ARC-UK Technologies Limited

	Page
Strategic Report	1—2
Directors' Report	3
Independent Auditor's Report	4—6
Profit and Loss Account	7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Statement of Cash Flows	11
Notes to the Statement of Cash Flows	12
Notes to the Financial Statements	13—19

The directors present their strategic report for the year ended 31 December 2024.

Principal Activity

The principal activity of the company in the year under review was that of printing, copying and stationery suppliers.

Principal Risks and Uncertainties

The print business has been changing slowly for some time. We have seen an acceleration of the implementation of digital solutions to facilitate the hybrid work model. This has impacted some of our traditional business. The challenge for the industry is to adapt to the changing requirements of businesses. ARC has been relatively successful in this endeavour and our goal is to continue to stay ahead of the curve.

Macro-economic factors like high interest rates have impacted the cost of lending which can ultimately reduce business spending. This also means higher costs for us as we continue to invest in equipment to future-proof the business. The result of this is that we may not see a return on our investments until further down the line.

We understand that we are operating in uncertain times. As a company, we pride ourselves in identifying trends in the industry and taking action quickly to put ourselves in a position to be successful. By listening, and partnering with our clients, we are well-positioned to continue to navigate the ups and downs of the economic climate.

Review of the Business

Building on the strong foundation laid in 2023, we have further solidified our position in the market by understanding and responding to the evolving requirements of our clients. This flexibility has allowed us to achieve a year of exceptional performance, with a significant increase in revenue and a substantial operational profit.

Financial Performance

• Revenue Growth: Total revenues for the year ended 31 December 2024 were £9,651,419, representing a 7% increase on the £9,019,087 reported in the previous year.

• Profitability: We are pleased to report a strong operational performance, with a profit before tax (PBT) of £1,002,357. After accounting for a transfer pricing cost of £793,000 from our corporate parent, our earnings before tax (EBT) were £209,000.

Departmental Performance Review

The strength of our business in 2024 was defined by a mix of strong growth in key areas and a diligent management of costs across all departments.

• Large Format Division: Our Large Format division has continued to show solid performance. Combined revenues for the year were £1,637,834, a significant increase from the £1,546,610 in 2023. This growth was driven by our clients' increased marketing spend and the return of the exhibition market. This highlights the team's efficiency in a competitive market. Critically, during the year, we made a strategic investment of over £750,000 in new Large Format machinery. A key benefit of this capital expenditure is that the new equipment runs on a cheaper alternative ink, which will allow us to stay price competitive in the market while maintaining quality and even as overall material prices continue to rise. This is a long-term investment that will ensure we maintain our market-leading position and have the capacity to meet client demand for the next decade.

• Small Format Division: Our Small Format division has continued to demonstrate strong performance. Combined revenues for the year were £1,249,632, a significant increase from the £1,066,423 in 2023. This reflects the continued return of clients to their offices and the success of our sales efforts in this area.

• Managed Print Services (MPS): Our MPS contracts, which include both GS and Local MPS services, continued to perform strongly. We recorded combined revenues of £946,603 in 2024, a slight decrease from the £983,318 in 2023.

• Consolidated Regional Hub: Our consolidated regional hub, which includes the Bridgewater and EDF operations, showed a strong performance. The combined revenue for 2024 was £1,535,878, an increase from £1,448,671 in 2023. The department's profitability remained robust, with a 2024 EBT of £521,696 and a net profit of £504,600, compared to a 2023 EBT of £581,610 and a net profit of £586,921.

Principal Risks and Uncertainties

While we successfully navigated the challenges of 2023, we continue to operate in a dynamic and challenging economic environment.

• Risk 1: Replacing Traditional Revenue Streams. The ongoing shift away from some of our traditional business lines remains a constant challenge. Our strategy to mitigate this includes proactively targeting new client segments.

