Registration number:
for the Year Ended 31 December 2024
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Contents
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Company Information |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
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Non-statutory pages |
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Company Information
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Directors |
T J Swan Esq K T Swan Esq |
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Company secretary |
D Rolston Esq |
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Registered office |
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Bankers |
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Auditors |
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SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors' of the company
The directors, who held office during the year, were as follows:
Principal activity
The principal activity of the company is the design, manufacture and sale of fan assisted heating systems.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors Pearlman Rose are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
Approved by the Board on
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SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 UK adopted International Financial Reporting Standards (IFRSs). 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK adopted International Financial Reporting Standards (IFRSs) have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Independent Auditor's Report to the Members of SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Opinion
We have audited the financial statements of SMITH'S ENVIRONMENTAL PRODUCTS LIMITED (the 'company') for the year ended 31 December 2024, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted International Financial Reporting Standards (IFRSs).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with UK adopted IFRSs; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 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 director's 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Independent Auditor's Report to the Members of SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Directors' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit; or |
• | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 3], 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor 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:
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enquiry of management about the Group’s policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance; |
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examining supporting documents for all material balances, transactions and disclosures; |
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review of the board meeting minutes; |
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enquiry of management and review and inspection of relevant correspondence; |
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Independent Auditor's Report to the Members of SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
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evaluation of the selection and application of accounting policies related to subjective measurements and complex transactions; |
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analytical procedures to identify any unusual or unexpected relationships; |
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testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements; and |
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review of accounting estimates for biases. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.
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For and on behalf of
Suite 1, First Floor
Jack Dash House
2 Lawn House Close
E14 9YQ
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Income Statement for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Revenue |
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Cost of sales |
( |
( |
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Gross profit |
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Distribution costs |
( |
( |
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Administrative expenses |
( |
( |
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Other operating income |
- |
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Operating profit |
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Finance income |
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Finance costs |
( |
( |
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Net finance income/(cost) |
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( |
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Profit before tax |
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Income tax expense |
( |
( |
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Profit for the year |
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The above results were derived from continuing operations.
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Statement of Comprehensive Income for the Year Ended 31 December 2024
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2024 |
2023 |
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Profit for the year |
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Total comprehensive income for the year |
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SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
(Registration number: 02607831)
Statement of Financial Position as at 31 December 2024
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Note |
31 December |
31 December |
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Assets |
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Non-current assets |
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Property, plant and equipment |
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Right of use assets |
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Intangible assets |
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Investments in subsidiaries, joint ventures and associates |
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Current assets |
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Inventories |
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Trade and other receivables |
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Cash and cash equivalents |
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Total assets |
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Equity and liabilities |
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Equity |
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Share capital |
(1,000) |
(1,000) |
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Share premium |
(59,400) |
(59,400) |
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Retained earnings |
(2,644,946) |
(2,321,404) |
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Total equity |
(2,705,346) |
(2,381,804) |
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Non-current liabilities |
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Long term lease liabilities |
( |
( |
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Loans and borrowings |
( |
- |
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Deferred tax liabilities |
( |
( |
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( |
( |
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Current liabilities |
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Current portion of long term lease liabilities |
( |
( |
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Trade and other payables |
( |
( |
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Loans and borrowings |
( |
- |
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Income tax liability |
( |
( |
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( |
( |
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Total liabilities |
( |
( |
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Total equity and liabilities |
( |
( |
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SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
(Registration number: 02607831)
Statement of Financial Position as at 31 December 2024
Approved and authorised by the
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These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Share premium |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
- |
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Total comprehensive income |
- |
- |
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Dividends |
- |
- |
( |
( |
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At 31 December 2024 |
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Share capital |
Share premium |
Retained earnings |
Total |
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At 1 January 2023 |
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Profit for the year |
- |
- |
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Total comprehensive income |
- |
- |
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Dividends |
- |
- |
( |
( |
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At 31 December 2023 |
1,000 |
59,400 |
2,321,404 |
2,381,804 |
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Statement of Cash Flows for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Depreciation on right of use assets |
109,688 |
109,688 |
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Finance income |
( |
( |
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Finance costs |
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Income tax expense |
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Working capital adjustments |
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Decrease/(increase) in inventories |
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( |
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(Increase)/decrease in trade and other receivables |
( |
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(Decrease)/increase in trade and other payables |
( |
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Cash generated from operations |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
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Interest received |
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Acquisitions of property plant and equipment |
( |
( |
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Acquisition of intangible assets |
- |
( |
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Cost of new property plant and equipment acquired under finance leases |
99,200 |
- |
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Net cash flows from investing activities |
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( |
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Cash flows from financing activities |
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Interest expense on leases |
( |
( |
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Payments to finance lease creditors |
( |
( |
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Dividends paid |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net (decrease)/increase in cash and cash equivalents |
( |
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Cash and cash equivalents at 1 January |
1,745,541 |
1,103,797 |
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Cash and cash equivalents at 31 December |
1,522,574 |
1,745,541 |
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SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated and domiciled in England.
