REGISTERED NUMBER: 08567704 (England and Wales)

ARU BAGGING LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

M R Robinson

S R A Robinson

REGISTERED OFFICE:

Meteor House

First Avenue

Finningley

Doncaster

South Yorkshire

DN9 3GA

REGISTERED NUMBER:

08567704 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

The directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of the business.

REVIEW OF BUSINESS

During the year ended 31 December 2024 the directors consider the results of the group to be positive.

FINANCIAL KEY PERFORMANCE INDICATORS

2024

2023

Turnover

£34,427,300

£28,152,371

Gross Profit

£5,703,349

£5,729,546

Gross Profit Percentage

16.6%

20.4%

Net Profit Before Tax

£2,093,864

£2,574,494

Net Current Assets / (Liabilities)

£2,779,779

£1,890,513

Net Assets

£6,421,658

£5,061,768

PRINCIPAL RISKS AND UNCERTAINTIES

The Board regularly considers the main risks that the company faces and how to mitigate them. The most significant

business risks are as follows:

- that the company strategy and business model does not deliver positive results;

- the loss of key management or senior staff could threaten operations viability;

that unforeseen or unexpected events beyond the control of the company result in a significant worsening of the market conditions.

EMPLOYEE MATTERS

The continues to supplement staff competencies on key technical areas through internal skills development and external training course. The company remains an equal opportunities employer and implements rigorous health and safety polices.

ENVIRONMENTAL MATTERS

The company is committed to minimising the impact of its activities on the environment and to continually improve its

environmental performance.

FUTURE DEVELOPMENTS

The directors continue to implement a long term strategy that will enable the company to continue to grow.

ON BEHALF OF THE BOARD:

M R Robinson - Director

25 September 2025

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

DIRECTORS

M R Robinson has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

S R A Robinson - appointed 28 October 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

M R Robinson - Director

25 September 2025

Opinion

We have audited the financial statements of ARU Bagging Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's profit 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

Based on our understanding of the Company, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.

As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact of the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

-

Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;

-

Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

-

Evaluation of management's controls designed to prevent and detect irregularities;

-

Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

-

Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

-

Review of correspondence with regulators in so far as they are related to the financial statements;

-

Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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

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 we are required to state to them in a Report of the Auditors 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.

Kelvin Fitton BA FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Sidings House

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

25 September 2025

TURNOVER

34,427,300

28,152,371

Cost of sales

28,723,861

22,422,825

GROSS PROFIT

5,703,439

5,729,546

Administrative expenses

3,572,570

3,185,305

2,130,869

2,544,241

Other operating income

16,000

16,000

OPERATING PROFIT

4

2,146,869

2,560,241

Interest receivable and similar income

111,875

115,985

2,258,744

2,676,226

Interest payable and similar expenses

5

164,880

101,732

PROFIT BEFORE TAXATION

2,093,864

2,574,494

Tax on profit

6

510,334

550,893

PROFIT FOR THE FINANCIAL YEAR

1,583,530

2,023,601

Profit attributable to:

Owners of the parent

658,259

1,393,675

Non-controlling interests

925,271

629,926

1,583,530

2,023,601

PROFIT FOR THE YEAR

1,583,530

2,023,601

Other comprehensive income

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,583,530

2,023,601

Total comprehensive income attributable to:

Owners of the parent

210,950

1,393,675

Non-controlling interests

1,372,580

629,926

1,583,530

2,023,601

FIXED ASSETS

Tangible assets

9

6,347,848

5,423,634

Investments

10

-

-

6,347,848

5,423,634

CURRENT ASSETS

Stocks

11

1,329,318

779,372

Debtors

12

7,716,726

5,092,018

Cash at bank and in hand

1,348,543

2,694,917

10,394,587

8,566,307

CREDITORS

Amounts falling due within one year

13

7,639,808

6,675,794

NET CURRENT ASSETS

2,754,779

1,890,513

TOTAL ASSETS LESS CURRENT LIABILITIES

9,102,627

7,314,147

CREDITORS

Amounts falling due after more than one year

14

(1,402,454

)

(1,227,854

)

PROVISIONS FOR LIABILITIES

18

(1,229,875

)

(1,024,525

)

