Company registration number 05656968 (England and Wales)
ARK DATA CENTRES LIMITED
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ARK DATA CENTRES LIMITED
COMPANY INFORMATION
Directors
A J Pettit
H T Owen
D McDonald
Lord J Evans
A D Garvin
(Appointed 4 September 2023)
I S Perryment
(Appointed 4 September 2023)
R P Silvester
(Appointed 4 September 2023)
Secretary
Dr P T Singh
Company number
05656968
Registered office
Spring Park
Westwells Road
Hawthorn
Corsham
Wiltshire
SN13 9GB
Independent auditors
PricewaterhouseCoopers CI LLP
37 Esplanade
St Helier
Jersey
JE1 4XA
ARK DATA CENTRES LIMITED
CONTENTS
Page(s)
Strategic report
1 - 3
Directors' report
4 - 9
Independent auditors' report
10 - 13
Statement of comprehensive income
14
Balance sheet
15
Statement of changes in equity
16
Statement of cash flows
17
Notes to the financial statements
18 - 30
ARK DATA CENTRES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Principal activities

The principal activity of the company is the design, construction and operation of data centres and the provision of related services.

Business review

Through its related undertakings, the Ark group of companies owns and operates data centre campuses at Cody Park, Spring Park and Meridian Park:

Key performance indicators

Financial indicators

The Board of Directors are therefore pleased to report the following financial results:

 

2024 (£)

2023 (£)

Change (£)

% Change

Turnover

226,537,929

195,881,114

30,656,815

+15.65%

Gross Profit

23,503,132

25,378,410

(1,875,278)

-7.39%

Operating (Loss)/Profit

(9,250,909)

1,652,332

(10,903,241)

-659.87%

Loss for Year

(7,347,618)

(781,502)

(6,566,116)

-840.19%

Net Assets

17,909,737

25,257,355

(7,347,618)

-29.09%


Ark Data Centres Limited (“Ark”) owns 74.9% of the ordinary share capital of Crown Hosting Data Centres Limited (“Crown Hosting”). Crown Hosting is a joint venture between Ark and The Minister for the Cabinet Office and operates a public sector framework for the procurement of data centre services.

Non-financial indicators

Alongside the financial performance, the key performance indicators of the Company include:

 

In addition, the group will continue to build out new facilities on its existing sites, and through its related undertakings at additional sites in and around London – Union Park, Longcross Park and Alliance Park – to meet the growing demand for colocation and cloud data centres.

The business plan of Ark is built around a long-term strategy and significant progress has been made during the year to 30 June 2024. During the current reporting period the group has secured new long-term contracts with customers from both public and private sectors across multiple industries including UK Government, Financial Services, Telecommunications, Cloud Providers and IT. The sales pipeline remains strong and further growth is expected through Ark’s existing customers, framework agreements and new customers. The Board of Directors believe that the Company’s position within the marketplace remains strong, and we look forward to further expansion in 2025.

ARK DATA CENTRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risk, uncertainties and dependencies

Principal risks faced by the Company are identified and monitored through a regular process that is reviewed by the Senior Leadership Team and presented to the Board of Directors. Principal risks include, but are not limited to:

 

The Company manages these risks on an ongoing basis, and the Board of Directors believe that the Company’s offering within the marketplace remains strong, and that it is well positioned to continue its growth.

Post balance sheet events

No events have occurred since the balance sheet date which significantly affect the Company.

STATEMENT IN ACCORDANCE WITH SECTION 172 OF THE COMPANIES ACT 2006

The Directors are required to make a statement which describes how they have acted in accordance with their duties to promote the success of the company for the benefits of the members as a whole. These duties are set out in Section 172(1) of the Companies Act 2006 and are summarised below along with the actions undertaken by the Board.

 

The likely consequences of any decision in the long-term

The Directors insist on high operating standards and fiscal discipline and routinely engage with management and employees of the company to understand the underlying issues within the organisation. Additionally, the Board looks outside the organisation at macro factors affecting the business. The Directors consider all known facts when developing strategic decisions and long-term plans, taking into account their likely consequences for the Company. The Group has a well-established governance structure, and all key decisions are made in accordance with that process and, where required, are approved by the ultimate controlling party (Note 24).

