Registration number:
for the
Year Ended 31 December 2025
ARRK Europe 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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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
ARRK Europe Limited
Company Information
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Directors |
S Holmes Y Inoue N Murata Y Shiraishi |
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Company secretary |
S Holmes |
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Registered office |
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Solicitors |
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Bankers |
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Auditors |
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ARRK Europe Limited
Strategic Report for the Year Ended 31 December 2025
The directors present their report for the year ended 31 December 2025.
Principal activity
The directors consider the company to be a key component of the worldwide ARRK Corporation Group and its operations. The principal activities of the company include engineering and production utilising composite materials, prototyping, tooling and low-volume manufacturing for the automotive, aerospace, defence, motorsport and medical industries.
Fair review of the business
Turnover for the year amounted to £19,772,000 (2024 - £22,205,000). The company reported a loss after taxation of £474,000 (2024 - profit of £26,000).
A decrease in orders received form the defence industry, increased competition and margin pressure contributed to a decrease in turnover for the period. A full review of the operations of each site has been undertaken, resulting in cost efficiencies, whilst retaining competitiveness. During the period, restructuring activities were completed to facilitate this, the costs of which are disclosed in note 7 to the financial statements. In addition, enhanced management oversight has been implemented to strengthen operational performance and support ongoing efficiency measures.
Net liabilities at 31 December 2025 were £691,000 (2024 - £217,000).
Key performance indicators
Due to the size and nature of the business the key performance indicators are sales revenue and profit/(loss) after taxation. These are monitored on a monthly basis and are discussed above in the review of the business. The turnover for the year amounted to £19,772,000 (2024 - £22,205,000). The loss for the year after taxation amounted to £474,000 (2024 - profit of £26,000). These are the key performance indicators upon which the company is judged by its immediate shareholder. The company also tasks management with various key initiatives throughout the reporting period which are monitored on a monthly basis.
Principal risks and uncertainties
The execution of the company’s strategy is subject to a number of risks. The process of identifying and managing risk is overseen by the directors and management. The key business risks and uncertainties affecting the company are summarised as;
Foreign exchange rate risk
The company trades across the world and a significant proportion of sales are non-sterling denominated. As a result, exchange rate fluctuations impact the results and cash flows of the company, although this not considered to be significant. The company's Barcelona finance facilities are denominated in non-sterling currency, which acts as a natural hedge.
Raw material supply and pricing fluctuation
The company requires a consistent supply of raw materials to meet the demand of its customers. Due to the commodity nature of the raw materials, pricing fluctuation and supply delays and shortages pose risks to the company. To minimise these risks, management has agreed on a list of approved suppliers from whom purchases can be made.
Approved by the
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ARRK Europe Limited
Directors' Report for the Year Ended 31 December 2025
The directors present their report and the audited financial statements for the year ended 31 December 2025.
Directors' of the company
The directors, who held office during the year, were as follows:
Results and dividends
The loss for the year after taxation amounted to £474,000 (2024 - profit of £26,000).
The directors do not recommend the payment of a dividend (2024 - £nil).
Financial instruments
The company’s activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk.
Price Risk
Price risk is the risk that the value of inputs or financial instruments will fluctuate due to changes in market prices. The company is exposed to commodity price risk. It does not manage this exposure using derivatives, as such arrangements are not considered cost-effective.
Credit Risk
Credit risk refers to a risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. The Company’s principal financial assets are bank balances and cash and trade and other receivables. The Company's credit risk is primarily attributable to its trade receivables. The Company's policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. The amounts presented in the balance sheet are, where appropriate, net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Cash Flow Risk
Cash flow risk is the risk that future cash flows associated with financial instruments will fluctuate. The company manages this risk by holding interest-bearing assets and liabilities at fixed rates, where appropriate, to provide certainty over future cash flows. Sales and purchases are made in US Dollars, Euros and Pounds Sterling, which introduces some foreign exchange risk. However, as this exposure is not considered to be significant, no forward contracts or hedging instruments are utilised.