...CONTINUED

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ARC-UK Technologies Limited

Strategic Report (continued)

For The Year Ended 31 December 2024

Principal Risks and Uncertainties - continued

• Risk 2: Macro-Economic Factors and Material Costs. The inflationary pressures that drove up material costs in 2023 have continued to impact our business. The delicate balancing act of passing price increases onto clients while remaining competitive is an ongoing challenge. We are managing this risk through continuous engagement with suppliers for better pricing, focusing on operational efficiencies, and selective price adjustments where necessary. Our strategic investment in Large Format machinery, which utilizes a more cost-effective ink while maintaining quality, is a direct measure to mitigate this risk in a key area of our business.

• Risk 3: Economic Slowdown. As an additional risk for the coming year, a broader economic slowdown could impact our clients’ marketing and operational budgets. This could lead to reduced demand for our products and services. Our strategy to mitigate this is to continue to provide recession-proof services, such as our MPS contracts, and to focus on the value-added aspects of our offerings that demonstrate a clear return on investment for our clients.

Future Developments

As we conclude 2024 and look ahead to the new year, we do so with great optimism. Our track record of adapting our business to meet client requirements gives us every confidence that we will remain a major player in the print and digital solutions industry.

Our focus in 2025 will be on further consolidating our gains and building on our core competencies. The significant capital investment made in our Large Format division will be a key focus, as we work to maximize the return on this investment through increased capacity and new product offerings. We will continue to invest in our people and technology to ensure we remain at the forefront of the industry and continue to deliver unparalleled value to our clients.

On behalf of the board

Dilantha Wijesuriya

Company Secretary

26th September 2025

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ARC-UK Technologies Limited

Company No. 04799773

Directors' Report For The Year Ended 31 December 2024

Directors' Report

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors

The directors who held office during the year were as follows:

Mr Kumarakulasingam Suriyakumar

Dilantha Wijesuriya

Matters covered in the Strategic Report

Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.

Likely future developments in the business of the company have also been disclosed in the Strategic Report

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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 the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

So far, as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the comapny's auditors are aware of that information.

Independent Auditors

The auditors, Stephen Hill Partnership (Holdings) Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Dilantha Wijesuriya

Company Secretary

26th September 2025

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Independent Auditor's Report

to the Members of

ARC-UK Technologies Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of ARC-UK Technologies Limited for the year ended 31 December 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit/(loss) for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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 directors' 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 entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 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 directors are 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. In connection with our audit of the financial statements, 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 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 the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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Independent Auditor's Report (continued)

to the Members of

ARC-UK Technologies Limited

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 Directors' 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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records or returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have 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:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through the designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of risks of irregularities, including any known actual, suspected or alleged instances of fraud; and

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and UK corporate tax compliance regulations. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included, but were not limited to, reviewing financial statement disclosures, making inquiries of management on actual or potential claims and litigation, and inspecting correspondence with HMRC or other local tax authorities.

The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud.

Audit procedures performed for management override of controls included, but were not limited to:

- testing the appropriateness of journal entries and other adjustments made in the preparation of the financial statements (this includes testing period end adjustments and, where appropriate, adjustments throughout the period); and

...CONTINUED

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Independent Auditor's Report (continued)

to the Members of

ARC-UK Technologies Limited

Auditor's Responsibilities for the Audit of the Financial Statements - continued

- obtaining and understanding of the business rationale for significant, abnormal or unusual adjustments and transactions entered into outside the normal course of business.

Audit procedures performed for revenue recognition included, but were not limited to:

- testing revenue to supporting documentation to ensure accuracy and validity; and

- reviewing transactions around the period end to ensure that they were recognised in the correct accounting period.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 that 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.

