Year Ended
Registration number:
Arada Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Statement of Income and Retained Earnings |
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Balance Sheet |
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Notes to the Financial Statements |
Arada Limited
Company Information
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Directors |
Mr M C Brettell Mr J M Butterworth |
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Registered office |
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Auditor |
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Arada Limited
Strategic Report for the Year Ended 30 April 2025
The directors present their strategic report for the year ended 30 April 2025.
Principal activity
The principal activity of the company is the design, development and manufacture of wood and multi-fuel stoves, and the supply of spare parts and accessories.
Fair review of the business
2025 was another challenging year for the business. Demand for the company’s products continued to decrease, being reflective of the conditions in the marketplace generally, resulting in a decrease in turnover from £4,750k in 2024 to £3,684k in 2025.
Gross profit margin also decreased from 28.4% in 2024 to 20.2%, as the company faced inflationary cost pressures combined with reduced cost efficiencies arising from a decrease in output (driven by the decrease in demand).
Distribution costs and administrative expenses decreased significiantly from £1,723k in 2024 to £643k in 2025. The majority of this decrease related to the profit on disposal of its distribution centre, realising proceeds of £1,200k and a profit of £885k, along with general costs reductions relating to the distribution centre.
The directors report a closing cash at bank position of £257k and a decrease in net assets from £3,370k in 2024 to £3,105k in 2025.
The key performance indicators of the business are turnover, gross margin and operating profit, which are detailed in the statement of income and retained earnings on page 11. No further KPI analysis is considered necessary for an understanding of the development, performance and position of the company.
Principal risks and uncertainties
The main risks and uncertainties facing the group come from increased materials, services and wages costs, and general market conditions and competition. The continued incorrect and negative media portrayal of stoves being the main contributing factor of poor air quality is ever present.
In the current economic climate an increase in the manufacturing costs and complexity of importing materials and components purchased from overseas sources is noticed. The company has addressed these risks by continuing to source as many components and materials from the UK and increasing stock levels of any key imported raw materials.
The company manages the risk of general competition through building on its brand and reputation for service and quality and by continuing to invest in a program of research and development in order to improve and diversify its range of products.
The negative press is an issue which is consistently addressed industry wide. Ecodesign standards requiring significantly cleaner burning stoves came in to force on 1 January 2022 and therefore, all Arada products meet these requirements.
The weather and oil prices are key influencers on stove purchases and outside of our control.
Arada Limited
Strategic Report for the Year Ended 30 April 2025
Approved by the
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Arada Limited
Directors' Report for the Year Ended 30 April 2025
The directors present their report and the financial statements for the year ended 30 April 2025.
Directors of the company
The directors who held office during the year were as follows:
Dividends
Ordinary dividends were paid amounting to £413,055 (2024: £870,375).
Financial instruments
Objectives and policies
Financial risk
The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, bank and other borrowings, hire purchase liabilities, and a receivables finance facility.
The company's approach to managing risks applicable to the financial instruments concerned is shown below.
Price risk
The company is exposed to price movements in the market place, and especially in respect of steel and other commodities. Management continually monitor price movements and trends and factor these into buying decisions and the pricing of goods to reduce price risk as much as possible.
Credit risk
Trade debtors are managed in respect of credit risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The company has no significant concentration of credit risk, with exposure spread over a number of counterparties.
Liquidity risk
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of the receivables finance facility.
The company is a lessee in respect of hire purchase assets. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments due under the agreements as they fall due.
Trade creditors are managed by ensuring that sufficient funds are available to meet amounts due.
Interest rate risk
The company's parent, Arada Holdings Limited has outstanding debt finance in the form of bank borrowings and other loans, which both carry a variable rate of interest. The group is therefore exposed to increases in the Bank of England base rate, which has been volatile over the past twelve months. The group manages this risk by focusing on the early redemption of borrowings carrying the highest interest rate and by maximising the return on positive cash balances.
Arada Limited
Directors' Report for the Year Ended 30 April 2025
Research and development
The company undertakes a continuous programme of research and development with a view to the update and improvement of its products in order to retain its position in the market place. The directors consider that this is essential in order to provide growth for the company. During the year the company incurred costs of £118,749 (2024: £149,383), including relevant employee salaries, on research and development.
Future developments
The company continues its program of investment in new products, manufacturing quality, production processes and efficiencies. The change of product design to meet legislation necessitates the ongoing improvements and development of the manufacturing facilities.
