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Registered number: NI042483










Smiley Monroe Holdings Limited










Directors Report and Financial Statements

For the Year Ended 31 December 2023

 
Smiley Monroe Holdings Limited
 

Company Information


Directors
Mr Vaughan Monroe 
Mrs Mary Monroe 
Mr Christopher Monroe 




Company secretary
Mrs Mary Monroe



Registered number
NI042483



Registered office
23 Ferguson Drive
Knockmore Hill Industrial Park

Lisburn

Co.Antrim

BT28 2EX




Independent auditors
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 Holdings Limited
 

Contents



Page
Group Strategic Report
 
 
1
Directors' Report
 
 
2 - 3
Independent Auditors' Report
 
 
4 - 7
Consolidated Statement of Comprehensive Income
 
 
8
Consolidated Statement of Financial Position
 
 
9 - 10
Company Statement of Financial Position
 
 
11
Consolidated Statement of Changes in Equity
 
 
12
Company Statement of Changes in Equity
 
 
13
Consolidated Statement of Cash Flows
 
 
14 - 15
Consolidated Analysis of Net Debt
 
 
16
Notes to the Financial Statements
 
 
17 - 34


 
Smiley Monroe Holdings Limited
 

Group Strategic Report
For the Year Ended 31 December 2023

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

Business review
 
The directors are satisfied with the performance of the group. The directors continue to closely monitor and
analyse market conditions.
The group has an adequate system of risk management and internal controls.
The group remained profitable in the year returning a net profit after tax of £4,355,270 (2022: £2,879,627). 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 increase in turnover in the year from £32,810,797 in 2022 to £33,530,197 in 2023. Gross margin has increased from 30.1% in 2022 to 37.9% in 2023. Overall the pre-tax profit has increased from £3,432,193 in 2022 to £5,206,443 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 Holdings 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 Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group 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 the Group 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 £4,355,270 (2022: £2,879,627).

Dividends declared for the year amounted to £465,107 (2022: £828,863).

Directors

The directors who served during the year were:

Mr Vaughan Monroe 
Mrs Mary Monroe 
Mr Christopher 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.

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Page 2

 
Smiley Monroe Holdings Limited
 

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

Disclosure of information to auditors

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 and the Group's auditors are 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 and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsSumer 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 Holdings Limited
 

 
Independent Auditors' Report to the Members of Smiley Monroe Holdings Limited
 

Opinion


We have audited the financial statements of Smiley Monroe Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's 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 Group 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 Group's or the parent 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 Holdings Limited
 

 
Independent Auditors' Report to the Members of Smiley Monroe Holdings Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


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Page 5

 
Smiley Monroe Holdings Limited
 

 
Independent Auditors' Report to the Members of Smiley Monroe Holdings Limited (continued)


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 an Auditors' 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 Group 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 gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which they operate, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We considered the opportunities and incentives that may exist within the Company for fraud and identified the greatest potential for fraud in the following areas: management override of controls and fraud risk relating to revenue.
We designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, testing the design and implementation of controls relating to the risks, sample testing of journals posted during the year, revenue cut off testing and agreeing a sample of revenue items to dispatch documentation.
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 Auditors' Report.


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Page 6

 
Smiley Monroe Holdings Limited
 

 
Independent Auditors' Report to the Members of Smiley Monroe Holdings Limited (continued)


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 Auditors' 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 7

 
Smiley Monroe Holdings Limited
 

Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 5 
33,530,197
32,810,797

Cost of sales
  
(20,807,123)
(22,942,926)

Gross profit
  
12,723,074
9,867,871

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

Administrative expenses
  
(7,283,897)
(6,190,022)

Other operating income
 6 
251,056
205,637

Operating profit
  
5,270,108
3,526,381

Interest payable and similar expenses
 10 
(63,665)
(94,188)

Profit before taxation
  
5,206,443
3,432,193

Tax on profit
 11 
(851,173)
(552,566)

Profit for the financial year
  
4,355,270
2,879,627

  

Total comprehensive income for the year
  
4,355,270
2,879,627

Profit for the year attributable to:
  

Owners of the parent Company
  
4,355,270
2,879,627

  
4,355,270
2,879,627

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
4,355,270
2,879,627

  
4,355,270
2,879,627

The notes on pages 17 to 34 form part of these financial statements.

