Company registration number 02653692 (England and Wales)
SIMMS INTERNATIONAL PLC
Annual Report And Financial Statements
For The Year Ended 31 December 2024
Simms International Plc
SIMMS INTERNATIONAL PLC
Company Information
Directors
C Beaumont
R Guest
Mr AR Henderson
Mrs SJ Henderson
MH Whitby
Secretary
C Beaumont
Company number
02653692
Registered office
Chavereys Limited
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Auditor
Chavereys Limited
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Business address
Northdown Close
Northdown Business Park
Ashford Road
Lenham
Kent
England
ME17 2DL
Simms International Plc
SIMMS INTERNATIONAL PLC
Contents
Page
Strategic report
1 - 4
Directors' report
5 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 25
Simms International Plc
SIMMS INTERNATIONAL PLC
Strategic Report
For The Year Ended 31 December 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024. The directors aim to present a balanced and comprehensive review of the development and performance of the Company's business during the year and its position at the year end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the Company faces.
Review of the business
The results for the year and financial position of the Company are as shown in the annexed financial statements.
The priorities for the Company remain being focussed on maintaining a profitable trading position and ensuring the health and wellbeing of all colleagues, together with supporting future growth aspirations with investment into infrastructure.
The Company continues to seek opportunities in line with its vision of enabling its customers to manage data through world class memory and storage solutions.
The trading environment stabilised in 2024 and there was greater pricing stability throughout the period which helped create more predictability throughout the channel. The memory and storage manufacturers sought to balance supply and demand better, and this allowed confidence to be restored.
Partly as a result of these macro factors the company was able to enjoy a strong growth in revenue (33%) and gross profit (12.8%). The growth in revenue was specifically driven by enterprise SSD and server DRAM segments. There was increased demand on these products which helped to increase revenue of server and enterprise products significantly. This growth was partly offset by a decline in the industrial segment performance.
This growth resulted in a reduction in margin, declining from 15% in 2023 to 13% in 2024. There was also an increase in operating costs firstly, as a result of the market conditions, more inventory was held to take advantage of the pricing environment, predominantly during the first 3 quarters of the year. This had the impact of increasing borrowing costs as the company utilised it’s invoice discounting facility to purchase stock, resulting in higher interest payments. Secondly the company carried out anticipated investment in people and infrastructure. Specifically, the company looked to develop it’s commercial team to respond to the growing opportunity in higher margin customer segments.
The Company continued to experience challenges brought about by the ongoing political uncertainty globally, and continued inflationary pressure.
The Company remains committed to reducing its impact on the environment and is taking robust action to meet the objectives of the 2015 Paris Agreement and the UK’s Net Zero 2050 policy.
The current approach is to fully offset its annual emissions using verified UK-based offsets involving afforestation projects. This has been completed for 2019 to 2024, and therefore the Company was Carbon Net Zero in these years.
In the meantime, the Company will continue to implement annual decarbonisation action plans. The current focus is on energy efficiency and behaviour change, the electrification of heat and hot water, and the deployment of renewable energy.
The company is also evaluating applying for B Corp certification based on it’s strong focus and results in these areas.
The directors are extremely proud of the Company’s performance in 2024, given the huge amount of global uncertainty and external challenges that exist. The directors’ belief is that the Company’s performance continues to exceed that of its competitors, which is reflective of the Company’s close relationship with their key suppliers, trusted status with customers and skilled and committed workforce.
The Company’s board of directors continues to work closely with the Executive leadership team in developing and evolving its strategic business plan, ensuring strong governance and providing a platform to deliver consistent profitable growth.
Principal risks and uncertainties
The directors consider the principal risks faced by the Company to include the significant global political and economic uncertainty which could have destabilising effects on the company’s suppliers based on potential trade tariffs and technology policy shifts. There also remains liquidity risk, currency risk and credit risk set out below.
Simms International Plc
SIMMS INTERNATIONAL PLC
Strategic Report (Continued)
For The Year Ended 31 December 2024
- 2 -
Liquidity risk
The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The Company finances its operations through a mixture of retained profits together with additional funding being by means of secured bank borrowings against trade debtors and directors' loan.
