Company registration number 02750770 (England and Wales)
SIMM TRONIC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
SIMM TRONIC LIMITED
COMPANY INFORMATION
Directors
M. Costanzo
R. Vos
S. Goskie
Secretary
M. Costanzo
Company number
02750770
Registered office
Unit 3, Waterside Ind Estate
Hoddesdon
Hertfordshire
EN11 0QR
Auditor
HB Accountants
28 Plumpton House
Plumpton Road
Hoddesdon
Hertfordshire
EN11 0LB
SIMM TRONIC LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
SIMM TRONIC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Fair review of the business

The past year has seen a strong upward trend in the commercial office sector, with a rise in Grade A, CAT A completions and an increase in lettings. This growth has driven demand for large-scale fitouts, particularly in financial and legal services, as well as within the expanding tech sector. The shift towards flexible working has accelerated, with tenants redesigning spaces to enhance collaboration, attract talent, and encourage office returns. These evolving workplace trends have translated into a significant increase in new projects and major fitouts across the industry.

At Simmtronic, we continue to prioritise innovation, investing heavily in research and development to ensure we remain at the forefront of our industry. This year, we soft-launched new products, with full-scale marketing campaigns set to roll out in the new year. Our commitment to product development—both in hardware and software—remains a key strategic focus, and we are actively expanding our investment and team in this area to drive further advancements.

Supply chain resilience has been another area of continued focus. While lead times for semiconductors and metals have stabilised, we maintain a proactive approach, holding higher-than-normal stock levels to mitigate potential global disruptions. Over the last three years, we have successfully transitioned our electronic sub-assembly supply chain to Hertfordshire, reinforcing our commitment to sustainability and local economic growth. This move has not only secured jobs but has also enabled our suppliers to expand, invest in new facilities, and increase their workforce to meet rising demand.

Sustainability is an integral part of our operations, and we have made meaningful progress in reducing our environmental impact. We have eliminated plastic packaging across our product deliveries, opting for recyclable or reusable materials. Additionally, we have engaged an external sustainability consultant to drive further improvements, ensuring we embed best practices across our operations. While there is still more to do, we are making significant strides and are committed to continuous improvement in this area.

Financially, Simmtronic continues to grow. Turnover has increased by 15% compared to the previous year, with order intake rising from £14 million to £20 million—a 42% increase. Our workforce has expanded by 14%, now standing at 120 employees, with strategic reinforcements in key departments, particularly commissioning. These achievements reflect our strong market position and the confidence our clients place in us.

Looking ahead, we remain focused on innovation, sustainability, and operational excellence. With a strong foundation and a clear vision for the future, Simmtronic is well-positioned for continued growth and success.

 

On behalf of the board

M Costanzo
Director
25 March 2025
SIMM TRONIC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities
The principal activity of the company continues to be that of the design, manufacture and distribution of advanced lighting control equipment.
Results and dividends

The results for the year are set out on page 7.

The directors do not recommend a payment of a final ordinary dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M. Costanzo
R. Vos
S. Goskie
Research and development
SimmTronic remains at the forefront of lighting controls technology and continues to invest in Research and Development activity in the areas of Energy Controls Functionality, Inter-Operability and Communications.
Auditor

The auditors, HB Accountants, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
R. Vos
Director
25 March 2025
SIMM TRONIC LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

The directors are responsible for preparing the annual 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 and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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.

SIMM TRONIC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMM TRONIC LIMITED
- 4 -
Opinion

We have audited the financial statements of Simm Tronic Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SIMM TRONIC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMM TRONIC LIMITED (CONTINUED)
- 5 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

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.

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included:

 

 

 

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

SIMM TRONIC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMM TRONIC LIMITED (CONTINUED)
- 6 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

Karen Chase (Senior Statutory Auditor)
For and on behalf of HB Accountants, Statutory Auditor
Chartered Accountants
28 Plumpton House
Plumpton Road
Hoddesdon
Hertfordshire
EN11 0LB
27 March 2025
SIMM TRONIC LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
15,768,842
13,476,528
Cost of sales
(6,597,786)
(5,040,361)
Gross profit
9,171,056
8,436,167
Administrative expenses
(7,362,925)
(5,868,873)
Other operating income
-
0
4,152
Operating profit
4
1,808,131
2,571,446
Interest receivable and similar income
8
12,696
8,549
Profit before taxation
1,820,827
2,579,995
Tax on profit
9
(458,143)
(578,940)
Profit for the financial year
1,362,684
2,001,055

