Company registration number 03836457 (England and Wales)
SIMKISS CONTROL SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
SIMKISS CONTROL SYSTEMS LIMITED
COMPANY INFORMATION
Directors
P Simkiss
J C Simkiss
Secretary
J C Simkiss
Company number
03836457
Registered office
Railway Works
Fishwick Street
Rochdale
Lancashire
United Kingdom
OL16 5NA
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
SIMKISS CONTROL SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 25
SIMKISS CONTROL SYSTEMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

 

This strategic report provides an overview of the business review, key performance indicators, principal risks and uncertainties, and future outlook for Simkiss Control Systems Ltd, in compliance with the Companies Act 2006 requirements for medium-sized companies.

Business Model and Strategy

Simkiss Control Systems Ltd specialises in the design, manufacturing, and installation of control systems for gas and electricity creation, transmission and distribution.

Our operations are focused on providing reliable, cost effective and efficient solutions to meet the increasing UK demand for energy systems.

The company also supports a number of locally based International Manufacturers with skilled labour and project management.

Our ongoing strategy is centred on 3 central pillars with which to support the needs of our customers, with new initiatives created, measured and delivered during each accounting year:

Strengthen foundations: Through the implementation, audit and improvement of systems, processes and procedures to increase efficiency, reduce stress and support growth.

Simkiss People: Manage, develop, encourage, retain & recruit Simkiss people through a range of permanent and one-off initiatives, including improved employee benefits, training provision and creation of employee representative group.

Sustainable Growth: Forecast and achieve financial objectives & plan for delivery of the company 5-year plan, with a combination of organic growth across the existing industries and customer base, supported with strategic acquisitions.

 

Performance Overview

The Simkiss Senior Management team demonstrated strength and resiliency despite significant local, regional, and national challenges in 2023/24. Although we encountered relentless inflation, less-than-optimal raw material availability, an armed conflict in Europe, emerging recessionary concerns, and other challenges, we continue to grow our business and have achieved the following:

 

Operational highlights

Through operational plans created under the three central strategic pillars, notable achievements during the year include:

SIMKISS CONTROL SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key Performance Indicators (KPIs)

To measure progress for review in monthly Senior Management meetings, we track the following KPIs, as detailed in various sections of the statutory accounts:

Principal Risks and Uncertainties

Simkiss Control Systems Ltd operates in dynamic and competitive industries, with multiple risks and uncertainties that could impact our business. Key risks include:

Operational risk: The risk posed to ongoing growth through lack of available space for employees and equipment had become significant over the past 18 months, and a decision was made to relocate the company to larger premises. With support from Rochdale council, new premises were found within the borough with a footprint more than 3 times as large as the current property, and the process of relocating the company began in July 2024. Complete relocation of the company was finalised after the year end in December 2024 with minimal disruption to manufacturing and other services.

Credit Risk: Trade debtors are one of the principal financial assets of the company. As the majority of revenue is derived from blue chip clients, this partially mitigates this risk. For all other clients, limits are set for its customers based on recommendation from third-party credit references and payment history. These limits are reviewed on an ongoing basis alongside aged debt reports.

Liquidity Risk: Liquidity risk is inherent in most contract manufacturing companies, with payment due upon completion of the manufacturing process. The tremendous growth experienced in the manufacturing sectors the company operates poses a risk of low liquidity, Simkiss Control Systems mitigates some of this risk by keeping a blend of longer and shorter duration projects running side by side, and further hedges this risk with the diverse nature of its revenue from design and site installation work, which are predominately invoiced via monthly applications for payment.

Interest Rate Risk: The changes to BOE Interest rates and fluctuations this causes in the wider markets had led to monthly reviews of this risk being undertaken as the company has a blend of variable and fixed rate financing and savings.

Currency Risk: As the company has all sales in sterling, and purchases less than 0.3% of all materials and services in other currencies, the company is not directly exposed to currency risk, however it can have an indirect effect on material prices.

Economic Risk: While the company operates primarily in recession resilient sectors, the directors and senior management team regularly review all the market sectors, underlying labour and supply chain markets, along with the wider construction industry, for any potential negative or positive impacts on business, and will continue to do so going forward as and when new developments arise.