Mr L A Clifton FCCA (Senior Statutory Auditor)

for and on behalf of Stephen Hill Partnership (Holdings) Limited , Statutory Auditor

26th September 2025

Stephen Hill Partnership (Holdings) Limited

Registered Auditors

139-141 Watling Street

Gillingham

Kent

ME7 2YY

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ARC-UK Technologies Limited

Profit and Loss Account

For The Year Ended 31 December 2024

Profit and Loss Account

		2024	2023
	Notes	£	£
TURNOVER		9,651,419	9,019,087
Cost of sales		(4,931,419 )	(3,845,842 )

GROSS PROFIT		4,720,000	5,173,245

Administrative expenses		(4,496,007 )	(4,172,167 )

OPERATING PROFIT	3	223,993	1,001,078
Other interest receivable and similar income	7	13,058	5,005
Interest payable and similar charges	8	(27,816 )	(37,789 )

PROFIT BEFORE TAXATION		209,235	968,294
Tax on Profit	9	(168,230 )	60,060

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR		41,005	1,028,354

The notes on pages 12 to 19 form part of these financial statements.

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ARC-UK Technologies Limited

Statement of Comprehensive Income

For The Year Ended 31 December 2024

Statement of Comprehensive Income

	2024	2023
	£	£
PROFIT FOR THE FINANCIAL YEAR	41,005	1,028,354
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR	41,005	1,028,354

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ARC-UK Technologies Limited

Balance Sheet

As At 31 December 2024

Balance Sheet

Registered number: 04799773

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	11		1,284,418		812,146

			1,284,418		812,146
CURRENT ASSETS
Stocks	12	85,521		117,892
Debtors	13	2,206,487		2,458,941
Cash at bank and in hand		1,229,513		1,203,206

		3,521,521		3,780,039
Creditors: Amounts Falling Due Within One Year	14	(1,998,465 )		(1,989,010 )

NET CURRENT ASSETS (LIABILITIES)			1,523,056		1,791,029

TOTAL ASSETS LESS CURRENT LIABILITIES			2,807,474		2,603,175

Creditors: Amounts Falling Due After More Than One Year	15		(118,970 )		(123,906 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	17		(250,822 )		(82,592 )

NET ASSETS			2,437,682		2,396,677

CAPITAL AND RESERVES
Called up share capital	19		3,000,900		3,000,900
Profit and Loss Account			(563,218 )		(604,223 )

SHAREHOLDERS' FUNDS			2,437,682		2,396,677

On behalf of the board

Mr Kumarakulasingam Suriyakumar

Director

26th September 2025

The notes on pages 12 to 19 form part of these financial statements.

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ARC-UK Technologies Limited

Statement of Changes in Equity

For The Year Ended 31 December 2024

Statement of Changes in Equity

	Share Capital	Profit and Loss Account	Total
	£	£	£
As at 1 January 2023	3,000,900	(1,632,577 )	1,368,323
Profit for the year and total comprehensive income	-	1,028,354	1,028,354

As at 31 December 2023 and 1 January 2024	3,000,900	(604,223 )	2,396,677


Profit for the year and total comprehensive income	-	41,005	41,005

As at 31 December 2024	3,000,900	(563,218 )	2,437,682

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ARC-UK Technologies Limited

Statement of Cash Flows

For The Year Ended 31 December 2024

Statement of Cash Flows

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	1,031,945	1,228,424
Interest paid		(27,816 )	(37,789 )
Tax paid		-	(49 )

Net cash generated from operating activities		1,004,129	1,190,586

Cash flows from investing activities
Purchase of tangible assets		(886,063 )	(148,538 )
Proceeds from disposal of tangible assets		-	742
Interest received		13,058	5,005

Net cash used in investing activities		(873,005 )	(142,791 )

Cash flows from financing activities
Repayment of finance leases		(104,817 )	(252,483 )



Increase in cash and cash equivalents		26,307	795,312
Cash and cash equivalents at beginning of year	2	1,203,206	407,894

Cash and cash equivalents at end of year	2	1,229,513	1,203,206

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ARC-UK Technologies Limited

Notes to the Statement of Cash Flows

For The Year Ended 31 December 2024

Notes to the Statement of Cash Flows

1. Reconciliation of profit for the financial year to cash generated from operations

	2024	2023
	£	£
Profit for the financial year	41,005	1,028,354
Adjustments for:
Tax on profit	168,230	(60,060 )
Interest expense	27,816	37,789
Interest income	(13,058 )	(5,005 )
Depreciation of tangible assets	413,791	418,719
Movements in working capital:
Decrease/(increase) in stocks	32,371	(14,904 )
Decrease in trade and other debtors	252,454	112,229
Increase/(decrease) in trade and other creditors	109,336	(288,698 )

