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ARK INVEST INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Ark Invest International Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The registered number is 11770079. The address of the Company's registered office is 3 Glass Wharf, Bristol, BS2 0EL, United Kingdom. The Company's place of business is 70 Gracechurch Street, London, EC3V OHR.
The prior period runs from 1 October 2022 to 31 December 2023. The financial year end was changed to bring the Company's year end in line with its parent Company.
The current year runs from 1 January 2024 to 31 December 2024.
The prior period figures are therefore not entirely comparable with current year figures.
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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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 following principal accounting policies have been applied:
The Directors have reviewed the forecasts and projections for the business going forward for a period of at least 12 months and can confirm that the business remains a going concern. In doing so, the Directors have taken note of the commitment to funding by the parent company as detailed in the shareholder’s agreement for a period of at least three years from the date of the acquisition on 19 September 2023.
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FOREIGN CURRENCY TRANSLATION
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
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ARK INVEST INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Cost of sales is comprised of costs directly incurred in relation to the main revenue generating activities of the Company. These are recognised on an accruals basis.
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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.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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ARK INVEST INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 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 reporting 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 reporting 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 reporting date.
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.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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.
The estimated useful lives range as follows:
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.
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ARK INVEST INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (continued)
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Accrued income consists of income for which the Company is entitled to that has not yet been invoiced.
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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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The share capital of the Company is presented as equity.
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JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The Directors are of the opinion that there are no significant accounting estimates or judgements.
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ARK INVEST INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charge for the year on owned assets
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Amounts owed by group undertakings
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Prepayments and accrued income
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ARK INVEST INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Deferred tax assets totalling £3,338,552 (2023: £2,442,722) in respect of losses have not been recognised in the accounts at the year (2023: period) end.
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ALLOTTED, CALLED UP AND FULLY PAID
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57,374 (2023: 57,374) A Ordinary shares of £0.001 each
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318,559 (2023: 318,559) B Ordinary shares of £0.001 each
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11,066,698 (2023: 6,723,754) Preference shares of £1.000 each
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The shares hold the following rights:
A Ordinary: Full voting, dividend, and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
B Ordinary: Full voting, dividend, and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
Preference shares: Do not entitle the holder to vote and do not carry the right to any dividends. The shares are entitled to participate in capital distributions (including on winding up) in accordance with the terms of the Articles and Shareholders' Agreement. The Shareholders' Agreement states that the Preference shares are redeemable at the issuer's discretion, and do not carry the right to any dividends. On this basis, the Preference shares have been classified as equity.
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On 30 January 2024, the company allotted 702,000 Preference £1 shares, and issued them at par value.
On 21 November 2024, the company alloted 2,551,313 Preference £1 shares, and issued them at par value.
On 20 December 2024, the company alloted 1,089,631 Preference £1 shares, and issued them at par value.
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ARK INVEST INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Share premium account
The share premium account represents consideration received for shares in excess of par value.
Profit and loss account
The profit and loss reserve represents all current and prior period retained profits and losses.
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 £72,584 (2023: £59,244). Contributions totalling £12,253 (2023: £7,990) were payable to the fund at the reporting date and are included in Other creditors.
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RELATED PARTY TRANSACTIONS
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During the prior period, AssetCo plc agreed to reimburse Ark Invest International Limited for costs incurred in relation to the marketing agreement with the Company that Ark Invest International Limited act as marketing agent for. These costs amounted to £77,517 in 2023 and were recognised as internal recharges.
During the prior period, Ark Invest International Limited used AssetCo plc's office space free of charge. In December 2023 Ark Invest International signed a lease agreement with an unrelated third party to lease office space from January 2024.
During the period, Directors' incurred Company expenses of £6,329 (2023: £13,155) which were reimbursed as part of the payroll.
At the period end, the Directors were owed £nil (2023: £20) of expenses to be reimbursed. The liability is recognised in trade creditors.
During the period, preference shares totalling £4,342,944 were issued at par to Ark Funding Delaware Corp.
During the period, Ark Invest International Limited received management charges totalling £347,243 (2023: (£17,087)) from ARK Invest group. The amount owed by ARK Invest group at the year end was £305,631 (2023: (£464,920)).
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The parent Company and controlling party is ARK Delaware Holdco LLC, a company incorporated in the United States of America. ARK Delaware Holdco, LLC, is considered the controlling party by way of their majority stake in the voting shares.
The ultimate controlling party is ARK Investment Management LP, a company incorporated in the US.
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ARK INVEST INTERNATIONAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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PROVISIONS AVAILABLE FOR AUDITS OF SMALL ENTITIES
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In common with many other businesses of our size and nature, we use our auditors firm to prepare and submit returns to the tax authorities and assist with the preparation of the monthly management accounts and annual financial statements.
The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.
The audit report was signed on 24 September 2025 by Craig Sullivan FCCA (Senior statutory auditor) on behalf of Ernst & Young Chartered Accountants.
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