Caseware UK (AP4) 2023.0.135 2023.0.135 2024-05-312024-05-312024-05-31Included within Other Creditors is a balance of £103,986 (2023 - £124,386) owed to a Director. This is interest free, unsecured and repayable on demand. During the year ended 31 May 2024, a loan of £500,000 was made to a Director. The loan is interest free and repayable on demand. As at 31 May 2024, £500,000 was outstanding (2023 - £Nil) and is included within Other Debtors.032falsetrue2023-06-01truefalsefalse34false 00879929 2023-06-01 2024-05-31 00879929 2022-06-01 2023-05-31 00879929 2024-05-31 00879929 2023-05-31 00879929 2022-06-01 00879929 c:CompanySecretary1 2023-06-01 2024-05-31 00879929 c:Director1 2023-06-01 2024-05-31 00879929 c:Director2 2023-06-01 2024-05-31 00879929 c:RegisteredOffice 2023-06-01 2024-05-31 00879929 c:Agent1 2023-06-01 2024-05-31 00879929 d:Buildings 2023-06-01 2024-05-31 00879929 d:Buildings 2024-05-31 00879929 d:Buildings 2023-05-31 00879929 d:Buildings d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 00879929 d:Buildings d:ShortLeaseholdAssets 2023-06-01 2024-05-31 00879929 d:Buildings d:ShortLeaseholdAssets 2024-05-31 00879929 d:Buildings d:ShortLeaseholdAssets 2023-05-31 00879929 d:PlantMachinery 2023-06-01 2024-05-31 00879929 d:PlantMachinery 2024-05-31 00879929 d:PlantMachinery 2023-05-31 00879929 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 00879929 d:MotorVehicles 2023-06-01 2024-05-31 00879929 d:MotorVehicles 2024-05-31 00879929 d:MotorVehicles 2023-05-31 00879929 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 00879929 d:FurnitureFittings 2023-06-01 2024-05-31 00879929 d:FurnitureFittings 2024-05-31 00879929 d:FurnitureFittings 2023-05-31 00879929 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 00879929 d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 00879929 d:CurrentFinancialInstruments 2024-05-31 00879929 d:CurrentFinancialInstruments 2023-05-31 00879929 d:Non-currentFinancialInstruments 2024-05-31 00879929 d:Non-currentFinancialInstruments 2023-05-31 00879929 d:CurrentFinancialInstruments d:WithinOneYear 2024-05-31 00879929 d:CurrentFinancialInstruments d:WithinOneYear 2023-05-31 00879929 d:Non-currentFinancialInstruments d:AfterOneYear 2024-05-31 00879929 d:Non-currentFinancialInstruments d:AfterOneYear 2023-05-31 00879929 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2024-05-31 00879929 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-05-31 00879929 d:ShareCapital 2023-06-01 2024-05-31 00879929 d:ShareCapital 2024-05-31 00879929 d:ShareCapital 2022-06-01 2023-05-31 00879929 d:ShareCapital 2023-05-31 00879929 d:ShareCapital 2022-06-01 00879929 d:CapitalRedemptionReserve 2023-06-01 2024-05-31 00879929 d:CapitalRedemptionReserve 2024-05-31 00879929 d:CapitalRedemptionReserve 2022-06-01 2023-05-31 00879929 d:CapitalRedemptionReserve 2023-05-31 00879929 d:CapitalRedemptionReserve 2022-06-01 00879929 d:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 00879929 d:RetainedEarningsAccumulatedLosses 2024-05-31 00879929 d:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 00879929 d:RetainedEarningsAccumulatedLosses 2023-05-31 00879929 d:RetainedEarningsAccumulatedLosses 2022-06-01 00879929 d:AcceleratedTaxDepreciationDeferredTax 2024-05-31 00879929 d:AcceleratedTaxDepreciationDeferredTax 2023-05-31 00879929 d:TaxLossesCarry-forwardsDeferredTax 2024-05-31 00879929 d:TaxLossesCarry-forwardsDeferredTax 2023-05-31 00879929 d:RetirementBenefitObligationsDeferredTax 2024-05-31 00879929 d:RetirementBenefitObligationsDeferredTax 2023-05-31 00879929 c:OrdinaryShareClass1 2023-06-01 2024-05-31 00879929 c:OrdinaryShareClass1 2024-05-31 00879929 c:OrdinaryShareClass1 2023-05-31 00879929 c:FRS102 2023-06-01 2024-05-31 00879929 c:Audited 2023-06-01 2024-05-31 00879929 c:FullAccounts 2023-06-01 2024-05-31 00879929 c:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 00879929 d:Subsidiary1 2023-06-01 2024-05-31 00879929 d:Subsidiary1 1 2023-06-01 2024-05-31 00879929 d:Subsidiary2 2023-06-01 2024-05-31 00879929 d:Subsidiary2 1 2023-06-01 2024-05-31 00879929 d:WithinOneYear 2024-05-31 00879929 d:WithinOneYear 2023-05-31 00879929 d:BetweenOneFiveYears 2024-05-31 00879929 d:BetweenOneFiveYears 2023-05-31 00879929 d:MoreThanFiveYears 2024-05-31 00879929 d:MoreThanFiveYears 2023-05-31 00879929 c:Consolidated 2024-05-31 00879929 c:ConsolidatedGroupCompanyAccounts 2023-06-01 2024-05-31 00879929 2 2023-06-01 2024-05-31 00879929 6 2023-06-01 2024-05-31 00879929 e:PoundSterling 2023-06-01 2024-05-31 00879929 d:KeyManagementPersonnel d:OtherTransactionType1 2023-06-01 2024-05-31 00879929 d:KeyManagementPersonnel d:OtherTransactionType1 2024-05-31 00879929 d:KeyManagementPersonnel d:OtherTransactionType1 2023-05-31 00879929 d:CloseFamilyMember5 d:OtherTransactionType1 2023-06-01 2024-05-31 00879929 d:CloseFamilyMember5 d:OtherTransactionType1 2024-05-31 00879929 d:CloseFamilyMember5 d:OtherTransactionType1 2023-05-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 00879929









