Company registration number 09165906 (England and Wales)
PKF SMITH COOPER SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
PKF SMITH COOPER SYSTEMS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
PKF SMITH COOPER SYSTEMS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
6
371,045
428,274
Tangible assets
7
115,218
114,551
Investments
8
100
100
486,363
542,925
Current assets
Stocks
5,040
12,480
Debtors
9
1,278,295
1,030,699
Cash at bank and in hand
642,903
560,952
1,926,238
1,604,131
Creditors: amounts falling due within one year
10
(1,975,555)
(1,517,868)
Net current (liabilities)/assets
(49,317)
86,263
Total assets less current liabilities
437,046
629,188
Creditors: amounts falling due after more than one year
11
(65,404)
(95,232)
Net assets
371,642
533,956
Capital and reserves
Called up share capital
12
18
18
Profit and loss reserves
371,624
533,938
Total equity
371,642
533,956

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 22 November 2024 and are signed on its behalf by:
Mr J Bagley
Director
Company registration number 09165906 (England and Wales)
PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information

PKF Smith Cooper Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Prospect House, 1 Prospect Place, Pride Park, Derby, United Kingdom, DE24 8HG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The Directors remain confident that the company is well placed to mitigate any additional risks arising. The Directors believe strong cash reserves held and additional funding available to the company are sufficient to provide additional levels of risk mitigation such that the Directors are confident that the current economy will not adversely affect the on-going viability of the company.

1.2
Going concern

The directors have prepared budgets and cashflow forecasts to March 2025 on an individual and group level and up to date management accounts and consider that the group will continue to operate within its overdraft facility for 12 months from the date of signing the Balance Sheet. The overdraft facility is due for renewal in July 2025 and there is no reason to believe that it will not be extended.true

 

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

                                        

                                        

                                        

                                        

                                        

                                        

                                        

                                        

 

PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on the dispatch of the goods.

 

Rendering of services

When the outcome of a transaction can be estimated reliably, turnover from IT support services is recognised by referenced to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the extent of which the services have been supplied.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers
straight line over 4 years
Motor vehicles
straight line over 4-5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.7
Stocks

Work in progress is valued at the lower of cost and net realisable value.

 

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Critical accounting estimates

The following judgments, estimates and assumptions affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenditure during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. The following judgments have had the most significant effect on amounts recognised in the financial statements:

 

Depreciation and Amortisation

 

Tangible and Intangible Fixed assets are depreciated over their useful life. The useful life is based on the management’s estimate of the period that the assets will generate revenue and will be reviewed annually for continued appropriateness. The carrying values will be tested for impairment when there is an indication that the value of an asset might be impaired. When carrying out an impairment test this would be based on future cash flows forecasts and these forecasts would be based on management judgement. No such indication of impairment has been noted.

 

Provisions

 

Provisions are made for holiday pay and future dilapidation costs on the expiry of lease agreements. These provisions are based on management judgement using all the information available and are updated regularly when circumstances change.

 

Stocks and amounts recoverable on contracts

 

Stock and amounts recoverable on contracts are stated at cost plus profit to date less provision for foreseeable losses and net of amounts billed on account.

4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
52
45
PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
5
Directors' remuneration and dividends
2024
2023
£
£
Remuneration paid to directors
210,806
212,981
Dividends paid to directors
270,000
112,500

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

6
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023
724,375
Additions
6,500
At 31 March 2024
730,875
Amortisation and impairment
At 1 April 2023
296,101
Amortisation charged for the year
63,729
At 31 March 2024
359,830
Carrying amount
At 31 March 2024
371,045
At 31 March 2023
428,274
PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
7
Tangible fixed assets
Plant and equipment
£
Cost
At 1 April 2023
170,002
Additions
65,332
Disposals
(66,888)
At 31 March 2024
168,446
Depreciation and impairment
At 1 April 2023
55,451
Depreciation charged in the year
44,249
Eliminated in respect of disposals
(46,472)
At 31 March 2024
53,228
Carrying amount
At 31 March 2024
115,218
At 31 March 2023
114,551
8
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
100
100
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,226,879
995,160
Amounts owed by group undertakings
6,276
6,728
Other debtors
45,140
28,811
1,278,295
1,030,699
PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
10
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
329,434
185,820
Amounts owed to group undertakings
4,033
5,322
Corporation tax
203,561
122,578
Other taxation and social security
352,838
282,989
Other creditors
1,085,689
921,159
1,975,555
1,517,868

The bank facilities are secured by cross guarantees and debentures held by PKF Smith Cooper Audit Ltd, PKF Smith Cooper Holdings Ltd, SHH101 LLP and Infuse Technology Ltd, all of whom are either group companies or related parties.

 

The bank loan was secured by a debenture over the assets of PKF Smith Cooper Systems Limited.

Included in other creditors is the hire purchase liability of £14,439 (2023: £8,105).

 

Included in other creditors is borrowings of £36,111 (2023: £58,333) which relates to a loan from SC Pension Support Services Ltd, whose 2 directors are also directors of the company.

11
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
50,821
47,315
Other creditors
14,583
47,917
65,404
95,232

The hire purchase contracts are secured on the assets to which they relate.

The amount of other creditors relates to a loan from SC Pension Support Services Ltd, whose 2 directors are also directors of the company.

12
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary A shares of 1p each
10
10
818 Ordinary B shares of 1p each
8
8
18
18

 

PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
13
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Daniel Sowden
Statutory Auditor:
BHP LLP
Date of audit report:
26 November 2024
14
Related party disclosures

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

15
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
16,717
15,290
179,421
38,974

 

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
61,241
115,611
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
6,276
-
PKF SMITH COOPER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
16
Parent company

The ultimate parent company of PKF Smith Cooper Systems Limited is SHH101 LLP, a limited liability partnership incorporated in England and Wales. SHH101 LLP prepares group consolidated accounts, which includes the entity's financial statements. A copy of the consolidated statements are available from the registered office of Prospect House, 1 Prospect Place, Derby, DE24 8HG.

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