Registered number: 04214145
ARC (EUROPE) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
TWP ACCOUNTING LLP
Chartered Accountants & Statutory Auditors
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE
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ARC (EUROPE) LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditors
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ARC (EUROPE) LIMITED
REGISTERED NUMBER: 04214145
BALANCE SHEET
AS AT 30 NOVEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Page 1
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ARC (EUROPE) LIMITED
REGISTERED NUMBER: 04214145
BALANCE SHEET (CONTINUED)
AS AT 30 NOVEMBER 2024
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 March 2025.
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D Fox
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The notes on pages 3 to 12 form part of these financial statements.
Page 2
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
ARC (Europe) Limited is incorporated in England and Wales and limited by shares. The principal activity of the company is debt collection. The address of registered office is Kent House, Churchfield Road, Walton On Thames, Surrey, KT12 2TU.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
The following principal accounting policies have been applied:
Turnover comprises revenue recognised by the company in respect of commissions for debt collections and income from debts owned by the company, exclusive of Value Added Tax and trade discounts. Commission revenue is recognised at the date of collection and revenues invoiced in later periods that relate to debts collected during the period are accrued and included within debtors. Income from debts owned by the company are recognised on receipts basis.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The wesbite costs are subsequently amortised on a straight line basis over their useful economic lives of 3 years, when asset has been fully developed and complete for intended use.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 3
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Subsidiary undertakings
Investments in subsidiaries are valued at cost less provision for impairment.
Fixed assets unlisted investment are comprised of purchased debts. These financial assets are measured at amortised cost less impairment. The impairment loss is measured as the difference between an asset’s carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were sold at the balance sheet date. Amortisation is provided on the basis of the estimated collection rate of the purchased debt over its expected economic life of 18 months. Disposals are comprised of purchased debt collected and recovered during the year.
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Included within Cash at bank and in hand and Trade creditors is £935,921 (2023 - £1,004,359) which is cash collected on behalf of clients that is due to be transferred to clients in due course after deducting any commissions due, and is not available to be utilised by the company.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Short term creditors are measured at the transaction price.
Page 4
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
2.Accounting policies (continued)
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Interest income is recognised in profit or loss using the effective interest method.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Page 5
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
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The average monthly number of employees, including directors, during the year was 54 (2023 - 51).
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Page 6
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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Charge for the year on owned assets
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Page 7
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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Charge for the year on owned assets
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Page 8
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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Investments in subsidiary companies
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Other fixed asset investments
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Prepayments and accrued income
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Page 9
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Charged to profit or loss
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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Page 10
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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Allotted, called up and fully paid
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500 (2023 - 500) Class "A" ordinary shares of £0.10 each
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125 (2023 - 125) Class "B" ordinary shares of £0.10 each
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Other reserves
The other reserves represents a capital redemption reserve, which represents the accumulative ordinary share capital repurchased and subsequently cancelled by the company.
Profit and loss account
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £76,515 (2023 - £82,856). Contributions totalling £5,748 (2023 - £7,137) were payable to the fund at the balance sheet date.
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Commitments under operating leases
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At 30 November 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Transactions with directors
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At the beginning of the year the company was owed £366,398 from the directors. During the year advances totalling £Nil were made to the directors and total repayments of £Nil was received from the directors. The interest on the balances due to the company is charged at the rate of 2.25%, which totalled £8,244 for the year. At the end of the year the balance due from the directors was £374,642.
Page 11
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ARC (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
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Related party transactions
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During the year the company paid rent of £41,000 (2023 - £41,000) to the director's pension scheme. This pension scheme is solely for D Fox, the director.
At the year end the company was owed £311,502 (2023 - £311,502) by Fox PI Limited, a company incorporated in the UK, in relation to a loan made in year ended 30 November 2012. D Fox is the sole director of Fox PI Limited. The loan is interest free and repayable on demand.
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The company is considered to be under the control of D Fox by virtue of his shareholding in the company.
The auditor's report on the financial statements for the year ended 30 November 2024 was unqualified.
The audit report was signed on 4 March 2025 by Philip Munk FCA FCCA (Senior Statutory Auditor) on behalf of TWP Accounting LLP.
This report is made solely to the company’s members, as a body, in accordance with Sections 495 and 96 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the ompany’s members those matters we are required to state to them in an auditor’s report and for no other urpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other han the company and the company’s members as a body, for our audit work, for this report, or for the pinions we have formed.
Page 12
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