Liquidity Risk
Liquidity risk is the risk that the company will be unable to meet its financial obligations as they fall due. To maintain sufficient liquidity for ongoing operations and future development, the company uses a mixture of long-term and short-term debt finance.
Branches outside the United Kingdom
The company has branches, as defined in section 1046(3) of the Companies Act 2006, outside the United Kingdom in Spain.
ARRK Europe Limited
Directors' Report for the Year Ended 31 December 2025
Going concern
The profit and loss account shows that the company reported a loss during the reporting period.
The company is dependent on financial support provided by the parent company, ARRK Corporation, mainly in the form of equity funding and an intercompany loan facility, and therefore the financial position of ARRK Corporation is a relevant factor in the directors’ assessment of going concern. As at 31 December 2025, ARRK Corporation had net assets of £95m and approximately 3,118 employees throughout the world and is well positioned to ensure continued future profitable growth, with reported cash balances of £16m.
ARRK Corporation has indicated its willingness to provide financial support that may be necessary for the company to be able to meet its financial obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements. The directors have satisfied themselves that ARRK Corporation has the necessary financial resources to provide this support, should it be required. Consequently, the directors believe that it is appropriate to prepare the financial statements on a going concern basis.
Future developments
The business continues to enjoy the support of its parent company and intends to use this support to improve its profitability. Further investment is planned for 2026 and 2027 to offer new manufacturing services to further increase sales volume as well as streamlining operations to improve efficiencies and save further costs.
Directors' liabilities
The company has made qualifying third-party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.
Disclosure of information to the auditors
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office as the company’s auditor and a resolution to reappoint them will be proposed at the forthcoming annual general meeting.
Approved by the
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ARRK Europe 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 Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). 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:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether FRS 101 has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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.
ARRK Europe Limited
Independent Auditor's Report to the Members of ARRK Europe Limited
Opinion
We have audited the financial statements of ARRK Europe Limited (the 'company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 101 'Reduced Disclosure Framework'.
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its 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 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 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.
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:
ARRK Europe Limited
Independent Auditor's Report to the Members of ARRK Europe Limited
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of directors’ remuneration specified by law are not made; or |
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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 5, 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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
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enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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reading minutes of meetings of those charged with governance. |
ARRK Europe Limited
Independent Auditor's Report to the Members of ARRK Europe Limited
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.
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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For and on behalf of
Staverton
Cheltenham
GL51 0UX
ARRK Europe Limited
Profit and Loss Account for the Year Ended 31 December 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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Administrative expenses |
( |
( |
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Administrative expenses - exceptional |
( |
- |
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Other operating income |
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Operating (loss)/profit |
( |
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Net finance costs |
( |
( |
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(Loss)/profit before tax |
( |
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Tax on (loss)/profit |
( |
( |
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(Loss)/profit for the year |
( |
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The above results were derived from continuing operations.
The company has no other comprehensive income for the year.
ARRK Europe Limited
(Registration number: 03418673)
Balance Sheet as at 31 December 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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Right-of-use assets |
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Current assets |
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Stocks |
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Trade and other 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 liabilities |
( |
( |
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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 liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
11,013 |
11,013 |
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Profit and loss account |
(11,704) |
(11,230) |
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Total equity |
(691) |
(217) |
Approved by the
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ARRK Europe Limited
Statement of Changes in Equity for the Year Ended 31 December 2025
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Share capital |
Profit and loss account |
Total |
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At 1 January 2025 |
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( |
( |
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Loss for the year |
- |
( |
( |
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At 31 December 2025 |
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( |
( |
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Share capital |
Profit and loss account |
Total |
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At 1 January 2024 |
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( |
( |
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Profit for the year |
- |
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At 31 December 2024 |
11,013 |
(11,230) |
(217) |
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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General information |
The company is a private company limited by share capital, incorporated and domiciled in the the United Kingdom.
The address of its registered office is:
The principal place of business is:
Unit 11 Olympus Park
Quedgeley
Gloucester
Gloucestershire
GL2 4NF
These financial statements were authorised for issue by the
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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 have been prepared in accordance with Financial Reporting Standard 101, 'Reduced Disclosure Framework' (FRS 101). These financial statements have been prepared under the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value, and in accordance with the Companies Act 2006.