 

The interests of the company’s employees

The Directors and management are committed to the interests and well-being of its employees and undertakes frequent dialogue with all employees to ensure transparency and inclusion. In August 2023, Ark was awarded platinum accreditation, for the third time, against the Investors in People Standard, demonstrating their commitment to high performance through good people management. Investors in People is the international standard for people management, defining what it takes to lead, support and manage people effectively to achieve sustainable results.

 

The need to foster the company’s business relationships with suppliers, customers, and others

Ark’s relationships with its customers is fundamental to the success of the business. We develop long-term relationships with our customers, engaging in frequent dialogue to discuss performance against our obligations and listen to their needs and plans to deliver world class services for their critical infrastructure.

 

Ark has developed strong partnerships with its suppliers to maintain relationships that are collaborative and mutually beneficial to all parties. We continue to work with partners who can deliver market leading products and services at high standards whilst developing innovation and efficiencies.

 

Engagement with debt holders and shareholders occur on an ongoing basis and as questions arise to ensure they are provided with timely and informative communications.

ARK DATA CENTRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The impact of the company’s operations on the community and the environment

The availability and resilience of the data centres is fundamental to delivering services to customers. The operations team work closely with customers and partners to define, document, test and implement best practice to enhance the efficiency and operations of the data centre facilities. Operational excellence is pivotal to the business and the data centres are certified by the British Standards Institute for Quality Management, Business Continuity, Information Security, Environmental Management and Energy Management Systems.

Ark’s core values are fundamental to the success of the business and are at the heart of everything we do. Ark considers the impact of its business operations and decisions on the community and the environment and directly engages with relevant parties where appropriate.

 

The desirability of the company maintaining a reputation for high standard of business conduct

Integrity is a core value for Ark’s Directors and employees. We support and provide guidance to all staff so that they do the right thing, behave in an ethical manner and comply with all applicable legal or regulatory requirements in accordance with Ark’s policies including, but not limited to, Anti-bribery and Corruption, Modern Slavery, Environmental and Energy Management. We also ensure that Ark’s ISO management systems are fit for purpose, well maintained and appropriately controlled, audited, and improved to enable Ark to meet its contractual, certification, regulatory and legislative requirements.

 

The need to act fairly between members of the company

The Board recognises its responsibilities under section 172 as outlined above and has acted at all times in a way consistent with promoting the success of the Company with regard to all stakeholders.

On behalf of the board

H T Owen
Director
20 December 2024
ARK DATA CENTRES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

The directors present their annual report and audited financial statements for the year ended 30 June 2024.

Results and dividends

The results for the year are set out on page 14.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A J Pettit
H T Owen
D McDonald
Lord J Evans
A D Garvin
(Appointed 4 September 2023)
I S Perryment
(Appointed 4 September 2023)
R P Silvester
(Appointed 4 September 2023)
Dr P T Singh
(Resigned 4 September 2023)
Qualifying third party indemnity provisions

As permitted by the Articles of Association, the directors have the benefit of an indemnity which is a qualifying third party indemnity provision, as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The company also purchased and maintained throughout the financial year and is currently in place, Directors' and Officers' liability insurance in respect of itself and its directors.

 

Going concern

The directors have prepared the financial statements on a going concern basis.

 

At 30 June 2024 the Company had net assets of £17,909,737 (2023: £25,257,355) and net current assets of £8,052,626 (2023: £14,601,524). Although the Company has incurred a loss of £7,347,618 (2023: £781,502) for the year, the directors have prepared cash flow forecasts which include relevant downside sensitivities and demonstrate that the Company has access to sufficient liquidity to sustain its operations for a period of at least 12 months from the date of approval of the financial statements. The Company also has access to a long-term working capital facility provided by the ultimate parent undertaking (see Note 24). As at 30 June 2024, Ark Data Centres Limited had no outstanding liabilities under this facility. The access to liquidity via its ultimate parent undertaking ensures that the Company will be able to continue to finance its liabilities as they fall due.