Currency risk
The Company seeks to minimise its exposure to fluctuations in exchange rates by taking out forward currency contracts to hedge against foreign currency denominated commitments. The Company’s policy is to enter into forward currency contracts for all such commitments immediately those purchase commitments are made. At the year end all non-sterling purchase commitments were hedged by foreign currency contracts and currency balances held at bank.
Credit risk
The Company’s principal financial assets are trade debtors. The credit risk arising from these balances is mitigated by strict credit management and insurance cover.
The Company's policy throughout the period has been to monitor exposure to each of these risks through the directors’ and management's day to day control of the business.
Inventory risk
The Company has policies and procedures for managing its inventory, within the resources available to it, in line with anticipated movements in market supply and demand.
Future developments
The Company will continue to develop and grow the breadth of its information technology product and service offering in existing and new markets by the continued enhancement of its customer service facilities coupled with the continued improvement of its logistical operations.
Key performance indicators
The Company monitors financial key performance indicators to determine the progress and performance of the Company in relation to, inter alia, return on investment, working capital requirement, profitability, stock turn, debtor and creditor days and also non-financial key performance indicators in customer spread, book to bill ratios, stock availability for next day delivery and stock returns.
Simms International Plc
SIMMS INTERNATIONAL PLC
Strategic Report (Continued)
For The Year Ended 31 December 2024
- 3 -
Other information and explanations
Engagement with employees
The Company is committed to keeping employees informed of its performance, development and progress through its established system of appraisals by management and widely distributed news and information bulletins.
Disabled employees
The Company’s aim is to meet the objectives of the code of good practice on the employment of disabled people. Full and fair consideration is given to disabled applicants for employment and training, and career development is encouraged on the basis of their aptitude and abilities. It remains Company policy to retain employees who become disabled whilst in its service and to provide specialised training where appropriate.
Engagement with suppliers, customers and others
During the period the Company worked extensively to strengthen its supplier and customer relationships, as ensuring that the Company maintains an efficient and effective supply chain is critical to its long term success.
Customer retention was improved across our customer segments through careful relationship and investment in customer experience, and the Company continues to build on its business relationships in all areas; to promote best practice, increase efficiencies, and secure long term, sustainable success.
Post balance sheet events
There have been no significant events affecting the Company since the year end.
Directors' statement of compliance with duty to promote the success of the Company
This statement is intended by the Board of Directors to set out how they have approached and met their responsibilities under s172(1)(a) to (f) of the Companies Act 2006 in the financial period ending 31 December 2024.
Stakeholders of the Company include employees, shareholders, customers, suppliers, creditors of the business and the community in which it operates.
The directors’, both individually and collectively, consider that they have acted in good faith to promote the success of the Company for the benefit of its stakeholders as a whole (having regard to the matters set out in s172 of the Act) in the decisions taken during the period. In particular:
To ensure the Board take account of the likely consequences of their decisions in the long term, they receive regular and timely information on all the key areas of the business including financial performance, operational matters, health & safety, environmental reports, risks and opportunities - all supported by Key Performance Indicators (KPIs). The Company's performance and progress is also reviewed regularly at Board and senior management meetings.
The Company’s employees are fundamental to the success of the business. The directors understand that it is critical to engage with and understand their views and to ensure that all employees’ interests are considered. To strengthen employee engagement, the directors’ promote and encourage all employees to raise any concerns or suggestions with senior management without hesitation. During the period, the Company continued to invest in its departmental resources and I.T infrastructure to further support and enhance the working environment for its employees.
The Company's customers and suppliers are also fundamental to the success of the business and as a leading supplier of information technology products in the UK, it is essential that the Company maintains its reputation for high quality product, sustainability and high standards of business conduct. The Company strives to continually improve and strengthen its supply chain, products and customer service for the mutual benefit of all of its stakeholders.
The directors take environmental matters into deep consideration as part of their decision-making process and strive to be a responsible member of the local and wider community, minimising the Company’s impact on the environment wherever possible, and working hard to help their own customers reduce their impact too.
