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REGISTERED NUMBER: NI014479 (Northern Ireland)














STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2023

FOR

SIMPSON, MCLEARNON & FERGUSON LIMITED

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


SIMPSON, MCLEARNON & FERGUSON LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: A S Addley
M J Simpson
K J Simpson
B J Simpson
A J Simpson





SECRETARY: A J Simpson





REGISTERED OFFICE: 1 Kiltonga Industrial Estate
Belfast Road
Newtownards
Co. Down
BT23 4TJ





REGISTERED NUMBER: NI014479 (Northern Ireland)





AUDITORS: M.B.McGrady & Co
Chartered Accountants
Statutory Auditors
Suite 2B
Cadogan House
322 Lisburn Road
Belfast
Co. Antrim
BT9 6GH

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their strategic report for the year ended 31st December 2023.

REVIEW OF BUSINESS
The principal activity of the company is the retail sale of toys, prams and nursery goods.

The Directors are extremely pleased with the overall performance achieved in 2023. Sales growth of 5.4% achieved in a market which actually declined is extremely pleasing and demonstrates a performance by a dedicated and focussed team.

Operating profit is also extremely pleasing with EBITDA of £986k.

We are happy with our current store portfolio and will focus on our overall business strategy to achieve 60 stores in the next 5-10 years.

The company's key financial and other performance indicators during the year were as follows:


2023 2022

Sale of Goods £20,909,054 £19,843,845

Profit before tax £767,434 £1,157,168

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategy are subject to a number of risks.
The key business risks and uncertainties affecting the company are considered to relate to the current economic
climate and competition from other key players in the market.

ON BEHALF OF THE BOARD:





A J Simpson - Director


7th August 2024

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31st December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 was £173,500 (2022: £170,000)

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

A S Addley
M J Simpson
K J Simpson
B J Simpson
A J Simpson

POLITICAL DONATIONS AND EXPENDITURE
During the year the client made charitable donations of £5,450 (2022: £1,200).

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


AUDITORS
The auditors, M.B.McGrady & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A J Simpson - Director


7th August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SIMPSON, MCLEARNON & FERGUSON LIMITED


Opinion
We have audited the financial statements of Simpson, Mclearnon & Ferguson Limited (the 'company') for the year ended 31st December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st December 2023 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 Auditors' 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 financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SIMPSON, MCLEARNON & FERGUSON LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SIMPSON, MCLEARNON & FERGUSON LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which our 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:

In assessing and detecting irregularities such as fraud and non-compliance with laws and regulations we considered the following:

- the matters discussed among the audit engagement team and any other relevant professionals regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
- the nature of the industry and any laws and regulations applicable to the company and the industry;
- the company's own assessment of the risk of fraud and other irregularities;
- company's policies and procedures in relation to:
- how they identify and comply with all relevant laws and regulations and whether they are aware of any non-compliance
- how they detect and respond to risks of fraud and their knowledge of any actual, suspected or alleged fraud;
- control environment within the company and how this mitigates risks of fraud and instances of non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to asset valuations. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

In response to the risk of material misstatement through irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- ensuring the engagement team had the appropriate knowledge and expertise in order to be able to identify and recognise any instances of fraud or non-compliance with laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and management and from our knowledge and experience of the sector;
- ensuring the audit was carried out with a level of professional scepticism;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- enquiring of management concerns of actual and potential litigation and claims;
- agreeing the financial statement disclosures to underlying supporting documentation to assess compliance with relevant laws and regulations;
- reviewing correspondence with HMRC and other relevant regulators and the company's legal advisors.

To address the risk of fraud through management bias and override of controls, we:

- confirm the existence of employees;

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SIMPSON, MCLEARNON & FERGUSON LIMITED

- perform analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- obtain an understanding of provisions eg stock valuation and recoverability of debtors;
- test the appropriateness of journal entries and other adjustments
- assess whether the judgements made in making accounting estimates are indicative of a potential bias and
- evaluate the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and significant component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of
the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Conaill McGrady (Senior Statutory Auditor)
for and on behalf of M.B.McGrady & Co
Chartered Accountants
Statutory Auditors
Suite 2B
Cadogan House
322 Lisburn Road
Belfast
Co. Antrim
BT9 6GH

7th August 2024

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

INCOME STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 20,909,054 19,843,845

Cost of sales (12,726,220 ) (12,409,342 )
GROSS PROFIT 8,182,834 7,434,503

Administrative expenses (7,447,902 ) (6,274,852 )
OPERATING PROFIT 5 734,932 1,159,651