Independent auditors

In accordance with the company's articles, a resolution proposing that PricewaterhouseCoopers CI LLP be reappointed as auditors of the company will be put at a General Meeting.

ARK DATA CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Energy and carbon report

Ark recognises the impact of climate change, and our focus has always been on sustainable data centre development without any compromise to the availability or security required by our customers.

 

Our commitment to sustainable stewardship is demonstrated by:

 

 

Ark reports its annual operating energy and carbon usage by calendar year to align with the reporting requirements of our CCA, UKETS, Planning Obligations and EA Operating Permits. The information provided below is therefore for the years ended 31 December 2023 and 31 December 2022.

2023
2022
Energy consumption
MWh
MWh
Aggregate of total energy consumption in the year
239,803
222,281
Aggregate of IT energy consumption in the year
164,622
150,122
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Refrigerant (F-Gas) losses
2,345
1,146
- On site standby generation
6
5
2,351
1,151
Scope 2 - indirect emissions
- Electricity purchased (Market based)
226
10
Scope 3 - other indirect emissions
- Business travel, employee commuting & homeworking, waste generated & upstream transportation
411
329
Total gross emissions
2,988
1,490
Carbon efficiency metric
Carbon Usage Effectiveness (tonnesCO2e)/IT Consumption (MWh)
0.018
0.010
ARK DATA CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -

In line with best practice Ark measures data centre performance in terms of PUE as the measure of energy effectiveness and CUE as the measure of carbon effectiveness in accordance with BS EN 50600. These relate to the Annual IT energy consumption (MWh) of our customers’ equipment.

 

Carbon covering Scope 1, Scope 2 and Scope 3 operating emissions are measured, monitored and reported to comply with PPN06/21 in accordance with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, GHG Protocol Scope 2 Guidance and GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Targets for these metrics are set annually in advance; performance against them is measured, managed and reported all in accordance with the Ark Environmental Management System (certified to ISO 14001) and the Ark Energy Management System (certified to ISO 50001). The performance results are published annually.

 

Power Usage Effectiveness ("PUE")

Ark has measured and calculated PUE as recommended by the Green Grid since 2014 and now in accordance with BS EN 50600-4-2. Annual PUE targets for each campus have been set as part of our CCA and Green Loan Agreements. Ark continues to meet its PUE performance targets, however the current figures reflect the low IT loads (20-40%) currently operating at campus level, despite the high contracted capacities on them.

 

Carbon Emissions

Ark has measured Scope 1 and Scope 2 emissions since 2014, Scope 3 operating emissions have been measured since 2019. 2019 is the baseline year for the Carbon Reduction Plan (CRP) that Ark has implemented and reported on to meet the requirements of PPN06/21. Full details on carbon emissions are provided in the Ark Carbon Reduction Plan, which is published on the website (https://arkdatacentres.co.uk/policies/Ark_Carbon_Reduction_Plan.pdf).

 

In 2019 Ark extended the scope of CO2e emissions reporting to include:

 

In 2023 Ark started measuring emissions from three additional Scope 3 categories:

 

Measuring these additional categories was carried out for two main reasons:

 

These three additional categories combined, currently account for <3% of Ark’s currently reported emissions. This is not considered sufficiently significant to warrant changing baseline boundaries for reporting and therefore these categories are not included in this report. This position will be reconsidered for 2024 when additional facilities become operational.

 

The greenhouse gas emissions inventory and data presented on page 5 have been prepared following the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, GHG Protocol Scope 2 Guidance and GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

 

Reference has also been made to the UK Government Environmental reporting guidelines and GHG conversions have been prepared using the UK Government conversion factors for company reporting of greenhouse gas emissions.