FREDERIC SMART & SON LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
FREDERIC SMART & SON LIMITED
 
 
COMPANY INFORMATION


DIRECTORS
D N Smart 
D B Jenkins 




COMPANY SECRETARY
D N Smart



REGISTERED NUMBER
00879929



REGISTERED OFFICE
7 Papworth Business Park
Stirling Way

Papworth Everard

Cambridge

CB23 3GY




INDEPENDENT AUDITOR
Peters Elworthy & Moore
Chartered Accountants & Statutory Auditor

Salisbury House

Station Road

Cambridge

CB1 2LA




BANKERS
NatWest Bank
Station Place

Letchworth Garden City

SG6 3AL





 
FREDERIC SMART & SON LIMITED
 

CONTENTS



Pages
Group Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditor's Report
 
4 - 7
Consolidated Statement of Comprehensive Income
 
8
Consolidated Balance Sheet
 
9 - 10
Company Balance Sheet
 
11 - 12
Consolidated Statement of Changes in Equity
 
13
Company Statement of Changes in Equity
 
14
Consolidated Statement of Cash Flows
 
15 - 16
Notes to the Financial Statements
 
17 - 39


 
FREDERIC SMART & SON LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

INTRODUCTION
 
The Directors present their Strategic Report and business review, which includes the principal risks and uncertainties of the business, and key performance indicators.

BUSINESS REVIEW
 
Turnover in the year has decreased by 15% against the prior year from £53.4m to £45.5m, reflecting the return of grain prices to traditional levels.
Trading margins remained stable in the agricultural business, and the impact of some slowing in the commodity goods sector has been offset by a revaluation adjustment to the Group’s investment property of £0.6m. The resulting Profit before Tax for the year of £2.455m is in line with the previous year’s figure of £2.415m.
This continued stable profitability and consequent positive cash flow has led to a further strengthening of the balance sheet at the year end, and the Directors remain confident that the Group’s ongoing performance, together with existing cash resources, will meet envisaged working capital requirements as well as ongoing investment.
The Board of Directors plan to continue to invest and further develop the business across all areas. 

PRINCIPAL RISKS AND UNCERTAINTIES
 
The Group’s grain trading activities are subject to global market fluctuations. To mitigate risk in this area, forward price commitments are hedged through purchase and sale of Wheat Futures.
The Group has robust credit control procedures and controls to minimise the risk of customer defaults on overdue debtors. 

FINANCIAL KEY PERFORMANCE INDICATORS
 
The Directors monitor a number of KPIs, principally profitability and turnover. Performance against these indicators is discussed above.

This report was approved by the Board of Directors and signed on its behalf by:





D N Smart
Director

Date: 9 October 2024

Page 1

 
FREDERIC SMART & SON LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The Directors present their report and the financial statements for the year ended 31 May 2024.

PRINCIPAL ACTIVITIES

The principal activities of the Group and the Company are agricultural trading, as well as offering a warehousing and distribution service specialising in food products.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £1,853,170 (2023 - £1,878,384).

During the year the Group paid an interim dividend amounting to £98,137 (2023 - £98,137). The Directors do not recommend the payment of a final dividend (2023 - £Nil).

DIRECTORS

The Directors who served during the year, and to the date of this report, were:

D N Smart 
D B Jenkins 

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 judgements and accounting estimates that are reasonable and prudent; and

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.

FUTURE DEVELOPMENTS

The Board plan to continue to invest and further develop the business across all areas. 

