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Registered number:
For the Year Ended
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Simginuity Limited
Company Information
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Simginuity Limited
Contents
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Simginuity Limited
Group Strategic Report
For the Year Ended 30 December 2024
The Directors present their Strategic Report for the year ended 30 December 2024.
In 2024 the group achieved a turnover of £15,741,409 (2023: £15,383,550). Growth was seen in EDM Ltd and SkyPeople Training Ltd, was partially offset by a drop in revenue from RGF Support Ltd. EBITDA was £1,237,576 (2023: £1,638,296).
Revenue within EDM Ltd increased 13.2% over 2023. Sales in our civil aviation training products and defence product sectors have grown in 2024 as has our aviation machining product range. 2025 has started strongly, building on the growth seen in 2024, particularly within the defence sector, with large orders securing work for the next two years. RGF Support Ltd saw revenue fall to £1,140,047 (2023: £3,095,402), due to the airports and ground handlers now recovering their staffing positions and therefore no longer requiring the resilience support the business can provide. Training was very strong, thereby increasing gross margin to 42% (2023: 32%). New opportunities are being investigated to grow the business in 2025. 2024 was the first full year of trading for SkyPeople Training Ltd, with the business exceeding targets. Partnerships with major airlines remained strong with some new airline clients won through the year. The relationship with the education sector strengthened with 27 different colleges bringing students through our training centre, and indications show this could double in 2025. During 2024, SkyPeople Training (EU) Ltd was set up in Ireland, and gained certification from the Irish Aviation Authority to deliver EASA Attestation courses, providing us with a unique position to be able to offer both UK, CAA and EASA attestation qualifications. In 2024 46.7% of the Group’s sales were UK based. Export sales comprising the USA, Canada, India and Europe, continue to be important, therefore there remains no significant dependency on any particular region.
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Simginuity Limited
Group Strategic Report (continued)
For the Year Ended 30 December 2024
The management of the business and the nature of the group’s strategy are subject to a number of risks. The directors have set out below the principal risks facing the business. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible, processes are in place to monitor and mitigate such risks.
Financial Risk Management Objectives and Policies The group uses financial instruments comprising borrowings, cash and other liquid resources, derivatives and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group’s operations. The main risks arising from the group’s financial instruments are interest rate risk and liquidity risk. The directors review and agree policies for management each of these risks and they are summarised below. Interest Rate Risk The group finances its operations through a mixture of retained profits, asset finance, bank borrowings and borrowing from group companies. The group’s exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities. Liquidity Risk The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest any cash assets safely and profitably. Revenue/Fixed and Variable Overhead Costs There is always the risk that any significant changes in revenue may adversely affect profitability and therefore management closely monitor actual costs and investigate variations against budget on a regular basis. Other risks and uncertainties Contract Profitability Management review all contracts on a monthly basis relevant to both actual and forecasted costs to complete and report against anticipated gross margin, investigating variances against budget. Fluctuations in Currency Exchange Rates A large proportion of future turnover will relate to overseas operations and the group is therefore exposed to foreign currency fluctuations. The group manages its foreign exchange exposure on a net basis and, where required, uses forward foreign exchange contracts and other derivatives/financial instruments to reduce its exposure.
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Simginuity Limited
Group Strategic Report (continued)
For the Year Ended 30 December 2024
The directors have monitored the progress of the overall group performance by reference to certain financial and non-financial key performance indicators. The underlying group results for the year relating to continuing operations only are shown below:
2024 2023 2022 £ £ £ Turnover 15,741,409 15,383,550 11,537,274 Profit (loss) after tax for the financial year 688,211 1,048,013 (259,770) Net profit margin 4.4% 6.8% (2.3%) Average number of employees 208 239 185
This report was approved by the board and signed on its behalf.
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Simginuity Limited
Directors' Report
For the Year Ended 30 December 2024
The directors present their report and the financial statements for the year ended 30 December 2024.
The principal activity of the group is a global provider of world class training and simulation solutions for the commercial airline and defence aviation sectors. The principal activity of the company is that of a holding company.
The directors who served during the year were:
The profit for the year, after taxation, amounted to £688,211 (2023 - £1,048,013).
Dividends of £400,000 (2023: £360,000) were paid during the year. The directors do not recommend the payment of a final dividend.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Simginuity Limited
Directors' Report (continued)
For the Year Ended 30 December 2024
The continuation of the group’s strategy to trade internationally is enabling the Group to secure projects in the USA, Middle East, Africa, Far East, China and Mainland Europe.
The group is now established as a leading player in the niche market for providing simulators and training equipment for the commercial aircraft, defence sector and associated markets, and is planning to increase market share of this business. The group also plans to continue the development of its training equipment to meet growing customer expectations. The group‘s state-of-the-art production facilities, in association with the expansion of the management support services and labour force, has increased the group’s capability to expand its client base and range of services.
The group continues to invest in research and development programmes for new products as well as new processes and technologies to improve overall operational effectiveness.
Financial risk management is considered to be of strategic importance and is therefore included in the Strategic Report.
There have been no significant events affecting the Group since year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Simginuity Limited
Independent Auditors' Report to the Members of Simginuity Limited
We have audited the financial statements of Simginuity Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 December 2024, which comprise the Consolidated Profit and Loss Account, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the 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.