Interest receivable and similar income 40,166 8,205
775,098 1,167,856

Interest payable and similar expenses 6 (7,664 ) (10,688 )
PROFIT BEFORE TAXATION 767,434 1,157,168

Tax on profit 7 (209,542 ) (191,478 )
PROFIT FOR THE FINANCIAL YEAR 557,892 965,690

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 557,892 965,690


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

557,892

965,690

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 743,643 752,191
Investments 10 - 116,336
743,643 868,527

CURRENT ASSETS
Stocks 11 5,993,148 5,234,281
Debtors 12 1,103,183 1,317,726
Cash at bank 4,015,318 4,226,826
11,111,649 10,778,833
CREDITORS
Amounts falling due within one year 13 5,743,157 6,011,224
NET CURRENT ASSETS 5,368,492 4,767,609
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,112,135

5,636,136

CREDITORS
Amounts falling due after more than one
year

14

(65,779

)

-

PROVISIONS FOR LIABILITIES 17 (103,526 ) (77,698 )
NET ASSETS 5,942,830 5,558,438

CAPITAL AND RESERVES
Called up share capital 18 1,000 1,000
Capital redemption reserve 19 5 5
Retained earnings 19 5,941,825 5,557,433
SHAREHOLDERS' FUNDS 5,942,830 5,558,438

The financial statements were approved by the Board of Directors and authorised for issue on 7th August 2024 and were signed on its behalf by:





A J Simpson - Director


SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1st January 2022 1,000 4,761,743 5 4,762,748

Changes in equity
Dividends - (170,000 ) - (170,000 )
Total comprehensive income - 965,690 - 965,690
Balance at 31st December 2022 1,000 5,557,433 5 5,558,438

Changes in equity
Dividends - (173,500 ) - (173,500 )
Total comprehensive income - 557,892 - 557,892
Balance at 31st December 2023 1,000 5,941,825 5 5,942,830

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 117,985 (22,720 )
Interest paid (3,492 ) (6,151 )
Interest element of hire purchase
payments paid

(4,172

)

(4,537

)
Tax paid (199,614 ) (301,377 )
Net cash from operating activities (89,293 ) (334,785 )

Cash flows from investing activities
Purchase of tangible fixed assets (199,952 ) (115,289 )
Purchase of fixed asset investments (9,000 ) (103,856 )
Sale of tangible fixed assets 92,834 185,463
Sale of fixed asset investments 125,336 -
Interest received 40,166 8,205
Net cash from investing activities 49,384 (25,477 )

Cash flows from financing activities
Capital repayments in year 3,944 863
Equity dividends paid (173,500 ) (170,000 )
Net cash from financing activities (169,556 ) (169,137 )

Decrease in cash and cash equivalents (209,465 ) (529,399 )
Cash and cash equivalents at beginning
of year

2

4,224,783

4,754,182

Cash and cash equivalents at end of
year

2

4,015,318

4,224,783

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 767,434 1,157,168
Depreciation charges 152,252 148,864
Profit on disposal of fixed assets (36,584 ) (139,094 )
Finance costs 7,664 10,688
Finance income (40,166 ) (8,205 )
850,600 1,169,421
Increase in stocks (758,867 ) (844,281 )
Decrease/(increase) in trade and other debtors 214,541 (653,991 )
(Decrease)/increase in trade and other creditors (188,289 ) 306,131
Cash generated from operations 117,985 (22,720 )

2. CASH AND CASH EQUIVALENTS

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

Year ended 31st December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 4,015,318 4,226,826
Bank overdrafts - (2,043 )
4,015,318 4,224,783
Year ended 31st December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 4,226,826 4,754,182
Bank overdrafts (2,043 ) -
4,224,783 4,754,182


SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank 4,226,826 (211,508 ) 4,015,318
Bank overdrafts (2,043 ) 2,043 -
4,224,783 (209,465 ) 4,015,318
Debt
Finance leases (61,835 ) (3,944 ) (65,779 )
(61,835 ) (3,944 ) (65,779 )
Total 4,162,948 (213,409 ) 3,949,539

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. STATUTORY INFORMATION

Simpson, Mclearnon & Ferguson Limited is a private company, limited by shares , registered in Northern Ireland. 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary
amounts in these financial statements are rounded to the nearest £.

Significant judgements and estimates
The preparation of the financial statements requires the management to make judgements, estimates and
assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.

Inventory provisioning - The company sells products and is subject to changing consumer demands and trends. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of goods.

Impairment of debtors - The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of the debtors and historical experience.

Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average 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 inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
Trade Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary
course of business.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 receivables.