The address of its registered office is:
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Accounting policies |
Statement of compliance
The company financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations adopted by the UK ("UK adopted IFRSs").
Summary of material 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.
Basis of preparation
The financial statements have been prepared in accordance with adopted IFRSs and under historical cost accounting rules.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies.
Exemption from preparing group accounts
The financial statements contain information about SMITH'S ENVIRONMENTAL PRODUCTS LIMITED as an individual company and do not contain consolidated financial information as the parent of a group.
The company is exempt under section 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Vent-Rite Valve Corporation, a company incorporated in Massachusetts, USA.
Changes in accounting policy
None of the standards, interpretations and amendments effective for the first time from 1 January 2024 have had a material effect on the financial statements except for those that have been incorporated in these accounts.
None of the standards, interpretations and amendments which are effective for periods beginning after 1 January 2024 and which have not been adopted early, are expected to have a material effect on the financial statements.
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
Revenue recognition
Recognition
The company earns revenue from the manufacture and sale of heating and cooling products for domestic and commercial applications. This revenue is recognised in the accounting period when control of the product has been transferred, at an amount that reflects the consideration to which the entity expects to be entitled in exchange for fulfilling its performance obligations to customers.
Government grants
A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs is recognised in income in the period in which it becomes receivable.
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 income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Property, plant and equipment
Property, plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of property, plant and equipment 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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Plant and machinery |
10% - 20% Straight Line |
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Fixtures, fittings and equipment |
10% - 33% Straight Line |
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Motor Vehicle |
25% Straight Line |
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Right of use of assets |
Over the lease term |
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
Intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their expected useful economic life.
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Asset class |
Amortisation method and rate |
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Patents |
Straight line over expected useful life |
Investments
Investments in securities are classified on initial recognition as available-for-sale and are carried at fair value, except where their fair value cannot be measured reliably, in which case they are carried at cost, less any impairment.
Unrealised holding gains and losses other than impairments are recognised in other comprehensive income. On maturity or disposal, net gains and losses previously deferred in accumulated other comprehensive income are recognised in income.
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 on hand and call deposits, 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 changes in value.
Trade receivables
Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.
Trade receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method.
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, inventories are assessed for impairment. If inventory 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.
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.
Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. 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 income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in finance costs.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Leases
Initial recognition and measurement
The company initially recognises a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term.
The lease liability is measured at the present value of the lease payments to be made over the lease term. The lease payments include fixed payments, purchase options at exercise price (where payment is reasonably certain), expected amount of residual value guarantees, termination option penalties (where payment is considered reasonably certain) and variable lease payments that depend on an index or rate.
The right-of-use asset is initially measured at the amount of the lease liability, adjusted for lease prepayments, lease incentives received, the company’s initial direct costs (e.g., commissions) and an estimate of restoration, removal and dismantling costs.