NET ASSETS

6,470,298

5,061,768

CAPITAL AND RESERVES

Called up share capital

19

51

51

Capital redemption reserve

20

51

51

Retained earnings

20

2,946,949

2,910,999

SHAREHOLDERS' FUNDS

2,947,051

2,911,101

NON-CONTROLLING INTERESTS

21

3,523,247

2,150,667

TOTAL EQUITY

6,470,298

5,061,768

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

M R Robinson - Director

FIXED ASSETS

Tangible assets

9

303,566

556,204

Investments

10

203,635

203,635

507,201

759,839

CURRENT ASSETS

Stocks

11

50,477

55,004

Debtors

12

1,483,320

1,349,377

Cash at bank and in hand

202,695

145,655

1,736,492

1,550,036

CREDITORS

Amounts falling due within one year

13

1,100,237

927,461

NET CURRENT ASSETS

636,255

622,575

TOTAL ASSETS LESS CURRENT LIABILITIES

1,143,456

1,382,414

CREDITORS

Amounts falling due after more than one year

14

(44,245

)

(112,084

)

PROVISIONS FOR LIABILITIES

18

(50,930

)

(112,496

)

NET ASSETS

1,048,281

1,157,834

CAPITAL AND RESERVES

Called up share capital

19

51

51

Capital redemption reserve

51

51

Retained earnings

1,048,179

1,157,732

SHAREHOLDERS' FUNDS

1,048,281

1,157,834

Company's loss for the financial year

(109,553

)

(36,249

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

M R Robinson - Director

Called up

Capital

share

Retained

redemption

capital

earnings

reserve

£

£

£

Balance at 1 January 2023

51

1,642,324

51

Changes in equity

Dividends

-

(125,000

)

-

Total comprehensive income

-

1,393,675

-

Balance at 31 December 2023

51

2,910,999

51

Changes in equity

Dividends

-

(175,000

)

-

Total comprehensive income

-

210,950

-

Balance at 31 December 2024

51

2,946,949

51

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 January 2023

1,642,426

1,520,741

3,163,167

Changes in equity

Dividends

(125,000

)

-

(125,000

)

Total comprehensive income

1,393,675

629,926

2,023,601

Balance at 31 December 2023

2,911,101

2,150,667

5,061,768

Changes in equity

Dividends

(175,000

)

-

(175,000

)

Total comprehensive income

210,950

1,372,580

1,583,530

Balance at 31 December 2024

2,947,051

3,523,247

6,470,298

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

51

1,193,981

51

1,194,083

Changes in equity

Total comprehensive income

-

(36,249

)

-

(36,249

)

Balance at 31 December 2023

51

1,157,732

51

1,157,834

Changes in equity

Total comprehensive income

-

(109,553

)

-

(109,553

)

Balance at 31 December 2024

51

1,048,179

51

1,048,281

Cash flows from operating activities

Cash generated from operations

1

112,527

2,449,515

Interest paid

(6,193

)

(7,011

)

Interest element of hire purchase payments paid

(158,687

)

(94,721

)

Tax paid

(760,704

)

(274,532

)

Net cash from operating activities

(813,057

)

2,073,251

Cash flows from investing activities

Purchase of tangible fixed assets

(1,745,047

)

(1,169,145

)

Sale of tangible fixed assets

127,525

69,585

Interest received

111,875

115,985

Net cash from investing activities

(1,505,647

)

(983,575

)

Cash flows from financing activities

New loans in year

-

1,051,642

Loan repayments in year

(87,128

)

-

Capital repayments in year

368,300

(891,770

)

Amount introduced by directors

866,158

-

Amount withdrawn by directors

-

(302,783

)

Equity dividends paid

(175,000

)

(125,000

)

Net cash from financing activities

972,330

(267,911

)

(Decrease)/increase in cash and cash equivalents

(1,346,374

)

821,765

Cash and cash equivalents at beginning of year

2

2,694,917

1,873,152

Cash and cash equivalents at end of year

2

1,348,543

2,694,917

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

2,093,864

2,574,494

Depreciation charges

674,807

560,023

Loss/(profit) on disposal of fixed assets

18,500

(37,850

)

Finance costs

164,880

101,732

Finance income

(111,875

)

(115,985

)

2,840,176

3,082,414

Increase in stocks

(549,946

)

(342,295

)

Increase in trade and other debtors

(2,915,338

)

(118,366

)

Increase/(decrease) in trade and other creditors

737,635

(172,238

)

Cash generated from operations

112,527

2,449,515

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,348,543

2,694,917

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,694,917

1,873,152

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

2,694,917

(1,346,374

)

1,348,543

2,694,917

(1,346,374

)

1,348,543

Debt

Finance leases

(1,831,007

)

(368,300

)

(2,199,307

)

Debts falling due within 1 year

(90,025

)

55,555

(34,470

)

Debts falling due after 1 year

(74,846

)

31,574

(43,272

)

(1,995,878

)

(281,171

)

(2,277,049

)

Total

699,039

(1,627,545

)

(928,506

)