Company registration number 14474174 (England and Wales)
SIMKISS GROUP (SCS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
SIMKISS GROUP (SCS) LIMITED
COMPANY INFORMATION
Directors
P Simkiss
J C Simkiss
Secretary
J C Simkiss
Company number
14474174
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 GROUP (SCS) LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 32
SIMKISS GROUP (SCS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

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 Group (SCS) Ltd and its subsidiary, Simkiss Control Systems Ltd, in compliance with the Companies Act 2006 requirements for medium-sized groups.

Business Model and Strategy

The group 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 group 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:

- 1 -
SIMKISS GROUP (SCS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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 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.

- 2 -
SIMKISS GROUP (SCS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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 (£)

12,200,299

15,518,175

Employees

94

102

 

 

 

Revenue Intensity Ratio (kg CO2 / £)

0.0084

0.0089

Employee Intensity Ratio (kg CO2 / e’ee)

1,088

1,361

 

 

- 3 -
SIMKISS GROUP (SCS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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.

- 4 -
SIMKISS GROUP (SCS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Future Outlook

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

 

Group re-organisation

During the year, the group completed a re-organisation where its subsidiary company, Simkiss Home Automation Limited, was moved outside of the group. Its figures do not therefore form part of the 2024 group accounts.

On behalf of the board

P Simkiss
Director
9 April 2025
- 5 -
SIMKISS GROUP (SCS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

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

Principal activities

The principal activity of the company was that of a holding company. The principal activity of the subsidiary and group 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 7.

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
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

- 6 -
SIMKISS GROUP (SCS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
On behalf of the board
P Simkiss
Director
9 April 2025
- 7 -
SIMKISS GROUP (SCS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIMKISS GROUP (SCS) LIMITED
Opinion

We have audited the financial statements of Simkiss Group (SCS) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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).

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 group and parent 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 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

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:

- 8 -
SIMKISS GROUP (SCS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMKISS GROUP (SCS) LIMITED
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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
- 9 -

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 parent 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 parent 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 GROUP (SCS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SIMKISS GROUP (SCS) LIMITED

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 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.

Graham Rigby
Senior Statutory Auditor
For and on behalf of Azets Audit Services
Date: 9 April 2025
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
- 10 -
SIMKISS GROUP (SCS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2024
2023
Notes
£
£
Turnover
3
15,518,175
12,000,299
Cost of sales
(9,605,075)
(8,200,382)
Gross profit
5,913,100
3,799,917
Administrative expenses
(4,154,573)
(2,799,150)
Other operating income
8,090
6,112
Operating profit
4
1,766,617
1,006,879
Interest receivable and similar income
7
25,037
13,548
Interest payable and similar expenses
8
(21,448)
(70,222)
Profit before taxation
1,770,206
950,205
Tax on profit
9
(497,560)
(236,131)
Profit for the financial year
1,272,646
714,074
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
- 11 -
SIMKISS GROUP (SCS) LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
-
0
66,400
Tangible assets
12
891,543
793,838
891,543
860,238
Current assets
Stocks
15
202,935
372,310
Debtors
16
5,472,390
3,968,029
Cash at bank and in hand
121,594
106,871
5,796,919
4,447,210
Creditors: amounts falling due within one year
17
(3,465,318)
(3,172,557)
Net current assets
2,331,601
1,274,653
Total assets less current liabilities
3,223,144
2,134,891
Creditors: amounts falling due after more than one year
18
(177,066)
(220,054)
Provisions for liabilities
Deferred tax liability
20
132,451
75,486
(132,451)
(75,486)
Net assets
2,913,627
1,839,351
Capital and reserves
Called up share capital
22
173,711
250,000
Capital redemption reserve
76,289
-
0
Other reserves
(249,900)
(229,215)
Profit and loss reserves
2,913,527
1,818,566
Total equity
2,913,627
1,839,351
The financial statements were approved by the board of directors and authorised for issue on 9 April 2025 and are signed on its behalf by:
09 April 2025
P Simkiss
Director
Company registration number 14474174 (England and Wales)
- 12 -
SIMKISS GROUP (SCS) LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
250,000
250,000
Current assets
Debtors
16
20,685
-
0
Creditors: amounts falling due within one year
17
(20,685)
-
Net current assets
-
-
Net assets
250,000
250,000
Capital and reserves
Called up share capital
22
173,711
250,000
Capital redemption reserve
76,289
-
0
Total equity
250,000
250,000