Subsequent measurement
After the commencement date, the company measures the lease liability by:
(a) Increasing the carrying amount to reflect interest on the lease liability;
(b) Reducing the carrying amount to reflect the lease payments made; and
(c) Re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in substance fixed lease payments or on the occurrence of other specific events.
Interest on the lease liability in each period during the lease term is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. Interest charges are [presented separately as non-operating /included in finance cost] in the income statement, unless the costs are included in the carrying amount of another asset applying other applicable standards. Variable lease payments not included in the measurement of the lease liability, are included in operating expenses in the period in which the event or condition that triggers them arises.
The related right-of-use asset is accounted for using the Cost model in IAS 16 and depreciated and charged in accordance with the depreciation requirements of IAS 16 Property, Plant and Equipment as disclosed in the accounting policy for Property, plant and equipment. Adjustments are made to the carrying value of the right of use asset where the lease liability is re-measured in accordance with the above. Right of use assets are tested for impairment in accordance with IAS 36 Impairment of assets as disclosed in the accounting policy in impairment.
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
Lease modifications
If a lease is modified, the modified contract is evaluated to determine whether it is or contains a lease. If a lease continues to exist, the lease modification will result in either a separate lease or a change in the accounting for the existing lease.
The modification is accounted for as a separate lease if both:
(a) The modification increases the scope of the lease by adding the right to use one or more underlying assets; and
(b) The consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract.
If both of these conditions are met, the lease modification results in two separate leases, the unmodified original lease and a separate lease. The company then accounts for these in line with the accounting policy for new leases.
If either of the conditions are not met, the modified lease is not accounted for as a separate lease and the consideration is allocated to the contract and the lease liability is re-measured using the lease term of the modified lease and the discount rate as determined at the effective date of the modification.
For a modification that fully or partially decreases the scope of the lease (e.g., reduces the square footage of leased space), IFRS 16 requires a lessee to decrease the carrying amount of the right-of-use asset to reflect partial or full termination of the lease. Any difference between those adjustments is recognised in profit or loss at the effective date of the modification.
For all other lease modifications which are not accounted for as a separate lease, IFRS 16 requires the lessee to recognise the amount of the re-measurement of the lease liability as an adjustment to the corresponding right-of-use asset without affecting profit or loss.
Short term and low value leases
The company has made an accounting policy election, by class of underlying asset, not to recognise lease assets and lease liabilities for leases with a lease term of 12 months or less (i.e., short-term leases).
The company has made an accounting policy election on a lease-by-lease basis, not to recognise lease assets on leases for which the underlying asset is of low value.
Lease payments on short term and low value leases are accounted for on a straight line bases over the term of the lease or other systematic basis if considered more appropriate. Short term and low value lease payments are included in operating expenses in the income statement.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the company’s financial statements in the period in which the dividends are approved by the company’s shareholders.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
For defined contribution plans contributions are paid publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset.
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
Financial instruments
Initial recognition
Financial assets and financial liabilities comprise all assets and liabilities reflected in the statement of financial position, although excluding property, plant and equipment, investment properties, intangible assets, deferred tax assets, prepayments, deferred tax liabilities and employee benefits plan.
The company recognises financial assets and financial liabilities in the statement of financial position when, and only when, the company becomes party to the contractual provisions of the financial instrument.
Financial assets are initially recognised at fair value. Financial liabilities are initially recognised at fair value, representing the proceeds received net of premiums, discounts and transaction costs that are directly attributable to the financial liability.
All regular way purchases and sales of financial assets and financial liabilities classified as fair value through profit or loss (“FVTPL”) are recognised on the trade date, i.e. the date on which the company commits to purchase or sell the financial assets or financial liabilities. All regular way purchases and sales of other financial assets and financial liabilities are recognised on the settlement date, i.e. the date on which the asset or liability is received from or delivered to the counterparty. Regular way purchases or sales are purchases or sales of financial assets that require delivery within the time frame generally established by regulation or convention in the market place.
