Company registration number 13013081 (England and Wales)
SMC HOLDINGS (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
SMC HOLDINGS (UK) LIMITED
COMPANY INFORMATION
Directors
Mr R H Courtenay
Mr G A Harper
Mr S P Moore
Mr D M Smith
Mr K Wilton
Company number
13013081
Registered office
Pepys Court
84 The Chase
London
SW4 0NF
Auditor
Charlton and Co.
Saville Chambers
4 Saville Street
South Shields
Tyne & Wear
NE33 2PR
SMC HOLDINGS (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 34
SMC HOLDINGS (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

 

Group structure

SMC Holdings (UK) Limited was formed in November 2020 to be the holding company in the Group. S M Contracts Limited is presently the only trading subsidiary in the Group.

 

The Group is controlled by the senior management team who are all shareholders and have each been with the business for at least twenty years.

Review of the business

The subsidiary has been trading (as S M Contracts Limited (“SMC”)) for around 29 years and is one of the leading integration companies in the UK, designing, delivering and maintaining projects internationally. The business works closely with clients, architects, designers, consulting engineers and developers to bring together complex electronic systems into integrated, easy-to-use solutions. Its services bring together the most appropriate solutions, technically and aesthetically, in the areas of lighting and climate control, security, entertainment systems and control technologies in the residential, commercial and hospitality sectors.

 

The business has delivered a solid performance in the financial year, in spite of continuing challenges with high interest rates and global inflation in the period. This saw many projects delayed in the market as development costs increased. As a result of these headwinds, although revenue was up by around 10% year-on-year, higher-than-expected increases in material and labour costs impacted on gross profit, which increased by only 1.6% year-on-year. In spite of these difficult trading conditions, the strength of the SMC brand and its reputation for excellence in the delivery of its services has enabled the Group to reinforce and extend its market-leading position, as a result of which the subsidiary continues to be able to maintain a pipeline of new work in excess of that required to support its forecast growth.

 

The subsidiary derives much of its new business through referral and has continued to invest in acquiring new strategic relationships within the wider construction industry and building-related professional services professions, as well as in strengthening those relationships that already exist. This focus on interaction with and reliable support for third party client services teams continues to deliver very-high-quality client and project referrals.

 

The directors are satisfied that the Group is investing appropriately to ensure that it maintains its market-leading technological expertise and continues to have access to the assets and resources required to design and deliver the very best solutions for its clients. The directors maintain a clear focus on ensuring that the Group targets the highest quality projects, providing opportunities for all employees to engage in stimulating work, whilst developing their knowledge and experience in a strongly supportive, team-focussed environment.

SMC HOLDINGS (UK) LIMITED
STRATEGIC REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Principal risks and uncertainties

Economic and Geopolitical Risk

In spite of significant economic headwinds, including the continuing war in Ukraine, the war in Gaza, high interest rates and inflation, as well as a continuing Global supply chain crisis, the directors are pleased to report that the Group has been able to win and deliver a substantial volume of work in the period and healthy revenue and gross profit levels have been maintained.

 

The Group is aware of the risks associated with any breach of sanctions imposed on Russian or Ukrainian nationals and the directors ensure that appropriate professional advice is taken whenever appropriate.

 

Liquidity risk

The Group typically has a large number of projects underway at any one time, each with their own purchasing and invoicing profiles. The Group’s cashflow can be variable, therefore, depending on the mix of types of project and their individual cashflow cycles. This variability is more pronounced on larger, longer-term projects and the Group continues to operate a strategy of committing to early purchases of materials, in order to combat the impact of inflation and supply chain shortages, which can at times further tighten cash flow.

 

The directors are satisfied that the Group manages its cash and borrowing requirements to ensure that it has sufficient liquidity to meet its operational needs.

 

Technology

The directors recognise that the Group’s business activities involve engagement with and delivery of the most recently evolving technological trends. The directors promote a culture in which the Group’s employees are supported to engage fully with technological changes in their areas of expertise and the Group invests significantly in order to maintain a competitive advantage in this area.

 

People

The directors recognise that the Group’s people are its most valuable asset. As the Group continues to grow, attracting, developing, motivating and retaining its people is vital to its continued success. The directors actively and regularly engage with staff at every level of the business and promote and encourage their personal and professional development. The directors are proud of the Group’s training and development initiatives and levels of staff turnover remain both extremely low and well below industry averages.

Financial Position

The directors consider the value of the Group’s future order book, cash balances and earnings before interest, taxation, depreciation and amortisation (EBITDA) to be its key measures of financial performance.