The directors’ intentions are to behave responsibly toward all stakeholders and treat them fairly and equally, so that they all benefit from the long-term success of the Company.
The directors’ have overall responsibility for determining the Company’s purpose, values and strategy and for ensuring high standards of governance. The primary aim of the directors’ is to promote the long-term sustainable success of the Company, generating value for stakeholders and contributing to the wider society. Throughout 2025, the Board will continue to review and challenge how the company can improve engagement with its employees and other stakeholders.
Simms International Plc
SIMMS INTERNATIONAL PLC
Strategic Report (Continued)
For The Year Ended 31 December 2024
- 4 -
Mr AR Henderson
Director
16 June 2025
Simms International Plc
SIMMS INTERNATIONAL PLC
Directors' Report
For The Year Ended 31 December 2024
- 5 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the supply of computer software.
Results and dividends
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £120,000. 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:
C Beaumont
R Guest
Mr AR Henderson
Mrs SJ Henderson
MH Whitby
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Electricity purchased
38,526
31,837
- Fuel consumed for transport
14,979
16,430
53,505
48,267
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Fuel consumed for owned transport
1.67
1.67
1.67
1.67
Scope 2 - indirect emissions
- Electricity purchased
10.60
8.75
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
2.78
2.92
Total gross emissions
15.05
13.34
Intensity ratio
Tonnes of CO2e per employee
0.47
.42
Quantification and reporting methodology
The methodology underlying this report was the Greenhouse Gas (GHG) Protocol Corporate Standards. This summary is based on the mandatory requirements of HM Government Environmental Reporting Guidelines including Streamlined Energy and Carbon Reporting (SECR) guidance, March 2019.
All emissions were calculated using the UK Government emissions factors for the corresponding year.
Simms International Plc
SIMMS INTERNATIONAL PLC
Directors' Report (Continued)
For The Year Ended 31 December 2024
- 6 -
Intensity measurement
The GHG intensity of our operations for the year was 0.47 tCO2e / employee.
Calculated as: electricity + Scope 1 and 3 business travel emissions / employees as disclosed in the financial statements.
Measures taken to improve energy efficiency
The business has solar PV panels which have avoided 22,042 kWh of grid power. The annual electricity demand has increased year-on-year by 21%. This is primarily due to increased EV charging.
Fuel for transport remains static due to the use of a single remaining fleet vehicle. In general there has been a shift from ICE vehicles to EVs for business use, hence the increase in the consumption of grid electricity.
We annually compile a comprehensive Scope 1, 2 and 3 emissions inventory in line with the GHG Protocol to track our progress in managing GHG emissions.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr AR Henderson
Director
16 June 2025
Simms International Plc
SIMMS INTERNATIONAL PLC
Directors' Responsibilities Statement
For The Year Ended 31 December 2024
- 7 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Simms International Plc
SIMMS INTERNATIONAL PLC
Independent Auditor's Report
To The Members Of Simms International Plc
- 8 -
Opinion
We have audited the financial statements of Simms International Plc (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Simms International Plc
SIMMS INTERNATIONAL PLC
Independent Auditor's Report
To The Members Of Simms International Plc (Continued)
- 9 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing the inherent limitations of an audit, there is an unavoidable risk that material misstatements in in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedure included the following:
We obtained an understanding of the legal and regulatory frameworks applicable to Simms International Plc and the sector in which they operate. We determined that the following laws and regulations were most significant: Companies Act 2006, UK corporate tax laws, health and safety laws and employment law.
Identifying and assess the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgment made by management in its significant accounting estimates;
Identifying and testing journal entries, in particular any journal entries posted at unexpected times and by unauthorised persons ;and
Assessing the extent of compliance with the relevant laws and regulations.
Simms International Plc
SIMMS INTERNATIONAL PLC
Independent Auditor's Report
To The Members Of Simms International Plc (Continued)
- 10 -
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.
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.