Subsequent to initial measurement, financial assets and financial liabilities are measured at either amortised cost or fair value.
|
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Miscellaneous other operating income |
- |
|
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Depreciation on right of use assets - property |
109,688 |
109,688 |
|
Amortisation expense |
|
|
|
Finance income and costs |
|
2024 |
2023 |
|
|
Finance income |
||
|
Interest income on bank deposits |
|
|
|
Finance costs |
||
|
Interest on obligations under finance leases and hire purchase contracts |
( |
- |
|
Interest expense on leases - Property |
(10,609) |
(13,940) |
|
Total finance costs |
( |
( |
|
Net finance income/(costs) |
|
( |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Research and development |
|
|
|
Sales, marketing and distribution |
|
|
|
|
|
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Income tax |
Tax charged/(credited) in the income statement
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
- |
( |
|
|
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of temporary differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 23.52%).
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease from effect of capital allowances depreciation |
( |
( |
|
Increase from effect of expenses not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax expense from unrecognised temporary difference from a prior period |
|
|
|
Decrease from effect of adjustment in research development tax credit |
- |
( |
|
Total tax charge |
|
|
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
Deferred tax
Deferred tax movement during the year:
|
At 1 January 2024 |
Recognised in income |
At |
|
|
Provision |
|
|
|
|
|
|
|
|
Right of use assets |
|
Property |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2023 |
|
|
|
At 31 December 2023 |
|
|
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Depreciation |
||
|
At 1 January 2023 |
|
|
|
Charge for year |
|
|
|
At 31 December 2023 |
|
|
|
At 1 January 2024 |
|
|
|
Charge for the year |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Property, plant and equipment |
|
Furniture, fittings and equipment |
Motor vehicles |
Other property, plant and equipment |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2023 |
|
|
|
|
|
Additions |
|
- |
- |
|
|
At 31 December 2023 |
|
|
|
|
|
At 1 January 2024 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
Disposals |
- |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2023 |
|
|
|
|
|
Charge for year |
|
|
- |
|
|
At 31 December 2023 |
|
|
|
|
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
|
|
|
|
|
At 31 December 2023 |
|
|
- |
|
|
At 1 January 2023 |
|
|
- |
|
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Intangible assets |
|
Trademarks, patents and licenses |
Other intangible assets |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2023 |
|
|
|
|
Additions |
|
- |
|
|
At 31 December 2023 |
|
|
|
|
At 1 January 2024 |
|
|
|
|
At 31 December 2024 |
|
|
|
|
Amortisation |
|||
|
At 1 January 2023 |
|
|
|
|
Amortisation charge |
|
- |
|
|
At 31 December 2023 |
|
|
|
|
At 1 January 2024 |
|
|
|
|
Amortisation charge |
|
- |
|
|
At 31 December 2024 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2024 |
|
- |
|
|
At 31 December 2023 |
|
- |
|
|
At 1 January 2023 |
|
- |
|
|
Investments |
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2023 |
|
|
At 31 December 2023 |
|
|
At 1 January 2024 |
|
|
At 31 December 2024 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 December 2024 |
|
|
At 1 January 2023 |
|
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
Details of the subsidiaries as at 31 December 2024 are as follows:
|
Name of subsidiary |
Principal activity |
Country of incorporation and principal place of business |
Proportion of ownership interest and voting rights held |
|
|
2024 |
2023 |
|||
|
|
Design and manufacture of heat pumps & fan coils for commercial use |
England |
|
|
|
Inventories |
|
31 December |
31 December |
|
|
Raw materials and consumables |
|
|
|
Work in progress |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
Trade and other receivables |
|
Current |
31 December |
31 December |
|
Trade receivables |
|
|
|
Receivables from related parties |
|
|
|
Prepayments |
|
|
|
|
|
|
Cash and cash equivalents |
|
31 December |
31 December |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Share capital |
Allotted, called up and fully paid shares
|
31 December |
31 December |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
1,000 |
|
1,000 |
|
Loans and borrowings |
|
31 December |
31 December |
|
|
Non-current loans and borrowings |
||
|
Hire purchase contracts |
|
- |
|
31 December |
31 December |
|
|
Current loans and borrowings |
||
|
Hire purchase contracts |
|
- |
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Leases |
Lease liabilities maturity analysis
A maturity analysis of lease liabilities based on undiscounted gross cash flow is reported in the table below:
|
31 December |
31 December |
|
|
Less than one year |
|
|
|
2 years |
|
|
|
3 years |
- |
|
|
Total lease liabilities (undiscounted) |
|
|
Total cash outflows related to leases
Total cash outflows related to leases are presented in the table below:
|
Payment |
31 December |
31 December |
|
Right of use assets |
114,391 |
111,060 |
|
Interest |
10,609 |
13,940 |
|
Total cash outflow |
125,000 |
125,000 |
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £42,548 (2023 - £39,643).