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Page 8

 
Smiley Monroe Holdings Limited
Registered number: NI042483

Consolidated Statement of Financial Position
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
4,095,815
4,034,374

  
4,095,815
4,034,374

Current assets
  

Stocks
 16 
6,105,018
7,105,448

Debtors: amounts falling due within one year
 17 
6,437,673
7,302,237

Cash at bank and in hand
  
6,774,783
2,162,124

  
19,317,474
16,569,809

Creditors: amounts falling due within one year
 18 
(4,396,329)
(4,719,256)

Net current assets
  
 
 
14,921,145
 
 
11,850,553

Total assets less current liabilities
  
19,016,960
15,884,927

Creditors: amounts falling due after more than one year
 19 
-
(569,757)

Provisions for liabilities
  

Deferred taxation
 21 
(278,408)
(465,310)

Other provisions
 22 
(3,007)
(4,478)

  
 
 
(281,415)
 
 
(469,788)

Net assets
  
18,735,545
14,845,382


Capital and reserves
  

Called up share capital 
 23 
8,255
8,255

Share premium account
  
74,250
74,250

Capital redemption reserve
  
6,600
6,600

Profit and loss account
  
18,646,440
14,756,277

Equity attributable to owners of the parent Company
  
18,735,545
14,845,382

  
18,735,545
14,845,382


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Page 9

 
Smiley Monroe Holdings Limited
Registered number: NI042483

Consolidated Statement of Financial Position (continued)
As at 31 December 2023

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 17 to 34 form part of these financial statements.

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Page 10

 
Smiley Monroe Holdings Limited
Registered number: NI042483

Company Statement of Financial Position
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
2,642,885
1,488,835

Investments
 15 
443,221
443,221

  
3,086,106
1,932,056

Current assets
  

Debtors: amounts falling due within one year
 17 
1,829,440
1,785,354

Cash at bank and in hand
  
287,734
3,344

  
2,117,174
1,788,698

Creditors: amounts falling due within one year
 18 
(4,435,350)
(2,299,957)

Net current liabilities
  
 
 
(2,318,176)
 
 
(511,259)

Total assets less current liabilities
  
767,930
1,420,797

  

Creditors: amounts falling due after more than one year
 19 
-
(569,757)

Provisions for liabilities
  

Deferred taxation
 21 
(97,433)
(100,154)

  
 
 
(97,433)
 
 
(100,154)

Net assets
  
670,497
750,886


Capital and reserves
  

Called up share capital 
 23 
8,255
8,255

Share premium account
  
74,250
74,250

Profit and loss account
  
587,992
668,381

  
670,497
750,886


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 17 to 34 form part of these financial statements.

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Page 11

 

 
Smiley Monroe Holdings Limited


 

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



Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£



At 1 January 2022
8,255
74,250
6,600
12,705,513
12,794,618
12,794,618





Profit for the year
-
-
-
2,879,627
2,879,627
2,879,627


Dividends: Equity capital
-
-
-
(828,863)
(828,863)
(828,863)





At 1 January 2023
8,255
74,250
6,600
14,756,277
14,845,382
14,845,382





Profit for the year
-
-
-
4,355,270
4,355,270
4,355,270


Dividends: Equity capital
-
-
-
(465,107)
(465,107)
(465,107)



At 31 December 2023
8,255
74,250
6,600
18,646,440
18,735,545
18,735,545



The notes on pages 17 to 34 form part of these financial statements.

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Page 12

 
Smiley Monroe Holdings Limited
 

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


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
8,255
74,250
1,016,729
1,099,234



Profit for the year
-
-
480,515
480,515

Dividends
-
-
(828,863)
(828,863)



At 1 January 2023
8,255
74,250
668,381
750,886



Profit for the year
-
-
384,718
384,718

Dividends
-
-
(465,107)
(465,107)


At 31 December 2023
8,255
74,250
587,992
670,497


The notes on pages 17 to 34 form part of these financial statements.