Iain D Morris FCA
Senior Statutory Auditor
For and on behalf of Chavereys Limited
23 June 2025
Chartered Accountants
Statutory Auditor
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Simms International Plc
SIMMS INTERNATIONAL PLC
Statement Of Comprehensive Income
For The Year Ended 31 December 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
29,126,865
21,916,075
Cost of sales
(24,830,524)
(17,931,331)
Gross profit
4,296,341
3,984,744
Distribution costs
(784,282)
(1,011,440)
Administrative expenses
(2,872,355)
(2,229,420)
Other operating income
1,400
Operating profit
4
641,104
743,884
Interest payable and similar expenses
8
(107,464)
(40,905)
Profit before taxation
533,640
702,979
Tax on profit
9
(158,348)
(190,608)
Profit for the financial year
375,292
512,371
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Simms International Plc
SIMMS INTERNATIONAL PLC
Balance Sheet
As At 31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
179,123
231,549
Tangible assets
12
373,678
259,956
Investments
13
60,295
60,295
613,096
551,800
Current assets
Stocks
15
2,459,403
3,325,832
Debtors
16
4,743,663
4,255,329
Cash at bank and in hand
107,978
86,553
7,311,044
7,667,714
Creditors: amounts falling due within one year
17
(3,326,917)
(3,897,560)
Net current assets
3,984,127
3,770,154
Total assets less current liabilities
4,597,223
4,321,954
Creditors: amounts falling due after more than one year
18
(60,295)
(60,295)
Provisions for liabilities
Deferred tax liability
20
80,981
61,004
(80,981)
(61,004)
Net assets
4,455,947
4,200,655
Capital and reserves
Called up share capital
22
50,000
50,000
Capital redemption reserve
50,000
50,000
Profit and loss reserves
4,355,947
4,100,655
Total equity
4,455,947
4,200,655
The financial statements were approved by the board of directors and authorised for issue on 16 June 2025 and are signed on its behalf by:
Mr AR Henderson
Director
Company registration number 02653692 (England and Wales)
Simms International Plc
SIMMS INTERNATIONAL PLC
Statement Of Changes In Equity
For The Year Ended 31 December 2024
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
50,000
50,000
3,717,284
3,817,284
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
512,371
512,371
Dividends
10
-
-
(129,000)
(129,000)
Balance at 31 December 2023
50,000
50,000
4,100,655
4,200,655
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
375,292
375,292
Dividends
10
-
-
(120,000)
(120,000)
Balance at 31 December 2024
50,000
50,000
4,355,947
4,455,947
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements
For The Year Ended 31 December 2024
- 14 -
1
Accounting policies
Company information
Simms International Plc is a private company limited by shares incorporated in England and Wales. The registered office is Chavereys Limited, The Goods Shed, Jubilee Way, Faversham, Kent, England, ME13 8GD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Rorke Holdings Limited. These consolidated financial statements are available on Companies House.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
1.5
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 improvements
20% straight line
Plant and equipment
10%-33% straight line, 20% reducing balance
Motor vehicles
33% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company 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.
1.8
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.
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, 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.
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
1
Accounting policies
(Continued)
- 16 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
1
Accounting policies
(Continued)
- 17 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
1
Accounting policies
(Continued)
- 18 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
The company is able to raise finance secured against approved trade debtors. On the basis that the benefits and risks attaching to the debts remain with the Company, a separate presentation has been adopted. On this basis the gross debts are included as an asset within the trade debtors and the proceeds received are included within bank loans and overdrafts as a liability.