Net cash generated from operations	1,031,945	1,228,424

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	1,229,513	1,203,206

3. Analysis of changes in net funds

	As at 1 January 2024	Cash flows	As at 31 December 2024
	£	£	£
Cash at bank and in hand	1,203,206	26,307	1,229,513
Finance leases	(307,570)	104,817	(202,753)

	895,636	131,124	1,026,760

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ARC-UK Technologies Limited

Notes to the Financial Statements

For The Year Ended 31 December 2024

Notes to the Financial Statements

1. General Information

ARC-UK Technologies Limited is a private company, limited by shares, incorporated in England & Wales, registered number 04799773 . The registered office is Unit 5 Dartford Trading Estate, Victoria Road, Dartford, Kent, DA1 5XS.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

2.2. Financial Reporting Standard 102 - Reduced Disclosure Exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

2.4. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill, being the fair values attributed to the assets and liabilities in connection with the acquisition of businesses in 2014, is being amortised over its estimated useful life of seven years.

In accordance with FRS 102 Section 19 Business Combinations and Goodwill, goodwill arising on acquisitions is capitalised and is subject to impairment review both annually and when there are indications that the carrying value may not be recoverable.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets 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.

Tangible fixed assets are assessed for impairment at each reporting date. If tangible fixed assets are impaired, the carrying amount is reduced to its recoverable amount and the impairment loss is recognised in the profit and loss in the period it is reported.

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 value amount and are recognised in the income statement.

Freehold	Over the life of the lease
Leasehold	33.3% cost, 20% cost and over life of lease
Plant & Machinery	50% on cost, 33% on cost, 15% on cost
Motor Vehicles	33.3% on cost and 25% reducing balance
Fixtures & Fittings	33% on cost and 20% on cost
Computer Equipment	50% on cost, 33% on cost and 20% on cost

2.6. Leasing and Hire Purchase Contracts

Assets obtained under hire purchase contracts or finance lease are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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ARC-UK Technologies Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

2.8. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.9. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.10. 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 discontinued.

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 statement of financial position date.

2.11. Employee Benefits

Employee benefits

The costs of short- term employee benefits are recognised as a liability and an expense

The costs of any significant unused holiday entitlement is recognised in the period in which the employee's services are recieved.

Termination benefits are recognised immediately as an expense when the company is demonstrably commited to terminate the employment of an employee or to provide termination benefits.

2.12. Pensions

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.

3. Operating Profit

The operating profit is stated after charging:

	2024	2023
	£	£
Bad debts	38,160	54,592
Depreciation of tangible fixed assets	413,791	418,719

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ARC-UK Technologies Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

4. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2024	2023
	£	£
Audit Services
Audit of the company's financial statements	11,000	10,800

5. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2024	2023
	£	£
Wages and salaries	2,561,712	2,379,966
Social security costs	316,887	272,488
Other pension costs	10,200	10,200

	2,888,799	2,662,654

6. Average Number of Employees

Average number of employees, during the year was:

Administration:

Sales:

Production:

Delivery:

IT Support:

	2024	2023
Office and administration	11	11
Sales, marketing and distribution	23	16
Manufacturing	18	23
Delivery	1	1
IT	1	1

	54	52

7. Interest Receivable and Similar Income

	2024	2023
	£	£
Bank interest receivable	13,058	5,005

8. Interest Payable and Similar Charges

	2024	2023
	£	£
Finance charges payable under finance leases and hire purchase contracts	20,527	31,707
Foreign exchange charges	7,289	6,082

	27,816	37,789

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ARC-UK Technologies Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

9. Tax on Profit

	Tax Rate		2024	2023
The tax charge/(credit) on the profit for the year was as follows:
	2024	2023	£	£
Current tax
UK Corporation Tax	25.0%	19.0%	-	-
Prior period adjustment			-	49