Cyber/IT Risk: With the company’s ongoing growth, the amount of company data (and customer data) has increased significantly. The company has invested in a number of monitoring and training platforms that allow for employee education on cyber security and phishing, along with regular simulated phishing attacks on all users. Further investment in software and hardware has been made during the past year to add layers to the company’s security, and to further strengthen the reliability of the systems used in day to day operations.

SIMKISS CONTROL SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Sustainability Report - Environmental, Social and Governance (ESG)

As a manufacturer and engineering company, we embrace our responsibilities and strive to create sustainable value for all our stakeholders, employees, customers, communities, shareholders, and the communities where we operate.

The company culture is built on trust, respect, execution, and inclusion, which guide our commitment to take care of our customers, respect our employees and the environment, create value for our shareholders and support the communities in which we live and work.

Our Approach: The sustainability strategy has three central pillars, Environmental footprint, Product blueprint and Social imprint, and these are centred on a foundation of Governance and ethics, designed to ensure broad engagement and appropriate oversight for sustainability and ESG initiatives throughout the Company using a continued improvement approach.

Our Focus: This framework supports the company as it focuses on key sustainable business activities, namely its climate and carbon footprint, product stewardship and life cycle assessment, occupational health and safety, talent acquisition and employee engagement.

Goals and Objectives: The company has identified a number of goals it wishes to see achieved by 2030, using 2024 data as a baseline now that the company has relocated its trading premises.

Environmental Footprint - Doing Our Part for the Planet: We apply a continuous improvement approach to reducing our carbon emissions, energy consumption and waste generation while expanding our renewable energy use and decreasing the amount of waste generated by our operations.

We have identified and introduced projects to drive efficiency in production, energy, and reduction of waste.

Our efforts included prioritising technology enhancements such as LED lighting at our current and new facility, and have already piloted the use of electric and hybrid vehicles with a goal to enhance our fleet.

The aim of such projects will be to meet the following objectives;

Environmental Metrics:

Energy Consumption

FY22-23

FY23-24

Natural Gas (kWh)

12,633

22,481

Electricity (kWh)

87,603

99,015

Diesel (Mileage)

304,297

358,685

Hybrid (Mileage)

23,478

74,963

EV (Mileage)

511

56,358

 

 

 

Carbon Footprint (kg CO2)

FY22-23

FY23-24

Total Scope 1

83,013

101,617

Total Scope 2

19,272

37,221

Total Scope 1 & 2

102,285

138,838

 

 

 

Turnover (£)

11,140,542

15,518,175

Employees

87

102

 

 

 

Revenue Intensity Ratio (kg CO2 / £)

0.0091

0.0089

Employee Intensity Ratio (kg CO2 / e’ee)

1,175

1,361

 

 

SIMKISS CONTROL SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Product Blueprint - Driving Sustainability Through Innovation

We remain focused on enriching our Product Blueprint. Our goals include the following;

 

Social Imprint - Elevating a Culture of Safety, Inclusion and Community: We are committed to advancing a culture of excellence that values people, inclusion, and community. Our commitment is reflected in our unwavering efforts to promote the safety, health, and well-being of our people; foster a culture of inclusion, diversity, and equality where individual differences are celebrated; and support those in the communities where we live and work.

We are committed to working with our suppliers to ensure that human rights are respected and that no trafficking of persons, forced labour or child labour exists at any level in our supply chain.

Our goals in this area are as follows;

Our people are the foundation for our success. We believe that our employees deserve to feel valued and appreciated for who they are and the unique perspectives they bring to our workforce and workplace. Our family-like culture has continued to build on the ingenuity, passions, and talents of our team members.

Governance - Upholding ethical business practices and ensuring compliance with all regulatory standards: A complete overhaul of the companies Integrated Management System (IMS) is currently underway, with the aim of delivering transparent, efficient and auditable policies, procedures and processes across all areas of the business, including Diversity & inclusion, Health & safety, employee welfare and codes of conduct, Quality control, data security, procurement, risk management, internal controls, regulatory compliance.

As outlined in our Code of Conduct, we encourage employees to report potential policy or ethics violations and any type of harassment, threats, or safety concerns to management, at the earliest convenience.