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
25,154,984
20,085,382
Rest of Europe
2,524,012
1,342,472
Rest of World
1,447,869
488,221
29,126,865
21,916,075
2024
2023
£
£
Other revenue
Grants received
1,400
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(1,400)
-
Depreciation of owned tangible fixed assets
141,914
100,056
Profit on disposal of tangible fixed assets
(17,978)
-
Amortisation of intangible assets
52,426
52,426
Operating lease charges
99,000
71,004
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,850
20,500
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
- 20 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
13
12
Administration
17
17
Marketing
2
3
Total
32
32
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,898,894
1,604,742
Social security costs
212,596
184,189
Pension costs
170,886
20,985
2,282,376
1,809,916
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
191,903
199,441
Company pension contributions to defined contribution schemes
120,000
-
311,903
199,441
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
107,428
40,905
Other interest on financial liabilities
36
107,464
40,905
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
138,371
178,215
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
9
Taxation
2024
2023
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
19,977
12,393
Total tax charge
158,348
190,608
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
533,640
702,979
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
133,410
165,341
Tax effect of expenses that are not deductible in determining taxable profit
11,800
11,339
Tax effect of income not taxable in determining taxable profit
(4,495)
Depreciation on assets not qualifying for tax allowances
649
Enhanced capital allowances
3,265
(24)
Other differences leading to an increase/ (decrease) in the tax charge
1,261
239
Change in tax rate
733
Non-tax deductible amortisation of goodwill and impairment
13,107
12,331
Taxation charge for the year
158,348
190,608
10
Dividends
2024
2023
£
£
Final paid
120,000
129,000
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
- 22 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,048,522
Amortisation and impairment
At 1 January 2024
816,973
Amortisation charged for the year
52,426
At 31 December 2024
869,399
Carrying amount
At 31 December 2024
179,123
At 31 December 2023
231,549
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
174,123
509,469
232,456
916,048
Additions
20,340
156,063
79,588
255,991
Disposals
(5,339)
(23,000)
(28,339)
At 31 December 2024
194,463
660,193
289,044
1,143,700
Depreciation and impairment
At 1 January 2024
111,584
426,560
117,948
656,092
Depreciation charged in the year
18,786
72,748
50,380
141,914
Eliminated in respect of disposals
(5,339)
(22,645)
(27,984)
At 31 December 2024
130,370
493,969
145,683
770,022
Carrying amount
At 31 December 2024
64,093
166,224
143,361
373,678
At 31 December 2023
62,539
82,909
114,508
259,956
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
60,295
60,295
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
- 23 -
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Jactron Limited
Northdown Close, Northdown Business Park, Ashford Road, Lenham, Kent, ME17 2DL
Ordinary
100.00
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,459,403
3,325,832
An impairment charge of £3,738 (2023: charge of £3,892) was recognised in cost of sales against stock during the year due to slow-moving stock.
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,409,947
3,937,970
Other debtors
142,746
227,498
Prepayments and accrued income
190,970
89,861
4,743,663
4,255,329
The Company is able to raise finance secured against approved trade debtors. The gross amount of the debts which were discounted at 31 December 2024 is £3,491,120 (2023: £3,612,349). The company has had a proportion of its debtors advanced by Lloyds Bank Plc which, including charges, totals £186,816 and is included in bank loans and overdrafts (2023: £612,042)
An impairment loss of £8,824 (2023: gain of £12,709) was recognised against trade debtors.
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
131,609
612,042
Trade creditors
2,196,561
2,516,368
Corporation tax
138,371
178,215
Other taxation and social security
574,454
248,230
Other creditors
19,235
808
Accruals and deferred income
266,687
341,897
3,326,917
3,897,560
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
- 24 -
18
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
60,295
60,295
19
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
131,609
612,042
Payable within one year
131,609
612,042
The invoice discounting facility, included within bank overdrafts, is secured by a fixed and floating charge over the assets of the Company.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
80,981
61,004
2024
Movements in the year:
£
Liability at 1 January 2024
61,004
Charge to profit or loss
19,977
Liability at 31 December 2024
80,981
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
170,886
20,985
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Simms International Plc
SIMMS INTERNATIONAL PLC
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2024
- 25 -
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
50,000
50,000
50,000
50,000
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
81,990
80,528
Between two and five years
235,852
293,044
In over five years
335,932
336,792
653,774
710,364
24
Related party transactions
During the year, the Company had transactions on an arm's length basis of £92,344 (2023: £53,000) to a company self administered pension scheme, a fund in which certain Directors are beneficiaries. At the year end, a balance of £47,552 (2023: £6,641) was due to the company.
At the year end, a balance of £21,168 (2023: £Nil) was due from a company under common control.
During the year, the Company paid consultancy fees to a Director, of £68,520 (2022: £39,101). This is included within Directors' remuneration. At the year end, £Nil (2023: £6,905) was due from the company.