			-	49
Deferred Tax
Deferred taxation			168,230	(60,109 )


Total tax charge for the period			168,230	(60,060 )


The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2024	2023
			£	£
Profit before tax			209,235	968,294

Tax on profit at 25% (UK standard rate)			52,308	183,976
Expenses not deductible for tax purposes			6,149	4,515
Tax losses utilised			(3,264 )	(224,912 )
Capital allowances			(133,497 )	36,421
Short term timing differences			168,230	(60,109 )
Prior period adjustment			-	49
Tax losses unutilised carried forward			78,304	-

Total tax charge for the period			168,230	(60,060)

10. Intangible Assets

	Goodwill
	£
Cost
As at 1 January 2024	598,338

As at 31 December 2024	598,338

Amortisation
As at 1 January 2024	598,338

As at 31 December 2024	598,338

Net Book Value
As at 31 December 2024	-

As at 1 January 2024	-

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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ARC-UK Technologies Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

11. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Motor Vehicles	Fixtures & Fittings
	£	£	£	£
Cost
As at 1 January 2024	973,632	3,080,348	54,214	209,250
Additions	-	842,491	7,989	20,693

As at 31 December 2024	973,632	3,922,839	62,203	229,943

Depreciation
As at 1 January 2024	725,484	2,758,660	18,732	94,990
Provided during the period	31,792	306,459	10,574	25,512

As at 31 December 2024	757,276	3,065,119	29,306	120,502

Net Book Value
As at 31 December 2024	216,356	857,720	32,897	109,441

As at 1 January 2024	248,148	321,688	35,482	114,260


	Computer Equipment	Total
	£	£
Cost
As at 1 January 2024	377,257	4,694,701
Additions	14,890	886,063

As at 31 December 2024	392,147	5,580,764

Depreciation
As at 1 January 2024	284,689	3,882,555
Provided during the period	39,454	413,791

As at 31 December 2024	324,143	4,296,346

Net Book Value
As at 31 December 2024	68,004	1,284,418

As at 1 January 2024	92,568	812,146

12. Stocks

	2024	2023
	£	£
Stock	85,521	117,892

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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ARC-UK Technologies Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

13. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	1,572,250	1,951,787
Other debtors	634,237	507,154

	2,206,487	2,458,941

Short term debtors are measured at transaction price, less any impairments for bad and doubtful debts.

14. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	83,783	183,664
Trade creditors	731,770	709,025
Other creditors	586,839	319,376
Taxation and social security	276,996	311,109
Accruals and deferred income	319,077	465,836

	1,998,465	1,989,010

Short term creditors are measured at the transaction price

Included in other creditors is an amount due to parent company of £580,417

15. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	118,970	123,906

Long term creditors are initially meqasured at fair value, being the consideration or proceeds less transcation costs, and then are subsequently measured at amortised cost using the effective interest method.

16. Obligations Under Finance Leases and Hire Purchase

	2024	2023
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	83,783	183,664
Later than one year and not later than five years	118,970	123,906

	202,753	307,570

	202,753	307,570

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ARC-UK Technologies Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

17. Deferred Taxation

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.

	2024	2023
	£	£
Other timing differences	250,822	82,592

18. Provisions for Liabilities


	Deferred Tax	Total
	£	£
As at 1 January 2024	82,592	82,592
Additions	168,230	168,230

Balance at 31 December 2024	250,822	250,822

Movement in year for deferred tax is 168,230.

19. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
3,000,900 Ordinary Shares of £ 1.00 each	3,000,900	3,000,900

20. Pension Commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the charge to the profit and loss account in respect of defined contribution schemes was £10,200 (2023: £10,200).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

21. Controlling Parties

On 22nd November Arc Documents Solutions was delisted from the U.S. Stock Exchange following the purchase of 100% of its share capital by TechPrint Holdings LLC, a company registered in the US. During the year the Techprint Holdings LLC purchased the companys parent Arc Document Solutions Inc.

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