The IMS is divided into the essential components of Culture, Planning, Implementation and Operations, Verifications and Process Accountability, and Action Management and Continuous Improvement to help facilitate improvement within these select areas. The IMS contains a suite of processes and tools, including site plan templates, checklists, and worksheets - which are adaptable for all parts of the organisation.

All manufacturing distribution, operational sites and technical/admin centres must conform to our IMS, which is in strong alignment with third-party certifications, such as the ISO 14001 standard for environmental management and the Occupational Safety and Health standard ISO 45001, and ISO 9001 Quality management standard to support best practices.

SIMKISS CONTROL SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Future Outlook

The global shift towards renewable energy and smart grids presents significant growth opportunities for Simkiss Control Systems Ltd. Our focus for the coming years includes:

On behalf of the board

P Simkiss
Director
4 April 2025
SIMKISS CONTROL SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -

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

Principal activities

The principal activities of the company were that of design, manufacture and installation of industrial control systems, switchgear and electrical engineering solutions.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £73,494. The directors do not recommend payment of a further dividend.

Directors

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

P Simkiss
L Simkiss
(Resigned 12 March 2024)
J C Simkiss
Statement of directors' responsibilities

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.

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.

SIMKISS CONTROL SYSTEMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
On behalf of the board
P Simkiss
Director
4 April 2025
SIMKISS CONTROL SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SIMKISS CONTROL SYSTEMS LIMITED
- 8 -
Opinion

We have audited the financial statements of Simkiss Control Systems Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

SIMKISS CONTROL SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SIMKISS CONTROL SYSTEMS LIMITED
- 9 -
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.

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.

SIMKISS CONTROL SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SIMKISS CONTROL SYSTEMS LIMITED
- 10 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which 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 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 control.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Graham Rigby
Senior Statutory Auditor
For and on behalf of Azets Audit Services
8 April 2025
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
SIMKISS CONTROL SYSTEMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
15,518,175
11,140,542
Cost of sales
(9,605,075)
(7,582,167)
Gross profit
5,913,100
3,558,375
Administrative expenses
(4,154,573)
(2,557,653)
Other operating income
8,090
6,112
Operating profit
4
1,766,617
1,006,834
Interest receivable and similar income
25,037
13,548
Interest payable and similar expenses
7
(21,448)
(66,232)
Profit before taxation
1,770,206
954,150
Tax on profit
8
(497,560)
(233,529)
Profit for the financial year
1,272,646
720,621
Other comprehensive income
Revaluation of tangible fixed assets
-
0
202,597
Tax relating to other comprehensive income
-
0
94,369
Total comprehensive income for the year
1,272,646
1,017,587
SIMKISS CONTROL SYSTEMS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
-
0
66,400
Tangible assets
11
891,543
641,887
Investments
12
-
0
20,685
891,543
728,972
Current assets
Stocks
13
202,935
152,061
Debtors
14
5,472,390
3,798,755
Cash at bank and in hand
121,594
60,026
5,796,919
4,010,842
Creditors: amounts falling due within one year
15
(3,465,318)
(2,793,043)
Net current assets
2,331,601
1,217,799
Total assets less current liabilities
3,223,144
1,946,771
Creditors: amounts falling due after more than one year
16
(177,066)
(180,484)
Provisions for liabilities
Deferred tax liability
18
132,451
51,812
(132,451)
(51,812)
Net assets
2,913,627
1,714,475
Capital and reserves
Called up share capital
20
25
25
Capital redemption reserve
75
75
Profit and loss reserves
2,913,527
1,714,375
Total equity
2,913,627
1,714,475
The financial statements were approved by the board of directors and authorised for issue on 4 April 2025 and are signed on its behalf by:
P Simkiss
Director
Company Registration No. 03836457
SIMKISS CONTROL SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
50
284,287
50
1,179,633
1,464,020
Year ended 30 September 2023:
Profit for the year
-
-
-
720,621
720,621
Other comprehensive income:
Revaluation of tangible fixed assets
-
202,597
-
-
202,597
Deferred tax on revaluation gain
-
(50,649)
-
-
0
(50,649)
Total comprehensive income for the year
-
151,948
-
720,621
872,569
Dividends
9
-
-
-
(767,107)
(767,107)
Own shares acquired
-
-
-
(25)
(25)
Cancellation of shares
20
(25)
-
25
-
0
-
Deferred tax movements on sale of property
-
145,018
-
-
0
145,018
Transfers between reserves
-
(581,253)
-
581,253
-
Balance at 30 September 2023
25
-
75
1,714,375
1,714,475
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
-
1,272,646
1,272,646
Dividends
9
-
-
-
(73,494)
(73,494)
Balance at 30 September 2024
25
-
0
75
2,913,527
2,913,627
SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Company information

Simkiss Control Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Railway Works, Fishwick Street, Rochdale, Lancashire, United Kingdom, OL16 5NA.

