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Registered number: NI020012














Smiley Monroe Limited






Directors' Report and Financial Statements

For the Year Ended 31 December 2023

 
Smiley Monroe Limited
 

Company Information


Directors
Mr Vaughan Monroe 
Mrs Mary Monroe 
Mr Christopher Monroe 
Mr Timothy Monroe 




Company secretary
Mrs Mary Monroe



Registered number
NI020012



Registered office
23 Ferguson Drive
Knockmore Hill Industrial Park

Lisburn

Co. Antrim

BT28 2EX




Independent auditor
Sumer Auditco NI Limited
Statutory Auditors

4th Floor

Glendinning House

6 Murray Street

Belfast

BT1 6DN




Bankers
Danske Bank
62-66 Bow Street

Lisburn

Co. Antrim

BT28 1YS




Solicitors
Tughans
Marlborough House

30 Victoria Street

Belfast

BT1 3GG





 
Smiley Monroe Limited
 

Contents



Page
Strategic Report
 
 
1
Directors' Report
 
 
2 - 3
Independent Auditor's Report
 
 
4 - 6
Statement of Comprehensive Income
 
 
7
Statement of Financial Position
 
 
8
Statement of Changes in Equity
 
 
9
Notes to the Financial Statements
 
 
10 - 24


 
Smiley Monroe Limited
 

Strategic Report
For the Year Ended 31 December 2023

Introduction
 
The directors present their report and financial statements for the year ended 31 December 2023.

Business review
 
The company remained profitable in the year returning a net profit after tax of £3,314,510 (2022: £1,974,467). This is largely due to the good relationships which the group has forged over a great many years with customers, suppliers and their bankers. The export sales team and long term strategy has been successfully growing sales of core products and will ensure continuous and steady growth. The group is committed to investing in management and staff development, new product development and the latest technology to enable it to grow and to continue to provide high levels of customer service. 

Principal risks and uncertainties
 
The directors consider the key risk to be exchange rate risk as they deal with customers and suppliers in foreign currency. They mitigate this risk by having foreign currency bank accounts and monitoring exchange rate fluctuations. 

Financial key performance indicators
 
The directors consider gross profit margin and profit before tax as the main measures of financial performance.  There has been an decrease in turnover in the year from £27,890,666 in 2022 to £26,998,521 in 2023. Gross margin has increased from 29.9% in 2022 to 38.2% in 2023. Overall the pre-tax profit has increased from £2,303,643 in 2022 to £3,901,929 in 2023.


This report was approved by the board on 25 September 2024 and signed on its behalf.



Mr Christopher Monroe
Director

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Page 1

 
Smiley Monroe Limited
 

 
Directors' Report
For the Year Ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £3,314,510 (2022: £1,974,467).

 Dividends declared for the year ended 31 December 2023 were £NIL (2022: £NIL). 

Directors

The directors who served during the year were:

Mr Vaughan Monroe 
Mrs Mary Monroe 
Mr Christopher Monroe 
Mr Timothy Monroe 

Future developments

The directors consider that both the results for the year and trading prospects are satisfactory and that the current level of performance can be maintained and improved going forward.

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Page 2

 
Smiley Monroe Limited
 

 
Directors' Report (continued)
For the Year Ended 31 December 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post reporting date events

There have been no significant post balance sheet events.

Auditor

The auditor, Sumer Auditco NI Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 25 September 2024 and signed on its behalf.
 





Mr Christopher Monroe
Director

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Page 3

 
Smiley Monroe Limited
 

 
Independent Auditor's Report to the Members of Smiley Monroe Limited
 

Opinion


We have audited the financial statements of Smiley Monroe Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 31 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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.


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Page 4

 
Smiley Monroe Limited
 

 
Independent Auditor's Report to the Members of Smiley Monroe Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the 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 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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 2, 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.


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Page 5

 
Smiley Monroe Limited
 

 
Independent Auditor's Report to the Members of Smiley Monroe Limited (continued)


Auditor's responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the
greatest potential for fraud in the following areas: completeness of income and management override of controls.
We discussed these risks with client management, designed audit procedures to test the timing of revenue,
tested a sample of journals to confirm they were appropriate and reviewed areas of judgment for indicators of
management bias to address these risks.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 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 2006Our 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.





Adrian Patton (Senior Statutory Auditor)
for and on behalf of
Sumer Auditco NI Limited
Statutory Auditors
4th Floor
Glendinning House
6 Murray Street
Belfast
BT1 6DN

25 September 2024
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Page 6

 
Smiley Monroe Limited
 

Statement of Comprehensive Income
For the Year Ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 5 
26,998,521
27,890,666

Cost of sales
  
(16,679,258)
(19,560,846)

Gross profit
  
10,319,263
8,329,820

Distribution costs
  
(420,125)
(357,105)

Administrative expenses
  
(6,053,145)
(5,733,672)

Other operating income
 6 
93,128
124,691

Operating profit
 7 
3,939,121
2,363,734

Interest payable and similar expenses
 10 
(37,192)
(60,091)

Profit before tax
  
3,901,929
2,303,643

Tax on profit
 11 
(587,419)
(329,176)

Profit for the year
  
3,314,510
1,974,467

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022: £NIL).

