The directors present the strategic report for the year ended 31 July 2024.
The principal activity of the Group continued to be the design and installation of structural flooring solutions for the construction industry. Our continued mission is to be one of the UK’s leading providers of structural flooring and roofing solutions to the construction sector, along with expanding our brand and products overseas, ensuring a key focus on safety, innovation, and the environment.
Executive summary
The Group has performed well in what continues to be an extremely volatile market and industry during this period. We have continued to see businesses not being able to continue trading in all sectors of the industry due to tight margins and overcommitments on historical projects. Our focus has been on longer-term stability and the continued service and support of our stakeholders. Over this period, we have delivered many large and small high-profile projects in all divisions throughout the UK, providing high-performance, quality solutions.
Financial Performance
Group turnover for the financial year was £23,633,082 (2023: £21,341,753) and the profit / loss on ordinary activities after taxation was £26,044 (2023: (£31,716)). The financial position as of 31 July 2024 is shown in the group's balance sheet. The group may not have delivered the financial returns initially budgeted for but remains financially very secure in what has been a difficult period. Considerable effort has been given to reviewing and rationalising all ongoing costs, both fixed and variable, to ensure we can further improve the profitability and performance of the business without compromising quality, performance, or safety.
Structural Metal Decks Ltd has experienced several specific operational challenges, supplier issues and customer closures during this period and as such has not delivered on the budgeted performance for the year, an extensive review of operational procedures has been carried out during the period, with improvements delivered in all departments to ensure we make the required improvements moving forward. An increase in provisions for this period has also had to be considered with regards to ongoing supplier and customer issues.
ThruDeck Services Ltd continues to re-establish itself in the Scottish region, order levels and financial performance has improved and continue to do so moving forward. This year financial performance was not unexpected during this period of regrowth. Business performance will continue to be managed and monitored quarterly in the coming 12 months to ensure it continues its path of recovery.
Precast Structural Solution’s growth and performance is in line with expectations for this relatively new division.
Sales, market competition and margin
We are acutely aware that the construction industry is facing increasing competition, and this necessitates a strategic focus on maintaining high-quality service delivery and customer satisfaction along with developing our own internal operational procedures to ensure we protect contract margins.
The challenges posed by subcontractor performance in the last 12-months has been significant. We faced delays in project timelines and difficulties in maintaining quality assurance. To mitigate these risks, we have enhanced our subcontractor vetting processes and established stricter performance monitoring systems. Regular audits and performance evaluations ensure that all subcontractors adhere to our stringent quality and safety standards.
Additionally, the economic environment has led to financial strain for some of our customers, resulting in delayed payments and, in certain cases, customer insolvency. To counteract these risks, we are actively reviewing our customer base, to ensure we limited any potential risk, ensuring our focus is engaging with sustainable long-term customer partnerships.
The volatility of raw material costs has also presented challenges, particularly in our concrete operations, but this appears to be stabilising, and we believe during the next 12-months this will not be such a big consideration for the group.
Ongoing challenges
Key challenges this year included the inconsistent performance of subcontractors, rising insolvencies among customer, and adverse weather conditions that have primarily impacted our concrete operations. These factors contributed to contract delays and operational inefficiencies. In response, we implemented strategic initiatives to the relevant group companies to streamline operations and enhance cost management, ultimately helping to preserving our long-term financial stability and ensuring continued support for our customers.
As we look to the future, there are indications that raw material prices are stabilising. This potential stabilisation could position us favourably within the market, enabling us to regain lost margins and secure targeted volumes of our flooring products, which are critical for operational predictability.
Addressing the ongoing scarcity of experienced personnel in the construction sector is a priority for us. We are implementing several initiatives aimed at attracting and retaining skilled professionals. These initiatives include offering competitive salaries, professional development programs, mentorship opportunities, overseas recruitment programme and creating a workplace culture that fosters innovation and teamwork.
Along with the financial health of the Group, the other key priority is the Health and Safety of both its employees and the public, which is closely monitored by the Senior Management Team. The AFR (Accident Frequency Rate) of the company was Zero in 2024 (2023: 0) and equates to 0 reportable accidents in 140,517-man hours during this reporting period (2023: 0 reportable accidents in 153,708-man hours).
Principal risk and uncertainties
The Group’s principal financial instruments comprise bank balances, trade debtors, trade creditors, and finance lease agreements. The main purpose of these instruments is to finance the group operations. In respect of bank balances, liquidity risk is managed by maintaining a balance between continuity of funding, flexibility, and maximum returns. All the Group’s cash balances are held to achieve a competitive rate of interest.
Trade debtors are managed regarding credit and cash flow risk policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. The Group continues to manage a subsidence issue at its head office, but currently this situation is not causing any further concerns; this issue will continue to be monitored moving forward.