Page 2

 
FREDERIC SMART & SON LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

FINANCIAL INSTRUMENTS

The Group has exposure to three main areas of risk - currency risk, liquidity risk and credit risk. To a lesser extent the Group is exposed to interest rate risk. The most significant financial risks to which the Group is exposed are described below:
Currency risk
The Group is exposed to currency exchange rate risk due to a proportion of its trade debtors, and trade creditors, being denominated in non-sterling currencies. The net exposure is monitored by management of a regular basis.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The Group expects to meet its financial obligations through operating cash flows.
Credit risk
The Group’s principal financial assets are cash and trade debtors, with the main risk arising from its trade debtors. Policies and procedures exist to ensure that customers have an appropriate credit history. Overall, the Group considers that it is not exposed to a significant amount of credit risk.
Interest rate risk
The Group previously financed its operations through bank borrowings with fixed interest rates, which were fully repaid on 4 June 2024.

POST BALANCE SHEET EVENTS

On 4 June 2024, the Group repaid its bank loan in full. There have been no other significant events affecting the Group since the year end to the date of this report requiring disclosure.

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.

AUDITOR

Under Section 487(2) of the Companies Act 2006Peters Elworthy & Moore will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the Board of Directors and signed on its behalf by:
 





D N Smart
Director

Date: 9 October 2024

Page 3

 
FREDERIC SMART & SON LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FREDERIC SMART & SON LIMITED
 

OPINION


We have audited the financial statements of Frederic Smart & Son Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2024, which comprise of the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet,  the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, 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 May 2024 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 Auditor's 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.


Page 4

 
FREDERIC SMART & SON LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FREDERIC SMART & SON 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 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.


Page 5

 
FREDERIC SMART & SON LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FREDERIC SMART & SON LIMITED (CONTINUED)


RESPONSIBILITIES OF THE 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.


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 consolidated 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.

Audit procedures performed by the engagement team to identify and assess the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, were as follows:
 
we identified the laws and regulations applicable to the Group through discussions with management, and from our commercial knowledge and experience of the agricultural sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements, including FRS 102, the Companies Act 2006 and taxation legislation, or the operations of the Group including data protection, employment and health and safety legislation;
we obtained an understanding of the Group’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit engagement team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
 
Page 6

 
FREDERIC SMART & SON LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FREDERIC SMART & SON LIMITED (CONTINUED)


AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of fraud through management bias and override of controls. In addressing the risk of fraud through management bias and override of controls we:
 
tested the appropriateness of journal entries and other adjustments;
designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;
assessed whether the accounting judgements made in the financial statements were indicative of potential bias; and
evaluated the business rationale of any significant transactions that were unusual or outside the normal course of business.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation; and
enquiring of management as to actual and potential litigation and claims.


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.




Adam Smith (Senior Statutory Auditor)
for and on behalf of
Peters Elworthy & Moore
Chartered Accountants
Statutory Auditor
Salisbury House
Station Road
Cambridge
CB1 2LA

11 October 2024
Page 7

 
FREDERIC SMART & SON LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Notes
£
£

  

Turnover
 4 
45,535,465
53,441,340

Cost of sales
  
(34,120,336)
(42,846,808)

GROSS PROFIT
  
11,415,129
10,594,532

Distribution costs
  
(2,681,716)
(2,793,267)

Administrative expenses
  
(7,029,825)
(5,511,558)

Other operating income
 5 
107,247
131,827

Unrealised gain on revaluation of investment property
 18 
563,282
-

OPERATING PROFIT
 6 
2,374,117
2,421,534

Interest receivable and similar income
 10 
152,456
53,884

Interest payable and similar expenses
 11 
(71,262)
(59,982)

PROFIT BEFORE TAXATION
  
2,455,311
2,415,436

Tax on profit
 12 
(602,141)
(537,052)

PROFIT FOR THE FINANCIAL YEAR
  
1,853,170
1,878,384

PROFIT FOR THE YEAR ATTRIBUTABLE TO:
  

Owners of the Parent Company
  
1,853,170
1,878,384

There were no recognised gains and losses for the years ended 31 May 2024 or 2023, other than those included in the Consolidated Statement of Comprehensive Income, above.

There was no Other Comprehensive Income for the year ended 31 May 2024 (2023 - £Nil).

The notes on pages 17 to 39 form part of these financial statements.

Page 8

 
FREDERIC SMART & SON LIMITED
REGISTERED NUMBER: 00879929

CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Notes
£
£

FIXED ASSETS
  

Intangible assets
 15 
738,377
827,877

Tangible assets
 16 
7,951,651
7,902,886

Investment property
 18 
1,369,000
805,718

  
10,059,028
9,536,481

CURRENT ASSETS
  

Stocks
 19 
148,153
234,702

Debtors: amounts falling due within one year
 20 
4,605,786
5,100,785

Cash at bank and in hand
 21 
5,339,589
4,778,501

  
10,093,528
10,113,988

Creditors: amounts falling due within one year
 22 
(4,590,750)
(5,977,378)

NET CURRENT ASSETS
  
 
 
5,502,778
 
 
4,136,610

TOTAL ASSETS LESS CURRENT LIABILITIES
  
15,561,806
13,673,091

Creditors: amounts falling due after more than one year
 23 
(842,954)
(796,724)