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 £73,494 (2023 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 9 April 2025 and are signed on its behalf by:
09 April 2025
P Simkiss
Director
Company registration number 14474174 (England and Wales)
- 13 -
SIMKISS GROUP (SCS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Share capital
Capital redemption reserve
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
250,000
-
0
(229,215)
1,164,491
1,185,276
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
-
714,074
714,074
Dividends
10
-
-
-
(59,999)
(59,999)
Balance at 30 September 2023
250,000
-
0
(229,215)
1,818,566
1,839,351
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
1,272,646
1,272,646
Dividends
10
-
-
-
(73,494)
(73,494)
Cancellation of shares
22
(76,289)
76,289
-
-
-
0
Disposal of subsidiary
-
-
(20,685)
-
(20,685)
Group reconstruction difference
-
-
-
(104,191)
(104,191)
Balance at 30 September 2024
173,711
76,289
(249,900)
2,913,527
2,913,627
- 14 -
SIMKISS GROUP (SCS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
-
0
-
0
-
0
-
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
-
-
0
Issue of share capital
22
250,000
-
-
250,000
Balance at 30 September 2023
250,000
-
0
-
0
250,000
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
73,494
73,494
Dividends
10
-
-
(73,494)
(73,494)
Cancellation of shares
22
(76,289)
76,289
-
-
0
Balance at 30 September 2024
173,711
76,289
-
0
250,000
- 15 -
SIMKISS GROUP (SCS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,848,094
912,934
Income taxes paid
(304,915)
(134,485)
Net cash inflow from operating activities
1,543,179
778,449
Investing activities
Purchase of tangible fixed assets
(559,221)
(507,922)
Proceeds from disposal of tangible fixed assets
58,703
2,198
Proceeds from disposal of subsidiaries, net of cash disposed
(41,370)
-
Interest received
25,037
13,548
Net cash used in investing activities
(516,851)
(492,176)
Financing activities
Net movement in invoice financing
(900,714)
(119,038)
Repayment of bank loans
(54,545)
(104,635)
Net movement in finance lease obligations
38,596
(676)
Interest paid
(21,448)
(70,222)
Dividends paid to equity shareholders
(73,494)
(59,999)
Net cash used in financing activities
(1,011,605)
(354,570)
Net increase/(decrease) in cash and cash equivalents
14,723
(68,297)
Cash and cash equivalents at beginning of year
106,871
175,168
Cash and cash equivalents at end of year
121,594
106,871

The notes on pages 17 to 32 form part of these financial statements.

- 16 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
Company information

Simkiss Group (SCS) Limited is a private limited company limited by shares and incorporated in England and Wales. The registered office is The Railway Works, Fishwick Street, Rochdale, England, 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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Simkiss Group (SCS) Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 September 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

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.

- 17 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
1.4
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.

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.

1.5
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.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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 recognised in the profit and loss account.

1.7
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.

- 18 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
1.8
Stocks
- 19 -

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.

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

1.9
Cash and cash equivalents

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

1.10
Financial instruments

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 balance sheet 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

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 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.

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 group 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 group's contractual obligations expire or are discharged or cancelled.

SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
1.11
Equity instruments

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.

1.12
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.

1.13
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

The group 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 group 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 group in independently administered funds.

- 20 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
1.15
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 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.

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
12,000,299
2024
2023
£
£
Other revenue
Interest income
25,037
13,548
- 21 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
231,077
186,986
Loss on disposal of tangible fixed assets
19,785
4,193
Amortisation of intangible assets
66,400
66,400
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,000
-
Audit of the financial statements of the company's subsidiaries
21,000
-
24,000
-
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Site workers
22
28
-
-
Production
38
37
-
-
Administrative
40
26
-
-
Management
2
3
2
2
Total
102
94
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,637,574
3,672,391
-
0
-
0
Social security costs
499,585
404,173
-
-
Pension costs
293,870
219,661
-
0
-
0
5,431,029
4,296,225
-
0
-
0
- 22 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
25,037
13,548
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
9,172
59,955
Interest on finance leases and hire purchase contracts
12,276
10,267
Total finance costs
21,448
70,222
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
413,579
359,581
Adjustments in respect of prior periods
3,342
-
0
Total current tax
416,921
359,581
Deferred tax
Origination and reversal of timing differences
61,408
(123,450)
Adjustment in respect of prior periods
19,231
-
0
Total deferred tax
80,639
(123,450)
Total tax charge
497,560
236,131
- 23 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)

