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Registration number: 01306320

SM Group (Europe) Ltd.

Unaudited Filleted Financial Statements

for the Year Ended 31 October 2024

 

SM Group (Europe) Ltd.

Contents

Directors' Report

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

SM Group (Europe) Ltd.

Directors' Report for the Year Ended 31 October 2024

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

Directors of the company

The directors who held office during the year were as follows:

R A Badminton

C Northmore

S M Stubbs

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

SM Group (Europe) Ltd.

(Registration number: 01306320)
Statement of Financial Position as at 31 October 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

148,553

180,106

Investments

5

453,423

462,370

 

601,976

642,476

Current assets

 

Stocks

6

1,688,492

2,070,468

Debtors

7

1,139,194

811,794

Investments

8

217,096

376,919

Cash at bank and in hand

 

477

110,293

 

3,045,259

3,369,474

Creditors: Amounts falling due within one year

9

(1,670,616)

(1,478,387)

Net current assets

 

1,374,643

1,891,087

Total assets less current liabilities

 

1,976,619

2,533,563

Creditors: Amounts falling due after more than one year

9

-

(334,022)

Provisions for liabilities

(28,581)

(35,818)

Net assets

 

1,948,038

2,163,723

Capital and reserves

 

Called up share capital

3,052

3,052

Share premium reserve

243,824

243,824

Capital redemption reserve

1,353

1,353

Profit and loss account

1,699,809

1,915,494

Shareholders' funds

 

1,948,038

2,163,723

 

SM Group (Europe) Ltd.

(Registration number: 01306320)
Statement of Financial Position as at 31 October 2024 (continued)

For the financial year ending 31 October 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Statement of Comprehensive Income and Directors' Report.

Approved and authorised by the Board on 9 July 2025 and signed on its behalf by:
 


C Northmore
Director

 

SM Group (Europe) Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024

1

General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
Mercator House
22 Brest Road
Derriford
Plymouth
Devon
PL6 5XP
United Kingdom

Principal activity

The principal activity of the company is that of the sale of marine technology.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

 

SM Group (Europe) Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)

2

Accounting policies (continued)

Going concern

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Short leasehold property

5% straight line

 

SM Group (Europe) Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)

2

Accounting policies (continued)

Plant and machinery

10% - 25% straight line

Motor vehicles

20% straight line

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell: the impairment loss is recognised immediately in profit or loss.

Borrowings

 

SM Group (Europe) Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)

2

Accounting policies (continued)

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

SM Group (Europe) Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 31 (2023 - 33).

4

Tangible assets

Short leasehold property
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 November 2023

304,250

299,127

7,650

611,027

Additions

-

5,273

-

5,273

At 31 October 2024

304,250

304,400

7,650

616,300

Depreciation

At 1 November 2023

244,497

179,336

7,088

430,921

Charge for the year

5,352

30,912

562

36,826

At 31 October 2024

249,849

210,248

7,650

467,747

Carrying amount

At 31 October 2024

54,401

94,152

-

148,553

At 31 October 2023

59,753

119,791

562

180,106

 

SM Group (Europe) Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)

5

Investments

2024
£

2023
£

Investments in subsidiaries

283,344

283,344

Other investments

170,079

179,026

453,423

462,370

Subsidiaries

£

Cost or valuation

At 1 November 2023

283,344

Provision

Carrying amount

At 31 October 2024

283,344

At 31 October 2023

283,344

Movements on other investments are the retranslation at the spot rate as at the reporting date.

6

Stocks

2024
£

2023
£

Finished goods and goods for resale

1,688,492

2,070,468

7

Debtors

2024
£

2023
£

Trade debtors

860,126

692,452

Amounts owed by related parties

258,936

109,674

Prepayments

20,132

9,668

1,139,194

811,794

8

Current asset investments

2024
£

2023
£

Other investments

217,096

376,919

 

SM Group (Europe) Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)

9

Creditors

Creditors: amounts falling due within one year

2024
£

2023
£

Loans and borrowings

250,003

10,436

Trade creditors

 

1,087,180

1,036,066

Taxation and social security

 

117,408

136,817

Accruals and deferred income

 

48,151

59,367

Other creditors

 

167,874

235,701

 

1,670,616

1,478,387

The bank overdraft facility is secured.

Creditors: amounts falling due after more than one year

2024
£

2023
£

Trade creditors

-

334,022

10

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses.

11

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

16,167

27,147

Later than one year and not later than five years

1,361

15,746

17,528

42,893

 

SM Group (Europe) Ltd.

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)

12

Related party transactions

Transactions with directors

During the year the director entered into the following advances and credits with the company:

2024

At 1 November 2023
£

Advances to director
£

Repayments by director
£

At 31 October 2024
£

Directors Loan Account

(235,701)

324,760

(256,933)

(167,874)

         
       

 

2023

At 1 November 2022
£

Advances to director
£

Repayments by director
£

At 31 October 2023
£

Directors Loan Account

(153,028)

65,559

(148,232)

(235,701)

 

Interest is charged by the directors at a rate of 10%.