PROVISION FOR LIABILITIES
  

Deferred tax
 26 
(507,798)
(420,346)

NET ASSETS
  
14,211,054
12,456,021


CAPITAL AND RESERVES
  

Called up share capital 
 27 
15,098
15,098

Capital redemption reserve
 28 
14,902
14,902

Profit and loss account
 28 
14,181,054
12,426,021

SHAREHOLDERS' FUNDS
  
14,211,054
12,456,021


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




D N Smart
Director

Date: 9 October 2024

The notes on pages 17 to 39 form part of these financial statements.
Page 9

 
FREDERIC SMART & SON LIMITED
REGISTERED NUMBER: 00879929
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024


Page 10

 
FREDERIC SMART & SON LIMITED
REGISTERED NUMBER: 00879929

COMPANY BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Notes
£
£

FIXED ASSETS
  

Tangible assets
 16 
6,780,448
6,819,208

Investments
 17 
1,511,759
1,511,759

Investment property
 18 
1,369,000
805,718

  
9,661,207
9,136,685

CURRENT ASSETS
  

Stocks
 19 
122,838
196,371

Debtors: amounts falling due within one year
 20 
3,604,755
4,810,339

Cash at bank and in hand
 21 
5,105,935
4,313,478

  
8,833,528
9,320,188

Creditors: amounts falling due within one year
 22 
(3,723,894)
(5,005,698)

NET CURRENT ASSETS
  
 
 
5,109,634
 
 
4,314,490

TOTAL ASSETS LESS CURRENT LIABILITIES
  
14,770,841
13,451,175

  

Creditors: amounts falling due after more than one year
 23 
(541,105)
(796,724)

PROVISION FOR LIABILITIES
  

Deferred tax
 26 
(321,379)
(218,793)

  
 
 
(321,379)
 
 
(218,793)

NET ASSETS
  
13,908,357
12,435,658


CAPITAL AND RESERVES
  

Called up share capital 
 27 
15,098
15,098

Capital redemption reserve
 28 
14,902
14,902

Profit and loss account
 28 
13,878,357
12,405,658

SHAREHOLDERS' FUNDS
  
13,908,357
12,435,658


Page 11

 
FREDERIC SMART & SON LIMITED
REGISTERED NUMBER: 00879929
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024

The profit after tax of the Parent Company for the year was £1,570,836 (2023 - £1,858,021).
The financial statements were approved and authorised for issue by the Board of Directors and were signed on its behalf by: 




D N Smart
Director

Date: 9 October 2024

The notes on pages 17 to 39 form part of these financial statements.

Page 12

 
FREDERIC SMART & SON LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


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

£
£
£
£


AT 1 JUNE 2022
15,098
14,902
10,645,774
10,675,774


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
1,878,384
1,878,384
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
-
1,878,384
1,878,384


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends paid (see note 13)
-
-
(98,137)
(98,137)


TOTAL TRANSACTIONS WITH OWNERS
-
-
(98,137)
(98,137)



AT 1 JUNE 2023
15,098
14,902
12,426,021
12,456,021


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
1,853,170
1,853,170
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
-
1,853,170
1,853,170


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends paid (see note 13)
-
-
(98,137)
(98,137)


TOTAL TRANSACTIONS WITH OWNERS
-
-
(98,137)
(98,137)


AT 31 MAY 2024
15,098
14,902
14,181,054
14,211,054


The notes on pages 17 to 39 form part of these financial statements.

Page 13

 
FREDERIC SMART & SON LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


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

£
£
£
£


AT 1 JUNE 2022
15,098
14,902
10,645,774
10,675,774


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
1,858,021
1,858,021
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
-
1,858,021
1,858,021


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends paid (see note 13)
-
-
(98,137)
(98,137)


TOTAL TRANSACTIONS WITH OWNERS
-
-
(98,137)
(98,137)



AT 1 JUNE 2023
15,098
14,902
12,405,658
12,435,658


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
1,570,836
1,570,836
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
-
1,570,836
1,570,836


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends paid (see note 13)
-
-
(98,137)
(98,137)


TOTAL TRANSACTIONS WITH OWNERS
-
-
(98,137)
(98,137)


AT 31 MAY 2024
15,098
14,902
13,878,357
13,908,357


The notes on pages 17 to 39 form part of these financial statements.