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
950,205
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
442,552
209,123
Tax effect of expenses that are not deductible in determining taxable profit
27,100
28,480
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
497,560
236,131
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Equity dividends paid
73,494
59,999
- 24 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Intangible fixed assets
Group
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
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
12
Tangible fixed assets
Group
Leasehold property and improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
304,755
80,376
293,375
711,388
1,389,894
Additions
29,277
78,300
23,986
427,658
559,221
Disposals
(35,497)
(11,385)
(40,400)
(293,554)
(380,836)
At 30 September 2024
298,535
147,291
276,961
845,492
1,568,279
Depreciation and impairment
At 1 October 2023
24,259
28,254
171,134
372,409
596,056
Depreciation charged in the year
52,518
27,707
35,402
115,450
231,077
Eliminated in respect of disposals
-
0
(3,505)
(16,613)
(130,279)
(150,397)
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
280,496
52,122
122,241
338,979
793,838
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
- 25 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
250,000
250,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023
250,000
Additions
20,685
Disposals
(20,685)
At 30 September 2024
250,000
Carrying amount
At 30 September 2024
250,000
At 30 September 2023
250,000

On 29 February 2024, Simkiss Control Systems Limited, a subsidiary of the company, transferred its own investment in a subsidiary company, Simkiss Home Automation Limited, to the company at book value of £20,685. The company immediately transferred this investment to a related company outside the group, Simkiss Holding (SHA) Limited, again at book value of £20,685.

14
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Simkiss Control Systems Limited
United Kingdom
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
202,935
372,310
-
0
-
0
- 26 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,089,357
2,552,684
-
0
-
0
Amounts recoverable on long term contracts
502,172
834,441
-
0
-
0
Other debtors
2,837,149
430,666
20,685
-
0
Prepayments and accrued income
43,712
150,238
-
0
-
0
5,472,390
3,968,029
20,685
-

Included within other debtors is an invoice discounting debtor of £788,140 (2023: £nil) due back to the group. The corresponding amount in the prior year was a creditor of £209,089, disclosed within creditors under "advances against the security of book debts".

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
54,546
72,727
-
0
-
0
Advances against the security of book debts
19
-
0
209,089
-
0
-
0
Obligations under finance leases
69,189
102,498
-
0
-
0
Trade creditors
827,514
1,196,090
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
20,685
-
0
Corporation tax payable
460,605
353,481
-
0
-
0
Other taxation and social security
381,989
168,949
-
-
Amounts invoiced in advance on long term contracts
872,696
454,515
-
0
-
0
Other creditors
75,917
29,471
-
0
-
0
Accruals and deferred income
722,862
585,737
-
0
-
0
3,465,318
3,172,557
20,685
-
0

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.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
31,818
115,152
-
0
-
0
Obligations under finance leases
145,248
104,902
-
0
-
0
177,066
220,054
-
-
- 27 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
86,364
187,879
-
0
-
0
Advances against the security of book debts
-
0
209,089
-
0
-
0
86,364
396,968
-
-
Payable within one year
54,546
281,816
-
0
-
0
Payable after one year
31,818
115,152
-
0
-
0

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

 

20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
138,530
104,065
Tax losses
(6,079)
(24,579)
Short term timing differences
-
(4,000)
132,451
75,486
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
75,486
-
Charge to profit or loss
80,639
-
Disposal of subsidiary
(23,674)
-
Liability at 30 September 2024
132,451
-

 

- 28 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
293,870
219,661

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the balance sheet date, the group owed £31,627 (2023: £25,962) to the pension scheme.

 

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
173,711
250,000
173,711
250,000

On 19 October 2023, the company redesignated 76,289 A Ordinary shares of £1 each as B Ordinary shares of £1 each.

 

On 29 February 2024, the company cancelled 76,289 B Ordinary shares as part of the group reorganisation referred to in Note 25, resulting in the creation of a capital redemption reserve.

23
Operating lease commitments
Lessee

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:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
178,200
198,800
-
-
Between two and five years
450,000
654,247
-
-
628,200
853,047
-
-
- 29 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
Related party transactions

At the balance sheet date, the group was owed £157,967 (2023: £28,532) from P Simkiss, a director of the company. Dividends totalling £73,494 (2023: £60,000) were paid to P Simkiss in the year.