In preparing these financial statements, the company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards as adopted by the UK (UK-adopted international accounting standards) but makes amendments where necessary in order to comply with the Companies Act 2006 and to take advantage of FRS 101 disclosure exemptions.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest thousand Pound.
Summary of disclosure exemptions
In these financial statements, the company has taken advantage of the exemptions available under FRS 101 in respect of the following disclosures:
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IFRS 7 - ‘Financial instruments: Disclosures’. |
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Paragraphs 91 to 99 of IFRS 13 - ‘Fair value measurement’ (disclosure of valuation techniques and inputs used for fair value measurement of assets and liabilities). |
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The requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 - ‘Revenue from Contracts with Customers’ (disaggregation of revenue, significant changes in contract assets and liabilities, details on transaction price allocation, timing of the satisfaction of performance obligations and significant judgements made in the application of IFRS 15). |
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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Paragraph 38 of IAS 1 - ‘Presentation of financial statements’ (comparative information requirements in respect of): - paragraph 79(a)(iv) of IAS 1
- paragraph 73(e) of IAS 16, ‘Property, plant and equipment’
- paragraph 118(e) of IAS 38, ‘Intangible assets’
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The following paragraphs of IAS 1 - ‘Presentation of financial statements’ (removing the requirement to present): - 10(d) (statement of cash flows); - 16 (statement of compliance with all IFRS); - 38A (minimum of two primary statements, including cash flow statements); - 38B-D (additional comparative information); - 111 (cash flow statement information); - 134-136 (capital management disclosures) |
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IAS 7 - ‘Statement of cash flows’. |
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Paragraphs 30 and 31 of IAS 8 - ‘Accounting policies, changes in accounting estimates and errors’ (requirement for the disclosure of information when an entity has not applied a new IFRS that has been issued but is not yet effective). |
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Paragraph 17 of IAS 24 - ‘Related party disclosures’ (key management compensation). |
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The requirements in IAS 24, ‘Related party disclosures’ (to disclose related party transactions entered into between two or more members of a group). |
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The requirements of paragraphs 130 f(ii), 130 f(iii), 134(d) to 134(f) and 135(c) to 135(e) of IAS 36, 'Impairment of Assets' |
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The requirements of paragraphs 88(c) and 88 (d) of IAS 12 - 'Income Tax' (disclosures in relation to qualitative and quantitative information in relation to Pillar Two legislation) |
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The requirements of IAS 16 - 'Leases' to disclose separate information about leases and to present a maturity analysis about lease liabilities. |
The parent company which prepares consolidated financial statements, that includes the results of the company, is Mitsui Chemicals Inc. More information concerning Mitsui Chemicals Inc is disclosed in note 27 to the financial statements.
Going concern
The profit and loss account shows that the company reported a loss during the reporting period.
The company is dependent on financial support provided by the parent company, ARRK Corporation, mainly in the form of equity funding and an intercompany loan facility, and therefore the financial position of ARRK Corporation is a relevant factor in the directors’ assessment of going concern. As at 31 December 2025, ARRK Corporation had net assets of £95m and approximately 3,118 employees throughout the world and is well positioned to ensure continued future profitable growth, with reported cash balances of £16m.
ARRK Corporation has indicated its willingness to provide financial support that may be necessary for the company to be able to meet its financial obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements. The directors have satisfied themselves that ARRK Corporation has the necessary financial resources to provide this support, should it be required. Consequently, the directors believe that it is appropriate to prepare the financial statements on a going concern basis.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Turnover
Recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT, and other sales-related taxes. Turnover is reduced for estimated customer returns, rebates, and other similar allowances.