Page 14

 
FREDERIC SMART & SON LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the financial year
1,853,170
1,878,384

ADJUSTMENTS FOR:

Amortisation of intangible fixed assets
89,500
67,375

Depreciation of tangible fixed assets
492,419
227,151

Loss on disposal of tangible fixed assets
36,903
76,868

Interest receivable and similar income
(152,456)
(53,884)

Interest payable and similar expenses
71,262
59,982

Taxation charge
602,141
537,052

Decrease/(increase) in stocks
86,549
(50,608)

Decrease in debtors
494,999
839,448

(Decrease) in creditors
(1,089,338)
(692,399)

Unrealised gain on revaluation of investment property
(563,282)
-

Corporation tax paid
(421,287)
(563,891)

NET CASH GENERATED FROM OPERATING ACTIVITIES

1,500,580
2,325,478


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible fixed assets
(457,860)
(870,409)

Proceeds from disposal of tangible fixed assets
83,773
36,599

Acquisition of subsidiary, net of cash acquired
-
(703,687)

Payment of deferred consideration
(309,392)
-

Interest received
152,456
53,884

Hire purchase interest paid
-
(384)

NET CASH USED IN INVESTING ACTIVITIES

(531,023)
(1,483,997)
Page 15

 
FREDERIC SMART & SON LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


2024
2023

£
£



CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of bank loan
(239,070)
(1,467,001)

Dividends paid
(98,137)
(98,137)

Interest paid
(71,262)
(59,598)

NET CASH USED IN FINANCING ACTIVITIES
(408,469)
(1,624,736)

INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
561,088
(783,255)

Cash and cash equivalents at beginning of year
4,778,501
5,561,756

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
5,339,589
4,778,501


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
5,339,589
4,778,501


Page 16

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


GENERAL INFORMATION

Frederic Smart & Son Limited (the "Company") is a private company limited by shares and incorporated in England and Wales. Its registered office is 7 Papworth Business Park, Stirling Way, Papworth Everard, Cambridge CB23 3GY.

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 judgement in applying the Group's accounting policies (see note 3).

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 (together 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 Balance Sheet, 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.

 
2.3

GOING CONCERN

The Directors have adopted the going concern basis in preparing these financial statements. In assessing whether the going concern assumption is appropriate, the Directors have taken into account all relevant information about the current status of the Group's operations and its liquidity.
Based on their review the Directors have a reasonable expectation that the Group and the Company will continue to trade and have sufficient funds to meet their liabilities as they fall due for the foreseeable future, being at least 12 months from the date of approval of these financial statements. This expectation is arrived at following consideration of the future development, performance, cash flows and financial position along with the current and forecast liquidity. The Directors monitor the cash position of the Group and the Company regularly, taking account of the current trading, they consider that the assumptions made are appropriate and are satisfied

Page 17

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.4

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Group's functional and presentational currency is Sterling.

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 either 'Interest Receivable' or 'Interest Payable'. All other foreign exchange gains and losses are presented in profit or loss within 'Administrative Expenses'.

 
2.5

TURNOVER

Sale of goods
Turnover from the sale of goods is recognised (exclusive of Value added Tax and trade discounts), 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 turnover 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
Turnover from rendering of services is recognised (exclusive of Value added Tax and trade discounts) in the period in which the services are provided, when all of the following conditions are satisfied:
 
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due; and
the costs incurred in provision of the services can be measured reliably.

Page 18

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.ACCOUNTING POLICIES (CONTINUED)

  
2.6

OTHER OPERATING INCOME

Rental income from investment property
Rental income from the investment property is recognised (exclusive of Value added Tax and trade discounts) as Other Operating Income on a straight-line basis over the term of the lease.

 
2.7

OPERATING LEASES

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

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.

 
2.10

BORROWING COSTS

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

 
2.11

DEFINED CONTRIBUTION PENSION SCHEMES

The Group operates defined contribution pension schemes for its employees. A defined contribution pension scheme 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 Other Creditors as a liability in the Consolidated Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 19

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.12

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 balance sheet 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 balance sheet 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 balance sheet date.

  
2.13

INTANGIBLE ASSETS

GOODWILL
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 10 years.

 
2.14

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.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 20

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.ACCOUNTING POLICIES (CONTINUED)


2.14
TANGIBLE FIXED ASSETS (CONTINUED)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.

Depreciation is provided on the following basis:

Freehold property
-
No depreciation charged
Short-term leasehold property
-
over the period of the lease
Plant and machinery
-
10% straight line
Motor vehicles
-
25% reducing balance
Fixtures, fittings and equipment
-
10% - 25% straight line

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.

 
2.15

INVESTMENT PROPERTY

The investment property is carried at fair value determined annually by the Directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated Statement of Comprehensive Income.

 
2.16

INVESTMENTS

Investments in subsidiary undertakings are measured at cost less accumulated impairment charges.

 
2.17

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each balance sheet 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.

 
2.18

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.

Page 21

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.19

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

CREDITORS

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

 
2.21

PROVISION FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 22

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.22

FINANCIAL INSTRUMENTS

Financial instruments are recognised in the Group's Balance Sheet when the Group 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 Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies 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
Page 23

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.ACCOUNTING POLICIES (CONTINUED)


2.22
FINANCIAL INSTRUMENTS (CONTINUED)

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.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.

 
2.23

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.

Page 24

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

3.



JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may be different from these estimates.
Information about assumptions and estimation uncertainties that have significant risk of resulting in material adjustment within the next financial year are included below. Critical judgements that management has made in the process of applying accounting policies disclosed herein and that have a significant effect on the amounts recognised in the financial statements relate to the following:
Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually based on industry knowledge and historical useful economic lives of previously owned tangible fixed assets. In making this assessment, management has taken into consideration industry conditions, the expected use period and the resale market for second hand assets.
Investment property valuation
The Directors have considered professional advice from local property experts and a judgement has been made as to the fair value of the investment property.
Valuation of investments
The Directors have applied judgements and estimates in respect of the valuation of the investment in its subsidiary undertaking. The Group acquired a business for which part of the consideration is contingent on future performance over a three year earn-out period. A financial liability for contingent consideration has been recognised as management has applied judgement and concluded that a payment is probable and that a reliable estimate can be made. The key assumptions applied in estimating the related liability are the expected performance of the acquired business against the earn-out target. The Directors have considered whether there are any indicators of impairment and are satisfied that the carrying value is appropriate and in line with the accounting policies set.
Recoverable amount of goodwill
Goodwill is amortised over its useful economic life, which is estimated to be 10 years in line with accounting policy 2.13. An assessment of the valuation of goodwill has been undertaken by the Directors in conjunction with a detailed impairment review. The Directors are satisfied that the carrying value is appropriate and in line with the accounting policies set.


4.


TURNOVER

An analysis of turnover by activity and geographical region has not been disclosed as, in the opinion of the Directors, such disclosure would be detrimental to the interests of the Group.


5.


OTHER OPERATING INCOME

2024
2023
£
£

Net rents receivable
107,247
131,827


Page 25

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

6.


OPERATING PROFIT

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

2024
2023
£
£

Amortisation of intangible fixed assets
89,500
67,375

Depreciation of tangible fixed assets
492,419
227,151

Loss on disposal of tangible fixed assets
36,903
76,868

Net foreign exchange losses/(gains)
385
(1,468)

Other operating lease rentals
622,782
463,502


7.


AUDITOR'S REMUNERATION

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


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the consolidated and Parent Company's financial statements
13,325
15,500

Page 26

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


EMPLOYEES

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


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
3,179,629
2,404,859
1,568,674
1,393,495

Social security costs
331,164
278,379
172,735
181,188

Cost of defined contribution pension scheme
49,507
33,939
23,140
19,704

3,560,300
2,717,177
1,764,549
1,594,387


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Sales & Distribution
82
53
25
23



Administration
14
12
9
9

96
65
34
32


9.


DIRECTORS' REMUNERATION

2024
2023
£
£

Directors' emoluments
249,921
235,800

Group contributions to defined contribution pension schemes
1,321
991

251,242
236,791


During the year retirement benefits were accruing to 1 Director (2023 - 1) in respect of the Group's defined contribution pension schemes.

The highest paid Director received remuneration in the year amounting to £146,333 (2023 - £137,258).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £1,321 (2023 - £991).

Page 27

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

10.


INTEREST RECEIVABLE AND SIMILAR INCOME

2024
2023
£
£


Bank interest receivable
146,510
52,889

Other interest receivable
5,946
995

152,456
53,884


11.


INTEREST PAYABLE AND SIMILAR EXPENSES

2024
2023
£
£


Bank loan interest payable
61,151
56,725

Bank interest payable
9,326
2,552

Interest payable on Corporation Tax
785
321

Interest on finance leases and hire purchase contracts
-
384

71,262
59,982


12.


TAXATION


2024
2023
£
£

CURRENT TAX


UK Corporation Tax on profit for the year
514,689
458,129

TOTAL CURRENT TAX
514,689
458,129

DEFERRED TAX


Origination and reversal of timing differences
87,452
58,933

Changes to tax rates
-
19,990

TOTAL DEFERRED TAX
87,452
78,923


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
602,141
537,052
Page 28

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
12.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2023 - higher than) the standard rate of Corporation Tax in the UK of 25.00% (2023 - 20.00%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,455,311
2,415,436


Profit on ordinary activities multiplied by standard rate of Corporation Tax in the UK of 25.00% (2023 - 20.00%)
613,828
483,151

EFFECTS OF:


Income not taxable for tax purposes
(140,821)
-

Expenses not deductible for tax purposes
28,551
38,117

Chargeable gains
100,583
-

Remeasurement of deferred tax for changes in tax rates
-
15,784

TOTAL TAX CHARGE FOR THE YEAR
602,141
537,052


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There are no factors that may affect future tax charges.


13.


DIVIDENDS

2024
2023
£
£


Interim dividends paid
98,137
98,137


14.


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 £1,570,836 (2023 - £1,858,021).

