Company registration number 10175197 (England and Wales)
SMC MOULDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
SMC MOULDINGS LIMITED
COMPANY INFORMATION
Directors
DS Taylor
D Bellamy
Company number
10175197
Registered office
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Unit 5 Shuttleworth Mead Business Park
Blackburn Road
Padiham
Burnley
Lancashire
BB12 7SN
SMC MOULDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 26
SMC MOULDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The directors present the strategic report for the year ended 31 August 2024.

Review of the business

The directors are pleased with the group’s results for the financial year to 31 August 2024. Despite a reduction in turnover levels, much of which was due to factors outside the group’s control, improvements to gross margins and effective cost controls have led to consistent levels of overall profitability.

 

The group continues to deal with general pressures and macro uncertainty facing many businesses in the UK but is financially secure and resilient to deal with such matters.

 

The directors wish to place on record their thanks to staff during the period.

 

The directors are committed to continuing to invest heavily in new R&D product development and innovation. The group holds significant know-how and intellectual property in its respective field, which the directors view as a critical success factor for the business.

Principal risks and uncertainties

The group does not actively use financial instruments as part of its financial risk management.

 

The group is exposed to the usual credit risks and cash flow risk associated with selling on credit and manages this through strong credit control procedures.

 

The nature of its financial instruments means that they are not subject to price risk or liquidity risk.

 

The group’s policy is to finance working capital through group retained earnings.

 

There are no external bank borrowings.

Key performance indicators

The directors believe identifying key performance indicators is important and use several indicators to monitor and improve the development, performance and position of the business.

Other performance indicators

Non-financial indicators are also monitored on a day-to-day basis with regards to lead times, quality and various other manufacturing parameters.

On behalf of the board

D Bellamy
Director
21 May 2025
SMC MOULDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company continued to be that of a holding company coordinating the activities of its subsidiary undertakings and that of the holding and licensing of intellectual property.

 

The principal activity of the company's subsidiaries continued to be that of the manufacture of specialist moulded products and the provision of holiday accomodation.

Results and dividends

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

Ordinary dividends were paid amounting to £1,000 (2023 - £2,000). 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:

DS Taylor
D Bellamy
Future developments

The directors are optimistic about the company's forthcoming year's performance, as noted in the strategic report.

Auditor

In accordance with the company's articles, a resolution proposing that Pierce C A Limited be reappointed as auditor of the group will be put at a General Meeting.

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.

On behalf of the board
D Bellamy
Director
21 May 2025
SMC MOULDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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.

SMC MOULDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SMC MOULDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of SMC Mouldings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group profit and loss account, 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:

SMC MOULDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMC MOULDINGS LIMITED
- 5 -
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

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:

 

We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.

We did not identify a material risk of non-compliance with laws and regulations or of fraud.

 

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.

SMC MOULDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SMC MOULDINGS LIMITED
- 6 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Smith (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
22 May 2025
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
SMC MOULDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
6,364,806
7,074,672
Cost of sales
(3,608,734)
(4,178,313)
Gross profit
2,756,072
2,896,359
Administrative expenses
(1,476,252)
(1,559,383)
Operating profit
4
1,279,820
1,336,976
Interest receivable and similar income
8
104,167
43,613
Interest payable and similar expenses
(49)
-
0
Profit before taxation
1,383,938
1,380,589
Tax on profit
9
(201,470)
(238,609)
Profit for the financial year
1,182,468
1,141,980
Profit for the financial year is all attributable to the owners of the parent company.
SMC MOULDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
-
0
-
0
Tangible assets
12
1,733,873
1,754,648
1,733,873
1,754,648
Current assets
Stocks
15
2,035,128
2,052,112
Debtors
16
1,385,665
1,456,070
Cash at bank and in hand
5,375,191
4,307,647
8,795,984
7,815,829
Creditors: amounts falling due within one year
17
(643,276)
(843,575)
Net current assets
8,152,708
6,972,254
Total assets less current liabilities
9,886,581
8,726,902
Provisions for liabilities
Deferred tax liability
18
143,897
165,686
(143,897)
(165,686)
Net assets
9,742,684
8,561,216
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
9,742,584
8,561,116
Total equity
9,742,684
8,561,216

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 21 May 2025 and are signed on its behalf by:
21 May 2025
D Bellamy
Director
Company registration number 10175197 (England and Wales)
SMC MOULDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
62,071
73,024
Investments
13
200
200
62,271
73,224
Current assets
Debtors
16
2,542,799
2,177,794
Cash at bank and in hand
4,288,110
3,742,471
6,830,909
5,920,265
Creditors: amounts falling due within one year
17
(122,988)
(201,627)
Net current assets
6,707,921
5,718,638
Total assets less current liabilities
6,770,192
5,791,862
Provisions for liabilities
Deferred tax liability
18
15,518
18,256
(15,518)
(18,256)
Net assets
6,754,674
5,773,606
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
6,754,574
5,773,506
Total equity
6,754,674
5,773,606