The directors remain optimistic about future performance, and consider the company is well placed to meet future legislation and market demands.
Going Concern
Trading conditions within the industry have remained challenging. However, the directors have continued to take action to restructure the company and have significantly reduced the company's fixed cost base. In addition, as noted above, the directors have successfully secured a two-year extension to the group’s bank mortgage facility.
Recognising the continuing trading challenges and the limited level of cash reserves within the company, the directors continue to closely monitor cash flow through the regular preparation and review of detailed cash flow forecasts. The directors have prepared financial and cash flow forecasts covering the period to 30 April 2028. In the opinion of the directors, these forecasts have been prepared on a prudent and conservative basis and demonstrate that the company has sufficient headroom, based on existing facilities and other agreed funding available to the company, to enable it to continue to operate and meet its liabilities as they fall due.
While acknowledging that there can be no certainty that the forecasts will be achieved, the directors, having made appropriate enquiries and having considered the impact of the current uncertain economic environment, are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future.
Accordingly, the directors consider it appropriate to prepare these financial statements on the going concern basis.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
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Arada Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Arada Limited
Independent Auditor's Report to the Members of Arada Limited
Opinion
We have audited the financial statements of Arada Limited (the 'company') for the year ended 30 April 2025, which comprise the Statement of Income and Retained Earnings, Balance Sheet, and 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 company's affairs as at 30 April 2025 and of its 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 auditor 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 director's 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Arada Limited
Independent Auditor's Report to the Members of Arada Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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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 |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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, 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 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Arada Limited
Independent Auditor's Report to the Members of Arada Limited
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the company and the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company. The key regulations we identified were health and safety regulations and production regulations, specifically (EU) No. 305/2011. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, and relevant tax legislation.
We discussed with management how the compliance with these laws and regulations is monitored and obtained copies of the key policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.
We also evaluated managements' incentives and opportunities for fraudulent manipulation of the financial statements. The key incentive identified is to meet targets set by the company and we determined that the principal risks were related to overstatement of profit either through overstating revenue, understating expenditure, or management bias in accounting estimates. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
Based on this understanding we designed our audit procedures to identify irregularities. Our procedures involved the following:
• Enquiries of those charged with governance, regarding their knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements;
• Review of any health and safety incidents which have been reported under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”) during the year;
• Review of a sample of external product testing reports to ensure compliance with (EU) No. 305/2011;
• Challenging assumptions and judgements made by management in its significant accounting estimates;
• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
• Testing the recognition of revenue and costs, particularly around the year end date; and
• Reviewing draft tax computations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
Arada Limited
Independent Auditor's Report to the Members of Arada Limited
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 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.
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Centenary House
Peninsula Park
Rydon Lane
EX2 7XE
Arada Limited
Statement of Income and Retained Earnings
Year Ended 30 April 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Distribution costs |
( |
( |
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Administrative expenses |
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Administrative expenses (excluding exceptional items) |
(269,966) |
(1,275,170) |
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Exceptional administrative expenses |
(85,960) |
(59,832) |
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Administrative expenses (including exceptional items) |
( |
( |
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Operating profit/(loss) |
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( |
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Other interest receivable and similar income |
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Interest payable and similar charges |
( |
( |
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(84,090) |
(20,492) |
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Profit/(loss) before tax |
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( |
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Taxation |
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Profit/(loss) for the financial year |
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( |
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Retained earnings brought forward |
3,369,173 |
4,584,246 |
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Dividends paid |
( |
( |
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Retained earnings carried forward |
3,104,289 |
3,369,173 |
Arada Limited
Balance Sheet
30 April 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Capital redemption reserve |
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Profit and loss account |
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Shareholders' funds |
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Approved and authorised by the
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Mr M C Brettell
Director
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Mr J M Butterworth
Director
Company Registration Number: 02285119
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office and principal place of business is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. There are no material departures from FRS 102.
These financial statements have been prepared using the historical cost convention.
The functional currency of the company is considered to be pounds sterling because it is the currency of the primary economic environment in which the company operates.
Summary of disclosure exemptions
Arada Limited meets the definition of a qualifying entity under FRS 102, as its results are consolidated into the financial statements of its parent entity, Arada Holdings Limited. It has therefore taken advantage of the disclosure exemptions available to it in respect of its individual financial statements. Exemptions have been taken in relation to the presentation of a cash flow statement and related notes.
