Company registration number 02690082 (England and Wales)
ARKEN.LEGAL (UK) LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ARKEN.LEGAL (UK) LIMITED
COMPANY INFORMATION
Directors
D J W Newick
A Barnes
Company number
02690082
Registered office
Arken.Legal (UK) Limited
General Woolfe House
83 High Street
Westerham
Kent
United Kingdom
TN16 1PG
Accountants
Bryden Johnson Limited
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
ARKEN.LEGAL (UK) LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4 - 5
Notes to the financial statements
6 - 13
ARKEN.LEGAL (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present their annual report and the audited financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of providing automatic gathering and document preparation systems to its customers.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D J W Newick
A Barnes
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 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 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
D J W Newick
Director
3 February 2025
ARKEN.LEGAL (UK) LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF ARKEN.LEGAL (UK) LIMITED FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Arken.Legal (UK) Limited for the year ended 30 June 2024 set out on pages 3 to 13 from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Arken.Legal (UK) Limited, as a body, in accordance with the terms of our engagement letter dated 22 July 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Arken.Legal (UK) Limited and state those matters that we have agreed to state to the board of directors of Arken.Legal (UK) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Arken.Legal (UK) Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Arken.Legal (UK) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Arken.Legal (UK) Limited. You consider that Arken.Legal (UK) Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Arken.Legal (UK) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Bryden Johnson Limited
19 February 2025
Chartered Accountants
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
ARKEN.LEGAL (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
2024
2023
Notes
£
£
Turnover
2,059,132
1,798,652
Administrative expenses
(2,821,612)
(2,880,420)
Other operating income
596,917
651,809
Exceptional item
2
(125,000)
Operating loss
(290,563)
(429,959)
Interest receivable and similar income
297
1,145
Interest payable and similar expenses
(75,764)
(19,027)
Amounts written off investments
(10,885)
-
Loss before taxation
(376,915)
(447,841)
Tax on loss
4
2,563
48,672
Loss for the financial year
(374,352)
(399,169)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ARKEN.LEGAL (UK) LIMITED
BALANCE SHEET
- 4 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
727,988
1,195,449
Tangible assets
6
20,979
31,429
Investments
7
125,000
748,967
1,351,878
Current assets
Debtors
8
1,800,026
1,260,932
Cash at bank and in hand
157,829
215,621
1,957,855
1,476,553
Creditors: amounts falling due within one year
9
(529,317)
(654,565)
Net current assets
1,428,538
821,988
Total assets less current liabilities
2,177,505
2,173,866
Creditors: amounts falling due after more than one year
10
(2,382,517)
(2,002,813)
Provisions for liabilities
(5,021)
(7,584)
Net (liabilities)/assets
(210,033)
163,469
Capital and reserves
Called up share capital
12
34,850
34,000
Profit and loss reserves
(244,883)
129,469
Total equity
(210,033)
163,469
For the financial year ended 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
ARKEN.LEGAL (UK) LIMITED
BALANCE SHEET (CONTINUED)
- 5 -
The financial statements were approved by the board of directors and authorised for issue on 3 February 2025 and are signed on its behalf by:
D J W Newick
Director
Company registration number 02690082 (England and Wales)
ARKEN.LEGAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
1
Accounting policies
Company information
Arken.Legal (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Arken.Legal (UK) Limited, General Woolfe House, 83 High Street, Westerham, Kent, United Kingdom, TN16 1PG.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT, discount and rebates.
Turnover from provision of automatic information gathering and document preparation systems is recognised by reference to contractual commitments with customers.
Turnover not recognised immediately under this policy is classified as deferred income in the statement of financial position until the relevant performance criteria have been met.
Accrued income is recognised when work has been fully completed by the period end but has yet to be invoiced. Provision is made for any foreseeable losses where appropriate.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
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 costs
5 years on straight line basis
ARKEN.LEGAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 7 -
The assets are annually reviewed for impairment.
Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets when the following criteria are met:
It is technically feasible to complete the software so that it will be available for use;
management intends to complete the software and use or sell it;
there is an ability to use or sell the software;
it can be demonstrated how the software will generate probable future economic benefits;
adequate technical, financial and other resources to complete the development and to use or sell the software are available; and
the expenditure attributable to the software during its development can be reliably measured.
Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
1.6
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:
Fixtures, fittings & equipment
10 years on straight line basis
Computer equipment
4 years on straight line basis
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.
1.7
Fixed asset investments
Interests in subsidiary 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.
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.
1.8
Impairment of fixed 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.
1.9
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.
ARKEN.LEGAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 8 -
1.10
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.
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.
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
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.
1.11
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.
1.12
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.
ARKEN.LEGAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 9 -
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Share-based payments
The company operate a share based scheme for all of its UK employees as detailed in note 10.
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
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Exceptional item
2024
2023
£
£
Expenditure
Impairment of investment
125,000
-
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
25
29
4
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(54,989)
ARKEN.LEGAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
4
Taxation
2024
2023
£
£
(Continued)
- 10 -
Deferred tax
Origination and reversal of timing differences
(2,563)
6,317
Total tax credit
(2,563)
(48,672)
5
Intangible fixed assets
Other
£
Cost
At 1 July 2023
3,528,288
Additions
48,081
At 30 June 2024
3,576,369
Amortisation and impairment
At 1 July 2023
2,332,839
Amortisation charged for the year
515,542
At 30 June 2024
2,848,381
Carrying amount
At 30 June 2024
727,988
At 30 June 2023
1,195,449
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2023 and 30 June 2024
89,570
Depreciation and impairment
At 1 July 2023
58,141
Depreciation charged in the year
10,450
At 30 June 2024
68,591
Carrying amount
At 30 June 2024
20,979
At 30 June 2023
31,429
ARKEN.LEGAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
7
Fixed asset investments
2024
2023
£
£
Investments
-
125,000
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 July 2023 & 30 June 2024
125,000
Impairment
At 1 July 2023
-
Impairment losses
125,000
At 30 June 2024
125,000
Carrying amount
At 30 June 2024
-
At 30 June 2023
125,000
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
25,424
21,455
Corporation tax recoverable
54,989
Amounts owed by group undertakings
1,716,043
1,130,676
Other debtors
16,377
15,527
Prepayments and accrued income
42,182
38,285
1,800,026
1,260,932
ARKEN.LEGAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
9
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
178
178
Trade creditors
31,016
28,516
Taxation and social security
92,714
276,551
Other creditors
18,620
17,364
Accruals and deferred income
386,789
331,956
529,317
654,565
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
2,382,517
2,002,813
11
Share-based payment transactions
Arken.Legal (UK) Limited operates a Growth Share scheme for its employees. All UK employees are eligible to participate in the scheme by subscribing to the VN shares. The nominal value of the shares are £0.01 per share and the market value was set at £1.91 per share.
12
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
3,400,000
34,000
34,000
34,000
VN shares of 1p each
84,999
-
850
-
3,484,999
34,000
34,850
34,000
On 11 July 2023, the company went through a sub-division of shares by increasing the number of shares to 3,400,000 at a nominal value of £0.01.
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
52,817
52,817
ARKEN.LEGAL (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
14
Related party transactions
In accordance with paragraph 33.1A of FRS 102, the company is exempt, as a wholly owned subsidiary of Andrew Barnes Trust , from the requirement to disclose transactions with entities that are part of Andrew Barnes Trust or investees of Andrew Barnes Trust qualifying as related parties.
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