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Registered number: 11099953
Smithbrewer Trading Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 May 2024
Financial Statements
Contents
Page
Strategic Report 1—2
Directors' Report 3—4
Independent Auditor's Report 5—8
Consolidated Profit and Loss Account 9
Consolidated Statement of Comprehensive Income 10
Consolidated Balance Sheet 11
Company Balance Sheet 12
Consolidated Statement of Changes in Equity 13
Company Statement of Changes in Equity 14
Consolidated Statement of Cash Flows 15
Notes to the Consolidated Statement of Cash Flows 16
Company Statement of Cash Flows 17
Notes to the Company Statement of Cash Flows 18
Notes to the Financial Statements 19—26
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 May 2024.
Principal Activity
The group's principal activity continues to be that of a parent company.
Review of the Business
Turnover was up year on year. Profits also increased from last year. The main drivers were tighter cost controls on both stock and resources.
Systems and infrastructure investment eroded margins and constrained cashflow but the directors remain confident in the positive direction of travel for the business into the future.
KEY PERFORMANCE INDICATORS
The company monitors the performance of the business on the following KPI's:
31 May 2024
31 May 2023
Turnover
£42,123,635
£39,402,561
Gross Profit
16.2%
12.1%
Pre-Tax Profit
£1,057,859
(£119,717)
Retained Assets
£6,739,405
£5,924,142
Principal Risks and Uncertainties
Increasing National Insurance taxation for employers and the prospect of further economic headwinds create uncertainty in both sales revenue and supply costs.
Geopolitical events continue to provide risk in both energy costs and materials supply chain fluidity. 
Slow-moving stock continues to add additional storage costs.
Future Developments
With the new company headquarters substantially complete and the progression of new ERP systems coming on line next year operational efficiencies are expected to improve business stability in the coming years.
Research and Development
The company continues to invest in personnel and innovative designs in order to sustain its position as a competitive supplier.
Post Balance Sheet Events
The directors are unaware of any material post balance sheet events.
Financial Risk Management
Credit Risk
Trade debtors are managed by way of excellent relationships with it's customers on good credit terms, trade creditors and other payables are closely monitored to achieve favourable credit and commercial terms.
Liquidity Risk
The company manages liquidity risk by ensuring that it has sufficient funds and availability to funds to meet its financial liabilities as and when they fall due.
Price Risk
The company manages price risk by continuing to provide high quality and bespoke designs to meet its customers requirements.
...CONTINUED
Page 1
Page 2
Financial Risk Management - continued
Cash Flow Risk
Cash flow risk is managed through closely monitoring receivables and payables and forward cashflow planning to ensure trading and growth planning needs are met.
Going Concern
At the time of reviewing the financial statements the directors are confident that the company has satisfactory resilience to continue to trade into the foreseeable future. The preparation of financial statements therefore continues to be on a going concern basis.
On behalf of the board
Mr Michael Brewer
Director
10 December 2024
Page 2
Page 3
Directors' Report
The directors present their report and the financial statements for the year ended 31 May 2024.
Dividends
Final dividends for the Ordinary A shares were voted by the directors at the rate of £0.000 (2023 - £0.0317) per share payable to Smithbrewer Trading Limited. The total distribution of final A share dividends for the year ended 31 May 2024 was £0 (2023 - £2,000)
Directors
The directors who held office during the year were as follows:
Mr Michael Brewer
Mr Simon Smith
Matters covered in the Strategic Report
Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Keith Willis Associates Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr Michael Brewer
Director
10 December 2024
Page 4
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Independent Auditor's Report
Opinion
We have audited the financial statements of Smithbrewer Trading Limited (the "parent company") and its subsidiaries (the "group") for the year ended 31 May 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes of Equity, Company Statement of Changes of Equity, Consolidated Cash Flow Statement, Company Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 entity's ability to continue as a going concern for a period of at least 12 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 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 report. 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.
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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or returns; or
  • certain disclosures of directors' remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
" Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
" Perform substantive testing in-order to assess the appropriateness of the internal controls and whether the controls are being followed and as such, to what extent the risk of fraud or error is being mitigated through these controls.
" Perform audit work regarding the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluate the business rationale of significant transactions outside the normal course of business and review accounting estimates for management bias.
" Obtain an understanding of internal controls relevant to the audit in-order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
" Hold discussions with management to find rationale behind any judgemental area such as accounting estimates and assessed the appropriateness of accounting policies used, using our professional judgement.
" Identify the laws and regulations applicable to the company through discussions with the directors and other management, communicate these to the audit team to ensure they are alerted for instances of non-compliance.
" Correspond with those charged with governance, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including and significant deficiencies or inadequacies in the internal controls identified.
" Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
" Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
" Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website 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 2006. Our audit work has been undertaken so that we might state to the company's members those matters that 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.
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Keith Andrew Willis (Senior Statutory Auditor)
for and on behalf of Keith Willis Associates Limited , Statutory Auditor
10 December 2024
Page 8
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Consolidated Profit and Loss Account
2024 2023
Notes £ £
TURNOVER 3 42,123,635 39,402,561
Cost of sales (35,298,234 ) (34,621,036 )
GROSS PROFIT 6,825,401 4,781,525
Distribution costs 1 -
Administrative expenses (5,696,286 ) (4,910,155 )
Other operating income 61,672 1,515
Profit on revaluation of investments 53,705 7,600
OPERATING PROFIT/(LOSS) 4 1,244,493 (119,515 )
Loss on disposal of fixed assets (180,401 ) -
Other interest receivable and similar income 9 14 -
Interest payable and similar charges 10 (6,246 ) (202 )
PROFIT/(LOSS) BEFORE TAXATION 1,057,860 (119,717 )
Tax on Profit/(loss) 11 (242,596 ) (45,958 )
PROFIT/(LOSS) AFTER TAXATION BEING PROFIT/(LOSS) FOR THE FINANCIAL YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT 815,264 (165,675 )
The notes on pages 16 to 26 form part of these financial statements.
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Consolidated Statement of Comprehensive Income
2024 2023
£ £
PROFIT FOR THE FINANCIAL YEAR 815,264 (165,675 )
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT 815,264 (165,675 )
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Consolidated Balance Sheet
Registered number: 11099953
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 12 3,975,542 3,645,381
Investments 13 487,809 434,104
4,463,351 4,079,485
CURRENT ASSETS
Stocks 14 6,239,771 9,741,076
Debtors 15 5,881,065 8,871,135
Cash at bank and in hand 1,608,178 1,422,379
13,729,014 20,034,590
Creditors: Amounts Falling Due Within One Year 16 (10,808,873 ) (17,603,294 )
NET CURRENT ASSETS (LIABILITIES) 2,920,141 2,431,296
TOTAL ASSETS LESS CURRENT LIABILITIES 7,383,492 6,510,781
Creditors: Amounts Falling Due After More Than One Year 17 (118,029 ) (28,904 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 19 (526,015 ) (557,693 )
NET ASSETS 6,739,448 5,924,184
CAPITAL AND RESERVES
Called up share capital 21 3,906,432 3,906,432
Profit and Loss Account 2,833,016 2,017,752
SHAREHOLDERS' FUNDS 6,739,448 5,924,184
On behalf of the board
Mr Michael Brewer
Director
10 December 2024
The notes on pages 16 to 26 form part of these financial statements.
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Company Balance Sheet
Registered number: 11099953
2024 2023
Notes £ £ £ £
CURRENT ASSETS
Debtors 15 42 42
Investments 3,906,390 3,906,390
3,906,432 3,906,432
NET CURRENT ASSETS (LIABILITIES) 3,906,432 3,906,432
TOTAL ASSETS LESS CURRENT LIABILITIES 3,906,432 3,906,432
NET ASSETS 3,906,432 3,906,432
CAPITAL AND RESERVES
Called up share capital 21 3,906,432 3,906,432
SHAREHOLDERS' FUNDS 3,906,432 3,906,432
In accordance with section 408(3) of the Companies Act 2006, the company has not presented its own profit and loss account and the related notes. 
On behalf of the board
Mr Michael Brewer
Director
10 December 2024
The notes on pages 16 to 26 form part of these financial statements.