Turnover is recognised when the risks and rewards of ownership have been transferred to the customer, being at the point the goods are shipped to the customer or made available for collection as specified by the customer. Turnover is recognised in the accounting period when control of the product has been transferred, at an amount that reflects the consideration to which the entity expects to be entitled in exchange for fulfilling its performance obligations to customers. The principles in IFRS are applied to turnover recognition using the following five-step model:
The principles in IFRS 15 are applied to turnover recognition criteria using the following 5 step model:
1. Identify the contracts with the customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to the performance obligations in the contract
5. Recognise revenue when or as the entity satisfies its performance obligations
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current 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 income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred 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. Timing differences between the Company’s taxable profits and its results as stated in the financial statements arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
A net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding agreement to sell the revalued assets and the gain or loss expected to arise on sale has been recognised in the financial statements. Neither is deferred tax recognised when fixed assets are sold as it is more likely than not that the taxable gain will be rolled over, being charged to tax only if and when the replacement assets are sold.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.
Intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:
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Asset class |
Amortisation method and rate |
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Software |
Straight-line over 3 years |
Tangible assets
Tangible fixed assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible fixed assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Freehold land and buildings |
Straight-line over 3 to 50 years |
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Plant and machinery |
Straight-line over 3 to 20 years |
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Right-of-use assets |
Lower of useful life and lease period |
Leases
Definition
A lease is a contract, or a part of a contract, that conveys the right to use an asset or a physically distinct part of an asset (“the underlying asset”) for a period of time in exchange for consideration. Further, the contract must convey the right to the company to control the asset or a physically distinct portion thereof. A contract is deemed to convey the right to control the underlying asset if, throughout the period of use, the company has the right to:
· Obtain substantially all the economic benefits from the use of the underlying asset, and;
· Direct the use of the underlying asset (e.g. direct how and for what purpose the asset is used)
Where contracts contain a lease coupled with an agreement to purchase or sell other goods or services (i.e., non-lease components), the company has made an accounting policy election, by class of underlying asset, to account for both components as a single lease component.
Initial recognition and measurement
The company initially recognises a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term.
The lease liability is measured at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments, purchase options at exercise price (where payment is reasonably certain), expected amount of residual value guarantees, termination option penalties (where payment is considered reasonably certain) and variable lease payments that depend on an index or rate.
The right-of-use asset is initially measured at the amount of the lease liability, adjusted for lease prepayments, lease incentives received, the company’s initial direct costs (e.g., commissions) and an estimate of restoration, removal and dismantling costs.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Subsequent measurement
After the commencement date, the company measures the lease liability by:
(a) Increasing the carrying amount to reflect interest on the lease liability;
(b) Reducing the carrying amount to reflect the lease payments made; and
(c) Re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in substance fixed lease payments or on the occurrence of other specific events.
Interest on the lease liability in each period during the lease term is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. Interest charges are presented as interest payable in the income statement, unless the costs are included in the carrying amount of another asset applying other applicable standards. Variable lease payments not included in the measurement of the lease liability, are included in operating expenses in the period in which the event or condition that triggers them arises.
The related right-of-use asset is accounted for using the Cost model in IAS 16 Property, Plant and Equipment and depreciated and charged in accordance with the depreciation requirements of IAS 16 Property, Plant and Equipment as disclosed in the accounting policy for Property, Plant and Equipment. Adjustments are made to the carrying value of the right of use asset where the lease liability is re-measured in accordance with the above. Right of use assets are tested for impairment in accordance with IAS 36 Impairment of assets as disclosed in the accounting policy in impairment.
Lease modifications
If a lease is modified, the modified contract is evaluated to determine whether it is or contains a lease. If a lease continues to exist, the lease modification will result in either a separate lease or a change in the accounting for the existing lease.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
The modification is accounted for as a separate lease if both:
(a) The modification increases the scope of the lease by adding the right to use one or more underlying assets; and
(b) The consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.
If both of these conditions are met, the lease modification results in two separate leases, the unmodified original lease and a separate lease. The company then accounts for these in line with the accounting policy for new leases. If either of the conditions are not met, the modified lease is not accounted for as a separate lease and the consideration is allocated to the contract and the lease liability is re-measured using the lease term of the modified lease and the discount rate as determined at the effective date of the modification.
