REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the period |
1 November 2022 to 31 December 2023 |
for |
SMART SEC SOLUTIONS LTD |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the period |
1 November 2022 to 31 December 2023 |
for |
SMART SEC SOLUTIONS LTD |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Contents of the Financial Statements |
for the period 1 November 2022 to 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
SMART SEC SOLUTIONS LTD |
Company Information |
for the period 1 November 2022 to 31 December 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
3rd Floor |
Marlborough House |
298 Regents Park Road |
Finchley |
London |
N3 2SZ |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Strategic Report |
for the period 1 November 2022 to 31 December 2023 |
The directors present their strategic report for the period 1 November 2022 to 31 December 2023. |
Review of business |
In 2023 the company continued to focus on its principal activity of Security Guarding provision, including front of house and reception services. We have also continued to develop and strengthen our innovative solution offering either through self-delivery or via our trusted service partners, in areas such as access control, alarm installation and maintenance, CCTV monitoring and remote monitoring systems. |
Sales have increased to £18,248,558 (2023) from £13,872,594 (2022). Pre-tax profit of £225,732 (2023) has decreased from the previous year of £377,538 (2022). |
The security industry continues to follow the trend of our competitors being acquired by larger (FM) organisations. This on-going trend has been the norm within the industry for the past 15 years. These mergers and acquisitions create a greater gap in the market for SmartSec Solutions to exploit. Our strategic aim has always been to focus on our security and front of house division. Whilst we may diversify slightly in to some security system offerings, we never see ourselves moving to a full FM provision and will always remain security focused. Our customers often select us solely down to our ability to concentrate in on their security requirements and because we do not dilute our service offering and overstretch our management teams. |
2023 was another year of continued strategic investment for SmartSec Solutions with significant success with new product ranges and investment in people, new customers, sales, and marketing channels. This strategy will remain in place for the foreseeable future and will continue to underpin performance for many years to come. |
KEY PERFORMANCE INDICATORS |
The company's financial performance is assessed primarily by Turnover, Gross Profit, GP as % Turnover, EBITDA and EBITDA % of Turnover for the financial year: |
Turnover | Gross Profit | Gross Profit % | EBITDA | EBITDA % |
2023 | £18,248,558 | £3,083,332 | 16.9% | £334,739 | 1.8% |
2022 | £13,872,594 | £2,544,425 | 18.3% | £437,614 | 3.2% |
2021 | £10,997,037 | £1,794,961 | 16.3% | £424,741 | 3.9% |
2020 | £11,483,829 | £2,291,214 | 20.0% | £937,769 | 8.2% |
Principal risks and uncertainties |
The key business risk and uncertainty relates to any potential downturn in the UK economy. Activity in the UK security services sector however remains strong, so the directors believe the company is well placed to continue to trade successfully in 2024. |
It is the desire of the owners of SmartSec Solutions to be an organisation built upon solid foundations of Trust, Honesty and Openness. It is our desire to be the best and to continue to keep striving for excellence. SmartSec Solutions has been 100% organically grown. From small acorns grow great oaks. Our desire to grow with our customers has seen us forge some quite outstanding partnerships with many of our customers. It is our belief that once we are tried, we will deliver for you and we will keep being rewarded with new contracts. The journey through 2024 is an exciting one. We have invested heavily in our people, our management team, our senior management team and in the systems division of our business. That investment is now ready to come to fruition and coupled with our label as "security guarding company of the year" we are confident of our most successful year in our company's history. |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Strategic Report |
for the period 1 November 2022 to 31 December 2023 |
Social responsibility |
Environmental, Social and Governance criteria are standards upon which we continue to measure our behaviour as an organisation. We are committed to improving our carbon footprint and are constantly looking at initiatives we can implement as a company in order to do so. One example of this has been changing all of our mobile fleet vehicles to 100% electric cars. |
We always seek to employ staff locally to the contracts that we are awarded. This has a social and environmental impact. Wherever possible we source supplies such as uniform, mobile phones and other activity related goods from local providers to ensure we support smaller local businesses. |
On behalf of the board: |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Report of the Directors |
for the period 1 November 2022 to 31 December 2023 |
The directors present their report with the financial statements of the company for the period 1 November 2022 to 31 December 2023. |
Dividends |
The total distribution of dividends for the period ended 31 December 2023 will be £287,000. |
Directors |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Report of the Directors |
