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COMPANY REGISTRATION NUMBER: 03650355
SML Europe Limited
Filleted Financial Statements
31 December 2023
SML Europe Limited
Statement of Financial Position
31 December 2023
31 Dec 23
30 Jun 22
Note
£000
£000
Fixed assets
Tangible assets
5
1,486
1,869
Current assets
Stocks
294
240
Debtors
6
24,584
36,045
Cash at bank and in hand
1,017
822
--------
--------
25,895
37,107
Creditors: amounts falling due within one year
7
32,088
47,691
--------
--------
Net current liabilities
6,193
10,584
-------
--------
Total assets less current liabilities
( 4,707)
( 8,715)
-------
-------
Net liabilities
( 4,707)
( 8,715)
-------
-------
Capital and reserves
Called up share capital
500
500
Profit and loss account
( 5,207)
( 9,215)
-------
-------
Shareholders deficit
( 4,707)
( 8,715)
-------
-------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the income statement has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the board of directors and authorised for issue on 11 March 2025 , and are signed on behalf of the board by:
Mr S L Clarke
Director
Company registration number: 03650355
SML Europe Limited
Notes to the Financial Statements
Period from 1 July 2022 to 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 6 Cronin Road, Weldon South Industrial, Corby, Northamptonshire, NN18 8AQ.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company made a profit during the year of £4,008 thousand (12 months ended 30 June 2022 - loss of £2,720 thousand) and the Balance Sheet shows net liabilities of £4,707 thousand (2022: £8,715 thousand - net liabilities). The parent company, SML Holdings Ltd, has indicated that it will not seek repayment within 12 months from the date of approval of these financial statements, of the amounts owed to it from the undertakings in SML Europe Ltd and should it prove necessary, further financial assistance will be provided to ensure that the company can meet its financial obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements. Accordingly, the directors consider it appropriate to prepare the financial statements on a going concern basis.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Long leasehold property
-
5 years straight line
Fixtures and fittings
-
3-7 years straight line
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the period amounted to 50 (2022: 50 ).
5. Tangible assets
Long leasehold property
Fixtures and fittings
Assets under construction
Total
£000
£000
£000
£000
Cost
At 1 July 2022
1,678
1,750
222
3,650
Additions
132
163
295
Disposals
( 4)
( 12)
( 16)
Transfers
156
53
(210)
(1)
-------
-------
----
-------
At 31 December 2023
1,966
1,962
3,928
-------
-------
----
-------
Depreciation
At 1 July 2022
526
1,254
1,780
Charge for the period
356
311
667
Disposals
( 5)
( 5)
-------
-------
----
-------
At 31 December 2023
882
1,560
2,442
-------
-------
----
-------
Carrying amount
At 31 December 2023
1,084
402
1,486
-------
-------
----
-------
At 30 June 2022
1,152
496
222
1,870
-------
-------
----
-------
6. Debtors
31 Dec 23
30 Jun 22
£000
£000
Trade debtors
1,397
1,258
Amounts owed by group undertakings and undertakings in which the company has a participating interest
22,004
34,618
Other debtors
1,183
169
--------
--------
24,584
36,045
--------
--------
7. Creditors: amounts falling due within one year
31 Dec 23
30 Jun 22
£000
£000
Trade creditors
1,163
1,888
Amounts owed to group undertakings and undertakings in which the company has a participating interest
30,509
45,387
Corporation tax
1
1
Social security and other taxes
200
114
Other creditors
215
301
--------
--------
32,088
47,691
--------
--------
8. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
31 Dec 23
30 Jun 22
£000
£000
Not later than 1 year
99
106
Later than 1 year and not later than 5 years
398
473
Later than 5 years
653
804
-------
-------
1,150
1,383
-------
-------
9. Summary audit opinion
The auditor's report dated 11 March 2025 was unqualified .
The senior statutory auditor was Mark Illingsworth , for and on behalf of Versant Associates LLP .
10. Related party transactions
The company has taken advantage of the exemption set out in FRS 102 section 33.1A. This means that related party disclosure need not be given of transactions entered into between two or more members of a group, provided that any subsidiary involved in those transactions are wholly owned.
11. Controlling party
The immediate parent undertaking is SML Group Limited, a company incorporated in Hong Kong. The ultimate parent undertaking of the smallest and largest group for which consolidated accounts are prepared is SML Group Holdings Limited, a company incorporated in the Cayman Islands.
The company is ultimately controlled by Mr Suen Siu Man.