For a modification that fully or partially decreases the scope of the lease (e.g., reduces the square footage of leased space), IFRS 16 requires a lessee to decrease the carrying amount of the right-of-use asset to reflect partial or full termination of the lease. Any difference between those adjustments is recognised in profit or loss at the effective date of the modification. For all other lease modifications which are not accounted for as a separate lease, IFRS 16 requires the lessee to recognise the amount of the re-measurement of the lease liability as an adjustment to the corresponding right-of-use asset without affecting profit or loss.
Short term and low value leases
The company has made an accounting policy election, by class of underlying asset, not to recognise lease assets and lease liabilities for leases with a lease term of 12 months or less (i.e., short-term leases).
The company has made an accounting policy election on a lease-by-lease basis, not to recognise lease assets on leases for which the underlying asset is of low value.
Lease payments on short term and low value leases are accounted for on a straight line basis over the term of the lease or other systematic basis if considered more appropriate. Short term and low value lease payments are included in operating expenses in the income statements.
Sub leases
If an underlying asset is re-leased by the company to a third party and the company retains the primary obligation under the original lease, the transaction is deemed to be a sublease. The company continues to account for the original lease (the head lease) as a lessee and accounts for the sublease as a lessor (intermediate lessor). When the head lease is a short term lease, the sublease is classified as an operating lease. Otherwise, the sublease is classified using the classification criteria applicable to Lessor Accounting in IFRS 16 by reference to the right-of-use asset in the head lease (and not the underlying asset of the head lease). After classification lessor accounting is applied to the sublease.
Stock
Stocks are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Defined contribution pension obligation
For defined contribution schemes, the amount charged to the profit and loss account statement in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.
Financial instruments
Initial recognition
Financial assets and financial liabilities comprise all assets and liabilities reflected in the balance sheet, although excluding tangible assets, investment properties, intangible assets, deferred tax assets, prepayments, deferred tax liabilities and employee benefits plan.
The company recognises financial assets and financial liabilities in the balance sheet when, and only when, the company becomes party to the contractual provisions of the financial instrument.
Financial assets are initially recognised at fair value. Financial liabilities are initially recognised at fair value,
representing the proceeds received net of premiums, discounts and transaction costs that are directly attributable
to the financial liability.
All regular way purchases and sales of financial assets and financial liabilities classified as fair value through
profit or loss (“FVTPL”) are recognised on the trade date, i.e. the date on which the company commits to
purchase or sell the financial assets or financial liabilities. All regular way purchases and sales of other financial
assets and financial liabilities are recognised on the settlement date, i.e. the date on which the asset or liability is
received from or delivered to the counterparty. Regular way purchases or sales are purchases or sales of
financial assets that require delivery within the time frame generally established by regulation or convention in the
market place.
Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost
or fair value.
Classification and measurement
Financial instruments are classified at inception into one of the following categories, which then determine the subsequent measurement methodology:-
Financial assets are classified into one of the following three categories:-
· financial assets at amortised cost;
· financial assets at fair value through other comprehensive income (FVTOCI); or
· financial assets at fair value through the profit or loss (FVTPL).
Financial liabilities are classified into one of the following two categories:-
· financial liabilities at amortised cost; or
· financial liabilities at fair value through the profit or loss (FVTPL).
The classification and the basis for measurement are subject to the company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets, as detailed below:-
Financial assets at amortised cost
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:-
· the assets are held within a business model whose objective is to hold assets in order to collect contractual cash flows; and
· the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
If either of the above two criteria is not met, the financial assets are classified and measured at fair value through the profit or loss (FVTPL).
If a financial asset meets the amortised cost criteria, the company may choose to designate the financial asset at FVTPL. Such an election is irrevocable and applicable only if the FVTPL classification significantly reduces a measurement or recognition inconsistency.
Financial liabilities at amortised cost
All financial liabilities, other than those classified as financial liabilities at FVTPL, are measured at amortised cost using the effective interest rate method.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Derecognition
Financial assets
The company derecognises a financial asset when;
- the contractual rights to the cash flows from the financial asset expire,
- it transfers the right to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred; or
- the company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
On derecognition of a financial asset, the difference between the carrying amount of the asset and the sum of the consideration received is recognised as a gain or loss in the profit or loss.
