Ark Rubber and Resin Solutions Limited


Director	Mr M Thorburn


Registered Address	Unit 2 Hobson Court, Gillan Way
	Penrith 40 Business Park
	Penrith
	CA11 9GQ


Registered Number	07889052 (England and Wales)

Notes to the Financial Statements
for the year ended 31 December 2024

1.	Accounting policies

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

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis 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.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

	Operating leases
	Where, substantially, all the risks and rewards of ownership of the asset do not transfer from the lessor to the company, the lease is treated as an operating lease. Rentals payable under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease.

	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 obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in other creditors in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

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 obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in other creditors in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. 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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

Depreciation is provided on all tangible fixed assets as follows:


	Reducing balance (%)	Straight line (years)
Land and buildings	-	50
Plant and machinery	20	-
Fixtures and fittings	15	-
Vehicles	25	-
Office Equipment	-	3

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

	Investment property
	Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate. These values are adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Income Statement.

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete the sale. The impairment loss is recognised immediately in the Income Statement.

	Financial instruments
	The company 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.

2.	Average number of employees


		2024		2023
	Average number of employees during the year	21		19

3.	Tangible fixed assets

	Land & buildings	Plant & machinery	Vehicles	Fixtures & fittings	Office Equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 01 January 24	199,800	77,084	144,262	180,158	36,324	637,628
Additions	-	33,977	-	-	209	34,186
At 31 December 24	199,800	111,061	144,262	180,158	36,533	671,814
Depreciation and impairment
At 01 January 24	7,992	11,305	62,532	67,596	34,172	183,597
Charge for year	3,996	17,710	20,432	16,884	882	59,904
At 31 December 24	11,988	29,015	82,964	84,480	35,054	243,501
Net book value
At 31 December 24	187,812	82,046	61,298	95,678	1,479	428,313
At 31 December 23	191,808	65,779	81,730	112,562	2,152	454,031

4.	Investment property
	The historical cost of the investment property is £183,456. It is the opinion of the director that the fair value of the investment property is not materially different to the historic cost when purchased during 2023.


		£
	Fair value at 01 January 24	183,456
	At 31 December 24	183,456

5.	Fixed asset investments

	Other investments¹	Total
	£	£
Cost or valuation
At 01 January 24	1,375,000	1,375,000
Disposals	(1,342,000)	(1,342,000)
At 31 December 24	33,000	33,000
Net book value
At 31 December 24	33,000	33,000
At 31 December 23	1,375,000	1,375,000

	Notes
	¹Other investments other than loans

6.	Debtors: amounts due within one year

	2024	2023
	£	£
Trade debtors / trade receivables	109,148	81,407
Other debtors	152,953	56,115
Prepayments and accrued income	30,182	15,499
Total	292,283	153,021


	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

7.	Creditors: amounts due within one year

	2024	2023
	£	£
Trade creditors / trade payables	382,731	55,083
Taxation and social security	633,077	372,277
Other creditors	1,294	18
Accrued liabilities and deferred income	8,451	15,000
Total	1,025,553	442,378


	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. There is a fixed and floating charge over the assets of the company in favour of HSBC Plc.

8.	Provisions for liabilities
	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 of the settlement can be made. The provision for deferred tax is in respect of accelerated capital allowances.

	2024	2023
	£	£
Net deferred tax liability (asset)	60,000	65,000
Total	60,000	65,000

9.	Pension commitments
	The pension cost charge represents contributions payable by the company to the fund and amounted to £200,233 (2023 - £11,932).

10.	Operating lease commitments
	As of 31 December 2024, the company had future minimum lease payments under non-cancellable operating leases of £28,650 (2022 - £70,000).

11.	Directors advances, credits and guarantees
	On 1 January 2024 the director owed the company £55,165. During the year the director was advanced £238,482 and repaid £180,674. As of 31 December 2024, the director owed the company £112,973. Interest of £1,688 was charged on this overdrawn loan account in accordance with HMRC's official interest rate for beneficial loan arrangements.

12.	Events after reporting date
	In January 2025, the company purchased the freehold interest in a warehouse for £3,485,000.

	Notes	2024		2023
		£	£	£	£
Fixed assets
Tangible assets	3		428,313		454,031
Investments	5		33,000		1,375,000
Investment property	4		183,456		183,456
			644,769		2,012,487
Current assets
Stocks		1,657,405		1,115,150
Debtors	6	292,283		153,021
Cash at bank and on hand		3,477,511		1,617,244
		5,427,199		2,885,415
Creditors amounts falling due within one year	7	(1,025,553)		(442,378)
Net current assets (liabilities)			4,401,646		2,443,037
Total assets less current liabilities			5,046,415		4,455,524
Provisions for liabilities	8		(60,000)		(65,000)
Net assets			4,986,415		4,390,524
Capital and reserves
Called up share capital			100		100
Profit and loss account			4,986,315		4,390,424
Shareholders' funds			4,986,415		4,390,524