Company registration number 10450709 (England and Wales)
ARMS GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
ARMS GROUP LTD
COMPANY INFORMATION
Director
Mr R Patel
Company number
10450709
Registered office
74-80 Derby Road
Bootle
Merseyside
L20 1AD
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
ARMS GROUP LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 20
ARMS GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The director presents the strategic report for the year ended 30 April 2024.

Fair review of the business

The company trades as a motor fuel retailer and operator of motor vehicle service stations, and currently operates 8 sites across the north west of England.

 

Management are of the opinion that the company is well positioned for further growth and increased profitability in the future.

 

The company has introduced a programme to renovate its sites, both internally and externally. This will include full shop re-fits and a focus on 'food to go' and modernisation.

 

During this year the modernisation of forecourts has been undertaken whilst simultaneously introducing all 4 grades of fuel to each pump.

 

The next phase of the redevelopment will be to include electric charging points.

 

There is also a focus on green initiatives, with a full review being undertaken, with the directors planning to introduce solar panels on sites where practical and the introduction of energy efficient fridges and storage.

 

The management team are pleased with the performance of the company in the year under review, particularly in light of the challenges of rising fuel costs and the impact this has on travel, and the continuing fall out and working patterns arising from the Coronavirus pandemic.

 

Details of the financial performance of the business are set out later in the Strategic Report.

Principal risks and uncertainties

The company does not actively use financial instruments as part of its risk management. Being a fuel retailer the company does not particularly sell on credit. If any credit sales are made these are managed through standard credit control procedures.

 

The company is bank debt free and operates solely from cash reserves arising from profitability.

 

Working capital is financed through retained earnings.

 

The emergence and popularity of electric vehicles is a risk for the business, but also an opportunity. The directors are looking to introduce fast charging points on site, and are developing their sites to include more food and drink options, and convenience stores.

 

It is possible that the cost of living crisis and fuel costs may continue to reduce customer travel and spend. The directors have introduced an 'everyday value' shopping range to make basic foodstuffs more affordable.

ARMS GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Key performance indicators

Management measure the company’s performance by reference to:

 

•    Gross Profit %

•    Absolute Gross Profit

•    Profitability

•    Pre-Tax profit as a % of Turnover

•    Liquidity – Current Ratio

 

The gross profit margin for the year was 10.64% (2023: 11.20%). Absolute gross profit for the year was £3,054,731 compared with £3,364,725.

 

Pre-tax profit for the year was £395,451 compared with £1,291,501.

 

Overheads are well controlled by management.

 

Pre-tax profit as a percentage of turnover was 1.38% compared to 4.29% for the prior year.

 

The company has strong liquidity. The current ratio is 2.37 (2023: 1.96).

On behalf of the board

..............................
Mr R Patel
Director
.........................
ARMS GROUP LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The director presents his annual report and financial statements for the year ended 30 April 2024.

Principal activities

The company trades as a motor fuel retailer and operator of motor vehicle service stations.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £290,000. The director does not recommend payment of a further dividend.

Director

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

Mr R Patel
Auditor

Pierce C A Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R Patel
Director
29 January 2025
ARMS GROUP LTD
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

ARMS GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARMS GROUP LTD
- 5 -
Opinion

We have audited the financial statements of Arms Group Ltd (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ARMS GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARMS GROUP LTD
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 auditor's 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.

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

In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:

 

We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.

 

We did not identify a material risk of non-compliance with laws and regulations or of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ARMS GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARMS GROUP LTD
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Smith (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
29 January 2025
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
ARMS GROUP LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
28,717,847
30,047,347
Cost of sales
(25,663,116)
(26,682,622)
Gross profit
3,054,731
3,364,725
Administrative expenses
(2,886,448)
(2,270,801)
Other operating income
224,578
195,927
Operating profit
4
392,861
1,289,851
Interest receivable and similar income
6
2,590
1,650
Profit before taxation
395,451
1,291,501
Tax on profit
7
(101,345)
(259,007)
Profit for the financial year
294,106
1,032,494

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ARMS GROUP LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
£
£
Profit for the year
294,106
1,032,494
Other comprehensive income
-
-
Total comprehensive income for the year
294,106
1,032,494
ARMS GROUP LTD
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
457,593
408,980
Current assets
Stocks
12
541,701
486,120
Debtors
11
1,077,525
845,711
Cash at bank and in hand
3,575,517
4,855,919
5,194,743
6,187,750
Creditors: amounts falling due within one year
13
(2,193,218)
(3,149,583)
Net current assets
3,001,525
3,038,167
Total assets less current liabilities
3,459,118
3,447,147
Creditors: amounts falling due after more than one year
14
(42,500)
(42,500)
Provisions for liabilities
Deferred tax liability
15
91,314
83,449
(91,314)
(83,449)
Net assets
3,325,304
3,321,198
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
3,325,204
3,321,098
Total equity
3,325,304
3,321,198