Any cumulative gain or loss recognised in OCI in respect of equity investment securities designated as FVTOCI is not recognised in profit or loss on derecognition of such securities. Any interest in transferred financial assets that qualify for derecognition that is created or retained by the company is recognised as a separate asset or liability.
The company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of risks and rewards of the transferred assets or a portion of them. In such cases, the transferred assets are not derecognised.
When the company derecognises transferred financial assets in their entirety, but has continuing involvement in them then the entity should disclose for each type of continuing involvement at the reporting date:
(a) The carrying amount of the assets and liabilities that are recognised in the entity’s balance sheet and represent the entity’s continuing involvement in the derecognised financial assets, and the line items in which those assets and liabilities are recognised.
(b) The fair value of the assets and liabilities that represent the entity’s continuing involvement in the derecognised financial assets;
(c) The amount that best represents the entity’s maximum exposure to loss from its continuing involvement in the derecognised financial assets, and how the maximum exposure to loss is determined
(d) The undiscounted cash outflows that would or may be required to repurchase the derecognised financial assets or other amounts payable to the transferee for the transferred assets
Financial liabilities
The company derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Impairment of financial assets
Measurement of Expected Credit Losses
The company recognises loss allowances for expected credit losses (ECL) on financial instruments that are not measured at FVTPL, namely:
- Financial assets that are debt instruments
- Accounts and other receivables
- Financial guarantee contracts issued; and
- Loan commitments issued.
The company classifies its financial instruments into stage 1, stage 2 and stage 3, based on the applied impairment methodology, as described below:
Stage 1: for financial instruments where there has not been a significant increase in credit risk since initial recognition and that are not credit-impaired on origination, the company recognises an allowance based on the 12-month ECL.
Stage 2: for financial instruments where there has been a significant increase in credit risk since initial recognition but they are not credit-impaired, the company recognises an allowance for the lifetime ECL.
Stage 3: for credit-impaired financial instruments, the company recognises the lifetime ECL.
The company measures loss allowances at an amount equal to the lifetime ECL, except for the following, for which they are measured as a 12-month ECL:
- debt securities that are determined to have a low credit risk (equivalent to investment grade rating) at the reporting date; and
- other financial instruments on which the credit risk has not increased significantly since their initial recognition.
The company considers a debt security to have low credit risk when their credit risk rating is equivalent to the globally understood definition of ‘investment grade’.
A 12-month ECL is the portion of the ECL that results from default events on a financial instrument that are probable within 12 months from the reporting date.
Provisions for credit-impairment are recognised in the statement of income and are reflected in accumulated provision balances against each relevant financial instruments balance.
Financial assets are initially recognised at fair value. Financial liabilities are initially recognised at fair value, representing the proceeds received net of premiums, discounts and transaction costs that are directly attributable to the financial liability.
All regular way purchases and sales of financial assets and financial liabilities classified as fair value through profit or loss (“FVTPL”) are recognised on the trade date, i.e. the date on which the company commits to purchase or sell the financial assets or financial liabilities. All regular way purchases and sales of other financial assets and financial liabilities are recognised on the settlement date, i.e. the date on which the asset or liability is received from or delivered to the counterparty. Regular way purchases or sales are purchases or sales of financial assets that require delivery within the time frame generally established by regulation or convention in the market place.
Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost or fair value.
Evidence that the financial asset is credit-impaired include the following;
- Significant financial difficulties of the borrower or issuer;
- A breach of contract such as default or past due event;
- The restructuring of the loan or advance by the company on terms that the company would not consider otherwise;
- It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
- The disappearance of an active market for the security because of financial difficulties; or
- There is other observable data relating to a group of assets such as adverse changes in the payment status of borrowers or issuers in the company, or economic conditions that correlate with defaults in the company.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
For trade debtors, the company applies the simplified approach, which requires expected lifetime losses to be recognised from initial recognition of the debtors.