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Simginuity Limited
Independent Auditors' Report to the Members of Simginuity Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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Simginuity Limited
Independent Auditors' Report to the Members of Simginuity Limited (continued)
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 Auditors' 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the group operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Group's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Group operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Group, including General Data Protection requirements, and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Simginuity Limited
Independent Auditors' Report to the Members of Simginuity Limited (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
SK1 3GG
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Simginuity Limited
Consolidated Profit and Loss Account
For the Year Ended 30 December 2024
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Simginuity Limited
Consolidated Statement of Comprehensive Income
For the Year Ended 30 December 2024
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Simginuity Limited
Registered number: 09405326
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
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Simginuity Limited
Registered number: 09405326
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 36 form part of these financial statements.
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Simginuity Limited
Consolidated Statement of Changes in Equity
For the Year Ended 30 December 2024
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Simginuity Limited
Company Statement of Changes in Equity
For the Year Ended 30 December 2024
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Simginuity Limited
Consolidated Statement of Cash Flows
For the Year Ended 30 December 2024
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Simginuity Limited
Consolidated Analysis of Net Debt
For the Year Ended 30 December 2024
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
Simginuity is a private company incorporated in England and Wales. The address of its registered office is Brunel House, 1 Thorp Road, Newton Heath, Manchester, M40 5BJ.
The principal activity of the group is a global provider of world class training and simulation solutions for the commercial airline and defence aviation sectors. The principal activity of the company is that of a holding company.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The financial statements have been prepared on a going concern basis. The following paragraphs set out the
basis of which the directors have reached their conclusion. The Group has a profit before tax of £694,205 (2023 profit: £1,038,879) and net assets totalling £12,023,361 (2023: £11,735,150) at 30 December 2024. The Group currently meets its working capital requirements through its cash balances and credit facilities. Based on the Company's forecasts and projections, the directors believe they have sufficient facilities to trade through the next 12 month period. Therefore, the directors believe it is appropriate to prepare the accounts to 30 December 2024 on a going concern basis and there will be no adverse effect on solvency for more than 12 months after the date of approval of the financial statements.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
When the outcome of contracts can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion at the end of the reporting period. Reliable estimation of the outcome of contracts requires reliable estimates of the stage of completion, future costs, and collectability of billings. The stage of completion is measured by surveys of work performed. When the outcome of a contract cannot be estimated reliably, revenue is only recognised to the extent of contract costs incurred that it is probable will be recoverable. When it is probable that the total contract costs will exceed total contract revenue on a contract, the expected loss shall be recognised as an expense immediately, with a corresponding provision for an onerous contract. Revenue in respect of variations to contracts and incentive payments is recognised when it is probable it will be agreed by the customer. Where costs incurred plus recognised profits less recognised losses exceed progress billing, the balance is shown as due from customers on contracts within debtors. Where progress billings exceed costs incurred plus recognised profits less recognised losses, the balance is shown as due to customers on contracts within creditors.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the consolidated profit and loss account over its useful economic life which is assessed to be 10 years. Negative goodwill Negative goodwill represents the difference between amounts paid on the cost of the trade and assets aquired and the acquirer’s interest in the fair value of those identifiable assets at the date of acquisition. Subsequent to initial recognition, negative goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Negative goodwill is amortised on a straight-line basis in the entities profit and loss account over its useful economic life which is assessed to be 2 years Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets are amortised on a straight line basis over their useful economic lives, between 3 and 5 years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
2.Accounting policies (continued)
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. At each balance sheet date, stocks are reassessed for impairment. If stock is 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. Work in progress contracts Costs associated with work in progress contracts are included in debtors as amounts recoverable on work in progress contracts to the extent that they cannot be matched with contract work accounted for as turnover. Work in progress contract balances included in debtors are stated after provision has been made for any foreseeable losses and the deduction of applicable payments on account. In the Consolidated Statement of Cash Flows, cash is shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
The whole of the turnover is attributable to the company's principal activity as described in note 1.
Analysis of turnover by country of destination:
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
12.Taxation (continued)
There were no factors that may affect future tax charges.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
Bank loans are secured by a first legal charge over the freehold property of the group, and a debenture over all assets of group.
During the year, the group refinanced its existing borrowings through a new long-term facility of £3,434,000. The proceeds were used to settle previous bank loans. The new facility bears interest at 1.3% above the Bank of England base rate and is repayable over 4 years. Obligations under finance lease and hire purchase contracts are secured over the assets to which they relate.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
Profit and loss account
The profit and loss account represents all current and prior period retained profits and losses. Revaluation reserve The revaluation reserve comprises the gains arising from increases in the revaluation of freehold property net of deferred tax liability. Foreign exchange reserve Foreign exchange reserve includes all current and prior period foreign exchange differences.
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Simginuity Limited
Notes to the Financial Statements
For the Year Ended 30 December 2024
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £279,559 (2023: £287,649) . Contributions totalling £44,621 (2023: £51,841) were payable to the fund at the balance sheet date and are included in other creditors.
The ultimate controlling party is A Bermingham by virtue of his majority shareholding.
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