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 £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Simkiss Group (SCS) Limited. These consolidated financial statements are available from its registered office.

1.2
Going concern

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

SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

 

Rendering of services

 

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

 

Amounts invoiced in advance of work being undertaken are included in the balance sheet within 'amounts invoiced in advance on long term contracts'. Where the stage of completion of a contract is ahead of invoices raised, accrued income is recognised in the balance sheet. Similarly, contract related costs are deferred or accrued on the balance sheet as appropriate, in 'amounts recoverable on long term contracts' or 'accruals' respectively.

1.4
Intangible fixed assets - goodwill

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the statement of comprehensive income over its useful economic life of ten years from the date of transition to FRS 102, 1 October 2014.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost less 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:

Leasehold property and improvements
2% - 10% straight line
Plant and equipment
20% - 25% straight line
Fixtures and fittings
20% - 25% straight line
Motor vehicles
20% - 25% straight line

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

1.6
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.9
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.

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. Financial assets classified as receivable within one year are not amortised.

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 and bank loans, are initially recognised at transaction price. 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.10
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.

1.11
Taxation

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

SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 enacted or substantively enacted at the balance sheet date. 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.

1.12
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.

1.13
Retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

 

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

1.14
Leases

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

 

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

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.

SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
2
Judgements and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

The estimates and assumptions that present risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Goodwill

The carrying value of goodwill is assessed annually for impairment.

Stage of contract completion

Where long term contract accounting is applied, there is an inherent level of estimation in both assessing the stage of completion of a contract at the balance sheet date, and the profit margin which is expected to be achieved across the entire contract.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
15,518,175
11,140,542
2024
2023
£
£
Other revenue
Interest income
25,037
13,548
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
21,000
-
0
Depreciation of owned tangible fixed assets
232,390
153,423
Loss on disposal of tangible fixed assets
19,785
4,193
Amortisation of intangible assets
66,400
66,400
SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
5
Employees

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

2024
2023
Number
Number
Site Workers
22
21
Production
38
37
Administrative
40
26
Management
2
3
Total
102
87

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,637,574
3,530,937
Social security costs
499,585
388,317
Pension costs
293,870
203,095
5,431,029
4,122,349
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
124,687
161,697
Company pension contributions to defined contribution schemes
108,897
67,844
233,584
229,541
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
9,172
55,965
Interest on finance leases and hire purchase contracts
12,276
10,267
21,448
66,232
SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
413,579
358,041
Adjustments in respect of prior periods
3,342
-
0
Total current tax
416,921
358,041
Deferred tax
Origination and reversal of timing differences
61,408
(124,512)
Adjustment in respect of prior periods
19,231
-
0
Total deferred tax
80,639
(124,512)
Total tax charge
497,560
233,529

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
1,770,206
954,150
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
442,552
209,991
Tax effect of expenses that are not deductible in determining taxable profit
27,100
25,010
Tax effect of income not taxable in determining taxable profit
(11,265)
(2,083)
Adjustments in respect of prior years
3,342
(3,554)
Permanent capital allowances in excess of depreciation
16,600
(84,263)
Other non-reversing timing differences
-
0
18,271
Other permanent differences
-
0
(320)
Deferred tax adjustments in respect of prior years
19,231
-
0
Deferred tax credited to equity
-
0
94,369
Remeasurement of deferred tax
-
0
(23,892)
Taxation charge for the year
497,560
233,529