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Trade and other payables |
|
31 December |
31 December |
|
|
Trade payables |
|
|
|
Accrued expenses |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
|
|
|
Related party transactions |
Income and receivables from related parties
|
2024 |
Smiths Environmental Systems Ltd |
Emerson Swan Inc. |
|
Sale of goods |
- |
|
|
Amounts receivable/(payable) from related party |
|
|
|
|
||
|
2023 |
||
|
Sale of goods |
- |
|
|
Amounts receivable from related party |
|
|
|
|
||
Expenditure with and payables to related parties
|
2024 |
Vent-Rite Valve Corp. |
|
Marketing & promotion |
|
|
|
|
|
2023 |
|
|
Marketing & promotion |
|
|
|
|
|
Dividends |
|
2024 |
2023 |
|
|
£ |
£ |
|
|
Interim dividend of £ |
697,171 |
702,135 |
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Parent and ultimate parent undertaking |
The company's immediate parent is
Relationship between entity and parents
The parent of the largest group in which these financial statements are consolidated is
The address of Vent-Rite Valve Corporation is:
Benton Harbor
MI 49022
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Detailed Income Statement for the Year Ended 31 December 2024
|
2024 |
2023 |
|
|
Revenue (analysed below) |
8,604,772 |
7,424,803 |
|
Cost of sales (analysed below) |
(4,910,752) |
(4,357,615) |
|
Gross profit |
3,694,020 |
3,067,188 |
|
Gross profit (%) |
42.93% |
41.31% |
|
Distribution costs (analysed below) |
(864,585) |
(783,286) |
|
Administrative expenses (analysed below) |
(1,471,245) |
(1,288,078) |
|
Other operating income (analysed below) |
- |
1,235 |
|
Operating profit |
1,358,190 |
997,059 |
|
Finance income (analysed below) |
21,871 |
4,246 |
|
Finance costs (analysed below) |
(12,197) |
(13,940) |
|
Net finance income/(cost) |
9,674 |
(9,694) |
|
Profit before tax |
1,367,864 |
987,365 |
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Detailed Income Statement for the Year Ended 31 December 2024
|
2024 |
2023 |
|
Revenue |
||
|
Sales - UK |
5,764,813 |
5,889,173 |
|
Sales - Europe |
208,904 |
202,596 |
|
Sales - Rest of world |
2,615,550 |
1,322,838 |
|
Carriage |
15,505 |
10,196 |
|
8,604,772 |
7,424,803 |
|
Cost of sales |
||
|
Opening stock |
(1,581,907) |
(1,322,633) |
|
Purchases |
(2,777,583) |
(2,962,811) |
|
Rebates |
(684,649) |
(594,753) |
|
Closing stock |
1,340,664 |
1,581,907 |
|
Direct wages and salaries |
(921,641) |
(792,378) |
|
Employer's NI contributions |
(85,556) |
(69,198) |
|
Staff pensions (Other) |
(17,671) |
(14,377) |
|
Packaging |
(122,408) |
(121,046) |
|
Repairs to plant and machinery |
(46,896) |