 

At the balance sheet date, the group was owed £153,726 (2023: £nil) 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 group 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.

- 30 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
25
Group reconstruction

Group re-organisation (2023)

These are the first full set of consolidated financial statements of Simkiss Group (SCS) Limited following the group re-organisation in 2023, whereby Simkiss Group (SCS) Limited became the new parent company of the group comprising of Simkiss Control Systems Limited, and its subsidiary Simkiss Home Automation Limited.

The consolidated financial statements have been prepared under the merger method of accounting because the transaction under which the company became the holding company of Simkiss Control Systems Limited was a group reconstruction with no change in the ultimate ownership of the group at that time. All of the shares of Simkiss Control Systems Limited were exchanged via a share-for-share exchange effective 30 September 2023.

The result of the application of merger accounting for the group reorganisation is to present the financial statements as if the company had always owned the group - these financial statements, for the comparative year ended 30 September 2023, have been presented as if Simkiss Group (SCS) Limited was always the ultimate parent of Simkiss Control Systems Limited and Simkiss Home Automation Limited.

The principal steps of the reorganisation were as follows:

The company was incorporated on 9 November 2022 as a company limited by shares in the United Kingdom, with share capital of 1 Ordinary share of £1. On 3 October 2023 (effective date 30 September 2023 for statutory accounts purposes) the company issued a further 249,999 A Ordinary shares of £1.

The company became the ultimate holding company of the group on the same day, with Simkiss Control Systems Limited becoming the company's direct subsidiary by way of a share-for-share exchange. The insertion of the company as a new holding company constitutes a group reorganisation and the transaction is accounted for as a capital reorganisation and merger relief applied in accordance with section 612 of the Companies Act 2006.

Under merger relief the shares issued in this transaction were recorded in the consolidated statement of financial position at the nominal value of the shares issued (£250,000) less the nominal value of shares acquired (£20,785), which was recorded as a merger reserve of £229,215 in the group financial statements. The assets and liabilities of the subsidiaries are consolidated at book value in the group financial statements and the consolidated reserves of the group are adjusted to reflect the statutory share capital, share premium and merger reserve of the group as if it had always existed.

Group re-organisation (2024)

On 19 October 2023, the company redesignated 76,289 A Ordinary shares of £1 each as 76,289 B Ordinary shares of £1 each. On 29 February 2024, the company bought back and cancelled these shares, resulting in the creation of a capital redemption reserve.

On 29 February 2024, Simkiss Control Systems Limited transferred its own investment in subsidiary undertaking, Simkiss Home Automation Limited, to the company at book value of £20,685. The company immediately transferred this investment to a company under the same ownership outside the group, Simkiss Holding (SHA) Limited, again at book value of £20,685. This resulted in an increase to the merger reserve equivalent to Simkiss Home Automation Limited’s share capital of £20,685, and a group reorganisation difference of £104,191 through other comprehensive income.

The result of the application of merger accounting for the group reorganisation is to present the financial statements as if the company had always owned the group - these financial statements, for the year ended 30 September 2024, have been presented as if Simkiss Group (SCS) Limited was always the ultimate parent company of Simkiss Control Systems Limited, excluding Simkiss Home Automation Limited, from 1 October 2023.

- 31 -
SIMKISS GROUP (SCS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
26
Controlling party

The ultimate controlling party at the current and preceding year end was P Simkiss, who owned 100% of the issued share capital.

27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,272,646
714,074
Adjustments for:
Taxation charged
497,560
236,131
Finance costs
21,448
70,222
Investment income
(25,037)
(13,548)
Loss on disposal of tangible fixed assets
19,785
4,193
Amortisation and impairment of intangible assets
66,400
66,400
Depreciation and impairment of tangible fixed assets
231,077
186,985
Movements in working capital:
Increase in stocks
(50,874)
(47,011)
Increase in debtors
(1,029,001)
(1,182,422)
Increase in creditors
844,090
877,910
Cash generated from operations
1,848,094
912,934
28
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
106,871
14,723
121,594
Borrowings excluding overdrafts
(396,968)
310,604
(86,364)
Obligations under finance leases
(207,400)
(7,037)
(214,437)
(497,497)
318,290
(179,207)
- 32 -
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