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 29 January 2025
Mr R Patel
Director
Company registration number 10450709 (England and Wales)
ARMS GROUP LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
100
3,788,604
3,788,704
Year ended 30 April 2023:
Profit and total comprehensive income
-
1,032,494
1,032,494
Dividends
8
-
(1,500,000)
(1,500,000)
Balance at 30 April 2023
100
3,321,098
3,321,198
Year ended 30 April 2024:
Profit and total comprehensive income
-
294,106
294,106
Dividends
8
-
(290,000)
(290,000)
Balance at 30 April 2024
100
3,325,204
3,325,304
ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
1
Accounting policies
Company information

Arms Group Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 74-80 Derby Road, Bootle, Merseyside, L20 1AD.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Raisfuel Limited. These consolidated financial statements are available from its registered office, 74-80 Derby Road, Bootle L20 1AD.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.4
Tangible fixed assets

Tangible fixed 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:

Plant and equipment
10% on cost
Fixtures and fittings
10% on cost

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.

ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.6
Stocks

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

1.7
Cash at bank and in hand

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.

1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
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 profit or loss.

 

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 profit or loss.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
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.

ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.10
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.

1.11
Retirement benefits

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

1.12
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Motor vehicle service station sales, predominantly fuel
28,717,847
30,047,347
ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 16 -
2024
2023
£
£
Other revenue
Interest income
2,590
1,650
Commissions received
153,037
128,902
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
21,075
18,338
Depreciation of owned tangible fixed assets
71,933
49,021
Operating lease charges
351,000
351,000
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
15,278
15,907
Company pension contributions to defined contribution schemes
178,000
-
193,278
15,907
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,590
1,650
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
93,480
237,901
Adjustments in respect of prior periods
-
0
(213)
Total current tax
93,480
237,688
Deferred tax
Origination and reversal of timing differences
7,865
21,319
Total tax charge
101,345
259,007
ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Taxation
(Continued)
- 17 -

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

2024
2023
£
£
Profit before taxation
395,451
1,291,501
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
98,863
251,843
Tax effect of expenses that are not deductible in determining taxable profit
482
1,873
Effect of change in corporation tax rate
-
0
4,519
Permanent capital allowances in excess of depreciation
2,000
(1,505)
Under/(over) provided in prior years
-
0
(213)
Deferred tax adjustments in respect of prior years
-
0
775
Other adjustments
-
0
(82)
Loan write off
-
0
1,797
Taxation charge for the year
101,345
259,007
8
Dividends
2024
2023
£
£
Final paid
290,000
1,500,000
9
Employees

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

2024
2023
Number
Number
Management team
3
3
Staff
68
64
71
67
ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
896,367
772,867
Pension costs
539,860
4,091
1,436,227
776,958
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 May 2023
481,172
165,608
646,780
Additions
92,013
28,533
120,546
At 30 April 2024
573,185
194,141
767,326
Depreciation and impairment
At 1 May 2023
163,606
74,194
237,800
Depreciation charged in the year
54,584
17,349
71,933
At 30 April 2024
218,190
91,543
309,733
Carrying amount
At 30 April 2024
354,995
102,598
457,593
At 30 April 2023
317,566
91,414
408,980
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
468,245
427,447
Amounts owed by group undertakings
290,828
126,991
Other debtors
282,828
256,685
Prepayments and accrued income
35,624
34,588
1,077,525
845,711
12
Stocks
2024
2023
£
£
Fuel stock and goods for resale
541,701
486,120
ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
835,528
739,371
Amounts owed to group undertakings
-
0
1,438,236
Corporation tax
93,480
237,901
Other taxation and social security
173,242
178,329
Other creditors
506,700
506,700
Accruals and deferred income
584,268
49,046
2,193,218
3,149,583
14
Creditors: amounts falling due after more than one year
2024
2023
£
£
Trade creditors
42,500
42,500
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
91,314
83,449
2024
Movements in the year:
£
Liability at 1 May 2023
83,449
Charge to profit or loss
7,865
Liability at 30 April 2024
91,314

The deferred tax liability set out above is expected to reverse over the life of the assets and relates to accelerated capital allowances that are expected to mature within the same period.

ARMS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
539,860
4,091

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.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
18
Related party transactions

During the year the company operated a loan account with the director's family. As at 30 April 2024 the family owed an amount of £118,124 to the company (2023: £91,981).

 

During the year the company utilised, rent free, a property owned by a connected company.

 

During the year the company operated loan accounts with companies under common control. As at 30 April 2024 the company was owed £164,704 (2023: £164,704) by connected companies, and owed £51,700 (2023: £51,700) to connected companies.

19
Contingent asset

The company is pursuing a further loss of profits claim in respect of the loss of some land at one of the petrol stations as a result of local council action to reconfigure the road system around the site.

 

The amount of the claim cannot be quantified with certainty as at the date of approval of the accounts.

20
Ultimate controlling party

The company is a wholly owned subsidiary of Raisfuel Limited, a company incorporated in England and Wales.

 

The ultimate controlling party is the Patel family by virtue of their combined shareholding in Raisfuel Limited.

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