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Page 13

 
Smiley Monroe Holdings Limited
 

Consolidated Statement of Cash Flows
For the Year Ended 31 December 2023



2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
4,355,270
2,879,627

Adjustments for:

Depreciation of tangible assets
401,940
427,787

Loss on disposal of tangible assets
(472,313)
1,859

Government grants
(79,802)
(124,691)

Interest paid
63,665
94,188

Taxation charge
851,173
552,566

Decrease in stocks
1,000,430
487,126

Decrease in debtors
845,494
300,744

(Decrease) in creditors
(349,551)
(1,255,190)

Increase/(decrease) in provisions
1,470
(433)

Corporation tax (paid)
(796,128)
(681,829)

Net cash generated from operating activities

5,821,648
2,681,754


Cash flows from investing activities

Purchase of tangible fixed assets
(1,487,160)
(390,131)

Sale of tangible fixed assets
1,496,091
145,883

Government grants received
79,802
124,691

HP interest paid
(64)
(306)

Net cash from investing activities

88,669
(119,863)

Cash flows from financing activities

Repayment of loans
(765,553)
(187,616)

Repayment of/new finance leases
(3,333)
(4,871)

Dividends paid
(465,107)
(828,863)

Interest paid
(63,665)
(93,882)

Net cash used in financing activities
(1,297,658)
(1,115,232)

Net increase in cash and cash equivalents
4,612,659
1,446,659

Cash and cash equivalents at beginning of year
2,162,124
692,607

Cash and cash equivalents at the end of year
6,774,783
2,139,266

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Page 14

 
Smiley Monroe Holdings Limited
 

Consolidated Statement of Cash Flows (continued)
For the Year Ended 31 December 2023


2023
2022

£
£


 
 
 
Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
6,774,783
2,162,124

Bank overdrafts
-
(22,858)

6,774,783
2,139,266


The notes on pages 17 to 34 form part of these financial statements.

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Page 15

 
Smiley Monroe Holdings Limited
 

Consolidated Analysis of Net Debt
For the Year Ended 31 December 2023





At 1 January 2023
Cash flows
New finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

2,162,124

4,612,659

-

6,774,783

Bank overdrafts

(22,858)

22,858

-

-

Debt due after 1 year

(569,757)

569,757

-

-

Debt due within 1 year

(247,222)

171,171

-

(76,051)

Finance leases

-

-

(3,333)

(3,333)


1,322,287
5,376,445
(3,333)
6,695,399

The notes on pages 17 to 34 form part of these financial statements.

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Page 16

 
Smiley Monroe Holdings Limited
 

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

1.


General information

Smiley Monroe Holdings 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 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 Group management to exercise judgment in applying the Group's accounting policies (see note 4).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

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Page 17

 
Smiley Monroe Holdings Limited
 

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

2.Accounting policies (continued)

 
2.3

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.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

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Page 18

 
Smiley Monroe Holdings Limited
 

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

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

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 Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.6

Finance costs

Finance costs are charged to profit or loss 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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

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Page 19

 
Smiley Monroe Holdings Limited
 

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

2.Accounting policies (continued)

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

 
2.9

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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

 
2.10

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.

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Page 20

 
Smiley Monroe Holdings Limited
 

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

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, see depreciation methods and rates below.

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 profit or loss.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value after making due allowances for obsolete and slow moving stock.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

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.

 
2.14

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.

  
2.15

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition offinancial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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Page 21

 
Smiley Monroe Holdings Limited
 

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

2.Accounting policies (continued)

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Going concern

The directors of Smiley Monroe Holdings Limited have reviewed the resources available and believe that the company has adequate resources to continue in operational existence for the foreseeable future.


4.


Judgments 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 judgments. There are no key assumptions concerning the future or other key sources of estimation, that ave a significant risk of raising a material adjustment to the carrying amounts of assets and liabilities within the next financial year.


5.


Turnover

The whole of the turnover is attributable to the Group's principal activity.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
18,667,895
18,630,356

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

Rest of the world
9,702,264
8,807,531

33,530,197
32,810,797



6.