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SIMM TRONIC LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
1,362,684
2,001,055
Other comprehensive income
-
-
Total comprehensive income for the year
1,362,684
2,001,055
SIMM TRONIC LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,895,977
3,343,458
Current assets
Stocks
11
3,553,356
3,213,490
Debtors
12
2,783,323
2,194,540
Cash at bank and in hand
3,118,324
2,167,640
9,455,003
7,575,670
Creditors: amounts falling due within one year
13
(4,277,784)
(3,310,431)
Net current assets
5,177,219
4,265,239
Total assets less current liabilities
9,073,196
7,608,697
Provisions for liabilities
Deferred tax liability
14
236,707
134,892
(236,707)
(134,892)
Net assets
8,836,489
7,473,805
Capital and reserves
Called up share capital
16
2,250
2,250
Capital redemption reserve
3,750
3,750
Profit and loss reserves
8,830,489
7,467,805
Total equity
8,836,489
7,473,805
The financial statements were approved by the board of directors and authorised for issue on 25 March 2025 and are signed on its behalf by:
R. Vos
Director
Company registration number 02750770 (England and Wales)
SIMM TRONIC LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
2,250
3,750
5,466,750
5,472,750
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
2,001,055
2,001,055
Balance at 30 September 2023
2,250
3,750
7,467,805
7,473,805
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,362,684
1,362,684
Balance at 30 September 2024
2,250
3,750
8,830,489
8,836,489
SIMM TRONIC LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
1,911,735
1,499,318
Taxation
(468,790)
(79,831)
Net cash inflow from operating activities
1,442,945
1,419,487
Investing activities
Purchase of tangible fixed assets
(925,796)
(1,288,451)
Proceeds on disposal of tangible fixed assets
420,839
24,675
Interest received
12,696
8,549
Net cash used in investing activities
(492,261)
(1,255,227)
Net cash used in financing activities
-
0
-
0
Net increase in cash and cash equivalents
950,684
164,260
Cash and cash equivalents at beginning of year
2,167,640
2,003,380
Cash and cash equivalents at end of year
3,118,324
2,167,640
SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information

Simm Tronic Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3, Waterside Ind Estate, Hoddesdon, Hertfordshire, EN11 0QR.

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.

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 £.

1.2
Going concern

Atruet 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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
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:

Land and buildings Freehold
Nil
Plant and machinery
25% reducing balance
Motor vehicles
25% reducing balance

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.

SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Cost is calculated using the weighted average method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company 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.

SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 14 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies (continued)
- 16 -
1.12
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover
Sales
15,768,842
13,476,528
Other significant revenue
Interest income
12,696
8,549
Turnover analysed by geographical market
2024
2023
£
£
UK
15,768,842
13,476,528
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
29,475
36,443
Depreciation of owned tangible fixed assets
179,320
158,720
Profit on disposal of tangible fixed assets
(226,882)
(6,405)
Operating lease charges
240,448
212,457
SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,000
14,000
6
Employees

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

2024
2023
Number
Number
Management
3
3
Other
117
102
Total
120
105

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
8,112,487
6,204,535
Social security costs
971,899
737,766
Pension costs
198,306
176,499
9,282,692
7,118,800
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,726,667
636,259
Company pension contributions to defined contribution schemes
-
12,000
1,726,667
648,259
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
587,468
223,087
SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
12,696
8,549
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
12,696
8,549
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
356,328
468,790
Adjustments in respect of prior periods
-
0
(8,439)
Total current tax
356,328
460,351
Deferred tax
Origination and reversal of timing differences
101,815
118,589
Total tax charge
458,143
578,940

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,820,827
2,579,995
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
455,207
567,599
Tax effect of expenses that are not deductible in determining taxable profit
8,383
5,522
Gains not taxable
(5,447)
-
0
Other permanent differences
-
0
14,258
Under/(over) provided in prior years
-
0
(8,439)
Taxation charge for the year
458,143
578,940
SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
10
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
2,867,361
911,302
228,538
4,007,201
Additions
647,281
278,515
-
0
925,796
Disposals
(156,749)
(120,396)
(69,135)
(346,280)
At 30 September 2024
3,357,893
1,069,421
159,403
4,586,717
Depreciation and impairment
At 1 October 2023
-
0
532,112
131,631
663,743
Depreciation charged in the year
-
0
163,040
16,280
179,320
Eliminated in respect of disposals
-
0
(114,971)
(37,352)
(152,323)
At 30 September 2024
-
0
580,181
110,559
690,740
Carrying amount
At 30 September 2024
3,357,893
489,240
48,844
3,895,977
At 30 September 2023
2,867,361
379,190
96,907
3,343,458
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,553,356
3,213,490
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,594,430
2,056,976
Other debtors
6,133
5,204
Prepayments and accrued income
182,760
132,360
2,783,323
2,194,540
SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
482,822
871,299
Corporation tax
356,330
468,792
Other taxation and social security
929,088
590,705
Other creditors
29,331
-
0
Accruals and deferred income
2,480,213
1,379,635
4,277,784
3,310,431
14
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
236,707
134,892
2024
Movements in the year:
£
Liability at 1 October 2023
134,892
Charge to profit or loss
101,815
Liability at 30 September 2024
236,707
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
198,306
176,499

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,250
2,250
2,250
2,250
SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
124,357
141,257
Between two and five years
14,775
72,341
139,132
213,598
18
Related party transactions
Transactions with related parties

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

Salaries paid
2024
2023
£
£
Other related parties
103,920
93,215

 

19
Cash generated from operations
2024
2023
£
£
Profit after taxation
1,362,684
2,001,055
Adjustments for:
Taxation charged
458,143
578,940
Investment income
(12,696)
(8,549)
Gain on disposal of tangible fixed assets
(226,882)
(6,405)
Depreciation and impairment of tangible fixed assets
179,320
158,720
Movements in working capital:
Increase in stocks
(339,866)
(1,904,973)
(Increase)/decrease in debtors
(588,783)
423,617
Increase in creditors
1,079,815
256,913
Cash generated from operations
1,911,735
1,499,318
SIMM TRONIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
20
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
2,167,640
950,684
3,118,324
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