The notes on pages 10 to 24 form part of these financial statements.

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Page 7

 
Smiley Monroe Limited
Registered number: NI020012

Statement of Financial Position
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
904,501
2,057,531

Investments
 13 
1
1

  
904,502
2,057,532

Current assets
  

Stocks
 14 
4,532,405
5,206,193

Debtors: amounts falling due within one year
 15 
9,415,381
8,067,579

Cash at bank and in hand
  
5,261,677
1,907,484

  
19,209,463
15,181,256

Creditors: amounts falling due within one year
 16 
(3,044,508)
(3,301,781)

Net current assets
  
 
 
16,164,955
 
 
11,879,475

Total assets less current liabilities
  
17,069,457
13,937,007

Provisions for liabilities
  

Deferred tax
 18 
(198,321)
(380,381)

  
 
 
(198,321)
 
 
(380,381)

Net assets
  
16,871,136
13,556,626


Capital and reserves
  

Called up share capital 
 19 
90,000
90,000

Capital redemption reserve
  
6,600
6,600

Profit and loss account
  
16,774,536
13,460,026

  
16,871,136
13,556,626


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2024.




Mr Christopher Monroe
Director

The notes on pages 10 to 24 form part of these financial statements.

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Page 8

 
Smiley Monroe Limited
 

Statement of Changes in Equity
For the Year Ended 31 December 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
90,000
6,600
11,485,559
11,582,159



Profit for the year
-
-
1,974,467
1,974,467



At 1 January 2023
90,000
6,600
13,460,026
13,556,626



Profit for the year
-
-
3,314,510
3,314,510


At 31 December 2023
90,000
6,600
16,774,536
16,871,136


The notes on pages 10 to 24 form part of these financial statements.

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Page 9

 
Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

Smiley Monroe Limited is a private company limited by shares incorporated in Northern Ireland.  The registration number and address of the registered office are given in the Company Information section of these financial statements.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

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Page 10

 
Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.5

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

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Page 11

 
Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property
-
2% Straight line
Plant and machinery
-
15% Reducing balance
Fixtures and fittings
-
15% Reducing balance
Computer equipment
-
25% Straight line
Motor vehicles
-
25% Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

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Page 12

 
Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Stocks

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

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as
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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement
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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the process of applying the company's accounting policies, management has not made any significant judgements. There are no key assumptions concerning the future or other key sources of estimation, that have a significant risk of raising a material adjustment to the carrying amounts of assets and liabilities within the next financial year.


4.


Going Concern

The directors of Smiley Monroe Limited have reviewed the resources available and believe that the company has adequate resources to continue in operational existence for the foreseeable future. The directors consider that there are no material uncertainties that cast doubt on the company's ability to continue as a going concern.
Accordingly, Smiley Monroe Limited continue to adopt the going concern basis in preparing the financial statements.

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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

5.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
18,663,095
18,625,556

Rest of Europe
5,160,038
5,372,910

Rest of the world
3,175,388
3,892,200

26,998,521
27,890,666



6.


Other operating income

2023
2022
£
£

R&D expenditure credit
13,326
-

Government grants receivable
79,802
124,691

93,128
124,691



7.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
238,775
281,192

Other operating lease rentals
235,226
206,349

Profit/(Loss) on sale of tangible assets
195,920
1,859


8.


Auditor's remuneration

2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
20,860
18,000

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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

9.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
5,267,363
4,647,951

Social security costs
571,456
504,343

Cost of defined contribution scheme
342,872
345,104

6,181,691
5,497,398


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production and distribution
85
86



Administrative
54
50



Management
25
18

164
154


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
37,128
59,785

Finance leases and hire purchase contracts
64
306

37,192
60,091

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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
769,479
337,311


769,479
337,311


Total current tax
769,479
337,311

Deferred tax


Origination and reversal of timing differences
(182,060)
(8,135)

Total deferred tax
(182,060)
(8,135)


Taxation on profit on ordinary activities
587,419
329,176

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 23.5% (2022:19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
3,901,928
2,303,643


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022: 19%)
917,755
437,692

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
7,810
60,332

Capital allowances for year in excess of depreciation
(26,860)
(57,430)

Adjustments to tax charge in respect of prior periods
-
2,205

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(106,941)
(99,438)

Charitable donations relief
(5,035)
-

Leased cars restriction
587
316

Foreign WHT relief
(17,837)
(6,366)

Deferred Tax
(182,060)
(8,135)

Total tax charge for the year
587,419
329,176

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Smiley Monroe Limited


 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023


12.