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
(94,369)
SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
9
Dividends
2024
2023
£
£
Equity dividends
73,494
60,000
Dividend in specie
-
0
707,107
73,494
767,107
10
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
867,166
Amortisation and impairment
At 1 October 2023
800,766
Amortisation charged for the year
66,400
At 30 September 2024
867,166
Carrying amount
At 30 September 2024
-
0
At 30 September 2023
66,400
11
Tangible fixed assets
Leasehold property and improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
269,258
68,991
252,975
588,388
1,179,612
Additions
29,277
78,300
23,986
427,658
559,221
Disposals
-
0
-
0
-
0
(170,554)
(170,554)
At 30 September 2024
298,535
147,291
276,961
845,492
1,568,279
Depreciation and impairment
At 1 October 2023
22,946
24,749
154,521
335,509
537,725
Depreciation charged in the year
53,831
27,707
35,402
115,450
232,390
Eliminated in respect of disposals
-
0
-
0
-
0
(93,379)
(93,379)
At 30 September 2024
76,777
52,456
189,923
357,580
676,736
Carrying amount
At 30 September 2024
221,758
94,835
87,038
487,912
891,543
At 30 September 2023
246,312
44,242
98,454
252,879
641,887
SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
-
0
20,685
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023
20,685
Disposals
(20,685)
At 30 September 2024
-
Carrying amount
At 30 September 2024
-
At 30 September 2023
20,685

The shares in Simkiss Home Automation Limited have been disposed of in the year and transferred to its parent company, Simkiss Group (SCS) Limited, at book value.

13
Stocks
2024
2023
£
£
Finished goods and goods for resale
202,935
152,061
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,089,357
2,244,455
Amounts recoverable on long term contracts
502,172
834,441
Amounts owed by group undertakings
20,685
164,191
Other debtors
2,816,464
412,912
Prepayments
43,712
142,756
5,472,390
3,798,755

Included within other debtors is an invoice discounting balance of £788,140 (2023: £nil) due back to the company. The corresponding amount in the prior year was a creditor of £112,574, disclosed within creditors under "advances against the security of book debts".

SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
17
54,546
54,545
Advances against the security of book debts
17
-
0
112,574
Obligations under finance leases
69,189
81,721
Trade creditors
827,514
980,354
Corporation tax
460,605
351,941
Other taxation and social security
381,989
162,885
Amounts invoiced in advance on long term contracts
872,696
454,515
Other creditors
75,917
29,471
Accruals and deferred income
722,862
565,037
3,465,318
2,793,043

Advances against the security of book debts are secured by book debts and an all assets debenture dated 27 February 2019.

Net obligations under finance leases are secured against the assets to which they relate.

16
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
17
31,818
86,364
Obligations under finance leases
145,248
94,120
177,066
180,484
17
Loans and overdrafts
2024
2023
£
£
Bank loans
86,364
140,909
Advances against the security of book debts
-
0
112,574
86,364
253,483
Payable within one year
54,546
167,119
Payable after one year
31,818
86,364

The bank loan relates to an amount drawn down under the Coronavirus Business Interruption Loan Scheme.


Net obligations under finance leases are secured against the assets to which they relate.

SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
138,530
76,391
Short term timing differences
(6,079)
(24,579)
132,451
51,812
2024
Movements in the year:
£
Liability at 1 October 2023
51,812
Charge to profit or loss
80,639
Liability at 30 September 2024
132,451
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
293,870
203,095

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. At the balance sheet date, the company owed £31,627 (2023: £25,962 ) to the pension scheme.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.01p each
250,000
-
25
-
A Ordinary shares of 0.01p each
-
250,000
-
25
250,000
250,000
25
25

On 1 March 2024, the A Ordinary shares were redesignated as Ordinary shares.

SIMKISS CONTROL SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
21
Operating lease commitments

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
178,200
178,200
Between two and five years
450,000
600,000
628,200
778,200
22
Related party transactions

At the balance sheet date, the company was owed £157,967 (2023: £28,532) from P Simkiss, a director of the company. Dividends totalling £nil (2023: £60,000) were paid to P Simkiss in the year.

 

At the balance sheet date, the company was owed £153,726 (2023: £164,191) by Simkiss Home Automation Limited, a company under common control (2023: a group company). This amount is interest free and repayable on demand.

 

At the balance sheet date, the company was owed £1,324,241 (2023: £281,639) by Simkiss Limited, a related party by way of common control. During the year, rent was payable to Simkiss Limited amounting to £248,700 (2023: £39,310).

 

The above balances are repayable on demand, and disclosed within other debtors.