for the period 1 November 2022 to 31 December 2023 |
Auditors |
The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Smart Sec Solutions Ltd |
Opinion |
We have audited the financial statements of Smart Sec Solutions Ltd (the 'company') for the period ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Smart Sec Solutions Ltd |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements. |
- Enquiring of management concerning actual and potential litigation and claims. |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
- Reading minutes of meetings of those charged with governance. |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Smart Sec Solutions Ltd |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
3rd Floor |
Marlborough House |
298 Regents Park Road |
Finchley |
London |
N3 2SZ |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Income Statement |
for the period 1 November 2022 to 31 December 2023 |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
Notes | £ | £ |
Turnover |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
Operating profit | 4 |
Interest receivable and similar income |
332,482 | 416,064 |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 6 | ( |
) | ( |
) |
Profit for the financial period |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Other Comprehensive Income |
for the period 1 November 2022 to 31 December 2023 |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
Notes | £ | £ |
Profit for the period |
Other comprehensive income | - | - |
Total comprehensive income for the period |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 8 |
Investments | 9 |
Current assets |
Debtors | 10 |
Cash at bank |
Creditors |
Amounts falling due within one year | 11 |
Net current (liabilities)/assets | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year | 12 | ( |
) | ( |
) |
Provisions for liabilities | 15 | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 16 |
Retained earnings | 17 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Statement of Changes in Equity |
for the period 1 November 2022 to 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Notes to the Financial Statements |
for the period 1 November 2022 to 31 December 2023 |
1. | Statutory information |
Smart Sec Solutions Ltd is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Preparation of consolidated financial statements |
The financial statements contain information about Smart Sec Solutions Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Smart Sec Holdings Ltd, 22 Union Street, Barnet, London, England, EN5 4HZ. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 31 December 2023 |
2. | Accounting policies - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | Employees and directors |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
Employees |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
£ | £ |
Directors' remuneration |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 31 December 2023 |
4. | Operating profit |
The operating profit is stated after charging: |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences |
5. | Interest payable and similar expenses |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
£ | £ |
Bank interest |
6. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
7. | Dividends |
Period |
1/11/22 |
to | Year ended |
31/12/23 | 31/10/22 |
£ | £ |
Ordinary shares of 1 each |
Interim |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 31 December 2023 |
8. | Tangible fixed assets |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 November 2022 |
Additions |
At 31 December 2023 |
Depreciation |
At 1 November 2022 |
Charge for period |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 October 2022 |
9. | Fixed asset investments |
Unlisted |
investments |
£ |
Cost |
At 1 November 2022 |
and 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 October 2022 |
10. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 380,573 | 282,680 |
Deferred tax asset |
Prepayments and accrued income |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 31 December 2023 |
11. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 13) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 753,615 | 1,305,769 |
Other creditors |
Pensions | 35,547 | 39,842 |
Net wages | 617,653 | 621,109 |
Accrued expenses |
12. | Creditors: amounts falling due after more than one year |
2023 | 2022 |
£ | £ |
Bank loans (see note 13) |
13. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 207,125 | 315,982 |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 31 December 2023 |
14. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
15. | Provisions for liabilities |
2023 |
£ |
Deferred tax | 5,160 |
Deferred tax |
£ |
Balance at 1 November 2022 | ( |
) |
Provided during period |
Balance at 31 December 2023 |
16. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 300 | 300 |
17. | Reserves |
Retained |
earnings |
£ |
At 1 November 2022 |
Profit for the period |
Dividends | ( |
) |
At 31 December 2023 |
SMART SEC SOLUTIONS LTD (REGISTERED NUMBER: 07036995) |
Notes to the Financial Statements - continued |
for the period 1 November 2022 to 31 December 2023 |
18. | Directors' advances, credits and guarantees |
The following advances and credits to directors subsisted during the period ended 31 December 2023 and the year ended 31 October 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of period |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period |