 

The directors regularly review the confirmed order book of the Group and are satisfied that, as of the date of this report it supports the requirements of the business for no less than 18 months.

 

The Directors are satisfied that the Group, at all times, maintains a level of cash, which enables it to meet its payment obligations as they fall due, whilst maintaining appropriate cash reserves.

 

The EBITDA for the group for the period was £933,065 (2023 - £1,002,080).

 

The Group’s financial position continues to strengthen in line with the expectations of the directors.

SMC HOLDINGS (UK) LIMITED
STRATEGIC REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

On behalf of the board

Mr D M Smith
Director
10 July 2025
SMC HOLDINGS (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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

Principal activities

SMC Holdings (UK) Limited acts as a holding company.

 

The principal activity of the trading subsidiary is the provision of consultancy, design, supply, installation, programming, commissioning and aftercare services; of lighting, climate control, security and entertainment systems and integrated control technologies in the residential, commercial and hospitality markets.

 

The company was formed on 12th November 2020 and commenced trading on 23rd December 2020.

Results and dividends

The results for the year are set out on page 10.

No interim dividends were paid in the period. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R H Courtenay
Mr G A Harper
Mr S P Moore
Mr D M Smith
Mr K Wilton
Financial instruments
Treasury operations and financial instruments

The company's operations expose it to a variety of financial risks including the effect of changes in foreign currency exchange rates and interest rates, credit risk and liquidity risk.

 

The company does not have material exposure in any of these areas as identified above and, consequently, does not use derivative instruments to manage these exposures.

 

The company's principal financial instruments comprise sterling bank deposits, together with trade debtors and trade creditors that arise directly from its operations, as well as loan finance agreements.

 

The main risks arising from the company's financial instruments can be analysed as follows:

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company has a number of debt instruments and loans in place, all of which have fixed interest terms, thus reducing the company's exposure to changes in interest rates.

Credit risk

The company's activities expose it to normal levels of credit risk. To counter this, trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. The company has set policies on when debts will be referred to debt collection agencies or pursued via solicitors.

SMC HOLDINGS (UK) LIMITED
DIRECTORS' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Future developments

The directors remain optimistic that the growth trajectory of the business will continue to mean that the Group will meet or exceed its investment objectives. The business' core prime and super-prime residential market continues to be strong and the business is maintaining its track record in winning larger and more valuable projects. Since the end of the 2024 Financial Year, new UK Government policies in relation to the taxation of high-net-worth, non-domiciled UK residents have meant that the Group has seen an increase in the number of clients seeking to work with the Group on projects in mainland Europe and elsewhere in the World, rather than in the UK and the board is working to redefine the Group’s strategic objectives in line with these changes in market conditions, with the intention that the Group is able to support more overseas work in the future. The management team is also continuing to commit resource to the high-end commercial office development sector, which continues to be an area of business that is providing excellent new business opportunities.

 

The business continues to monitor developments in the technology sector and to broaden its technology offering where appropriate.

Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of the business and a description of the principal risks and uncertainties facing the business.

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.

SMC HOLDINGS (UK) LIMITED
DIRECTORS' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
On behalf of the board
Mr D M Smith
Director
10 July 2025
SMC HOLDINGS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SMC HOLDINGS (UK) LIMITED
- 7 -
Opinion

We have audited the financial statements of SMC Holdings (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 HOLDINGS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (continued)
TO THE MEMBERS OF SMC HOLDINGS (UK) LIMITED
- 8 -
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.

We have obtained an understanding of the legal and regulatory frameworks that are applicable to the company and consider the most significant are those that relate to the financial reporting framework (FRS102, the Companies Act 2006 and UK tax legislation). We have also considered the opportunities and incentives that exist within the company for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to revenue recognition, with a particular risk in relation to completeness, and the potential for management to manipulate financial performance by the processing of manual adjustments or through significant or one-off unusual transactions.

Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one arising as a result of error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentation, or through collusion.

SMC HOLDINGS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (continued)
TO THE MEMBERS OF SMC HOLDINGS (UK) LIMITED
- 9 -

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.

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.