During the year, the Company paid consultancy fees to AWP Associates Limited for the services of a Director, of £9,729 (2023: £32,260). This is included within Directors' remuneration.
At the year end, a balance £30,615 (2023: £15,033) was due to directors of the company.
During the year, aggregate remuneration of £16,060 was paid to close family of a related party. A balance of £1,140 (2023: £1,140) was due to the company at the year end.
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100R GuestMr AR HendersonMrs SJ HendersonMH WhitbyM H WhitbyC Beaumont026536922024-01-012024-12-3102653692bus:CompanySecretaryDirector12024-01-012024-12-3102653692bus:Director12024-01-012024-12-3102653692bus:Director22024-01-012024-12-3102653692bus:Director32024-01-012024-12-3102653692bus:Director42024-01-012024-12-3102653692bus:CompanySecretary12024-01-012024-12-3102653692bus:Director52024-01-012024-12-3102653692bus:RegisteredOffice2024-01-012024-12-31026536922024-12-31026536922023-01-012023-12-3102653692core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3102653692core:RetainedEarningsAccumulatedLosses2024-01-012024-12-3102653692core:Goodwill2024-12-3102653692core:Goodwill2023-12-31026536922023-12-3102653692core:LeaseholdImprovements2024-12-3102653692core:PlantMachinery2024-12-3102653692core:MotorVehicles2024-12-3102653692core:LeaseholdImprovements2023-12-3102653692core:PlantMachinery2023-12-3102653692core:MotorVehicles2023-12-3102653692core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3102653692core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3102653692core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3102653692core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3102653692core:CurrentFinancialInstruments2024-12-3102653692core:CurrentFinancialInstruments2023-12-3102653692core:ShareCapital2024-12-3102653692core:ShareCapital2023-12-3102653692core:CapitalRedemptionReserve2024-12-3102653692core:CapitalRedemptionReserve2023-12-3102653692core:RetainedEarningsAccumulatedLosses2024-12-3102653692core:RetainedEarningsAccumulatedLosses2023-12-3102653692core:ShareCapital2022-12-3102653692core:CapitalRedemptionReserve2022-12-3102653692core:RetainedEarningsAccumulatedLosses2022-12-3102653692core:ShareCapitalOrdinaryShareClass12024-12-3102653692core:ShareCapitalOrdinaryShareClass12023-12-3102653692core:Goodwill2024-01-012024-12-3102653692core:LeaseholdImprovements2024-01-012024-12-3102653692core:PlantMachinery2024-01-012024-12-3102653692core:MotorVehicles2024-01-012024-12-3102653692core:UKTax2024-01-012024-12-3102653692core:UKTax2023-01-012023-12-310265369212024-01-012024-12-310265369212023-01-012023-12-310265369222024-01-012024-12-310265369222023-01-012023-12-310265369232024-01-012024-12-310265369232023-01-012023-12-310265369242024-01-012024-12-310265369242023-01-012023-12-310265369252024-01-012024-12-310265369252023-01-012023-12-3102653692core:Goodwill2023-12-3102653692core:LeaseholdImprovements2023-12-3102653692core:PlantMachinery2023-12-3102653692core:MotorVehicles2023-12-31026536922023-12-3102653692core:Non-currentFinancialInstruments2024-12-3102653692core:Non-currentFinancialInstruments2023-12-3102653692core:Subsidiary12024-01-012024-12-3102653692core:Subsidiary112024-01-012024-12-3102653692bus:OrdinaryShareClass12024-01-012024-12-3102653692bus:OrdinaryShareClass12024-12-3102653692bus:OrdinaryShareClass12023-12-3102653692core:WithinOneYear2024-12-3102653692core:WithinOneYear2023-12-3102653692core:BetweenTwoFiveYears2024-12-3102653692core:BetweenTwoFiveYears2023-12-3102653692core:MoreThanFiveYears2024-12-3102653692core:MoreThanFiveYears2023-12-3102653692bus:PrivateLimitedCompanyLtd2024-01-012024-12-3102653692bus:FRS1022024-01-012024-12-3102653692bus:Audited2024-01-012024-12-3102653692bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP