Company registration number 04970933 (England and Wales)
S M Contracts Limited
Financial Statements
for the Year Ended 30 September 2024
Pages for filing with Registrar
S M Contracts Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 8
S M Contracts Limited
Balance Sheet
as at 30 September 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
62,577
170,661
Tangible assets
4
114,667
162,818
177,244
333,479
Current assets
Stocks
2,027,990
1,717,798
Debtors
5
2,443,613
2,117,786
Cash at bank and in hand
718,779
879,826
5,190,382
4,715,410
Creditors: amounts falling due within one year
6
(2,365,684)
(2,174,655)
Net current assets
2,824,698
2,540,755
Total assets less current liabilities
3,001,942
2,874,234
Creditors: amounts falling due after more than one year
7
(60,000)
(142,226)
Provisions for liabilities
(23,344)
(39,728)
Net assets
2,918,598
2,692,280
Capital and reserves
Called up share capital
471,590
471,590
Share premium account
446,590
446,590
Profit and loss reserves
2,000,418
1,774,100
Total equity
2,918,598
2,692,280

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 10 July 2025 and are signed on its behalf by:
Mr D M Smith
Director
Company registration number 04970933 (England and Wales)
S M Contracts Limited
Notes to the  Financial Statements
for the Year Ended 30 September 2024
- 2 -
1
Accounting policies
Company information

S M Contracts Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pepys Court, 84 The Chase, London, SW4 0NF.

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 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.

1.2
Turnover

Turnover represents the total invoice value, excluding value added tax, of sales made during the year. In respect of uninvoiced work in progress, revenue is recognised when and to the extent that a right to consideration in exchange for contractual performance is obtained.

1.3
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.4
Intangible fixed assets - goodwill

Acquired goodwill for which the useful economic life cannot be reliably measured, is written off in equal annual instalments over the maximum permitted period of ten years.

1.5
Intangible fixed assets other than goodwill

Other intangible assets are comprised of development costs.

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:

Development Costs
10% straight line
1.6
Tangible fixed assets

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

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

Leasehold improvements
Straight line over the life of the lease
Fixtures, fittings & equipment
25% reducing balance or 10% straight line
Motor vehicles
25% 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.

S M Contracts Limited
Notes to the  Financial Statements (continued)
for the Year Ended 30 September 2024
1
Accounting policies
(continued)
- 3 -
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

Work in progress is valued at the excess of recoverable costs over the value of sales invoices raised. Costs comprise the value of goods allocated to contracts from stock and labour hours spent at their appropriate charge out rates, less any provision for losses on contracts in progress.

1.9
Cash at bank and in hand

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.

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.

S M Contracts Limited
Notes to the  Financial Statements (continued)
for the Year Ended 30 September 2024
1
Accounting policies
(continued)
- 4 -
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.11
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.

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.

1.12
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.

S M Contracts Limited
Notes to the  Financial Statements (continued)
for the Year Ended 30 September 2024
1
Accounting policies
(continued)
- 5 -
1.13
Retirement benefits

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

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

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

2024
2023
Number
Number
Total
70
66
S M Contracts Limited
Notes to the  Financial Statements (continued)
for the Year Ended 30 September 2024
- 6 -
3
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
1,797,481
138,990
1,936,471
Amortisation and impairment
At 1 October 2023
1,703,273
62,537
1,765,810
Amortisation charged for the year
94,188
13,896
108,084
At 30 September 2024
1,797,461
76,433
1,873,894
Carrying amount
At 30 September 2024
20
62,557
62,577
At 30 September 2023
94,208
76,453
170,661
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2023
253,917
790,441
1,044,358
Additions
19,041
8,830
27,871
At 30 September 2024
272,958
799,271
1,072,229
Depreciation and impairment
At 1 October 2023
229,100
652,440
881,540
Depreciation charged in the year
11,263
64,759
76,022
At 30 September 2024
240,363
717,199
957,562
Carrying amount
At 30 September 2024
32,595
82,072
114,667
At 30 September 2023
24,817
138,001
162,818
S M Contracts Limited
Notes to the  Financial Statements (continued)
for the Year Ended 30 September 2024
- 7 -
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,067,506
826,011
Amounts owed by group undertakings
1,329,345
1,106,345
Other debtors
46,762
185,430
2,443,613
2,117,786
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
80,000
80,000
Trade creditors
374,358
477,034
Taxation and social security
722,318
418,108
Other creditors
1,189,008
1,199,513
2,365,684
2,174,655
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
60,000
140,000
Other creditors
-
0
2,226
60,000
142,226

Amounts due on hire purchase agreements are secured against the associated assets. Bank loans are secured by an unlimited debenture over the assets of the company.

8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Mark Charlton FCA
Statutory Auditor:
Charlton & Co
Date of audit report:
10 July 2025
S M Contracts Limited
Notes to the  Financial Statements (continued)
for the Year Ended 30 September 2024
- 8 -
9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
1,670,116
251,073
10
Parent company

The company is a wholly owned subsidiary of SMC Holdings (UK) Limited, whose registered office is at Pepys Court, 84 The Chase, London, SW4 0NF; and who also prepare consolidated financial statements which include the results of the company.

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