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Consolidated Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 June 2022 3,906,432 2,185,427 6,091,859
Loss for the year and total comprehensive income - (165,675 ) (165,675)
Dividends paid - (2,000) (2,000)
As at 31 May 2023 and 1 June 2023 3,906,432 2,017,752 5,924,184
Profit for the year and total comprehensive income - 815,264 815,264
As at 31 May 2024 3,906,432 2,833,016 6,739,448
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Company Statement of Changes in Equity
Share Capital
£
As at 1 June 2022 3,906,432
As at 31 May 2023 and 1 June 2023 3,906,432
As at 31 May 2024 3,906,432
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Consolidated Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 1,049,808 3,378,438
Interest paid (6,245 ) (202 )
Tax (paid)/refunded (1 ) 43,137
Net cash generated from operating activities 1,043,562 3,421,373
Cash flows from investing activities
Purchase of tangible assets (988,610 ) (2,201,805 )
Interest received 14 -
Net cash used in investing activities (988,596 ) (2,201,805 )
Cash flows from financing activities
Equity dividends paid - (2,000 )
Repayment of finance leases 130,443 39,355
Net cash generated from financing activities 130,443 37,355
Increase in cash and cash equivalents 185,409 1,256,923
Cash and cash equivalents at beginning of year 2 1,422,379 164,589
Foreign exchange gains on cash and cash equivalents 390 867
Cash and cash equivalents at end of year 2 1,608,178 1,422,379
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Notes to the Consolidated Statement of Cash Flows
1. Reconciliation of profit/(loss) for the financial year to cash generated from operations
2024 2023
£ £
Profit/(loss) for the financial year 815,264 (165,675 )
Adjustments for:
Tax on profit/(loss) 242,596 45,958
Interest expense 6,246 202
Interest income (14 ) -
Depreciation of tangible assets 478,048 411,453
Loss on disposal of tangible assets 180,401 -
Profit on revaluation of fixed assets (53,705) (7,600)
Foreign exchange gains (391) (867)
Movements in working capital:
Decrease/(increase) in stocks 3,501,305 (2,429,668 )
Decrease/(increase) in trade and other debtors 2,716,790 (1,439,655 )
(Decrease)/increase in trade and other creditors (6,836,732 ) 6,964,290
Net cash generated from operations 1,049,808 3,378,438
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 1,608,178 1,422,379
3. Analysis of changes in net funds
As at 1 June 2023 Cash flows As at 31 May 2024
£ £ £
Cash at bank and in hand 1,422,379 185,799 1,608,178
Finance leases (39,355) (130,443) (169,798)
1,383,024 55,356 1,438,380
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Company Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from/(used in) operations 1 - -
Increase/(decrease) in cash and cash equivalents - -
Cash and cash equivalents at beginning of year 2 - -
Cash and cash equivalents at end of year 2 - -
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Notes to the Company Statement of Cash Flows
1. Reconciliation of profit/(loss) for the financial year to cash generated from/(used in) operations
2024 2023
£ £
Profit/(loss) for the financial year - -
2. Cash and cash equivalents
3. Analysis of changes in net funds/(debt)
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Notes to the Financial Statements
1. General Information
Smithbrewer Trading Limited is a private company, limited by shares, incorporated in England & Wales, registered number 11099953 . The registered office is 22 Bolton Close, Isleport Business Park, Highbridge, Somerset, TA9 4JR.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Basis Of Consolidation
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings together with the group’s share of the results of associates made up to 31 May 2024.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity, it accounts for that entity as a subsidiary.
Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and where the group has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. The results of associates are accounted for using the equity method of accounting.
Any subsidiary undertakings or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.
Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income statement. The cumulative amounts of any exchange differences on translation, recognised in equity, are not included in the gain or loss on disposal and are transferred to retained earnings. The gain or loss also includes amounts included in other comprehensive income that are required to be reclassified to profit or loss but excludes those amounts that are not required to be reclassified.
Where control of a subsidiary is achieved in stages, the initial acquisition that gave the group control is accounted for as a business combination. Thereafter where the group increases its controlling interest in the subsidiary the transaction is treated as a transaction between equity holders. Any difference between the fair value of the consideration paid and the carrying amount of the non-controlling interest acquired is recognised directly in equity. No changes are made to the carrying value of assets, liabilities or provisions for contingent liabilities.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
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2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold 3% on Cost
Plant & Machinery 15% Reducing balance, 12.5% on Cost and 5% on Cost
Motor Vehicles 25% Reducing Balance
Fixtures & Fittings 15% and 10% on Reducing Balance
2.5. Leasing and Hire Purchase Contracts
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
2.6. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.8. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.9. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
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3. Turnover
Analysis of turnover by geographical market is as follows:
2024 2023
£ £
United Kingdom 36,042,342 27,028,815
Rest of the world 6,081,293 12,373,746
42,123,635 39,402,561
4. Operating Profit/(loss)
The operating profit/(loss) is stated after charging:
2024 2023
£ £
Bad debts 23,579 3,760
Depreciation of tangible fixed assets 478,048 411,453
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the group and company's financial statements - 18,740
Non-Audit Services
Other non-audit services - 30,000
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 7,227,011 6,992,069
Social security costs 728,950 688,862
Other pension costs 137,594 120,850
8,093,555 7,801,781
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7. Average Number of Employees
Group
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 98 96
Manufacturing 107 114
205 210
Company
There were no staff costs for the year ended 31 May 2024 nor for the year ended 31 May 2023.