ARK DATA CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -

Scope 1, operational direct emissions on Ark campuses arise from two sources:

 

Scope 2, indirect emissions from purchased electricity on Ark campuses arise from two sources:

 

Scope 3, indirect operational emissions on Ark campuses are currently measured and reported annually from the following GHG emissions categories:

 

Sustainability/energy efficient initiatives

 

Sustainability achievements

Security, Availability, Sustainability (SAS) has been Ark's mantra since 2008. In 2024 it is still SAS, but updated to Sustainability, Availability, Security. Sustainability is inherent in Ark’s DNA with its commitment to continuous design development to improve operating efficiencies as reflected by the following achievements:

 

 

Ark's focus on sustainable development from the beginning means there is little low hanging fruit for major improvements in how we operate. However, there is always scope to do better and Ark has a number of process improvements and projects underway that could lead to further sustainability improvements and carbon reductions in future, as identified in each year's sustainability initiatives.

ARK DATA CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -

Progress against 2023 initiatives

Progress against Ark's 2023 Sustainability initiatives is summarised below:

 

In addition to the above, a new Energy Measurement, Monitoring and Reporting Plan (EMMRP) has been implemented with many automated processes enabling the early identification and rectification of unexpected electrical losses between system components. The benefits of this will be demonstrated in future years.

 

Ark’s commitments to sustainability 2024

Ark's ongoing commitment to Sustainability in 2024 will be demonstrated by:

ARK DATA CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", 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:

 

 

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. The directors confirm that they have complied with these responsibilities.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of the business and the principal risks and uncertainties it faces.

Statement of disclosure to auditor

In the case of each director in office at the date the Directors' Report is approved:

 

 

On behalf of the board
H T Owen
Director
20 December 2024
ARK DATA CENTRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK DATA CENTRES LIMITED
- 10 -

Independent auditors’ report to the members of Ark Data Centres Limited

Report on the audit of the financial statements

Opinion

In our opinion, Ark Data Centres Limited’s financial statements:

We have audited the financial statements, included within the Annual Report and Audited Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 30 June 2024; the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year then ended and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

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.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

 

ARK DATA CENTRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK DATA CENTRES LIMITED (CONTINUED)
- 11 -

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance 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 an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.

With respect to the Strategic report and Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

Strategic report and Directors' Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors' Report for the year ended 30 June 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors' Report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the statement of directors' responsibilities, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine 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 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.

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.

 

ARK DATA CENTRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK DATA CENTRES LIMITED (CONTINUED)
- 12 -

Based on our understanding of the company and industry, we considered the principal risks of non-compliance with laws and regulations, including those that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, and the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue.

Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

 

 

ARK DATA CENTRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARK DATA CENTRES LIMITED (CONTINUED)
- 13 -

We have no exceptions to report arising from this responsibility.

Ian Tait (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers CI LLP
Chartered Accountants and Statutory Auditors
Jersey
20 December 2024
ARK DATA CENTRES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
Turnover
3
226,537,929
195,881,113
Cost of sales
(203,034,797)
(170,502,703)
Gross profit
23,503,132
25,378,410
Administrative expenses
(32,754,041)
(23,726,078)
Operating (loss)/profit
4
(9,250,909)
1,652,332
Interest receivable and similar income
8
1,903,291
2,014,883
Interest payable and similar expenses
9
-
0
(5,463)
Exceptional items
10
-
0
(4,443,254)
Loss before taxation
(7,347,618)
(781,502)
Taxation
11
-
0
-
0
Loss for the financial year
(7,347,618)
(781,502)

The notes on pages 18 to 30 form part of these financial statements.

ARK DATA CENTRES LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
573,166
166,661
Tangible assets
13
8,883,945
10,089,170
Investments
14
400,000
400,000
9,857,111
10,655,831
Current assets
Stocks
15
1,384,930
1,482,814
Debtors falling due after more than one year
16
4,021,210
4,307,359
Debtors falling due within one year
16
43,863,873
40,376,634
Cash at bank and in hand
18,008,344
19,191,283
67,278,357
65,358,090
Creditors: amounts falling due within one year
17
(59,225,731)
(50,756,566)
Net current assets
8,052,626
14,601,524
Net assets
17,909,737
25,257,355
Capital and reserves
Called up share capital
19
45,988,565
45,988,565
Profit and loss reserves
(28,078,828)
(20,731,210)
Total equity
17,909,737
25,257,355

The notes on pages 18 to 30 form part of these financial statements.