To measure the expected credit losses, trade debtors and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as the trade debtors for the same types of contracts. The company has therefore concluded that the expected loss rates for trade debtors are a reasonable approximation of the loss rates for the contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 month before 31 December 2025 and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the debtors. The company has identified the GDP and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as debtors due after more than one year.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
|
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company’s accounting policies, which are described in note 2 above, the directors are required to make judgements, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Key estimates in applying the company’s accounting policies
Key estimates have been made by management in these financial statements in the preparation of the company's stock and dilapidations provisions.
Management have assessed stock lines and have estimated the value of stock that requires provision in order to reflect the true value of stock within the financial statements. The carrying amount is £nil (2024 - £20,000)
Management have estimated the value of dilapidations costs which would be incurred on termination of the property leases. A provision has been created to reflect the future expected costs. The carrying amount is £115,000 (2024 - £230,000).
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Prototyping |
|
|
|
Composites |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
UK |
|
|
|
Europe |
|
|
|
Rest of world |
|
|
|
USA |
1,011 |
1,060 |
|
China |
815 |
516 |
|
Morocco |
686 |
651 |
|
Thailand |
22 |
229 |
|
|
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Amortisation expense (included in administrative expenses) |
|
|
|
Foreign exchange (gains)/losses |
( |
|
|
Loss on disposal of property, plant and equipment |
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Miscellaneous other operating income |
|
|
Miscellaneous other operating income relates to indirect costs which are recharged to other companies within the group.
|
Administrative expenses - exceptional |
The analysis of the company's exceptional administrative expenses for the year is as follows:
|
2025 |
2024 |
|
|
Restructuring costs |
382 |
- |
Restructuring costs are treated as exceptional due to their material and non-recurring nature.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Net finance costs |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on lease liabilities |
|
|
|
Interest paid to group undertakings |
307 |
327 |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Redundancy costs |
|
- |
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
|
|
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Accruing benefits under defined contribution schemes |
|
|
Only one director is remunerated by ARRK Europe Limited. Alll other directors are remunerated by other group companies and therefore it is not practical to assign their remuneration to their role as an ARRK Europe Limited director.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
|
Income tax |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Foreign tax |
|
|
The tax on (loss)/profit for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:
|
2025 |
2024 |
|
|
(Loss)/profit before tax |
( |
|
|
Corporation tax at standard rate |
( |
|
|
Increase/(decrease) from effect of capital allowances depreciation |
|
( |
|
Increase from effect of expenses not deductible in determining taxable profit (tax loss) |
|
|
|
Increase from effect of foreign tax rates |
|
|
|
Decrease arising from overseas tax expensed |
( |
( |
|
Movement in deferred tax not recognised |
|
|
|
Total tax charge |
|
|
The company has applied the temporary exception, introduced in May 2023, from the accounting requirements for deferred taxes in IAS 12, so that the company neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes. The company has available trading losses of £6,786,207.
|
Intangible assets |
|
Software |
|
|
Cost or valuation |
|
|
At 1 January 2025 |
|
|
Additions |
|
|
At 31 December 2025 |
|
|
Amortisation |
|
|
At 1 January 2025 |
|
|
Amortisation charge |
|
|
At 31 December 2025 |
|
|
Carrying amount |
|
|
At 31 December 2025 |
|
|
At 31 December 2024 |
|
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Tangible assets |
|
Freehold land and buildings |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2025 |
|
|
|
|
Additions |
- |
|
|
|
Disposals |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2025 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2025 |
|
|
|
|
At 31 December 2024 |
|
|
|
|
Right-of-use assets |
|
Land and buildings |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2025 |
|
|
|
|
Additions |
- |
|
|
|
Disposals |
( |
( |
( |
|
At 31 December 2025 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2025 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
|
At 31 December 2025 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2025 |
|
|
|
|
At 31 December 2024 |
|
|
|
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Stock |
|
2025 |
2024 |
|
|
Work in progress |
|
|
|
Raw materials and consumables |
|
|
|
Finished goods and goods for resale |
- |
|
|
|
|
|
Trade and other debtors |
|
Trade and other debtors falling due within one year |
2025 |
2024 |
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Loans to related parties |
|
|
|
Other debtors |
|
|
|
Accrued income |
|
|
|
Prepayments |
|
|
|
|
|
Amounts owed by group undertakings are balances owed by other ARRK group companies from standard trading. They are unsecured and non-interest bearing. There are no defined repayment dates.
