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REGISTERED NUMBER: 07240581 (England and Wales)















UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023

FOR

SMART MERCHANTS LIMITED

SMART MERCHANTS LIMITED (REGISTERED NUMBER: 07240581)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 30 April 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


SMART MERCHANTS LIMITED

COMPANY INFORMATION
for the Year Ended 30 April 2023







DIRECTORS: M P Watts
R H Marsh





REGISTERED OFFICE: 54 Sun Street
Waltham Abbey
Essex
EN9 1EJ





REGISTERED NUMBER: 07240581 (England and Wales)





ACCOUNTANTS: KNIGHT WHEELER LIMITED
Chartered Accountants
54 Sun Street
Waltham Abbey
Essex
EN9 1EJ

SMART MERCHANTS LIMITED (REGISTERED NUMBER: 07240581)

BALANCE SHEET
30 April 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 4 12,000 14,000
Tangible assets 5 27,092 36,138
39,092 50,138

CURRENT ASSETS
Stocks 864,742 610,628
Debtors 6 1,345,369 1,106,393
Cash at bank and in hand 115,896 158,357
2,326,007 1,875,378
CREDITORS
Amounts falling due within one year 7 (1,237,888 ) (836,972 )
NET CURRENT ASSETS 1,088,119 1,038,406
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,127,211

1,088,544

CREDITORS
Amounts falling due after more than one
year

8

(124,704

)

(209,010

)

PROVISIONS FOR LIABILITIES 10 (5,784 ) (5,551 )
NET ASSETS 996,723 873,983

CAPITAL AND RESERVES
Called up share capital 102 102
Retained earnings 996,621 873,881
SHAREHOLDERS' FUNDS 996,723 873,983

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

SMART MERCHANTS LIMITED (REGISTERED NUMBER: 07240581)

BALANCE SHEET - continued
30 April 2023


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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 December 2023 and were signed on its behalf by:




R H Marsh - Director



M P Watts - Director


SMART MERCHANTS LIMITED (REGISTERED NUMBER: 07240581)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 30 April 2023

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling (£) which is also the functional currency for the company and rounded to the nearest £.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents net invoiced electrical wholesales.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.

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

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 10% on cost
Plant and machinery - 20% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

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

Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

SMART MERCHANTS LIMITED (REGISTERED NUMBER: 07240581)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 April 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

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

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Trade and other receivables
Trade and Other Payables
Trade and other payables are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest.

Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and any short term deposits.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2022 - 21 ) .

4. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 May 2022
and 30 April 2023 20,000
AMORTISATION
At 1 May 2022 6,000
Charge for year 2,000
At 30 April 2023 8,000
NET BOOK VALUE
At 30 April 2023 12,000
At 30 April 2022 14,000

SMART MERCHANTS LIMITED (REGISTERED NUMBER: 07240581)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 April 2023

5. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 May 2022 24,209 6,775 13,963
Additions - - 274
At 30 April 2023 24,209 6,775 14,237
DEPRECIATION
At 1 May 2022 17,830 6,769 9,254
Charge for year 2,421 - 1,064
At 30 April 2023 20,251 6,769 10,318
NET BOOK VALUE
At 30 April 2023 3,958 6 3,919
At 30 April 2022 6,379 6 4,709

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 May 2022 101,952 29,320 176,219
Additions - 4,169 4,443
At 30 April 2023 101,952 33,489 180,662
DEPRECIATION
At 1 May 2022 77,952 28,276 140,081
Charge for year 7,999 2,005 13,489
At 30 April 2023 85,951 30,281 153,570
NET BOOK VALUE
At 30 April 2023 16,001 3,208 27,092
At 30 April 2022 24,000 1,044 36,138

SMART MERCHANTS LIMITED (REGISTERED NUMBER: 07240581)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 April 2023

5. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 May 2022
and 30 April 2023 31,995
DEPRECIATION
At 1 May 2022 7,999
Charge for year 7,999
At 30 April 2023 15,998
NET BOOK VALUE
At 30 April 2023 15,997
At 30 April 2022 23,996

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,337,877 1,055,036
Other debtors 3,205 35,869
Smart Trans Supplies Ltd 1,585 1,115
Prepayments 2,702 14,373
1,345,369 1,106,393

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 68,750 62,537
Hire purchase contracts 9,342 9,232
Trade creditors 784,468 751,994
Factoring account 184,575 (110,927 )
Tax 66,480 62,564
Social security and other taxes 8,456 8,005
VAT 29,843 38,937
Other creditors 22,448 -
Credit card 1,517 5,594
Pension fund 2,120 1,506
Directors' current accounts 53,770 3,780
Accrued expenses 6,119 3,750
1,237,888 836,972

SMART MERCHANTS LIMITED (REGISTERED NUMBER: 07240581)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 30 April 2023

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans - 1-2 years 68,750 62,537
Bank loans - 2-5 years 11,458 92,634
Hire purchase contracts 4,496 13,839
Other creditors 40,000 40,000
124,704 209,010

9. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 148,958 217,708

The factoring account is secured by way of a debenture which provides a fixed and floating charge over the assets of the company.

10. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 5,784 5,551

Deferred
tax
£   
Balance at 1 May 2022 5,551
Provided during year 233
Balance at 30 April 2023 5,784

11. RELATED PARTY DISCLOSURES

The loan amounting to £40,000 is owed to R H Marsh and is on an interest free basis with no fixed repayment term.

The above transactions were conducted using normal commercial principles.