Mark Charlton FCA (Senior Statutory Auditor)
For and on behalf of Charlton and Co., Statutory Auditor
Chartered Accountants
Saville Chambers
4 Saville Street
South Shields
Tyne & Wear
NE33 2PR
10 July 2025
SMC HOLDINGS (UK) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
2
10,065,463
9,151,752
Cost of sales
(6,514,672)
(5,656,145)
Gross profit
3,550,791
3,495,607
Administrative expenses
(3,390,636)
(3,296,309)
Operating profit
3
160,155
199,298
Interest receivable and similar income
6
7,532
13,904
Interest payable and similar expenses
7
(287,641)
(348,171)
Loss before taxation
(119,954)
(134,969)
Tax on loss
8
(147,728)
(142,084)
Loss for the financial year
22
(267,682)
(277,053)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
SMC HOLDINGS (UK) LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
3,680,041
4,363,033
Other intangible assets
9
62,557
76,453
Total intangible assets
3,742,598
4,439,486
Tangible assets
10
114,667
162,818
3,857,265
4,602,304
Current assets
Stocks
13
2,027,990
1,717,798
Debtors
14
1,114,268
1,011,441
Cash at bank and in hand
810,637
1,056,849
3,952,895
3,786,088
Creditors: amounts falling due within one year
15
(2,787,047)
(2,588,656)
Net current assets
1,165,848
1,197,432
Total assets less current liabilities
5,023,113
5,799,736
Creditors: amounts falling due after more than one year
16
(4,193,838)
(4,686,395)
Provisions for liabilities
Deferred tax liability
19
23,344
39,728
(23,344)
(39,728)
Net assets
805,931
1,073,613
Capital and reserves
Called up share capital
21
10,000
10,000
Share premium account
22
1,285,106
1,285,106
Profit and loss reserves
22
(489,175)
(221,493)
Total equity
805,931
1,073,613
SMC HOLDINGS (UK) LIMITED
GROUP BALANCE SHEET (continued)
AS AT
30 SEPTEMBER 2024
30 September 2024
- 12 -

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 10 July 2025 and are signed on its behalf by:
10 July 2025
Mr D M Smith
Director
Company registration number 13013081 (England and Wales)
SMC HOLDINGS (UK) LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
7,235,250
7,235,250
7,235,250
7,235,250
Current assets
Cash at bank and in hand
91,858
177,023
Creditors: amounts falling due within one year
15
(1,750,708)
(1,520,346)
Net current liabilities
(1,658,850)
(1,343,323)
Total assets less current liabilities
5,576,400
5,891,927
Creditors: amounts falling due after more than one year
16
(4,133,838)
(4,544,169)
Net assets
1,442,562
1,347,758
Capital and reserves
Called up share capital
21
10,000
10,000
Share premium account
22
1,285,106
1,285,106
Profit and loss reserves
22
147,456
52,652
Total equity
1,442,562
1,347,758

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 £94,804 (2023 - £32,359 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 10 July 2025 and are signed on its behalf by:
10 July 2025
Mr D M Smith
Director
Company registration number 13013081 (England and Wales)
SMC HOLDINGS (UK) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
10,000
1,285,106
55,560
1,350,666
Year ended 30 September 2023:
Loss and total comprehensive income
-
-
(277,053)
(277,053)
Balance at 30 September 2023
10,000
1,285,106
(221,493)
1,073,613
Year ended 30 September 2024:
Loss and total comprehensive income
-
-
(267,682)
(267,682)
Balance at 30 September 2024
10,000
1,285,106
(489,175)
805,931
SMC HOLDINGS (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
10,000
1,285,106
20,293
1,315,399
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
32,359
32,359
Balance at 30 September 2023
10,000
1,285,106
52,652
1,347,758
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
94,804
94,804
Balance at 30 September 2024
10,000
1,285,106
147,456
1,442,562
SMC HOLDINGS (UK) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
632,678
1,143,119
Interest paid
(287,641)
(348,171)
Income taxes paid
(76,717)
(76,078)
Net cash inflow from operating activities
268,320
718,870
Investing activities
Purchase of tangible fixed assets
(27,871)
(23,067)
Interest received
7,532
13,904
Net cash used in investing activities
(20,339)
(9,163)
Financing activities
Repayment of borrowings
(377,618)
(345,740)
Repayment of bank loans
(80,000)
(80,000)
Payment of finance leases obligations
(36,575)
(66,452)
Net cash used in financing activities
(494,193)
(492,192)
Net (decrease)/increase in cash and cash equivalents
(246,212)
217,515
Cash and cash equivalents at beginning of year
1,056,849
839,334
Cash and cash equivalents at end of year
810,637
1,056,849
SMC HOLDINGS (UK) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
197,409
355,761
Interest paid
(266,643)
(323,909)
Net cash (outflow)/inflow from operating activities
(69,234)
31,852
Investing activities
Interest received
1,687
508
Dividends received
360,000
360,000
Net cash generated from investing activities
361,687
360,508
Financing activities
Repayment of borrowings
(377,618)
(345,740)
Net cash used in financing activities
(377,618)
(345,740)
Net (decrease)/increase in cash and cash equivalents
(85,165)
46,620
Cash and cash equivalents at beginning of year
177,023
130,403
Cash and cash equivalents at end of year
91,858
177,023
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
1
Accounting policies
Company information

SMC Holdings (UK) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Pepys Court, 84 The Chase, London, SW4 0NF.