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
Going concern
Despite the before-tax profit for the year of £16,118, as at 30 April 2025, the company had net current assets of £1,814,233 and net assets of £3,105,389.
Since the balance sheet date, trading conditions within the industry have remained challenging, but the directors have continued in their actions to re-structure the business and significantly reduce the company’s fixed cost base. The director’s have also been successful in securing a two year extension on the group’s bank mortgage, until May 2028.
Recognising the continuing trading challenges and the lack of substantial cash reserves in the business, the directors continue to closely monitor cash flow through the regular updating of a detailed cash flow forecast. The directors have prepared detailed financial and cash flow forecasts for the period to 30 April 2028. It is the opinion of the directors that these forecasts have been prepared on a conservative basis and provide sufficient headroom, based on existing facilities and other facilities available to the company, to enable it to continue to operate and meet its liabilities.
While acknowledging that there can be no certainty that the forecasts will be achieved, the directors, having made appropriate enquiries and having considered the impact of the current uncertain economic environment, are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors consider it appropriate to prepare these financial statements on the going concern basis.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
Revenue recognition
Turnover comprises the fair value of consideration receivable, excluding Value Added Tax and trade discounts, in the ordinary course of business for goods provided. Turnover is recognised on the despatch of goods to the customer.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their estimated useful economic lives, as follows:
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Asset class |
Depreciation method and rate |
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Freehold Property (included within Land and buildings) |
3-5% on cost |
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Freehold land |
not depreciated |
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Plant & Machinery |
15% on reducing balance and at 10%-50% on cost |
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Motor Vehicles |
33% on cost |
Intangible assets
Intangible assets are stated in the balance sheet at cost, less any subsequent accumulated amortisation.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Software licenses |
straight line over the period of the license |
Research and development
Research and development expenditure is written off in the year in which it is incurred.
Foreign currency transactions and balances
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
Stocks
Stocks are stated at the lower of cost and net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow-moving or defective items where appropriate.
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made as appropriate if net realisable value is considered less than cost.
Hire purchase and leasing
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
Assets held under hire purchase agreements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets and are depreciated over their useful lives. The capital elements of future hire purchase obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the hire purchase agreement to produce a constant rate of charge on the balance of capital repayments outstanding.
Pensions
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation 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 taxable income.
Deferred income tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future, or a right to pay less tax in the future have occurred at the balance sheet date.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
Financial instruments
The company holds the following financial instruments:
• Short term trade and other debtors and creditors;
• Hire purchase agreements;
• Bank borrowings; and
• Cash and bank balances.
All financial instruments of the company are considered to be basic financial instruments.
With the exception of bank loans and hire purchase agreements, such basic instruments are initially measured at transaction price, including transaction costs. Those instruments considered current are subsequently carried at the undiscounted amount of cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans and hire purchase agreements measured at amortised cost using the effective interest rate method.
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Turnover |
No geographical analysis of turnover is provided. In the opinion of the directors, disclosure of this information would be prejudicial to the interests of the company.
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
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Operating profit/(loss) |
Arrived at after charging/(crediting)
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2025 |
2024 |
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Depreciation expense |
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Amortisation expense |
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Research and development cost, excluding salaries |
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Foreign exchange losses |
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- |
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Profit on disposal of property, plant and equipment |
( |
( |
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Exceptional administrative expenses |
85,960 |
59,832 |
Exceptional costs in 2025 relate to factory reorganisation and redundancy costs in relation to the restructure which commenced in 2024. Exceptional costs in 2024 related to redundancy costs.
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
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2025 |
2024 |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
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2025 |
2024 |
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Production |
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Administration and support |
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Research and development |
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Sales |
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Distribution |
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Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
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Directors' remuneration |
The directors' remuneration for the year was as follows:
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2025 |
2024 |
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Remuneration |
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Contributions paid to money purchase schemes |
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135,559 |
132,551 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
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2025 |
2024 |
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Accruing benefits under money purchase pension scheme |
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The directors are considered to be the key management personnel.
