Registration number:
SM Group (Europe) Ltd.
for the Year Ended 31 October 2024
SM Group (Europe) Ltd.
Contents
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Directors' Report |
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Statement of Financial Position |
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Notes to the Unaudited Financial Statements |
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:
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
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Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Investments |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
- |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
3,052 |
3,052 |
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Share premium reserve |
243,824 |
243,824 |
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Capital redemption reserve |
1,353 |
1,353 |
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Profit and loss account |
1,699,809 |
1,915,494 |
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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:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Approved and authorised by the
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SM Group (Europe) Ltd.
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024
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General information |
The company is a private company limited by share capital, incorporated in United Kingdom.
The address of its registered office is:
United Kingdom
Principal activity
The principal activity of the company is that of the sale of marine technology.
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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)
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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:
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Asset class |
Depreciation method and rate |
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Short leasehold property |
5% straight line |
SM Group (Europe) Ltd.
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)
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2 |
Accounting policies (continued) |
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Plant and machinery |
10% - 25% straight line |
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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)
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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
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)
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
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Tangible assets |
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Short leasehold property |
Plant and machinery |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 November 2023 |
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Additions |
- |
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- |
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At 31 October 2024 |
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Depreciation |
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At 1 November 2023 |
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Charge for the year |
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At 31 October 2024 |
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Carrying amount |
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At 31 October 2024 |
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- |
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At 31 October 2023 |
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SM Group (Europe) Ltd.
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)
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Investments |
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2024 |
2023 |
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Investments in subsidiaries |
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Other investments |
170,079 |
179,026 |
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Subsidiaries |
£ |
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Cost or valuation |
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At 1 November 2023 |
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Provision |
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Carrying amount |
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At 31 October 2024 |
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At 31 October 2023 |
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Movements on other investments are the retranslation at the spot rate as at the reporting date.
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Stocks |
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2024 |
2023 |
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Finished goods and goods for resale |
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Debtors |
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2024 |
2023 |
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Trade debtors |
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Amounts owed by related parties |
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Prepayments |
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Current asset investments |
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2024 |
2023 |
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Other investments |
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SM Group (Europe) Ltd.
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)
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Creditors |
Creditors: amounts falling due within one year
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2024 |
2023 |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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The bank overdraft facility is secured.
Creditors: amounts falling due after more than one year
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2024 |
2023 |
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Trade creditors |
- |
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Reserves |
Profit and loss account:
This reserve records retained earnings and accumulated losses.
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Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
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2024 |
2023 |
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Not later than one year |
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Later than one year and not later than five years |
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SM Group (Europe) Ltd.
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2024 (continued)
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Related party transactions |
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Transactions with directors |
During the year the director entered into the following advances and credits with the company:
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2024 |
At 1 November 2023 |
Advances to director |
Repayments by director |
At 31 October 2024 |
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Directors Loan Account |
( |
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( |
( |
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2023 |
At 1 November 2022 |
Advances to director |
Repayments by director |
At 31 October 2023 |
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Directors Loan Account |
( |
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( |
( |
Interest is charged by the directors at a rate of 10%.