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 £982,068 (2023 - £1,068,913 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 21 May 2025 and are signed on its behalf by:
21 May 2025
D Bellamy
Director
Company registration number 10175197 (England and Wales)
SMC MOULDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2022
100
7,421,136
7,421,236
Year ended 31 August 2023:
Profit for the year
-
1,141,980
1,141,980
Dividends
10
-
(2,000)
(2,000)
Balance at 31 August 2023
100
8,561,116
8,561,216
Year ended 31 August 2024:
Profit for the year
-
1,182,468
1,182,468
Dividends
10
-
(1,000)
(1,000)
Balance at 31 August 2024
100
9,742,584
9,742,684
SMC MOULDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2022
100
4,706,593
4,706,693
Year ended 31 August 2023:
Profit for the year
-
1,068,913
1,068,913
Dividends
10
-
(2,000)
(2,000)
Balance at 31 August 2023
100
5,773,506
5,773,606
Year ended 31 August 2024:
Profit for the year
-
982,068
982,068
Dividends
10
-
(1,000)
(1,000)
Balance at 31 August 2024
100
6,754,574
6,754,674
SMC MOULDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,368,925
524,936
Income taxes paid
(331,004)
(134,801)
Net cash inflow from operating activities
1,037,921
390,135
Investing activities
Purchase of tangible fixed assets
(73,494)
(581,522)
Interest received
104,117
43,613
Net cash generated from/(used in) investing activities
30,623
(537,906)
Financing activities
Dividends paid to equity shareholders
(1,000)
(2,000)
Net cash used in financing activities
(1,000)
(2,000)
Net increase/(decrease) in cash and cash equivalents
1,067,544
(149,771)
Cash and cash equivalents at beginning of year
4,307,647
4,457,418
Cash and cash equivalents at end of year
5,375,191
4,307,647
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
1
Accounting policies
Company information

SMC Mouldings Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is Mentor House, Ainsworth Street, Blackburn, Lancashire, United Kingdom, BB1 6AY.

 

The group consists of SMC Mouldings Limited and all of its subsidiaries.

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 £.

 

One of the company's subsidiaries, as listed at Note 14, has not been individually audited, and has taken an exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies under parental guarantee.

 

The company has taken advantage of FRS 102 paragraph 33.1A, in respect of not disclosing related party transactions between wholly owned group companies.

 

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

 

 

 

 

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

SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

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

 

All financial statements are made up to 31 August 2024.

 

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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. Turnover has been wholly derived from the group's principal activities.

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 other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Patents & licences
20% Straight line
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
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:

Freehold land and buildings
Not depreciated
Leasehold improvements
4% Straight line basis
Plant and equipment
15% Reducing balance basis
Fixtures and fittings
20% Straight line basis
Motor vehicles
25% Reducing balance basis

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.

No depreciation is provided in respect of freehold land and buildings because they are not complete and ready for use. On completion, freehold land and buildings are transferred to investment properties when the properties are substantially let and income-producing, and are then carried in the balance sheet at market valuation.

1.7
Fixed asset investments

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.

 

1.8
Impairment of fixed assets

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.

1.9
Stocks

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

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
1.11
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 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.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

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, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
1.12
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.

1.13
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.

1.14
Employee benefits

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

 

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

 

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

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

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

2
Judgements and key sources of estimation uncertainty

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.

SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Manufacture of specialist moulded products
6,364,806
7,074,672
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,620,166
5,582,409
Rest of Europe
1,076,451
983,402
Rest of World
668,189
508,861
6,364,806
7,074,672
2024
2023
£
£
Other revenue
Interest income
104,167
43,613
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange differences arising on operating activities
128
5,119
Depreciation of owned tangible fixed assets
94,270
100,703
Operating lease charges for plant and machinery
15,365
14,125
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
3,600
3,300
Audit of the financial statements of the company's subsidiaries
10,800
9,900
14,400
13,200
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
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
57
65
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,712,646
1,893,334
-
0
-
0
Social security costs
163,135
173,224
-
-
Pension costs
107,445
150,295
-
0
-
0
1,983,226
2,216,853
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services, paid by subsidiary companies
268,669
271,805
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
95,000
94,740
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
103,349
43,378
Other interest income
818
235
Total income
104,167
43,613
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
103,349
43,378
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
274,007
230,125
Adjustments in respect of prior periods
(50,748)
-
0
Total current tax
223,259
230,125
Deferred tax
Origination and reversal of timing differences
(21,789)
8,484
Total tax charge
201,470
238,609