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Auditor's remuneration |
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2025 |
2024 |
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Audit of the financial statements |
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Other interest receivable and similar income |
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2025 |
2024 |
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Interest income on bank deposits |
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Interest payable and similar expenses |
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2025 |
2024 |
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Interest on bank overdrafts and borrowings |
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Interest on obligations under finance leases and hire purchase contracts |
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Interest expense on other finance liabilities |
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Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
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Taxation |
Tax charged in the profit and loss account
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2025 |
2024 |
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Current taxation |
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UK corporation tax |
|
( |
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Deferred taxation |
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Arising from origination and reversal of timing differences |
( |
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Tax receipt in the income statement |
( |
( |
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
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2025 |
2024 |
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Profit/(loss) before tax |
|
( |
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Corporation tax at standard rate |
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( |
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Effect of expense not deductible in determining taxable profit (tax loss) |
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|
|
Effect of losses carried back |
- |
|
|
Decrease in tax charge in respect of a prior period |
- |
( |
|
Deferred tax (credit)/expense from unrecognised temporary difference from a prior period |
( |
|
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Tax decrease from other short-term timing differences |
- |
( |
|
Other permanent differences |
|
|
|
Total tax credit |
( |
( |
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Asset |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
|
Other timing differences |
|
- |
|
|
|
|
2024 |
Asset |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
|
Other timing differences |
|
- |
|
|
|
|
Intangible assets |
|
Trademarks, patents and licenses |
Total |
|
|
Cost or valuation |
||
|
At 1 May 2024 |
|
|
|
At 30 April 2025 |
|
|
|
Amortisation |
||
|
At 1 May 2024 |
|
|
|
Amortisation charge |
|
|
|
At 30 April 2025 |
|
|
|
Carrying amount |
||
|
At 30 April 2025 |
|
|
|
At 30 April 2024 |
|
|
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
|
Tangible assets |
|
Land and buildings |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost or valuation |
||||
|
At 1 May 2024 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
Disposals |
( |
- |
( |
( |
|
At 30 April 2025 |
|
|
|
|
|
Depreciation |
||||
|
At 1 May 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
( |
- |
( |
( |
|
At 30 April 2025 |
|
|
|
|
|
Carrying amount |
||||
|
At 30 April 2025 |
|
|
|
|
|
At 30 April 2024 |
|
|
|
|
Included within the net book value of land and buildings is £172,000 (2024: £302,000) which relates to freehold land that is not depreciated.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2025 |
2024 |
|
|
Plant & Machinery |
363,806 |
421,806 |
|
Stocks |
|
2025 |
2024 |
|
|
Raw materials and consumables |
|
|
|
Work in progress |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
|
Debtors |
|
2025 |
2024 |
|
|
Trade debtors |
|
|
|
Amounts due from group undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Corporation tax asset |
- |
|
|
|
|
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Loans and borrowings |
|
2025 |
2024 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
189,808 |
282,736 |
|
|
|
|
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
|
2025 |
2024 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
|
|
|
|
|
|
Bank borrowings relate to a Coronavirus Business Interruption Loan Scheme (CBILS) which was taken out on 24 June 2020.
Bank borrowings are secured by way of a legal charge over the freehold property of the company and by way of a debenture over the assets of the company, and the parent company Arada Holdings Limited. Bank and other borrowings within Arada Holdings Limited are also secured by a way of a legal charge over the freehold property of the company and by way of a debenture over the assets of the company.
Net obligations under HP and finance leases are secured by fixed charges on the assets concerned.
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
|
Provisions for liabilities |
|
Deferred tax |
Warranty provision |
Total |
|
|
At 1 May 2024 |
|
|
|
|
Decrease in existing provisions |
( |
- |
( |
|
At 30 April 2025 |
|
|
|
|
|
|||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
900.00 |
|
900.00 |
|
Dividends |
|
2025 |
2024 |
|
|
£ |
£ |
|
|
Dividend paid during the year £ |
413,055 |
870,375 |
Arada Limited
Notes to the Financial Statements
Year Ended 30 April 2025
|
Commitments |
|
Pension commitments |
Amounts, included within other creditors, outstanding in relation pension scheme contributions at the year end amounted to £10,382 (2024 - £12,573).
|
Parent and ultimate parent undertaking |
The company's immediate and ultimate parent is
Arada Holdings Limited is the parent undertaking of the largest and smallest group of undertakings for which group financial statements are drawn up. These financial statements are available upon request from its registered office, The Fireworks, Weycroft Avenue, Axminster, Devon, EX13 5HU.