Other operating income

2023
2022
£
£

Other operating income
171,254
80,946

Government grants receivable
79,802
124,691

251,056
205,637


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Page 22

 
Smiley Monroe Holdings Limited
 

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

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
27,765
25,700


8.


Employees

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
5,399,641
4,802,200
22,750
45,640

Social security costs
573,409
506,535
1,953
2,193

Cost of defined contribution scheme
442,872
345,104
100,000
-

6,415,922
5,653,839
124,703
47,833


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


9.


Directors' remuneration

2023
2022
£
£



Directors' emoluments
22,750
27,105

22,750
27,105

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Page 23

 
Smiley Monroe Holdings Limited
 

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

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
63,601
93,882

Finance leases and hire purchase contracts
64
306

63,665
94,188


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
902,621
457,711


902,621
457,711

Foreign tax


Foreign tax on income for the year
135,454
108,980

135,454
108,980

Total current tax
1,038,075
566,691

Deferred tax


Origination and reversal of timing differences
(186,902)
(14,125)

Total deferred tax
(186,902)
(14,125)


Taxation on profit on ordinary activities
851,173
552,566
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Page 24

 
Smiley Monroe Holdings Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
11.Taxation (continued)


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 23.52% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
5,206,442
2,879,627


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022: 19%)
1,224,584
652,117

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(30,305)
75,760

Capital allowances for year in excess of depreciation
(26,978)
(57,547)

Adjustments to tax charge in respect of prior periods
-
1,849

R&D relief
(106,941)
(99,438)

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

Other differences leading to an increase (decrease) in the tax charge
(4,448)
316

Deferred Tax
(186,902)
(14,125)

Total tax charge for the year
851,173
552,566


12.


Dividends

2023
2022
£
£


Ordinary A class dividend
57,523
460,592


Ordinary C class dividend
206,282
196,184


Ordinary D class dividend
141,350
130,635


Ordinary E class dividend
21,822
12,906


Ordinary F class dividend
38,130
28,546

465,107
828,863

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Page 25

 
Smiley Monroe Holdings Limited
 

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

13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £384,718 (2022 - £480,515).

img2f27.png
Page 26

 


 
Smiley Monroe Holdings Limited


 

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


14.


Tangible fixed assets


Group







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

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
3,312,707
2,395,705
379,052
1,041,104
893,570
8,022,138


Additions
1,200,000
137,634
60,548
60,461
28,517
1,487,160


Disposals
(1,022,452)
(85,131)
(23,900)
(364,238)
(370)
(1,496,091)



At 31 December 2023

3,490,255
2,448,208
415,700
737,327
921,717
8,013,207



Depreciation


At 1 January 2023
943,754
1,423,846
272,020
585,462
762,683
3,987,765


Charge for the year
59,582
177,742
30,372
70,716
63,528
401,940


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



At 31 December 2023

847,370
1,532,804
281,498
429,763
825,957
3,917,392



Net book value



At 31 December 2023
2,642,885
915,404
134,202
307,564
95,760
4,095,815



At 31 December 2022
2,368,953
971,859
107,032
455,643
130,887
4,034,374
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Page 27

 
Smiley Monroe Holdings Limited
 

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

           14.Tangible fixed assets (continued)



Company






Freehold property

£

Cost or valuation


At 1 January 2023
2,290,256


Additions
1,200,000



At 31 December 2023

3,490,256



Depreciation


At 1 January 2023
801,421


Charge for the year on owned assets
45,949



At 31 December 2023

847,370



Net book value



At 31 December 2023
2,642,886



At 31 December 2022
1,488,835







15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
443,221



At 31 December 2023
443,221




img2511.png
Page 28

 
Smiley Monroe Holdings Limited
 

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

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Smiley Monroe Limited
A and B Ordinary
100%
Smiley Monroe Rubber and Allied Products (India) Pvt Ltd
Ordinary
100%
Smiley Monroe Inc
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 undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Smiley Monroe Limited
16,871,136
16,774,536