Tangible fixed assets






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
1,022,449
1,786,719
272,609
974,862
893,570
4,950,209


Additions
-
38,667
34,726
7,610
28,517
109,520


Disposals
(1,022,449)
(85,131)
(23,900)
(364,238)
(370)
(1,496,088)



At 31 December 2023

-
1,740,255
283,435
618,234
921,717
3,563,641



Depreciation


At 1 January 2023
142,333
1,198,456
219,120
570,086
762,683
2,892,678


Charge for the year on owned assets
13,633
90,765
13,341
57,508
63,528
238,775


Disposals
(155,966)
(68,784)
(20,894)
(226,415)
(254)
(472,313)



At 31 December 2023

-
1,220,437
211,567
401,179
825,957
2,659,140



Net book value



At 31 December 2023
-
519,818
71,868
217,055
95,760
904,501



At 31 December 2022
880,116
588,263
53,489
404,777
130,887
2,057,532

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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

           12.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts included above, is £Nil (2022: £Nil).


13.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
1



At 31 December 2023
1





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

Smiley Monroe (Ireland) Limited
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking was as follows:

Name
Profit/(Loss)

Smiley Monroe (Ireland) Limited
-


14.


Stocks

2023
2022
£
£

Raw materials and consumables
4,241,922
4,664,874

Work in progress (goods to be sold)
38,339
86,332

Finished goods and goods for resale
252,144
454,987

4,532,405
5,206,193


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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

15.


Debtors

2023
2022
£
£


Trade debtors
4,471,715
5,837,333

Amounts owed by group undertakings
4,673,810
1,991,243

Other debtors
2,482
1,803

Prepayments and accrued income
267,374
237,200

9,415,381
8,067,579



16.


Creditors: amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
22,858

Trade creditors
2,069,791
2,334,735

Corporation tax
316,408
79,106

Other taxation and social security
333,167
427,444

Obligations under finance lease and hire purchase contracts
3,333
-

Other creditors
29,361
69,796

Accruals and deferred income
292,448
367,842

3,044,508
3,301,781


The bank facilities are secured by way of a fixed and floating charge over the group's book debts, assignments of life insurance policies, legal mortgages over the property at Cross Lane, Knockmore Hill Industrial Estate, Lisburn and Rathdown Close Industrial Estate, Lisburn and an unlimited inter company cross guarantee between Smiley Monroe Holdings Limited, Smiley Monroe Limited and Smiley Monroe (Ireland) Limited.
Hire purchase agreements are secured against the assets acquired.


17.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
3,333
-

3,333
-

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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

18.


Deferred taxation




2023


£






At beginning of year
(380,381)


Charged to the profit or loss
182,060



At end of year
(198,321)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(198,321)
(380,381)

(198,321)
(380,381)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



87,500 (2022: 87,500) Ordinary A shares of £1.00 each
87,500
87,500
2,500 (2022: 2,500) Ordinary B shares of £1.00 each
2,500
2,500

90,000

90,000



20.


Contingent liabilities

There is an unlimited inter company guarantee in place between Smiley Monroe Limited, Smiley Monroe Holdings Limited and Smiley Monroe Ireland Limited. There is a £1,000,000 guarantee in place with HMRC in respect of deferred VAT.

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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

21.


Capital commitments


At 31 December 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
22,287
23,385

22,287
23,385


22.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
-
36,039

Later than 1 year and not later than 5 years
-
25,257

-
61,296


23.


Related party transactions

(i) Impact Conveyor Parts Limited 
Impact Conveyor Parts Limited is controlled by Mr Michael Monroe, brother of Mr Vaughan Monroe, managing director of Smiley Monroe Limited. 
During the year the company purchased products amounting to £602 (2022: £246) from Impact Conveyor Parts Limited and made sales of £138,870 (2022: £190,206). At the year end there was a debtor balance of £62,357 (2022: £66,964) and a creditor balance of £Nil (2022: £216) in relation to Impact Conveyor Parts Limited.
(ii) Lean Logistics Ireland Limited 
Lean Logistics Ireland Limited is controlled by Nicola Wolsey, daughter of Mr Vaughan Monroe and Mrs Mary Monroe, directors of Smiley Monroe Limited. 
During the year the company made purchases amounting to £1,270,287 (2022: £4,186,768) from Lean Logistics Limited.  At the year end there was a creditor balance of £67,919 (2022: £252,702) in relation to Lean Logistics Ireland Limited.
The company has taken advantage of the exemption under FRS 102 Section 33.1A not to disclose transactions between wholly owned members of the group.

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Smiley Monroe Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

24.


Controlling party

The company's parent company, which holds 100% of the share capital of Smiley Monroe Limited is Smiley Monroe Holdings Limited, a company registered in Northern Ireland.  Smiley Monroe Holdings Limited has included the company in its group financial statements, copies of which are available from 23 Ferguson Drive, Knockmore Hill Industrial Park, Lisburn, Co. Antrim, BT28 2EX.


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Page 24