(45,080) |
|
Carriage inwards |
(13,105) |
(17,246) |
|
(4,910,752) |
(4,357,615) |
|
Distribution costs |
||
|
Agents commissions |
(28,653) |
(25,914) |
|
Carriage outwards |
(130,652) |
(113,303) |
|
Reps Salaries |
(380,726) |
(373,640) |
|
Reps employers NI |
(37,208) |
(33,851) |
|
Reps pension costs |
(6,445) |
(6,487) |
|
Reps motor running expenses |
(54,648) |
(45,272) |
|
Reps travel and subsistence |
(11,226) |
(5,281) |
|
Reps entertaining |
(6,360) |
(8,844) |
|
Reps accomodation |
(2,732) |
(4,597) |
|
Exhibition costs |
(19,273) |
(11,531) |
|
Marketing, demonstration & public relations |
(96,091) |
(98,812) |
|
VRVC promotion |
(86,387) |
(46,533) |
|
Advertising & brochures |
(4,184) |
(9,221) |
|
(864,585) |
(783,286) |
|
Administrative expenses |
||
|
Staff pensions cost |
(18,432) |
(18,779) |
|
Discounts allowed |
(6,561) |
(4,912) |
|
Royalties payable |
(6,000) |
(4,713) |
|
Rates |
(79,547) |
(73,401) |
|
Light and heat |
(141,000) |
(111,497) |
SMITH'S ENVIRONMENTAL PRODUCTS LIMITED
Detailed Income Statement for the Year Ended 31 December 2024
|
2024 |
2023 |
|
Insurance |
(41,202) |
(39,996) |
|
Repairs and maintenance |
(80,513) |
(70,977) |
|
Depreciation of plant and machinery |
(4,594) |
- |
|
Depreciation of fixtures and fittings |
(3,821) |
(2,627) |
|
Depreciation on motor vehicles |
(3,112) |
(3,112) |
|
Indirect wages |
(205,951) |
(209,553) |
|
Employer's NI contributions |
(73,281) |
(71,393) |
|
Wages and salaries |
(504,212) |
(468,991) |
|
Telephone |
(19,095) |
(19,844) |
|
Computer software and maintenance |
(96,879) |
(94,055) |
|
Printing, postage and stationery |
(17,446) |
(17,738) |
|
Subscriptions |
(9,331) |
(9,357) |
|
Charitable donations |
(2,607) |
(1,135) |
|
Cleaning |
(13,320) |
(11,358) |
|
Quality and testing cost |
(14,979) |
(13,811) |
|
Travel and subsistence |
(42,345) |
(33,335) |
|
Legal and professional |
(70,861) |
(84,094) |
|
Bank charges |
(2,434) |
(3,239) |
|
Entertaining |
(1,983) |
(2,969) |
|
Audit |
(24,330) |
(24,510) |
|
Amortisation of patents |
(2,689) |
(3,127) |
|
Profit/loss on foreign currency transactions |
156,136 |
250,555 |
|
Canteen and staff welfare |
(16,658) |
(14,124) |
|
Depreciation of right of use asset |
(109,688) |
(109,688) |
|
General expenses |
(40) |
(41) |
|
Warranty |
(14,470) |
(16,257) |
|
(1,471,245) |
(1,288,078) |
|
Other operating income |
||
|
Other income |
- |
1,235 |
|
Finance income |
||
|
Bank interest received |
21,871 |
4,246 |
|
Finance costs |
||
|
Hire purchase interest |
(1,588) |
- |
|
Finance lease interest |
(10,609) |
(13,940) |
|
(12,197) |
(13,940) |