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Registered number: 04570982 SMART MANUFACTURING TECHNOLOGY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Page Kirk LLP Chartered Accountants and Statutory Auditors Sherwood House 7 Gregory Boulevard Nottingham NG7 6LB
SMART MANUFACTURING TECHNOLOGY LIMITED
CONTENTS
| Page
Company Information | 1
Group Strategic Report | 2 - 3
Directors' Report | 4 - 5
Directors' Responsibilities Statement | 6
Independent Auditors' Report | 7 - 10
Consolidated Profit and Loss Account | 11
Consolidated Statement of Comprehensive Income | 12 - 13
Consolidated Balance Sheet | 13 - 14
Company Balance Sheet | 15
Consolidated Statement of Changes in Equity | 16 - 17
Company Statement of Changes in Equity | 18
Consolidated Statement of Cash Flows | 19 - 20
Notes to the Financial Statements | 21 - 42
SMART MANUFACTURING TECHNOLOGY LIMITED
COMPANY INFORMATION
Directors | Dr P Langlois
| Mr P K Mooneeramsing
| Dr C Zhou
| Mr E H Woolley
Company secretary | Miss G Clay
Registered number | 04570982
Registered office | Wilford House
| 1 Clifton Lane
| Wilford
| Nottingham
| Nottinghamshire
| NG11 7AT
Independent auditors | Page Kirk LLP
| Chartered Accountants and Statutory Auditors
| Sherwood House
| 7 Gregory Boulevard
| Nottingham
| NG7 6LB
Page 1
SMART MANUFACTURING TECHNOLOGY LIMITED
GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Introduction The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company and group is that of providing software and engineering consultancy services for the design, simulation & analysis of driveline systems from concept through to manufacture.
Fair review of the business
The directors report that group turnover has increased to £17,975,343 (2023 - £16,097,286) in the year with the gross profit percentage having decreased to 55.26% (2023 – 55.43%). The profit after taxation amounted to £3,815,164 (2023 - £2,725,663). Good cost controls have allowed us to maintain our healthy margins over the year. A combination of a highly satisfied customer base and rapidly developing software products give the directors an elevated level of confidence that the companies strong position within the sector will continue to improve. The objective going forward is to work towards improving financial performance and to continually deliver the most pioneering services and technologies trusted by the world’s leading transmission and driveline engineers. The directors monitor the following key performance indicators (KPIs): Financial KPI: revenue growth, growth pipelines, profitability and cash flow Non-financial KPI: customer feedback Page 2
SMART MANUFACTURING TECHNOLOGY LIMITED
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties
Described below are those material risks that the Board believe could foreseeably impact the performance of SMT, its prospects, reputation, or ability to meet business goals and objectives. The risks identified here are not an exhaustive declaration of all risks relevant to SMTs business operations. Additional risks which may not have been identified, or which are currently deemed lower priority may also have an adverse effect on the business. Recruitment & Retention Attracting and retaining talent is essential for meeting our goals and objectives. The risk is being managed by a targeted recruitment process, maintaining relationships with key recruitment agencies, diversification of recruitment strategies, a focus on career development of existing staff and maintaining a welcome and stimulating working environment. The availability of suppliers that can complete specific work can be a limiting factor and we evaluate this often to mitigate the risk. Cyber Security SMT acknowledge the growing risk and uncertainties relating to cyber security and treat it as a primary risk. The business has an established information security department, led by an experienced Information Security Manager, and have implemented ISO27001:2022 and were granted certification in January 2024. SMT remains committed to continuously enhancing information security and cyber resilience. Changes in Global Legislation & Regulation The Board recognises their obligations to remain compliant with ever-changing global legislation and regulations. The risk is being mitigated by taking external professional advice where necessary. Markets Global economic and political fluctuations are predicted to continue and the impact, or uncertainty may affect customers’ ability, or desire, to invest in our technology. SMT is mitigating this risk through maintaining strong customer relationships, customer diversification, geographical expansion, and product diversification for additional sectors. Technology SMT acknowledges the rapid pace of technological change and the associated need to innovate to maintain a competitive advantage. The risk is being mitigated via close communication regarding customer needs, monitoring of technology trends, investment in research and a focus of research projects on key upcoming technology trends. Financial Risks SMT acknowledges that serving a global customer base increases exposure to foreign exchange risk and manages this risk through the buying and selling of products and services in matching currencies wherever possible. This report was approved by the board on 22 October 2025 and signed on its behalf.
Mr E H Woolley Director
Page 3
SMART MANUFACTURING TECHNOLOGY 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.
Results and dividends
The profit for the year, after taxation and minority interests, amounted to £3,815,047 (2023 - £2,725,716). Dividends were £456,839 (2023 - £448,423).
Directors
The directors who served during the year were:
Dr P Langlois
Mr P K Mooneeramsing
Dr C Zhou
Mr E H Woolley
Financial instruments
Objectives and policies The directors have implemented procedures to minimise risks wherever possible. Price risk, credit risk, liquidity risk and cash flow risk The effect of inflation leading to higher prices could result in a downturn in activity. The group believes their competitive advantage in terms of a strong customer base and reputation of high quality products negates this risk. The group mitigates credit risk by running credit checks on all new customers and by continually monitoring existing customers. Exposure to cash flow risk is minimised by regular monitoring and forecasts to ensure availability of liquidity. The group has strong cash reserves at the fiscal year end. Purchase of own shares During the year, the company purchased 1 of its own ordinary shares, with a nominal value of £1, for total consideration of £150,000. This transaction represents 0.98% of the company’s called up share capital. The share is being held in treasury in accordance with the provisions of the Companies Act 2006. The maximum number of own shares held by the company during the year was 1, with a total nominal value of £1. The purchase was financed from the company’s distributable reserves. Branches outside of the UK The Company has branches in the following locations: Seoul, South Korea Chongqing, China São João da Madeira, Portugal (Ceased: 2025) Page 4
SMART MANUFACTURING TECHNOLOGY LIMITED
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
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. Page Kirk LLP have expressed their willingness to continue as auditors for the next financial year. This report was approved by the board on 22 October 2025 and signed on its behalf.
Mr E H Woolley Director
Page 5
SMART MANUFACTURING TECHNOLOGY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 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. 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period. 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 judgments and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙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. Page 6
SMART MANUFACTURING TECHNOLOGY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMART MANUFACTURING TECHNOLOGY LIMITED
Opinion
We have audited the financial statements of Smart Manufacturing Technology Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 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). In our opinion the financial statements: ∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's 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. Page 7
SMART MANUFACTURING TECHNOLOGY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMART MANUFACTURING TECHNOLOGY LIMITED (CONTINUED)
Other information
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.
Opinion on other matters prescribed by the Companies Act 2006
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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent Company 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.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 6, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so. Page 8
SMART MANUFACTURING TECHNOLOGY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMART MANUFACTURING TECHNOLOGY LIMITED (CONTINUED)
Auditors' 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 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 obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation and money laundering regulations. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included: • Enquiries of management about their own identification and assessment of the risks of irregularities. • Sample testing on the posting of journals. • Reviewing meeting minutes, regulatory correspondence and professional fees. • Detailed substantive testing on the completeness of income. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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. Page 9
SMART MANUFACTURING TECHNOLOGY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMART MANUFACTURING TECHNOLOGY LIMITED (CONTINUED)
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 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. John Wallis FCA (Senior Statutory Auditor) for and on behalf of Page Kirk LLP Chartered Accountants and Statutory Auditors Sherwood House 7 Gregory Boulevard Nottingham NG7 6LB 22 October 2025 Page 10
SMART MANUFACTURING TECHNOLOGY LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 17,975,343 | 16,097,286
Cost of sales |  | (8,041,774) | (7,174,226)
Gross profit |  | 9,933,569 | 8,923,060
Administrative expenses |  | (5,728,097) | (5,664,658)
Other operating income | 5 | 144,062 | 451,826
Operating profit | 6 | 4,349,534 | 3,710,228
Interest receivable and similar income | 10 | 386,333 | 102,017
Interest payable and similar expenses | 11 | (14,993) | (59,688)
Profit before tax |  | 4,720,874 | 3,752,557
Tax on profit | 12 | (905,710) | (1,026,894)
Profit for the financial year |  | 3,815,164 | 2,725,663
Profit for the year attributable to: |  |  |
Non-controlling interests |  | 117 | (53)
Owners of the parent |  | 3,815,047 | 2,725,716
|  | 3,815,164 | 2,725,663
The notes on pages 21 to 42 form part of these financial statements.