Average number of employees, including directors, during the year was: 2 (2023: 2)
2 2
8. Directors' remuneration
2024 2023
£ £
Emoluments 320,000 365,000
Amounts paid to third parties in respect of directors' services 41,945 38,684
361,945 403,684
Information regarding the highest paid director was as follows:
2024 2023
£ £
Emoluments 221,460 241,573
221,460 241,573
9. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 14 -
14 -
10. Interest Payable and Similar Charges
2024 2023
£ £
Finance charges payable under finance leases and hire purchase contracts 6,246 202
6,246 202
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11. Tax on Profit
The tax charge on the profit/(loss) for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 19.0% 994 (273,280 )
Prior period adjustment 273,280 -
274,274 (273,280 )
Deferred Tax
Deferred taxation (31,678 ) 319,238
Total tax charge for the period 242,596 45,958
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit/(loss) and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 1,057,860 (119,717)
Tax on profit at 25% (UK standard rate) 994 (273,280 )
Prior period adjustment 273,280 -
Difference in tax rates (31,678 ) 319,238
Total tax charge for the period 242,596 45,958
12. Tangible Assets
Group
Land & Property
Leasehold Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £ £
Cost
As at 1 June 2023 1,346,148 3,110,790 20,890 1,360,901 5,838,729
Additions 512,186 350,806 - 125,618 988,610
Disposals (142,769 ) (197,212 ) (20,890 ) (535,829 ) (896,700 )
As at 31 May 2024 1,715,565 3,264,384 - 950,690 5,930,639
Depreciation
As at 1 June 2023 43,267 1,351,992 20,709 777,380 2,193,348
Provided during the period 48,266 333,141 - 96,641 478,048
Disposals (15,508 ) (186,478 ) (20,710 ) (493,603 ) (716,299 )
As at 31 May 2024 76,025 1,498,655 (1 ) 380,418 1,955,097
Net Book Value
As at 31 May 2024 1,639,540 1,765,729 1 570,272 3,975,542
As at 1 June 2023 1,302,881 1,758,798 181 583,521 3,645,381
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Company
The company had no tangible fixed assets as at 31 May 2024 or 31 May 2023.
13. Investments
Group
Unlisted
£
Cost
As at 1 June 2023 434,104
Revaluations 53,705
As at 31 May 2024 487,809
Provision
As at 1 June 2023 -
As at 31 May 2024 -
Net Book Value
As at 31 May 2024 487,809
As at 1 June 2023 434,104
Company
The company had no investments as at 31 May 2024 or 31 May 2023.
14. Stocks
2024 2023
£ £
Stock 6,239,771 9,741,076
15. Debtors
Group Company
2024 2023 2024 2023
£ £ £ £
Due within one year
Trade debtors 4,467,063 7,414,123 - -
Prepayments and accrued income 300,031 87,041 - -
Other debtors 1,495 409 42 42
Corporation tax recoverable assets - 273,280 - -
Amounts owed by other participating interests 1,112,476 1,096,282 - -
5,881,065 8,871,135 42 42
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16. Creditors: Amounts Falling Due Within One Year
Group
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 51,769 10,451
Trade creditors 8,513,346 16,137,055
Corporation tax 994 1
Other taxes and social security 180,970 203,800
VAT 1,043,993 448,404
Net wages - 52,392
Other creditors 80,501 127,910
Accruals and deferred income 937,300 214,421
Amounts owed to other participating interests - 408,860
10,808,873 17,603,294
17. Creditors: Amounts Falling Due After More Than One Year
Group
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 118,029 28,904
118,029 28,904
18. Obligations Under Finance Leases and Hire Purchase
Group
2024 2023
£ £
The future minimum finance lease payments are as follows:
Not later than one year 51,769 10,451
Later than one year and not later than five years 118,029 28,904
169,798 39,355
169,798 39,355
19. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences 526,015 557,693
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20. Provisions for Liabilities
Group
Deferred Tax Total
£ £
As at 1 June 2023 557,693 557,693
Deferred taxation (31,678 ) (31,678 )
Balance at 31 May 2024 526,015 526,015
21. Share Capital
2024 2023
Allotted, called up and fully paid £ £
3,720,486 Ordinary A shares of £ 1.00 each 3,720,486 3,720,486
185,946 Ordinary B shares of £ 1.00 each 185,946 185,946
3,906,432 3,906,432
22. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid - 2,000
- 2,000
23. Related Party Disclosures
During the year the company traded with entities which are considered realted parties by way of joint control by the directors. All transactions were made under normal marketing conditions.
With respect to outstanding balances, the company does not have or has not given any security or guarantees. All transactions are made on normal commercial terms.
Entities with control, joint control or significant influence over the entity
2024
2023
Sales
£362,942
£2,224,869
Purchases
£832,311
£622,311
Rents payable
£210,000
£210,000
Amounts due from related party
£1,112,476
£1,096,282
Amounts due to related party
£0
£408,860
24. Controlling Parties
The company's ultimate controlling party are the directors. 
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