The financial statements on pages 14 to 30 were approved by the board of directors and authorised for issue on
20 December 2024
20 December 2024
and are signed on its behalf by:
H T Owen
I S Perryment
Director
Director
Company registration number 05656968
ARK DATA CENTRES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
45,988,565
(19,949,708)
26,038,857
Year ended 30 June 2023:
Loss and total comprehensive income
-
(781,502)
(781,502)
Balance at 30 June 2023
45,988,565
(20,731,210)
25,257,355
Year ended 30 June 2024:
Loss and total comprehensive income
-
(7,347,618)
(7,347,618)
Balance at 30 June 2024
45,988,565
(28,078,828)
17,909,737

The notes on pages 18 to 30 form part of these financial statements.

ARK DATA CENTRES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
218,454
14,042,786
Interest paid
-
0
(5,463)
Income taxes refunded/(paid)
16,246
(16,246)
Net cash inflow from operating activities
234,700
14,021,077
Investing activities
Purchase of intangible assets
(406,505)
(166,661)
Purchase of tangible fixed assets
(2,941,603)
(5,661,280)
Interest received
432,469
635,828
Dividends received
1,498,000
1,498,000
Net cash used in investing activities
(1,417,639)
(3,694,113)
Net (decrease)/increase in cash and cash equivalents
(1,182,939)
10,326,964
Cash and cash equivalents at beginning of year
19,191,283
8,864,319
Cash and cash equivalents at end of year
18,008,344
19,191,283

The notes on pages 18 to 30 form part of these financial statements.

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
1
Accounting policies
Company information

Ark Data Centres Limited is a private company limited by shares incorporated in England and Wales. The registered office is Spring Park, Westwells Road, Hawthorn, Corsham, Wiltshire, SN13 9GB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors have prepared the financial statements on a going concern basis.true

 

At 30 June 2024 the Company had net assets of £17,909,737 (2023: £25,257,355) and net current assets of £8,052,626 (2023: £14,601,524). Although the Company has incurred a loss of £7,347,618 (2023: £781,502) for the year, the directors have prepared cash flow forecasts which include relevant downside sensitivities and demonstrate that the Company has access to sufficient liquidity to sustain its operations for a period of at least 12 months from the date of approval of the financial statements. The Company also has access to a long-term working capital facility provided by the ultimate parent undertaking (see Note 24). As at 30 June 2024, Ark Data Centres Limited had no outstanding liabilities under this facility. The access to liquidity via its ultimate parent undertaking ensures that the Company will be able to continue to finance its liabilities as they fall due.

1.3
Turnover

Turnover is the total amount receivable by the company for services rendered and charged to clients during the period, excluding VAT.

 

Turnover is recognised when a right to consideration has been obtained through the performance of contractual terms and conditions. Categories of income are:

Data centre income - includes tenant rental and hosting charges and is recognised when a right to consideration has been obtained through the performance of contractual terms and conditions. Where tenancy agreements include a rent free period or stepped rent arrangement, the total rental income is spread evenly over the term of the contract.

 

Power income - represents electricity costs rechargeable to tenants, and is recognised in the statement of comprehensive income in the month of use by the tenant.

 

Management charges to related entities - management fees charged to related undertakings during the year.

Fit-out fees - relates to installation, set up and tenant fit our of data centres, and is recognised in the statement of comprehensive income when the installation has been completed.

 

Joint venture recharges - cost recharges to Crown Hosting Data Centres Limited (see Note 14).

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.4

Cost of sales

Cost of sales includes two distinctive elements, namely:

 

 

All costs are recognised in the period to which they relate, exclusive of VAT.

1.5
Intangible assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software development
Not amortised until available for use
Customer contracts
5 years straight line

Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the company are recognised as intangible assets when the following criteria are met:

 

 

Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

1.6
Tangible assets

Tangible assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings and equipment
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of tangible and intangible assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

 

Work in progress consists of costs incurred in delivering client fit out work, which are carried in work in progress until the work is completed.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in the statement of comprehensive income.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of comprehensive income.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the statement of comprehensive income.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.17

Investment income

Income from the company's investments in limited companies is included in the statement of comprehensive income when, and to the extent that, dividends have been declared and are payable and are included in debtors until they are received.