|
Creditors: amounts falling due within one year |
|
Note |
2025 |
2024 |
|
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Loan amounts owed to group undertakings |
|
|
|
|
Other amounts owed to group undertakings |
|
|
|
|
Income tax liability |
- |
|
|
|
Other creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Deferred income |
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
Loans from group undertakings are all from ARRK Corporation. Other amounts owed to group undertakings are operational costs owed to various subsidiaries of ARRK Corporation.
Loans owed to group undertakings are on an unsecured basis. Interest is payable on loans to group undertakings at the market compatible rates between 5.1% and 5.6%. The loan facility, which was schedule to expire on 31 March 2026, has been renewed with the new term ending on 31 March 2027.
Other amounts owed to group undertakings are on payment terms ranging from 30 days to 90 days from invoice date.
|
Creditors: amounts falling due after more than one year |
|
Note |
2025 |
2024 |
|
|
Loans and borrowings |
|
|
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Loans and borrowings |
|
2025 |
2024 |
|
|
Current loans and borrowings |
||
|
Lease liabilities |
|
|
|
2025 |
2024 |
|
|
Non-current loans and borrowings |
||
|
Lease liabilities |
|
|
Lease obligations are secured against the assets to which they relate.
|
Lease liabilities |
The following amounts have been recognised in relation to property and motor vehicle leases:
|
2025 |
2024 |
|
|
Additions to 'right-of-use' assets |
24 |
307 |
|
Disposals of ''right-of-use' assets |
591 |
524 |
|
Depreciation charged on 'right-of-use' asset recognised |
459 |
489 |
|
Interest expense recorded on lease liability |
36 |
41 |
|
Total cash outflow in relation to leases |
500 |
539 |
Lease liabilities maturity analysis
A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:
|
2025 |
2024 |
|
|
Less than one year |
|
|
|
within two to five years |
|
|
|
more than five years |
- |
|
|
Total lease liabilities (undiscounted) |
|
|
The company has leases for industrial buildings, vehicles and other equipment. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected in the statement of financial position as a right-of-use asset and a lease liability. The company does not have any lease payments that are variable in nature. The company classifies its right-of-use assets in a consistent manner to its property, plant and equipment.
Each lease generally imposes a restriction that unless there is a contractual right for the company to sublet the asset to another party, the right-of-use asset can only be used by the company. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. Some leases contain an option to purchase the underlying leased asset outright at the end of the lease, or to extend the lease for a further term.
The company is prohibited from selling or pledging the underlying leased assets as security. The company must keep the leased assets in a good state of repair and return the properties in their original condition at the end of the lease. Further, the company must incur the costs insure right-of-use assets and incur maintenance fees on such items in accordance with the lease contracts.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Provisions for liabilities |
|
Dilapidations provisions |
|
|
At 1 January 2025 |
|
|
Provisions used |
( |
|
At 31 December 2025 |
|
|
|
|
A provision is recognised based on management's best estimate for expected dilapidations costs to be incurred on leased properties.
|
Share capital |
|
2025 |
2024 |
|||
|
No. |
£'000 |
No. |
£'000 |
|
|
Authorised |
||||
|
Ordinary share capital of £1 each |
11,013,267 |
11,013 |
11,013,267 |
11,013 |
|
Allotted, called-up and fully paid |
||||
|
Ordinary share capital of £1 each |
11,013,267 |
11,013 |
11,013,267 |
11,013 |
The Ordinary shares each carry one voting right and a return of capital winding up.
|
Reserves |
Called up share capital
This represents the nominal value of the issued share capital.
Profit and loss account
This represents the cumulative profit or losses, net of dividends and other adjustments.
|
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 £195,000 (2024 - £212,000).
|
Related party transactions |
Advantage has been taken of the exemption contained in FRS 101, which does not require the company to disclose transactions with other wholly owned group companies.
ARRK Europe Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Parent and ultimate parent undertaking |