Page 29

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


INTANGIBLE ASSETS

Group and Company





Goodwill

£



COST


At 1 June 2023
895,002



At 31 May 2024

895,002



AMORTISATION


At 1 June 2023
67,125


Charge for the year on owned assets
89,500



At 31 May 2024

156,625



NET BOOK VALUE



At 31 May 2024
738,377



At 31 May 2023
827,877



Page 30

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


TANGIBLE FIXED ASSETS

Group






Freehold property
Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures, fittings and equipment
Total

£
£
£
£
£
£



COST


At 1 June 2023
6,202,179
120,395
1,205,503
713,359
439,359
8,680,795


Additions
-
25,800
95,576
500,900
39,584
661,860


Disposals
-
-
(60,185)
(263,895)
-
(324,080)


Transfers between classes
-
-
-
(307,423)
307,423
-



At 31 May 2024

6,202,179
146,195
1,240,894
642,941
786,366
9,018,575



DEPRECIATION


At 1 June 2023
-
7,163
745,833
(137,797)
162,710
777,909


Charge for the year on owned assets
-
14,301
108,893
248,821
120,404
492,419


Disposals
-
-
(47,032)
(156,372)
-
(203,404)


Transfers between classes
-
-
-
(229,732)
229,732
-



At 31 May 2024

-
21,464
807,694
(275,080)
512,846
1,066,924



NET BOOK VALUE



At 31 May 2024
6,202,179
124,731
433,200
918,021
273,520
7,951,651



At 31 May 2023
6,202,179
113,232
459,670
851,156
276,649
7,902,886

Included in freehold property is freehold land at cost of £816,897 (2023 - £816,897), which is not depreciated.
Included in freehold property are building costs of £5,385,282 (2023 - £5,385,282), which are not depreciated as the Directors believe that the useful economic life and the high residual value of the building mean that a depreciation charge would be immaterial.

Page 31

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           16.TANGIBLE FIXED ASSETS (CONTINUED)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
204,000
-


Company






Freehold property
Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£
£

COST


At 1 June 2023
6,202,179
42,038
1,205,503
92,684
190,430
7,732,834


Additions
-
25,800
95,576
4,700
15,695
141,771


Disposals
-
-
(60,185)
(22,500)
-
(82,685)



At 31 May 2024

6,202,179
67,838
1,240,894
74,884
206,125
7,791,920



DEPRECIATION


At 1 June 2023
-
1,401
745,833
12,655
153,737
913,626


Charge for the year on owned assets
-
6,619
108,893
18,993
16,858
151,363


Disposals
-
-
(47,032)
(6,485)
-
(53,517)



At 31 May 2024

-
8,020
807,694
25,163
170,595
1,011,472



NET BOOK VALUE



At 31 May 2024
6,202,179
59,818
433,200
49,721
35,530
6,780,448



At 31 May 2023
6,202,179
40,637
459,670
80,029
36,693
6,819,208

Included in freehold property is freehold land at cost of £816,897 (2023 - £816,897), which is not depreciated.
Included in freehold property are building costs of £5,385,282 (2023 - £5,385,282), which is not depreciated as the Directors believe that the useful economic life and the high residual value of the building mean that a depreciation charge would be immaterial.

Page 32

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

17.


FIXED ASSET INVESTMENTS

Company





Investments in subsidiary under-
takings

£



COST AND NET BOOK VALUE


At 1 June 2023
1,511,759



At 31 May 2024
1,511,759





SUBSIDIARY UNDERTAKINGS


As at 31 May 2024, the following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

R J Edwards & Sons Limited
Freight distribution services
Ordinary
100%
Frederic Smart (Logistics) Limited
Dormant
Ordinary
100%

The registered office of all of the subsidiary undertakings is 7 Papworth Business Park Stirling Way, Papworth Everard, Cambridge CB23 3GY

Page 33

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

18.


INVESTMENT PROPERTY

Group and Company


Freehold investment property

£



VALUATION AND NET BOOK VALUE


At 1 June 2023
805,718


Surplus on revaluation
563,282



AT 31 MAY 2024
1,369,000

As at 31 May 2024, the Directors undertook a valuation of the investment property, on an open market value for existing use basis, based on professional advice received.



If the investment property had been accounted for under the historic cost accounting rules, the property would have been measured as follows:

2024
2023
£
£


Historic cost
805,718
805,718


19.


STOCKS

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Finished goods and goods for resale
148,153
234,702
122,838
196,371


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

Page 34

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

20.


DEBTORS

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,537,781
4,631,540
2,843,813
3,975,768

Amounts owed by fellow group undertakings
-
-
-
685,124

Other debtors
617,375
111,375
599,375
99,375

Prepayments and accrued income
450,630
357,870
161,567
50,072

4,605,786
5,100,785
3,604,755
4,810,339


Included within other debtors is a balance of £500,000 (2023 - £Nil) due from a Director. The loan is interest free, unsecured and repayable on demand.
Included within other debtors is a balance of £75,000 (2023 - £75,000) due from a close family member of a Director. The loan is interest free, unsecured and repayable on demand.


21.