Smiley Monroe Rubber and Allied Products (India) Pvt Ltd
1,603,573
1,485,573

Smiley Monroe Inc
59,460
59,460


16.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
5,814,535
6,564,129

Work in progress
38,339
86,332

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

6,105,018
7,105,448


The difference between purchase price or production cost of stocks and their replacement cost is not material.

img6111.png
Page 29

 
Smiley Monroe Holdings Limited
 

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

17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
5,887,190
6,974,344
1,440
2,880

Amounts owed by group undertakings
-
-
1,766,771
1,766,771

Other debtors
283,110
90,694
61,229
15,703

Prepayments and accrued income
267,373
237,199
-
-

6,437,673
7,302,237
1,829,440
1,785,354



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
-
22,858
-
-

Bank loans
-
195,796
-
195,796

Trade creditors
3,135,419
3,280,647
-
-

Amounts owed to group undertakings
-
-
4,252,662
1,943,554

Corporation tax
367,890
125,943
51,482
46,837

Other taxation and social security
368,745
464,588
35,577
37,144

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

Other creditors
208,917
236,381
76,051
51,427

Accruals and deferred income
312,025
393,043
19,578
25,199

4,396,329
4,719,256
4,435,350
2,299,957


Hire purchase agreements are secured against the assets acquired.

img156a.png
Page 30

 
Smiley Monroe Holdings Limited
 

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

19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
-
569,757
-
569,757

-
569,757
-
569,757


All loans were cleared during the 2023 financial year.




20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year
-
195,796
-
195,796

Amounts falling due over 1 year
-
569,757
-
569,757

-
765,553
-
765,553


img0004.png
Page 31

 
Smiley Monroe Holdings Limited
 

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

21.


Deferred taxation


Group



2023


£






At beginning of year
(465,310)


Charged to profit or loss
186,902



At end of year
(278,408)

Company


2023


£






At beginning of year
(100,154)


Charged to profit or loss
2,721



At end of year
(97,433)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(278,408)
(465,310)
(97,433)
(100,154)

(278,408)
(465,310)
(97,433)
(100,154)

img2734.png
Page 32

 
Smiley Monroe Holdings Limited
 

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

22.


Provisions


Group



Other provisions

£





At 1 January 2023
4,478


Utilised in year
(1,470)



At 31 December 2023
3,008


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



5,775 (2022: 6,600) Ordinary A shares of £1.00 each
5,775
6,600
1,650 (2022: 1,650) Ordinary A1 shares of £1.00 each
1,650
1,650
825 (2022: 0) Ordinary A2 shares of £1.00 each
825
-
1 (2022: 1) Ordinary B share of £1.00
1
1
1 (2022: 1) Ordinary C share of £1.00
1
1
1 (2022: 1) Ordinary D share of £1.00
1
1
1 (2022 - 1) Ordinary E share of £1.00
1
1
1 (2022 - 1) Ordinary F share of £1.00
1
1

8,255

8,255



24.


Capital commitments




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


Group
Group
2023
2022
£
£

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

22,287
23,385

img42df.png
Page 33

 
Smiley Monroe Holdings Limited
 

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

25.


Commitments under operating leases

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


Group
Group
2023
2022
£
£

Not later than 1 year
-
36,039

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

-
61,296

26.


Related party transactions

(i) Control
The company was under control of Mr Vaughan Monroe, Mrs Mary Monroe and Mr Christopher Monroe throughout the current year. Mr Vaughan Monroe is the managing director of the company and a 40% shareholder. Mrs Mary Monroe is a director and a 40% shareholder of the company. Mr Christopher Monroe is a director and a 20% shareholder of the company.
Dividends of £465,107 (2022: £828,863) were paid to the directors in the year, and as at 31 December 2023 the directors are owed £80,210 by the company (2022: £40,691 was owed by the company). 
(ii) 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 group purchased products amounting to £602 (2022: £246) from Impact Conveyor Parts Limited and made sales of 138,870 (2022: £248,943). 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.
(iii) 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 group made purchases amounting to £1,270,287 (2022: £4,186,768) from Lean Logistics Ireland Limited. At the year end there was a creditor balance of £67,919 (2022: £252,702) in relation to Lean Logistics Ireland Limited.
The Group 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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