Sustainability and corporate social responsibility
The Group is aware of its sustainability and Corporate Social Responsibility and has spent considerable time during this period reviewing and planning towards achieving its target of a carbon-zero operation by 2030. Additional initiatives have been delivered over the past months within the offices to reduce energy use, and we continue the process of changing over to electric vehicles.
Further focus for us during this period has been the introduction of a Green product range in our composite floor and roof decking products which is now available to our customers, this solution utilises low-carbon material sources, which in turn help reduce the carbon footprint that our operations produces on a project.
Future Outlook
Moving forward over the next 12 months, the Group will be looking to further solidify its position as one of the UK's leading suppliers in structural flooring and roofing solutions and further expand on its products and services offer to the market.
The Group remains committed to the further development of our concreting operations. This commitment aligns with our vision to diversify and strengthen our portfolio, ensuring sustained growth and resilience in a dynamic market.
Additional commitment will be focused on further driving the performance in our Scottish region to ensure that we firmly reestablish ourselves in this geographical location, along with pushing the targets and expectations of the new in-situ division.
The next 12 months will also see an increased focus on driving our green credentials across the group.
Conclusion
In summary, this year has presented substantial challenges, particularly concerning subcontractor performance and external market pressures. Nevertheless, the Group has maintained a strong financial position and continues to perform robustly within the market. We are optimistic that stabilisation in material prices and improvements in subcontractor performance will enable us to achieve our financial targets in the upcoming year.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 July 2024.
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.
We have audited the financial statements of SMD Construction Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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).
Basis for 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 group's and parent 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the construction industry and supply sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgments and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
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.
The notes on pages 17 to 36 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 £0 profit).
SMD Construction Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales.
The registered office is:
Unit C
The Outlook
Ling Road
Poole
Dorset
BH12 4PY
The group consists of SMD Construction Group Ltd and all of its subsidiaries.
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.
The consolidated group financial statements consist of the financial statements of the parent company SMD Construction Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
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 construction contracts 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.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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 recognised in the income statement.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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, 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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its 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.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 income statement, 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 if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue includes work carried out but not yet invoiced or certified. This involves the use of judgement by management as to the value of work done. Long term contracts are valued on percentage of work completed vs cost incurred againist the total estimated cost of the contract. In addition, fixed overhead is apportioned value depending on the size of the contracts at the year end based on the level of overhead they absorb. The accrued income across the group totalled £411,715 (2023: £562,396) and deferred income across the group totalled £111,493 (2023: £287,907).
The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of debtors, the ageing profile and historical experience. At the balance sheet date £375,734 (2023: £103,598) was provided for as a bad debt provision within these financial statements.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
The difference between the depreciation charged on cost and the depreciation charged on the revalued amount is deemed immaterial and therefore has not be included within the financial statements.
Land and Buildings with a carrying amount of £400,000 were revalued at 13th August 2018 by an independent valuer not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
An additional property with a carrying amount of £395,000 were revalued at 30th October 2019 by an independent valuer not connected with the company on the basis of market value. On this date, a property owned by the business was impaired inline with the valuation undertaken. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Details of the company's subsidiaries at 31 July 2024 are as follows:
The principal activity of SMD Intech Private Ltd continued to be that of structural deck development. The principal activity of SMD Middle East FZE, Structural Metal Decks Limited, Thru Deck Services Limited continued to be that of construction of composite flooring. The principal activity of Precast Structural Solutions continued to be that of concrete flooring solutions.
The results of SMD Middle East FZE and SMD Intech Private Ltd have not been consolidated in these financial statements, due to the results being immaterial to the group results.
NDS Site Installation Services Ltd and Performance Stud Welding Ltd were dormant at 31 July 2023.
Details of associates at 31 July 2024 are as follows:
The results of National Decking Services Limited have not been consolidated in these financial statements due to being immaterial to the group.
The bank loan was repayable over 15 years from the date of the initial drawdown of the loan. Interest was payable at 2.35% over base rate. The bank loan was repaid in full October 2023.
The bank loan was secured by way of a fixed and floating charge over the group's assets.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Obligations on finance lease are secured againist the assets to which they relate.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Contributions totaling £14,999 (2023: £13,142) were payable to the fund at the balance sheet date and are included in creditors.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
The company has taken advantage of the exemption in FRS 102 Section 33 from the requirement to disclose transactions with group companies on the grounds that the company is a wholly owned subsidiary within the group or its ultimate holding company.
During the year a total of £nil (2023: £nil) was credited to the directors' loan account. Interest of £556 (2023: £506) was charged on this balance. At the balance sheet date the balance owed from the directors was £25,002 (2023: £24,446).