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REGISTERED NUMBER: 06057526 (England and Wales)











Areco Limited

Financial Statements

for the Year Ended 30 April 2024






Areco Limited (Registered number: 06057526)

Contents of the Financial Statements
for the Year Ended 30 April 2024










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Areco Limited

Company Information
for the Year Ended 30 April 2024







DIRECTORS: R A Davies
P B Burns
H Toomer
A W Weeds
P G Mclean





SECRETARY: P B Burns





REGISTERED OFFICE: Westgate
Aldridge
West Midlands
WS9 8DJ





REGISTERED NUMBER: 06057526 (England and Wales)





AUDITORS: Haines Watts
Chartered Accountants and Statutory Auditors
Sterling House
97 Lichfield Street
Tamworth
Staffordshire
B79 7QF

Areco Limited (Registered number: 06057526)

Balance Sheet
30 April 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 1,061,139 1,014,595
Investments 5 1,000 -
1,062,139 1,014,595

CURRENT ASSETS
Stocks 702,855 513,316
Debtors 6 752,674 569,946
Cash at bank and in hand 449,328 271,321
1,904,857 1,354,583
CREDITORS
Amounts falling due within one year 7 1,008,365 754,614
NET CURRENT ASSETS 896,492 599,969
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,958,631

1,614,564

PROVISIONS FOR LIABILITIES 8 12,052 -
NET ASSETS 1,946,579 1,614,564

CAPITAL AND RESERVES
Called up share capital 9 1,000 1,000
Revaluation reserve 10 196,292 196,292
Retained earnings 1,749,287 1,417,272
SHAREHOLDERS' FUNDS 1,946,579 1,614,564

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 January 2025 and were signed on its behalf by:





P B Burns - Director


Areco Limited (Registered number: 06057526)

Notes to the Financial Statements
for the Year Ended 30 April 2024


1. STATUTORY INFORMATION

Areco Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements have been prepared on a going concern basis which assumes that the company will continue to operate for the foreseeable future

The directors have reasonable expectation that the company has adequate resources to continue operations for the foreseeable future. For this reason, together with the continued support of the directors, wider group and strong associates, they are continuing to adopt the going concern basis.

Preparation of consolidated financial statements
The financial statements contain information about Areco Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Watts Clift Holdings Limited, Westgate, Aldridge, Walsall, West Midlands, WS9 8DJ.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Areco Limited (Registered number: 06057526)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

In preparing these financial statements, the directors have made the following judgements:

- Determine whether leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

- A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flow at a rate that reflects the time value of money and the risks specific to the liability.

- Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

- Sales ledger debt provisions. Management review debts on a case by case basis to highlight deviation from terms and therefore possible provision requirement.

- Depreciation and residual values. Management have reviewed the asset lives and associated residual values of all fixed asset classes and concluded that they are appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projects disposal values.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised upon despatch of goods.

Rental income is recognised monthly in advance.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings freehold- not provided (see below)
Plant and machinery etc- 20% on cost and 10% on cost

The directors have assessed the difference between the residual value and the original cost of the assets as being not material and have decided not to provide for any depreciation on the grounds that the aggregate depreciation to be provided over the life of the asset is not material.

Areco Limited (Registered number: 06057526)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024


2. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Defined benefit
The company participated in a defined benefit pension scheme which is administered by the parent company. The scheme was closed to new members in April 2009 and future accrual of benefits ceased. The employers contributions are affected by a deficit in the scheme and the directors are unable to separately identify the company's share of the underlying liabilities as the scheme is exposed to actuarial risk associated with current and former employees of the group as a whole. Under those circumstances the contributions of the scheme are treated as if they were a defined contribution scheme and charged to the profit and loss as they accrue.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2023 - 9 ) .

Areco Limited (Registered number: 06057526)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024


4. TANGIBLE FIXED ASSETS
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST OR VALUATION
At 1 May 2023 1,000,000 230,332 1,230,332
Additions - 71,181 71,181
Disposals - (9,365 ) (9,365 )
At 30 April 2024 1,000,000 292,148 1,292,148
DEPRECIATION
At 1 May 2023 - 215,737 215,737
Charge for year - 15,272 15,272
At 30 April 2024 - 231,009 231,009
NET BOOK VALUE
At 30 April 2024 1,000,000 61,139 1,061,139
At 30 April 2023 1,000,000 14,595 1,014,595

Cost or valuation at 30 April 2024 is represented by:

Plant and
Land and machinery
buildings etc Totals
£    £    £   
Valuation in 2022 196,292 - 196,292
Cost 803,708 292,148 1,095,856
1,000,000 292,148 1,292,148

5. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
Additions 1,000
At 30 April 2024 1,000
NET BOOK VALUE
At 30 April 2024 1,000

Areco Limited (Registered number: 06057526)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024


5. FIXED ASSET INVESTMENTS - continued

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Elevate Products Limited
Registered office: Westgate, Aldridge, Walsall, West Midlands, WS9 8DJ
Nature of business: Building supplies
%
Class of shares: holding
Ordinary 100.00
2024
£   
Profit for the year 15,980

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 652,973 444,771
Other debtors 99,701 125,175
752,674 569,946

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 826,805 604,119
Amounts owed to group undertakings 16,410 32,167
Taxation and social security 94,626 73,363
Other creditors 70,524 44,965
1,008,365 754,614

8. PROVISIONS FOR LIABILITIES
2024
£   
Deferred tax
Accelerated capital allowances 12,052

Deferred
tax
£   
Balance at 1 May 2023 (2,635 )
Provided during year 14,687
Balance at 30 April 2024 12,052

9. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,000 Ordinary £1 1,000 1,000

Areco Limited (Registered number: 06057526)

Notes to the Financial Statements - continued
for the Year Ended 30 April 2024


10. RESERVES
Revaluation
reserve
£   
At 1 May 2023
and 30 April 2024 196,292

11. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Darren Barlow (Senior Statutory Auditor)
for and on behalf of Haines Watts

12. CONTINGENT LIABILITIES

The company has given cross guarantees to National Westminster Bank PLC in respect of amounts outstanding with fellow group and connected companies. At the balance sheet date these amounted to £3,783,090 (2023: £2,590,516).

13. ULTIMATE CONTROLLING PARTY

As at the year end, the company is a wholly owned subsidiary of Watts Clift Holdings Limited, a company incorporated in England & Wales. Group financial statements are prepared by the parent company and copies may be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF4 3UZ.

Shortly post year end, as a direct result of a management buyout and wider group reorganisation, the ultimate parent company is EBW Holdings Ltd, a company incorporated in England and Wales. P Burns holds the controlling interest in the issued share capital of the ultimate parent company.