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COMPANY REGISTRATION NUMBER: 13575293
AR5 Group Ltd
Unaudited Financial Statements
31 December 2023
AR5 Group Ltd
Financial Statements
Year ended 31 December 2023
Contents
Page
Director's report
1
Statement of income and retained earnings
2
Statement of financial position
3
Notes to the financial statements
5
AR5 Group Ltd
Director's Report
Year ended 31 December 2023
The director presents his report and the unaudited financial statements of the company for the year ended 31 December 2023 .
Director
The director who served the company during the year was as follows:
Dr A Rafiq
Employment of disabled persons
The company gives full and fair consideration to applications for employment by disabled persons. In the event of employees becoming disabled whilst in service of the company, every effort is made to continue their employment by transfer to alternative duties, if required and by provision of such re-training as is appropriate.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
This report was approved by the board of directors on 26 September 2024 and signed on behalf of the board by:
Dr A Rafiq
Director
Registered office:
Unit 20 Trident Park
Trident Way
Blackburn
England
BB1 3NU
AR5 Group Ltd
Statement of Income and Retained Earnings
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
8,780,261
5,608,123
Cost of sales
3,036,819
1,959,256
------------
------------
Gross profit
5,743,442
3,648,867
Distribution costs
433,150
267,250
Administrative expenses
5,193,122
3,323,375
------------
------------
Operating profit
117,170
58,242
Interest payable and similar expenses
104,894
42,344
------------
------------
Profit before taxation
5
12,276
15,898
Tax on profit
--------
--------
Profit for the financial year and total comprehensive income
12,276
15,898
--------
--------
Retained earnings at the start of the year
15,898
--------
--------
Retained earnings at the end of the year
28,174
15,898
--------
--------
All the activities of the company are from continuing operations.
AR5 Group Ltd
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Intangible assets
6
1,236,459
948,554
Tangible assets
7
1,625,812
1,267,708
------------
------------
2,862,271
2,216,262
Current assets
Stocks
77,264
35,888
Debtors
8
24,895
16,626
Cash at bank and in hand
718,037
711,117
---------
---------
820,196
763,631
Creditors: amounts falling due within one year
9
1,400,506
960,899
------------
---------
Net current liabilities
580,310
197,268
------------
------------
Total assets less current liabilities
2,281,961
2,018,994
Creditors: amounts falling due after more than one year
10
2,253,687
2,002,996
------------
------------
Net assets
28,274
15,998
------------
------------
Capital and reserves
Called up share capital
100
100
Profit and loss account
11
28,174
15,898
--------
--------
Shareholders funds
28,274
15,998
--------
--------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
For the 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 financial statements for the year in question in accordance with section 476 ;
- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
AR5 Group Ltd
Statement of Financial Position (continued)
31 December 2023
These financial statements were approved by the board of directors and authorised for issue on 26 September 2024 , and are signed on behalf of the board by:
Dr A Rafiq
Director
Company registration number: 13575293
AR5 Group Ltd
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 20 Trident Park, Trident Way, Blackburn, BB1 3NU, England.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
20 years
Franchise Fees
-
20 years
Franchise Rights
-
20 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
7 years
Fixtures and fittings
-
7 yeas
Equipment
-
4 years
Other tangible assets
-
7 years
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. Amounts not paid are shown as a creditor on the balance sheet. The assets of the scheme are held separately from the company in independently administered funds.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 340 (2022: 274 ).
5. Profit before taxation
Profit before taxation is stated after charging:
2023
2022
£
£
Amortisation of intangible assets
58,095
36,937
Depreciation of tangible assets
225,251
147,222
---------
---------
6. Intangible assets
Goodwill
Franchise fees
Franchise Rights
Investments
Total
£
£
£
£
£
Cost
At 1 January 2023
955,991
27,000
2,500
985,491
Additions
18,750
327,250
346,000
---------
--------
---------
-------
------------
At 31 December 2023
955,991
45,750
327,250
2,500
1,331,491
---------
--------
---------
-------
------------
Amortisation
At 1 January 2023
34,521
2,416
36,937
Charge for the year
47,800
3,750
6,545
58,095
---------
--------
---------
-------
------------
At 31 December 2023
82,321
6,166
6,545
95,032
---------
--------
---------
-------
------------
Carrying amount
At 31 December 2023
873,670
39,584
320,705
2,500
1,236,459
---------
--------
---------
-------
------------
At 31 December 2022
921,470
24,584
2,500
948,554
---------
--------
---------
-------
------------
7. Tangible assets
Plant and machinery
Fixtures and fittings
Equipment
Other tangible asset
Total
£
£
£
£
£
Cost
At 1 January 2023
1,266,182
84,000
6,748
58,000
1,414,930
Additions
467,333
84,444
31,578
583,355
------------
---------
--------
--------
------------
At 31 December 2023
1,733,515
168,444
38,326
58,000
1,998,285
------------
---------
--------
--------
------------
Depreciation
At 1 January 2023
132,568
8,669
5,985
147,222
Charge for the year
198,527
14,072
4,364
8,288
225,251
------------
---------
--------
--------
------------
At 31 December 2023
331,095
22,741
4,364
14,273
372,473
------------
---------
--------
--------
------------
Carrying amount
At 31 December 2023
1,402,420
145,703
33,962
43,727
1,625,812
------------
---------
--------
--------
------------
At 31 December 2022
1,133,614
75,331
6,748
52,015
1,267,708
------------
---------
--------
--------
------------
8. Debtors
2023
2022
£
£
Other debtors
24,895
16,626
--------
--------
9. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
362,141
262,142
Trade creditors
303,348
148,244
Social security and other taxes
347,290
324,713
Other creditors
387,727
225,800
------------
---------
1,400,506
960,899
------------
---------
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
1,719,287
1,398,096
Other creditors
534,400
604,900
------------
------------
2,253,687
2,002,996
------------
------------
11. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
12. Director's advances, credits and guarantees
This is shown in note "Creditors: amounts falling due after more than one year" as Other creditors.
13. Controlling party
The company was under the control of its director throughout the year.