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

No material judgements, estimates or assumptions have been made in the application of the company's accounting policies for the year ended 30 June 2024.

3
Turnover

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

2024
2023
£
£
Turnover analysed by class of business
Data centre income
109,751,577
101,843,043
Power income
70,280,224
52,913,735
Fit-out fees
14,597,133
15,407,975
Management charges to related entities
31,540,546
25,160,000
Cost recharges to related entities
-
237,618
JV recharges
368,449
318,742
226,537,929
195,881,113
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
4,219,709
3,221,700
Operating lease charges
79,377,722
73,062,059
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
60,900
56,150
For other services
Audit-related assurance services
30,000
56,061
ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management
18
11
Operations
78
73
Administration
11
11
Total
107
95

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
10,607,073
8,856,562
Social security costs
2,209,403
1,280,046
Pension costs
281,371
247,018
13,097,847
10,383,626

Of the above costs, £12,251,575 (2023: £10,383,626) are included in administrative expenses and £846,272 (2023: £Nil) are included in cost of sales.

7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
2,037,484
718,584
Company pension contributions to defined contribution schemes
25,186
14,798
2,062,670
733,382

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
662,581
434,311
Company pension contributions to defined contribution schemes
5,000
8,438
ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
8
Interest receivable and similar income
2024
2023
£
£
Interest on bank deposits
151,414
-
0
Interest receivable from related undertakings (see note 16)
252,383
516,863
Other interest
1,494
20
Dividends from joint ventures
1,498,000
1,498,000
1,903,291
2,014,883
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
-
0
5,463
10
Exceptional items
2024
2023
£
£
Expenditure
Bad debt provision
-
2,552,855
Costs related to potential sale
-
1,890,399
-
4,443,254

During the year a provision of £Nil (2023: £2,552,855) was made against amounts owed by a customer who has gone into liquidation and costs of £Nil (2023: £1,890,399) were incurred in connection with the potential sale of part of the Ark group which didn't come to fruition.

11
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(7,347,618)
(781,502)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(1,836,905)
(160,208)
Tax effect of expenses that are not deductible in determining taxable profit
124,152
507,806
Group relief
1,327,114
976,757
Permanent capital allowances in excess of depreciation
-
0
(1,017,265)
Depreciation on assets not qualifying for tax allowances
760,139
-
0
Dividend income
(374,500)
(307,090)
Taxation charge for the year
-
-
ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Taxation
(Continued)
- 26 -

No deferred tax has been recognised at either 30 June 2024 or 30 June 2023 in relation to carried forward losses or capital allowances. This is due to the uncertainty and judgement associated with both the estimation of the financial value, as well as uncertainty around the timing of when such assets would be utilised.

12
Intangible assets
Software development
Customer contracts
Total
£
£
£
Cost
At 1 July 2023
166,661
6,500,000
6,666,661
Additions
406,505
-
0
406,505
At 30 June 2024
573,166
6,500,000
7,073,166
Amortisation and impairment
At 1 July 2023 and 30 June 2024
-
0
6,500,000
6,500,000
Carrying amount
At 30 June 2024
573,166
-
0
573,166
At 30 June 2023
166,661
-
0
166,661
13
Tangible assets
Fixtures, fittings and equipment
£
Cost
At 1 July 2023
17,522,781
Additions
3,014,484
At 30 June 2024
20,537,265
Depreciation and impairment
At 1 July 2023
7,433,611
Depreciation charged in the year
4,219,709
At 30 June 2024
11,653,320
Carrying amount
At 30 June 2024
8,883,945
At 30 June 2023
10,089,170
ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
14
Investments
2024
2023
£
£
Investments in joint ventures
400,000
400,000

The directors believe that the carrying value of the investments is supported by the underlying assets.

 

The Company holds 74.9% of the issued share capital of Crown Hosting Data Centres Limited, a company incorporated in England and Wales with the principal activity of the sale of data centre space and the provision of related services. The joint venture is managed jointly through management boards on which other joint venture partners are represented in accordance with their respective interests held in the joint venture.

