| REGISTERED NUMBER: |
| WILFRID SMITH LIMITED |
| UNAUDITED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| REGISTERED NUMBER: |
| WILFRID SMITH LIMITED |
| UNAUDITED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Balance Sheet | 2 |
| Notes to the Financial Statements | 4 |
| WILFRID SMITH LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| ACCOUNTANTS: |
| Chartered Certified Accountants and |
| Chartered Tax Advisers |
| Broad House |
| 1 The Broadway |
| Old Hatfield |
| Hertfordshire |
| AL9 5BG |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| BALANCE SHEET |
| 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 4 |
| CURRENT ASSETS |
| Stocks |
| Debtors | 5 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 6 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
7 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital |
| Retained earnings |
| The directors acknowledge their responsibilities for: |
| (a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
| (b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| BALANCE SHEET - continued |
| 31 DECEMBER 2024 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Wilfrid Smith Limited is a |
| 2. | ACCOUNTING POLICIES |
| 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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied, other than where additional disclosure is required to show a true and fair view. |
| 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. |
| Going concern |
| The directors have a reasonable expectation that the company will continue to operate for the foreseeable future and so these financial statements are prepared on the going concern basis. |
| Significant judgements and estimation uncertainty |
| The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
| In preparing these financial statements, the company's critical accounting judgements and estimates are in respect of the anticipated movements in foreign exchange rates, the impairment of assets, the net realisable value of stock, the depreciation rates for fixed assets and the recoverability of amounts owed by customers. Details of these judgements and estimates are described in the relevant accounting policy, the notes to the financial statements and below: |
| - In assessing the net realisable value of the company's stocks. Factors taken into consideration in reaching a decision include knowledge of the sales value in the previous year and forecasts for the coming year. |
| - In determining the depreciation rates of tangible fixed assets, which are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessment considers issues such as future market conditions, the remaining life of the asset and projected disposal values. |
| - In estimating the recoverability of amounts owed by customers. The directors' best estimate is based on the period the debt has been outstanding and the difficulties experienced and anticipated in pursuing collection. |
| Estimates and judgements include the likely outcome of future events; these are made after reviewing historical data and assessing all other pertinent information. |
| It is possible that new information could come to light that might result in material adjustments to the items above. |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Impairment of fixed assets |
| At the end of each reporting period, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered impairment. 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. |
| Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
| If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss. |
| Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the lower of: |
| a. the revised estimate of its recoverable amount; and |
| b. the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. |
| A reversal of an impairment loss is recognised immediately in profit or loss. |
| Revenue recognition |
| Turnover represents invoiced sales of raw materials and chemicals and is recognised when goods are shipped or, in the case of consignment stock, when stock held by customers is used. Turnover is recorded at the fair value of the consideration received or receivable, and excludes value added tax and rebates. |
| Tangible fixed assets |
| Plant and machinery etc | - |
| Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
| 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. |
| Cash at bank and in hand |
| Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks. |
| Stocks |
| Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| 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, 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. |
| Taxation |
| The income tax expense is the aggregate of tax currently payable and deferred tax. |
| The tax currently payable is based on the taxable profits of the year. Taxable profits differ from the profits reported in the statement of comprehensive income because of (a) items of income or expense that are taxable or deductible in other years and (b) 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 end of the reporting period. |
| Deferred tax is recognised on timing differences that have originated but not reversed by the balance sheet date. Typically, timing differences arise when tax relief is claimed in one period but the related expenditure is charged to profit in another period. Deferred tax assets and liabilities are recorded at the tax rates that are expected to apply in the period in which the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Employee benefits |
| Short-term employee benefits are recognised as expenses in the period in which they are incurred. |
| Obligations for contributions to defined contribution schemes are recognised as expenses in the period in which they are incurred. The assets of these schemes are held separately from those of the company in independently administered funds. |
| Leasing assets |
| Operating leases, which are leases that do not transfer substantially all the risks and rewards of ownership to the company, are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Measurement of financial instruments |
| Trade and other debtors |
| Trade and other debtors are recognised initially at the transaction value and thereafter at transaction value less provisions for bad and doubtful debts. If the effect of discounting is material, the debtor is stated at its amortised value using the effective interest method, less provisions for bad and doubtful debts. |
| Trade and other creditors |
| Trade and other creditors are recognised initially at the transaction value unless the effect of discounting is material, in which case they are stated at their amortised value using the effective interest method. |
| Interest-bearing borrowings |
| Interest-bearing borrowings are recognised initially at the transaction value, plus attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at their amortised value, using the effective interest method, with any difference between the amount initially recognised and the redemption value taken to the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable. |
| 3. | EMPLOYEES AND DIRECTORS |
| The average number of employees during the year was |
| 4. | TANGIBLE FIXED ASSETS |
| Plant and |
| machinery |
| etc |
| £ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| 6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Amounts owed to group undertakings |
| Taxation and social security |
| Other creditors |
| 7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Amounts owed to group undertakings |
| Other creditors |
| 8. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| 9. | PENSION COMMITMENTS |
| The company contributes to a group personal pension scheme and an individual self-invested personal pension scheme; in both cases, the obligation to pay benefits is restricted to the value of the funds in the scheme. Pension contributions of £74,150 (2023: £27,458) were payable for the year and £nil (2023: £nil) were owed at the balance sheet date. |
| 10. | OTHER FINANCIAL COMMITMENTS |
| The company has provided a bank guarantee of £120,000 (2023: £120,000) to HM Customs & Excise in respect of its duty-deferment arrangements; the guarantee is secured by a fixed and floating charge over the company's assets. |
| WILFRID SMITH LIMITED (REGISTERED NUMBER: 01162403) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 11. | RELATED PARTY DISCLOSURES |
| During the year, the Company: |
| i) paid aggregate emoluments of £231,853 (2023: £232,385) to its directors; |
| ii) borrowed £67,616 (2023: £307,543 ) from two of its officers; |
| iii) paid management fees of £130,000 (2023: £140,000) to its parent company; and |
| iv) borrowed £99,856 from (2023: repaid £345,226 to) its parent company. |
| At the balance sheet date, the Company: |
| i) owed £1,814,873 (2023: £1,747,257) to two officers. This loan is unsecured and, save for £1.5m which is not repayable within twelve months of the balance sheet date, is repayable on demand. Interest payable on the loan varies; in the current year, interest of £182,000 (2023: £167,000) was charged, being a rate of 10% pa; and |
| ii) owed £1,537,281 (2023: £1,437,425) to its parent company; this loan is unsecured and interest-free. There are no terms as to the repayment of this loan, other than £1,300,000 is not repayable within twelve months of the balance sheet date. |