Page 11
SMART MANUFACTURING TECHNOLOGY LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  |  | 2024 | 2023
|  |  | Note | £ | £
Profit for the financial year |  | 3,815,164 | 2,725,663
Other comprehensive income |  |  |
Currency translation differences |  | (84,556) | (199,700)
Other comprehensive income for the year |  | (84,556) | (199,700)
Total comprehensive income for the year |  | 3,730,608 | 2,525,963
Profit for the year attributable to: |  |  |
Non-controlling interest |  | 117 | (53)
Owners of the parent Company |  | 3,815,047 | 2,725,716
|  | 3,815,164 | 2,725,663
Total comprehensive income attributable to: |  |  |
Non-controlling interest |  | 117 | (53)
Owners of the parent Company |  | 3,730,608 | 2,525,963
|  | 3,730,725 | 2,525,910
The notes on pages 21 to 42 form part of these financial statements.
Page 12
SMART MANUFACTURING TECHNOLOGY LIMITED
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024
| 2024 | 2024 | 2023 | 2023
Note | £ | £ | £ | £
Fixed assets |  |  |  |  |
Tangible assets | 14 |  | 955,270 |  | 922,732
Investments | 15 |  | - |  | 21,257
|  |  | 955,270 |  | 943,989
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 16 | 13,244,647 |  | 10,903,152 |
Cash at bank and in hand | 17 | 11,813,635 |  | 10,164,136 |
|  | 25,058,282 |  | 21,067,288 |
Creditors: amounts falling due within one year | 18 | (5,559,597) |  | (4,433,888) |
Net current assets |  |  | 19,498,685 |  | 16,633,400
Total assets less current liabilities |  |  | 20,453,955 |  | 17,577,389
Creditors: amounts falling due after more than one year | 19 |  | (57,953) |  | -
Provisions for liabilities |  |  |  |  |
Deferred tax |  | 268,383 |  | (36,773) |
|  |  | 268,383 |  | (36,773)
Net assets |  |  | 20,664,385 |  | 17,540,616
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 102 |  | 102
Shares held in treasury |  |  | (150,000) |  | -
Other reserves |  |  | 238,060 |  | 238,060
Profit and loss account |  |  | 20,575,532 |  | 17,301,880
Equity attributable to owners of the parent Company |  |  | 20,663,694 |  | 17,540,042
Non-controlling interests |  |  | 691 |  | 574
|  |  | 20,664,385 |  | 17,540,616
Page 13
SMART MANUFACTURING TECHNOLOGY LIMITED REGISTERED NUMBER:04570982
CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024 The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 October 2025.
Mr E H Woolley
Director
Page 14
SMART MANUFACTURING TECHNOLOGY LIMITED REGISTERED NUMBER:04570982
COMPANY BALANCE SHEET AS AT 31 DECEMBER 2024
| 2024 | 2024 | 2023 | 2023
Note | £ | £ | £ | £
Fixed assets |  |  |  |  |
Tangible assets | 14 |  | 828,253 |  | 853,557
Investments | 15 |  | 336,475 |  | 336,475
|  |  | 1,164,728 |  | 1,190,032
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 16 | 10,233,338 |  | 8,823,971 |
Cash at bank and in hand | 17 | 10,175,125 |  | 7,971,690 |
|  | 20,408,463 |  | 16,795,661 |
Creditors: amounts falling due within one year | 18 | (4,306,688) |  | (3,508,547) |
Net current assets |  |  | 16,101,775 |  | 13,287,114
Total assets less current liabilities |  |  | 17,266,503 |  | 14,477,146
Provisions for liabilities |  |  |  |  |
Deferred taxation | 21 | (38,609) |  | (70,284) |
|  |  | (38,609) |  | (70,284)
Net assets |  |  | 17,227,894 |  | 14,406,862
Capital and reserves |  |  |  |  |
Called up share capital | 22 |  | 102 |  | 102
Shares held in treasury |  |  | (150,000) |  | -
Profit and loss account |  |  | 17,377,792 |  | 14,406,760
|  |  | 17,227,894 |  | 14,406,862
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 October 2025.
Mr E H Woolley
Director
The notes on pages 21 to 42 form part of these financial statements. Page 15
|  | SMART MANUFACTURING TECHNOLOGY LIMITED |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
|  | Called up share capital | Shares held in treasury | Other reserves | Profit and loss account | Equity attributable to owners of parent Company | Non-controlling interests | Total equity
|  | £ | £ | £ | £ | £ | £ | £
| At 1 January 2024 | 102 | - | 238,060 | 17,301,880 | 17,540,042 | 574 | 17,540,616
| Profit for the year | - | - | - | 3,815,047 | 3,815,047 | 117 | 3,815,164
| Currency translation differences | - | - | - | (84,556) | (84,556) | - | (84,556)
| Dividends: Equity capital | - | - | - | (456,839) | (456,839) | - | (456,839)
| Shares repurchased | - | (150,000) | - | - | (150,000) | - | (150,000)
| At 31 December 2024 | 102 | (150,000) | 238,060 | 20,575,532 | 20,663,694 | 691 | 20,664,385
| The notes on pages 21 to 42 form part of these financial statements.