15
Stocks
2024
2023
£
£
Fuel stock
1,025,581
1,344,878
Work in progress
335,362
130,081
Critical spares
23,987
7,855
1,384,930
1,482,814
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
27,918,941
22,243,583
Corporation tax recoverable
-
0
16,246
Amounts owed by group undertakings
4,207,734
3,988,769
Other debtors
2,540,242
2,867,751
Prepayments
8,910,808
7,016,751
Accrued income
286,148
4,243,534
43,863,873
40,376,634
2024
2023
Amounts falling due after more than one year:
£
£
Accrued income
4,021,210
4,307,359
Total debtors
47,885,083
44,683,993

Amounts owed by related undertakings are unsecured, have no fixed date of repayment and are repayable on demand. Interest is charged at 5% (2023: 5%) per annum (see note 8).

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
17
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
19,368,227
22,973,932
Amounts owed to group undertakings
16,559,109
5,318,116
Taxation and social security
1,798,821
1,262,220
Other creditors
324,426
234,952
Accruals and deferred income
21,175,148
20,967,346
59,225,731
50,756,566

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
254,377
247,018

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the year end, contributions of £49,836 (2023: £Nil) were outstanding.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
45,988,565
45,988,565
45,988,565
45,988,565
20
Financial commitments, guarantees and contingent liabilities

The assets leased by the Company from related undertakings have been pledged as security against a bank loan held by Ark Estates Holdings Limited, a related undertaking also controlled by Ark Capital Partners I LP Inc. For full details of the bank loan, please refer to the financial statements of Ark Estates Holdings Limited available at Companies House.

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
86,125,586
70,513,824
Between two and five years
199,043,232
164,949,970
In over five years
196,857,349
75,100,222
482,026,167
310,564,016
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
116,793,427
97,926,095
Between two and five years
267,344,840
226,640,956
In over five years
262,977,793
104,516,143
647,116,060
429,083,194
22
Events after the reporting date

There have been no post balance sheet events requiring disclosure in the notes to the financial statements.

23
Related party transactions

During the year the company charged its joint venture, Crown Hosting Data Centres Limited, £64,839,960 (2023: £54,038,211) for data centre running costs, £363,080 (2023: £317,496) for account management services and £5,369 (2023: £1,246) for sales and marketing activities. Included in trade debtors at the year end is £6,126,285 (2023: £4,680,354) owed by Crown Hosting Data Centres Limited in respect of these charges.

At the year end the company was owed £48,137 (2023: £48,137) by a director. No interest is charged on this loan.

 

Three are no other related party transactions requiring disclosure other than those disclosed in notes 3,7, 8, 16 and 17 to the financial statements.

ARK DATA CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
24
Ultimate controlling party

The immediate parent undertaking is Ark Group Limited, a company registered in the Isle of Man, and the ultimate parent undertaking is Ark Capital Partners I LP Inc., a limited partnership registered in the Isle of Man. The limited partnership is controlled by its partners.

 

Ark Group Limited is the parent undertaking of the smallest group of undertakings to consolidate these financial statements at 30 June 2024. The consolidated financial statements of Ark Group Limited are available from its registered office at First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF.

 

Ark Capital Partners I LP Inc. is the parent undertaking of the largest group of undertakings to consolidate these financial statements at 30 June 2024. The consolidated financial statements of Ark Capital Partners I LP Inc. are available from its general partner Goshawk GP Limited, First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF.

25
Cash generated from operations
2024
2023
£
£
Loss for the year after tax
(7,347,618)
(781,502)
Adjustments for:
Finance costs
-
0
5,463
Investment income
(1,903,291)
(2,014,883)
Depreciation and impairment of tangible fixed assets
4,219,709
3,221,700
Movements in working capital:
Decrease in stocks
97,884
447,326
Increase in debtors
(3,244,514)
(5,832,814)
Increase in creditors
8,396,284
18,997,496
Cash generated from operations
218,454
14,042,786
26
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
19,191,283
(1,182,939)
18,008,344
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