

Cost of sales (analysed below)

(9,035)

(7,998)

Gross profit

115,846

127,931

Gross profit (%)

92.77%

94.12%

Administrative expenses

Employment costs (analysed below)

(57,426)

(70,299)

General administrative expenses (analysed below)

(29,749)

(22,741)

Finance charges (analysed below)

(96)

(99)

Depreciation costs (analysed below)

(1,848)

(1,100)

(89,119)

(94,239)

Operating profit

26,727

33,692

Profit before tax

26,727

33,692

 

Arc Design Associates (UK) Limited

Detailed Profit and Loss Account for the Year Ended 31 December 2023

2023
£

2022
£

   

Turnover

Sales

124,881

135,929

   

Cost of sales

Opening work in progress

360

336

Purchases & direct costs

9,095

8,022

Closing work in progress

(420)

(360)

9,035

7,998

   

Employment costs

Wages and salaries (excluding directors)

16,771

16,264

Staff NIC (Employers)

325

1,925

Directors remuneration

39,816

51,890

Staff pensions (Defined contribution)

-

220

Staff training

514

-

57,426

70,299

   

General administrative expenses

Repairs and maintenance

1,541

506

Telephone and fax

3,253

3,786

Computer software and maintenance costs

2,857

1,406

Printing, postage and stationery

735

1,040

Trade subscriptions

402

74

Travel and subsistence

16,609

12,044

Accountancy fees

4,352

3,885

29,749

22,741

   

Finance charges

Bank charges

96

99

   

Depreciation costs

Depreciation of fixtures and fittings (owned)

1,848

1,100