 

The group consists of SMC Holdings (UK) 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 £.

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

1.2
Business combinations

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.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company SMC Holdings (UK) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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

1.4
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.

SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(continued)
- 19 -
1.5
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.

1.6
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.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a 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 considered to be 10 years.

1.8
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:

Development costs
10% straight line
1.9
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 and fittings
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 recognised in the profit and loss account.

1.10
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.

SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(continued)
- 20 -

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.

1.11
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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

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. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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 revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed 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, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
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.

SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(continued)
- 21 -
1.13
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.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(continued)
- 22 -
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.

1.15
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.

1.16
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(continued)
- 23 -
1.17
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.

1.18
Retirement benefits

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

1.19
Leases

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

 

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

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

1.20
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
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Installations
8,714,233
8,015,549
Aftercare
1,013,258
839,228
Other
337,972
296,975
10,065,463
9,151,752
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Turnover and other revenue
(continued)
- 24 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
9,648,654
8,725,703
Rest of the World
416,809
426,049
10,065,463
9,151,752
2024
2023
£
£
Other revenue
Interest income
7,532
13,904
3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(1,101)
50
Fees payable to the group's auditor for the audit of the group's financial statements
22,000
20,000
Depreciation of owned tangible fixed assets
52,059
60,875
Depreciation of tangible fixed assets held under finance leases
23,963
41,183
(Profit)/loss on disposal of tangible fixed assets
-
3,836
Amortisation of intangible assets
696,888
696,888
Operating lease charges
187,088
191,680
4
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
Directors
4
4
-
-
Other
66
62
-
-
Total
70
66
-
0
-
0
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
4
Employees
(continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,864,859
3,564,623
-
0
-
0
Social security costs
453,514
419,953
-
-
Pension costs
227,843
242,908
-
0
-
0
4,546,216
4,227,484
-
0
-
0
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
575,226
545,568
Company pension contributions to defined contribution schemes
133,466
158,649
708,692
704,217
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
198,725
192,047
Company pension contributions to defined contribution schemes
12,273
50,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
7,532
13,904
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
7,532
13,904
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
15,349
18,145
Other interest on financial liabilities
266,643
323,872
281,992
342,017
Other finance costs:
Interest on finance leases and hire purchase contracts
3,132
6,154
Other interest
2,517
-
Total finance costs
287,641
348,171
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
164,112
143,579
Adjustments in respect of prior periods
-
0
4,545
Total current tax
164,112
148,124
Deferred tax
Origination and reversal of timing differences
(16,384)
(20,493)
Changes in tax rates
-
0
14,453
Total deferred tax
(16,384)
(6,040)
Total tax charge
147,728
142,084
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
8
Taxation
(continued)
- 27 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(119,954)
(134,969)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
(29,989)
(29,693)
Tax effect of expenses that are not deductible in determining taxable profit
177,717
155,185
Under/(over) provided in prior years
-
0
4,545
Tax at marginal rate
-
0
12,047
Taxation charge
147,728
142,084
9
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
6,241,261
114,667
6,355,928
Amortisation and impairment
At 1 October 2023
1,878,228
38,214
1,916,442
Amortisation charged for the year
682,992
13,896
696,888
At 30 September 2024
2,561,220
52,110
2,613,330
Carrying amount
At 30 September 2024
3,680,041
62,557
3,742,598
At 30 September 2023
4,363,033
76,453
4,439,486
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
10
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
69,862
146,953
211,067
427,882
Additions
19,041
8,830
-
0
27,871
At 30 September 2024
88,903
155,783
211,067
455,753
Depreciation and impairment
At 1 October 2023
45,045
114,566
105,453
265,064
Depreciation charged in the year
11,263
38,356
26,403
76,022
At 30 September 2024
56,308
152,922
131,856
341,086
Carrying amount
At 30 September 2024
32,595
2,861
79,211
114,667
At 30 September 2023
24,817
32,387
105,614
162,818
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Fixtures and fittings
3,798
13,719
-
0
-
0
Motor vehicles
42,125
56,167
-
0
-
0
45,923
69,886
-
-
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
7,235,250
7,235,250
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Fixed asset investments
(continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
7,235,250
Carrying amount
At 30 September 2024
7,235,250
At 30 September 2023
7,235,250
12
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
S M Contracts Limited
Pepys Court, The Chase, London SW4 0NF
Ordinary
100.00
-
Earthstamp Limited
Pepys Court, The Chase, London SW4 0NF
Ordinary
0
100.00
Digital Plumbers.com limited
Pepys Court, The Chase, London SW4 0NF
Ordinary
0
100.00
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
1,837,448
1,607,593
-
-
Finished goods and goods for resale
190,542
110,205
-
0
-
0
2,027,990
1,717,798
-
-
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,067,506
826,011
-
0
-
0
Other debtors
373
5,152
-
0
-
0
Prepayments and accrued income
46,389
180,278
-
0
-
0
1,114,268
1,011,441
-
-
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
17
80,000
80,000
-
0
-
0
Obligations under finance leases
18
2,226
36,575
-
0
-
0
Other borrowings
17
410,332
377,619
410,332
377,619
Trade creditors
374,358
477,034
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,329,345
1,106,345
Corporation tax payable
297,691
210,296
-
0
-
0
Other taxation and social security
429,697
207,812
5,070
-
Other creditors
132,845
90,426
-
0
-
0
Accruals and deferred income
1,059,898
1,108,894
5,961
36,382
2,787,047
2,588,656
1,750,708
1,520,346
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
60,000
140,000
-
0
-
0
Obligations under finance leases
18
-
0
2,226
-
0
-
0
Other borrowings
17
4,098,838
4,509,169
4,098,838
4,509,169
Other creditors
35,000
35,000
35,000
35,000
4,193,838
4,686,395
4,133,838
4,544,169
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
139,042
-
139,042
Payable other than by instalments
-
2,500,000
-
2,500,000
-
2,639,042
-
2,639,042
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
140,000
220,000
-
0
-
0
Loans from related parties
2,500,000
2,500,000
2,500,000
2,500,000
Other loans
2,009,170
2,386,788
2,009,170
2,386,788
4,649,170
5,106,788
4,509,170
4,886,788
Payable within one year
490,332
457,619
410,332
377,619
Payable after one year
4,158,838
4,649,169
4,098,838
4,509,169