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
1,383,938
1,380,589
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
345,985
297,034
Tax effect of expenses that are not deductible in determining taxable profit
1,233
4,737
Permanent capital allowances in excess of depreciation
-
(3,162)
Other permanent differences
(95,000)
(60,000)
Over provided in prior years
(50,748)
-
Taxation charge
201,470
238,609
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
1,000
2,000
11
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 September 2023 and 31 August 2024
1,750,000
Amortisation and impairment
At 1 September 2023 and 31 August 2024
1,750,000
Carrying amount
At 31 August 2024
-
0
At 31 August 2023
-
0
Company
Patents & licences
£
Cost
At 1 September 2023 and 31 August 2024
1,750,000
Amortisation and impairment
At 1 September 2023 and 31 August 2024
1,750,000
Carrying amount
At 31 August 2024
-
0
At 31 August 2023
-
0
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2023
1,085,089
140,722
1,589,226
220,334
62,488
3,097,859
Additions
67,609
-
0
4,305
1,580
-
0
73,494
At 31 August 2024
1,152,698
140,722
1,593,531
221,914
62,488
3,171,353
Depreciation and impairment
At 1 September 2023
-
0
1,332
1,135,089
173,176
33,614
1,343,210
Depreciation charged in the year
-
0
5,629
68,412
13,010
7,219
94,270
At 31 August 2024
-
0
6,961
1,203,500
186,186
40,833
1,437,480
Carrying amount
At 31 August 2024
1,152,698
133,761
390,031
35,728
21,655
1,733,873
At 31 August 2023
1,085,089
139,390
454,137
47,158
28,874
1,754,648
Company
Plant and equipment
£
Cost
At 1 September 2023 and 31 August 2024
120,683
Depreciation and impairment
At 1 September 2023
47,659
Depreciation charged in the year
10,953
At 31 August 2024
58,612
Carrying amount
At 31 August 2024
62,071
At 31 August 2023
73,024
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
200
200
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023 and 31 August 2024
200
Carrying amount
At 31 August 2024
200
At 31 August 2023
200
14
Subsidiaries

Details of the company's subsidiaries at 31 August 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Stirling Moulded Composites Limited
1 - Below
Ordinary
100.00
Wheal Leisure Limited
1 - Below
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Mentor House, Ainsworth Street, Blackburn, Lancashire, BB1 6AY

The following subsidiary is exempt from audit under section 479A of the Companies Act 2006 as the parent company has given a guarantee in respect of all outstanding liabilities at the subsidiary's financial year end:

 

Wheal Leisure Limited         11566360

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,637,054
1,491,661
-
-
Work in progress
187,586
10,525
-
-
Finished goods and goods for resale
210,488
549,926
-
0
-
0
2,035,128
2,052,112
-
-
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,093,113
1,173,033
-
0
-
0
Corporation tax recoverable
-
0
826
-
0
826
Amounts owed by group undertakings
-
-
2,372,799
2,006,968
Other debtors
170,600
170,600
170,000
170,000
Prepayments and accrued income
121,952
111,611
-
0
-
0
1,385,665
1,456,070
2,542,799
2,177,794

Other debtors includes an amount of £170,000 (2023 - £170,000) owed by a company under the common control of the directors.

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
207,911
390,626
-
0
-
0
Corporation tax payable
121,378
230,124
78,900
156,717
Other taxation and social security
231,152
116,510
37,148
33,910
Other creditors
10,719
8,873
1,000
2,000
Accruals and deferred income
72,116
97,442
5,940
9,000
643,276
843,575
122,988
201,627
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
18
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
143,897
165,686
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
15,518
18,256
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
165,686
18,256
Credit to profit or loss
(21,789)
(2,738)
Liability at 31 August 2024
143,897
15,518

 

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
107,445
150,295

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.

20
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 50p each
160
160
80
80
B Ordinary shares of 50p each
40
40
20
20
200
200
100
100
SMC MOULDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
21
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
136,384
133,066
-
-
Between two and five years
176,933
262,102
-
-
313,317
395,168
-
-
22
Controlling party

The company is under the control of the directors, by virtue of their shareholdings.

23
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,182,468
1,141,980
Adjustments for:
Taxation charged
201,470
238,609
Investment income
(104,117)
(43,613)
Depreciation
94,270
100,703
Movements in working capital:
Decrease/(increase) in stocks
16,984
(439,969)
Decrease/(increase) in debtors
69,403
(437,510)
Decrease in creditors
(91,553)
(35,264)
Cash generated from operations
1,368,925
524,936
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