CASH AND CASH EQUIVALENTS

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
5,339,589
4,778,501
5,105,935
4,313,478



22.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loan (see note 24)
256,219
239,670
256,219
239,670

Obligations under finance leases and hire purchase contracts (see note 25)
43,746
-
-
-

Trade creditors
2,371,959
3,381,073
2,087,074
2,820,695

Amounts owed to fellow group undertakings
-
-
63,811
-

Corporation tax payable
361,308
267,906
219,180
267,901

Other taxation and social security
139,835
166,687
6,329
100,650

Other creditors
530,718
861,299
523,227
864,019

Accruals and deferred income
886,965
1,060,743
568,054
712,763

4,590,750
5,977,378
3,723,894
5,005,698


Included within other creditors is a balance of £103,986 (2023 - £124,386) owed to a Director. The balance owed to the Director is interest free, unsecured and repayable on demand.

Page 35

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

23.


CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loan (see note 24)
541,105
796,724
541,105
796,724

Obligations under finance leases and hire purchase contracts (see note 25)
160,254
-
-
-

Accruals
141,595
-
-
-

842,954
796,724
541,105
796,724




24.


LOANS


Analysis of the maturity of the bank loan is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loan falling due within one year
256,219
239,670
256,219
239,670

Bank loan falling due between 1-2 years
541,105
796,724
541,105
796,724

797,324
1,036,394
797,324
1,036,394


The bank loan is secured by fixed and floating charges over all property and undertakings of the Group and bears interest at 1.5% above the Bank of England bas rate per annum. The loan was repaid in full on 4 June 2024.


25.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
44,236
-

Between 1-5 years
159,764
-

204,000
-

Obligations under finance leases and hire purchase contracts are secured on the assets that they relate to.

Page 36

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

26.


DEFERRED TAXATION


Group



2024
2023


£

£






At beginning of year
420,346
213,561


Charge to profit or loss
87,452
78,923


Arising on business combination
-
127,862



AT END OF YEAR
507,798
420,346

Company


2024
2023


£

£






At beginning of year
218,793
213,561


Charge to profit or loss
102,586
5,232



AT END OF YEAR
321,379
218,793

The deferred tax liability comprises:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
426,017
435,346
239,598
233,793

Capital gains
100,583
-
100,583
-

Short term timing differences
(18,802)
(15,000)
(18,802)
(15,000)

507,798
420,346
321,379
218,793


27.


SHARE CAPITAL

2024
2023
£
£
ALLOTTED, CALLED UP AND FULLY PAID



15,098 (2023 - 15,098) Ordinary shares of £1 each
15,098
15,098


Page 37

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

28.


RESERVES

Capital Redemption Reserve

The Capital Redemption Reserve represents the nominal value of shares repurchased by the Group in previous years. The reserve is not available for distribution to the shareholders.

Profit and Loss Account

The Profit and Loss Account reserve represents the accumulated profit and losses, less dividends paid. The reserve (excluding the unrealised gain on the investment property) is available for distribution to the shareholders.

29.


ANALYSIS OF NET DEBT






At 1 June 2023
Cash flows
New finance leases
Other non-cash changes
At 31 May 2024
£

£

£

£

£

Cash at bank and in hand

4,778,501

561,088

-

-

5,339,589

Debt due after 1 year

(796,724)

-

-

255,619

(541,105)

Debt due within 1 year

(239,670)

239,070

-

(255,619)

(256,219)

Finance leases

-

-

(204,000)

-

(204,000)



3,742,107
800,158
(204,000)
-
4,338,265


30.


PENSION COMMITMENTS

The Group operates defined contribution pension schemes for its employees. The assets of the schemes are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the funds and amounted to £49,507 (2023 - £33,939). Contributions amounting to £5,930 (2023 - £3,017) were payable to the funds at the year end and are included in Other Creditors.

Page 38

 
FREDERIC SMART & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

31.


COMMITMENTS UNDER OPERATING LEASES

At 31 May 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
555,000
566,046
-
11,046

Later than 1 year and not later than 5 years
2,220,000
2,220,000
-
-

Later than 5 years
1,572,500
2,127,500
-
-

4,347,500
4,913,546
-
11,046


32.


RELATED PARTY TRANSACTIONS

The Group has taken advantage of the exemptions contained within FRS 102 paragraph 33.1A not to disclose transactions with wholly owned group undertakings.
The Group has taken advantage of the exemptions contained within FRS 102.33.7A not to disclose key management personnel compensation in total as the key management personnel and Directors are considered to be the same. See note 9 for disclosure of Directors' remuneration.

Included within Other Creditors is a balance of £103,986 (2023 - £124,386) owed to a Director. This is interest free, unsecured and repayable on demand.

During the year ended 31 May 2021, a loan of £75,000 was made to a close family member of a Director. The loan is interest free and repayable on demand. As at 31 May 2024, £75,000 was outstanding (2023 - £75,000) and is included within Other Debtors.
 
During the year ended 31 May 2024, a loan of £500,000 was made to a Director. The loan is interest free and repayable on demand. As at 31 May 2024, £500,000 was outstanding (2023 - £Nil) and is included within Other Debtors.


33.


CONTROLLING PARTY

The Group is controlled by D N Smart, Director, by virtue of his ownership of the majority of the issued share capital of the Company.

 
Page 39