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 subsidiary.

Loans from related parties are in the form of unsecured loan notes that can be repaid at any point up to 2028 and are accruing interest at 4% per annum for the first 5 years, rising to 7.5% per annum thereafter if not repaid.

 

Other loans are being repaid in quarterly instalments over 8 years and have a fixed rate of interest of 8.5% per annum.

18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
2,548
39,706
-
0
-
0
In two to five years
-
0
2,548
-
0
-
0
2,548
42,254
-
-
Less: future finance charges
(322)
(3,453)
-
0
-
0
2,226
38,801
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
19
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
23,344
39,728
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
39,728
-
Credit to profit or loss
(16,384)
-
Liability at 30 September 2024
23,344
-

Of the deferred tax liability set out above, £6,415 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
227,843
242,908

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.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000

The ordinary shares in issue carry full voting and participation rights.

SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
22
Reserves
Share premium

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Profit and loss reserves

This reserve records retained earnings and accumulated losses.

23
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
186,575
178,281
-
-
Between two and five years
726,508
72,792
-
-
In over five years
757,033
-
-
-
1,670,116
251,073
-
-
24
Cash generated from group operations
2024
2023
£
£
Loss after taxation
(267,682)
277,053
Adjustments for:
Taxation charged
147,728
142,084
Finance costs
287,641
348,171
Investment income
(7,532)
(13,904)
(Gain)/loss on disposal of tangible fixed assets
-
3,836
Amortisation and impairment of intangible assets
696,888
696,888
Depreciation and impairment of tangible fixed assets
76,022
102,058
Movements in working capital:
Increase in stocks
(310,192)
(278,130)
(Increase)/decrease in debtors
(102,827)
581,185
Increase/(decrease) in creditors
112,632
(162,016)
Cash generated from operations
632,678
1,143,119
SMC HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 34 -
25
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
94,804
(32,359)
Adjustments for:
Finance costs
266,643
323,909
Investment income
(361,687)
(360,508)
Movements in working capital:
Increase in creditors
197,649
360,001
Cash generated from operations
197,409
355,761
26
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,056,849
(246,212)
810,637
Borrowings excluding overdrafts
(5,106,788)
457,618
(4,649,170)
Obligations under finance leases
(38,801)
36,575
(2,226)
(4,088,740)
247,981
(3,840,759)
27
Analysis of changes in net debt - company
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
177,023
(85,165)
91,858
Borrowings excluding overdrafts
(4,886,788)
377,618
(4,509,170)
(4,709,765)
292,453
(4,417,312)
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