Cash and cash equivalents
Cash consists of cash on hand and demand deposits. Cash equivalents consist of short term highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of change in value.

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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve
months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months
after the reporting date, 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.

Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing
borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of
transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss
Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Ordinary Share Capital
The ordinary share capital of the company is presented as equity.


SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable 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.

Hire purchase and leasing commitments
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.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 20,909,054 19,843,845
20,909,054 19,843,845

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,403,008 3,122,303
Social security costs 189,939 153,917
Other pension costs 47,361 37,678
3,640,308 3,313,898

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Administration and support 15 12
Distribution 237 234
252 246

2023 2022
£    £   
Directors' remuneration 157,740 158,950

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 3,729 2,969
Other operating leases 26,732 26,964
Depreciation - owned assets 152,250 148,104
Profit on disposal of fixed assets (36,584 ) (139,094 )
Auditors' remuneration 9,500 9,700

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 3,492 6,151
Hire purchase 4,172 4,537
7,664 10,688

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 183,714 199,614

Deferred tax 25,828 (8,136 )
Tax on profit 209,542 191,478

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 767,434 1,157,168
Profit multiplied by the standard rate of corporation tax in the UK of
23.500% (2022 - 19%)

180,347

219,862

Effects of:
Expenses not deductible for tax purposes 4,060 1,253
Income not taxable for tax purposes (8,597 ) (34,563 )
Depreciation in excess of capital allowances 7,904 4,926
Origination and reversal of timing differences 25,828 -
Total tax charge 209,542 191,478

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of 1 each
Final 173,500 170,000

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold and Motor
property fittings vehicles Totals
£    £    £    £   
COST
At 1st January 2023 468,776 1,261,866 174,215 1,904,857
Additions - 98,114 101,838 199,952
Disposals - - (100,000 ) (100,000 )
At 31st December 2023 468,776 1,359,980 176,053 2,004,809
DEPRECIATION
At 1st January 2023 187,511 882,843 82,312 1,152,666
Charge for year 9,375 108,503 34,372 152,250
Eliminated on disposal - - (43,750 ) (43,750 )
At 31st December 2023 196,886 991,346 72,934 1,261,166
NET BOOK VALUE
At 31st December 2023 271,890 368,634 103,119 743,643
At 31st December 2022 281,265 379,023 91,903 752,191

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


9. TANGIBLE FIXED ASSETS - continued

Hire Purchase Agreements

Included in the net book value of £743,643 is £76,379 (2022: £56,250) relating to assets held under hire purchase agreements. The depreciation charged to the financial statements in the year in respect of such assets is £25,460 (2022: £18,750)

10. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1st January 2023 116,336
Additions 9,000
Disposals (125,336 )
At 31st December 2023 -
NET BOOK VALUE
At 31st December 2023 -
At 31st December 2022 116,336

11. STOCKS
2023 2022
£    £   
Stocks 5,993,148 5,234,281

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 13,427 26,865
Other debtors 692,791 851,990
Prepayments and accrued income 396,965 438,871
1,103,183 1,317,726

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) - 2,043
Hire purchase contracts (see note 16) - 61,835
Trade creditors 3,930,493 4,020,590
Tax 183,714 199,614
Social security and other taxes 45,133 40,810
VAT 812,440 882,443
Other creditors 106,047 4,196
Net wages 1,657 -
Pension Contributions 17,308 29,415
Accruals and deferred income 646,365 770,278
5,743,157 6,011,224

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 16) 65,779 -

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 2,043

16. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year - 61,835
Between one and five years 65,779 -
65,779 61,835

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 103,526 77,698

SIMPSON, MCLEARNON & FERGUSON LIMITED (REGISTERED NUMBER: NI014479)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


17. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1st January 2023 77,698
Provided during year 25,828
Balance at 31st December 2023 103,526

18. CALLED UP SHARE CAPITAL

Allotted, called up and fully paid shares


2023 2022
Number £ Number £


Ordinary of £1 each 994 994 994 994
A Ordinary of £1 each 1 1 1 1
B Ordinary of £1 each 1 1 1 1
C Ordinary of £1 each 1 1 1 1
D Ordinary of £1 each 1 1 1 1
E Ordinary of £1 each 1 1 1 1
G Ordinary of £1 each 1 1 1 1

1,000 1,000 1,000 1,000


19. RESERVES

Capital Redemption Reserve

The capital redemption reserve is as a result of the purchase by the company of its own shares in a previous year.

20. PENSION COMMITMENTS

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 £47,361 (2022: £37,678).

Contributions totalling £17,308 (2022: £29,415) were payable to the scheme at the end of the year and are included in creditors.