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COMPANY REGISTRATION NUMBER: 05366084
ARENA UK LIMITED
FILLETED UNAUDITED FINANCIAL STATEMENTS
FOR YEAR ENDED
29 February 2024
ARENA UK LIMITED
STATEMENT OF FINANCIAL POSITION
29 February 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
5
3,774,591
3,747,264
Current assets
Stocks
6,587
6,050
Debtors
6
99,134
43,491
----------
---------
105,721
49,541
Creditors: amounts falling due within one year
7
( 1,001,958)
( 892,196)
-------------
----------
Net current liabilities
( 896,237)
( 842,655)
-------------
-------------
Total assets less current liabilities
2,878,354
2,904,609
Creditors: amounts falling due after more than one year
8
( 2,007,638)
( 2,022,930)
-------------
-------------
Net assets
870,716
881,679
-------------
-------------
ARENA UK LIMITED
STATEMENT OF FINANCIAL POSITION (continued)
29 February 2024
2024
2023
Note
£
£
£
Capital and reserves
Called up share capital
6,000,000
6,000,000
Profit and loss account
( 5,129,284)
( 5,118,321)
-------------
-------------
Shareholders funds
870,716
881,679
-------------
-------------
These financial statements have been prepared and delivered 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'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the year ending 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' 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 directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements were approved by the board of directors and authorised for issue on 28 November 2024 , and are signed on behalf of the board by:
N Oley
Director
Company registration number: 05366084
ARENA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 29 FEBRUARY 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Willow Top Farm, Allington, Notts, NG32 2EF.
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 and in sterling, which is the functional currency of the entity. Going concern In recent years management have been undergoing a major restructure of the business and this has led to operating losses historically. The company remains dependant on the continued financial support of the directors and the bank in order to continue to trade. The directors have agreed to continue to provide this support to the company for the foreseeable future, and they are not aware of any reason why the overdraft facility may be withdrawn. In light of the above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the accounts being signed.
Judgements and key sources of estimation uncertainty
In the application of the Company's accounting policies, which are described in note 3, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: (i) Exemptions on transition to FRS 102 The company has elected to use the previous UK GAAP valuation of certain items of land and buildings as the deemed cost on transition to FRS 102. The items are being depreciated from the date of transition (1 March 2015) in accordance with the company's accounting policies. (ii) Shareholder/Director loans The company has classed the majority of loans from the main shareholder and Director of the company as repayable over one year.
Revenue recognition
The turnover shown in the profit and loss account represents the value of all work done during the period, exclusive of Value Added Tax. Turnover is recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the sale have been transferred to the customer.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
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:
Freehold property
-
1% straight line
Plant & machinery
-
20% reducing balance / 5 years straight line
Fixtures & fittings
-
25% reducing balance / 3-5 years straight line
Motor vehicles
-
25% reducing balance
Freehold Property is depreciated at a rate of 1% straight line, however no charge is recognised on the grounds of immateriality. Freehold Property is subject to regular maintenance and repair such that in the directors opinion the residual value is not materially different from the value in the financial statements and has a long useful economic life.
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.
Stocks
Stocks are valued at the lower of cost and net realisable value, on a first-in-first-out basis, after making due allowance for obsolete and slow moving items. Cost is based on purchase price.
Grants
Grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Grants are recognised using the accrual model and the performance model.
Financial instruments
The company only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
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.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 41 (2023: 32 ).
5. Tangible assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2023
4,081,804
434,297
505,948
32,489
5,054,538
Additions
65,526
100,153
28,753
1,000
195,432
Disposals
( 7,715)
( 7,715)
-------------
----------
----------
---------
-------------
At 29 February 2024
4,147,330
526,735
534,701
33,489
5,242,255
-------------
----------
----------
---------
-------------
Depreciation
At 1 March 2023
504,878
362,557
415,691
24,148
1,307,274
Charge for the year
97,830
38,859
23,676
1,868
162,233
Disposals
( 1,843)
( 1,843)
-------------
----------
----------
---------
-------------
At 29 February 2024
602,708
399,573
439,367
26,016
1,467,664
-------------
----------
----------
---------
-------------
Carrying amount
At 29 February 2024
3,544,622
127,162
95,334
7,473
3,774,591
-------------
----------
----------
---------
-------------
At 28 February 2023
3,576,926
71,740
90,257
8,341
3,747,264
-------------
----------
----------
---------
-------------
The company applied the transitional arrangements of Section 35 of FRS 102 and used a previous valuation as the deemed cost for certain Freehold properties which were revalued on 1 January 2014 by independent valuers. The carrying value of the land and buildings valued at the date of transition to FRS 102 using the deemed cost exemption was £3,150,000 and the historical cost equivalent at the time was £3,389,926.
6. Debtors
2024
2023
£
£
Trade debtors
60,130
9,182
Other debtors
39,004
34,309
---------
---------
99,134
43,491
---------
---------
7. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
130,045
59,008
Payments received on account
4,112
Trade creditors
102,521
117,443
Accruals and deferred income
45,893
23,256
Social security and other taxes
97,986
82,529
Obligations under finance leases and hire purchase contracts
13,987
7,291
Director loan accounts
115,839
111,032
Other creditors
495,687
487,525
-------------
----------
1,001,958
892,196
-------------
----------
Other creditors includes loans to related parties amounting to £477,463 (2023 - £477,475).
Bank loans and overdrafts are secured against land on Allington Lane.
Hire purchase liabilities are secured on the assets concerned.
8. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
78,226
104,786
Obligations under finance leases and hire purchase contracts
27,495
2,377
Other creditors
1,901,917
1,915,767
-------------
-------------
2,007,638
2,022,930
-------------
-------------
Other creditors are loans to the Directors.
Bank loans are secured against land on Allington Lane.
Hire purchase liabilities are secured on the assets concerned.
Included within creditors: amounts falling due after more than one year is an amount of £Nil (2023: £12,130) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The bank loan, which is repaid by monthly installments, carries a market rate of interest.