 

At the balance sheet date, the company was owed £20,685 (2023: £nil) by Simkiss Group (SCS) Limited, the parent company. Dividends totalling £73,494 (2023: £nil) were paid to Simkiss Group (SCS) Limited in the year.

23
Ultimate controlling party

The company's immediate parent undertaking was Simkiss Group (SCS) Limited, which is 100% owned by P Simkiss.

2024-09-302023-10-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310P SimkissL SimkissJ C SimkissMs. L SimkissJ C Simkiss038364572023-10-012024-09-3003836457bus:Director12023-10-012024-09-3003836457bus:CompanySecretaryDirector12023-10-012024-09-3003836457bus:CompanySecretary12023-10-012024-09-3003836457bus:Director22023-10-012024-09-3003836457bus:Director32023-10-012024-09-3003836457bus:Director42023-10-012024-09-3003836457bus:RegisteredOffice2023-10-012024-09-30038364572024-09-30038364572022-10-012023-09-3003836457core:RetainedEarningsAccumulatedLosses2022-10-012023-09-3003836457core:RetainedEarningsAccumulatedLosses2023-10-012024-09-3003836457core:RevaluationReserve2023-10-012024-09-3003836457core:RevenueReservesInvestmentFundsOnly2022-10-012023-09-3003836457core:Goodwill2024-09-3003836457core:Goodwill2023-09-30038364572023-09-3003836457core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-09-3003836457core:PlantMachinery2024-09-3003836457core:FurnitureFittings2024-09-3003836457core:MotorVehicles2024-09-3003836457core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-3003836457core:PlantMachinery2023-09-3003836457core:FurnitureFittings2023-09-3003836457core:MotorVehicles2023-09-3003836457core:CurrentFinancialInstrumentscore:WithinOneYear2024-09-3003836457core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3003836457core:Non-currentFinancialInstrumentscore:AfterOneYear2024-09-3003836457core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-3003836457core:CurrentFinancialInstruments2024-09-3003836457core:CurrentFinancialInstruments2023-09-3003836457core:Non-currentFinancialInstruments2024-09-3003836457core:Non-currentFinancialInstruments2023-09-3003836457core:ShareCapital2024-09-3003836457core:ShareCapital2023-09-3003836457core:CapitalRedemptionReserve2024-09-3003836457core:CapitalRedemptionReserve2023-09-3003836457core:RetainedEarningsAccumulatedLosses2024-09-3003836457core:RetainedEarningsAccumulatedLosses2023-09-3003836457core:ShareCapital2022-09-3003836457core:RevaluationReserve2022-09-3003836457core:CapitalRedemptionReserve2022-09-3003836457core:RetainedEarningsAccumulatedLosses2022-09-3003836457core:RevaluationReserve2024-09-3003836457core:ShareCapitalOrdinaryShares2024-09-3003836457core:ShareCapitalOrdinaryShares2023-09-3003836457core:RevaluationReserve2022-10-012023-09-3003836457core:Goodwill2023-10-012024-09-3003836457core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-10-012024-09-3003836457core:PlantMachinery2023-10-012024-09-3003836457core:FurnitureFittings2023-10-012024-09-3003836457core:MotorVehicles2023-10-012024-09-3003836457core:UKTax2023-10-012024-09-3003836457core:UKTax2022-10-012023-09-300383645712023-10-012024-09-300383645712022-10-012023-09-300383645722023-10-012024-09-300383645722022-10-012023-09-300383645732023-10-012024-09-300383645732022-10-012023-09-3003836457core:Goodwill2023-09-3003836457core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-3003836457core:PlantMachinery2023-09-3003836457core:FurnitureFittings2023-09-3003836457core:MotorVehicles2023-09-30038364572023-09-3003836457core:WithinOneYear2024-09-3003836457core:WithinOneYear2023-09-3003836457core:BetweenTwoFiveYears2024-09-3003836457core:BetweenTwoFiveYears2023-09-3003836457bus:PrivateLimitedCompanyLtd2023-10-012024-09-3003836457bus:FRS1022023-10-012024-09-3003836457bus:Audited2023-10-012024-09-3003836457bus:FullAccounts2023-10-012024-09-30xbrli:purexbrli:sharesiso4217:GBP