Page 16
|  | SMART MANUFACTURING TECHNOLOGY LIMITED |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
|  | Called up share capital | Other reserves | Profit and loss account | Equity attributable to owners of parent Company | Non-controlling interests | Total equity
|  | £ | £ | £ | £ | £ | £
| At 1 January 2023 | 102 | 238,060 | 15,224,287 | 15,462,449 | 627 | 15,463,076
| Profit for the year | - | - | 2,725,716 | 2,725,716 | (53) | 2,725,663
| Currency translation differences | - | - | (199,700) | (199,700) | - | (199,700)
| Dividends: Equity capital | - | - | (448,423) | (448,423) | - | (448,423)
| At 31 December 2023 | 102 | 238,060 | 17,301,880 | 17,540,042 | 574 | 17,540,616
| The notes on pages 21 to 42 form part of these financial statements.
Page 17
SMART MANUFACTURING TECHNOLOGY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Shares held in treasury | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2023 | 102 | - | 12,908,723 | 12,908,825
Profit for the year | - | - | 1,946,460 | 1,946,460
Dividends: Equity capital | - | - | (448,423) | (448,423)
At 1 January 2024 | 102 | - | 14,406,760 | 14,406,862
Profit for the year | - | - | 3,427,872 | 3,427,872
Dividends: Equity capital | - | - | (456,839) | (456,839)
Shares repurchased | - | (150,000) | - | (150,000)
At 31 December 2024 | 102 | (150,000) | 17,377,793 | 17,227,895
| The notes on pages 21 to 42 form part of these financial statements.
Page 18
SMART MANUFACTURING TECHNOLOGY LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 3,815,164 | 2,725,663
Adjustments for: |  |
Depreciation of tangible assets | 180,764 | 129,634
Loss on disposal of tangible assets | - | (346)
Government grants | (5,982) | -
Interest paid | 14,993 | 59,688
Interest received | (386,333) | (102,017)
Taxation charge | 905,710 | 1,026,894
(Increase)/decrease in debtors | (2,320,237) | 300,064
Increase/(decrease) in creditors | 912,453 | (818,734)
Net fair value (gains) recognised in P&L | (203,692) | (128,870)
Corporation tax (paid) | (970,522) | (1,120,460)
Net cash generated from operating activities | 1,942,318 | 2,071,516
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (216,498) | (318,891)
Sale of tangible fixed assets | 3,196 | 2,083
Government grants received | 5,982 | -
Interest received | 386,333 | 102,017
Net cash from investing activities | 179,013 | (214,791)
Page 19
SMART MANUFACTURING TECHNOLOGY LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
|  | 2024 | 2023
|  | £ | £
Cash flows from financing activities |  |
Dividends paid | (456,839) | (448,423)
Interest paid | (14,993) | (59,688)
Net cash used in financing activities | (471,832) | (508,111)
Net increase in cash and cash equivalents | 1,649,499 | 1,348,614
Cash and cash equivalents at beginning of year | 10,164,136 | 8,815,522
Cash and cash equivalents at the end of year | 11,813,635 | 10,164,136
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 11,813,635 | 10,164,136
| 11,813,635 | 10,164,136
The notes on pages 21 to 42 form part of these financial statements.
Page 20
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
The company is a private company limited by share capital, incorporated in England and Wales. The address of its registered office is: Wilford House 1 Clifton Lane Wilford Nottingham Nottinghamshire NG11 7AT England 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
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 judgment 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:
| 2.2 | Basis of consolidation
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 Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases. The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024. Smart Manufacturing Technology (Beijing) Ltd Smart Manufacturing Technology Japan Ltd Smart Manufacturing Technology LLC SMT Masta Private Limited Immaterial and dormant subsidiaries have not been consolidated within the financial statements. A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Page 21
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued) The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
| 2.3 | 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..
| 2.4 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. Page 22
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.4 | Foreign currency translation (continued)
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Group has transferred the significant risks and rewards of ownership to the buyer; ∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.6 | Leases
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. Page 23
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.7 | Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Consolidated Profit and Loss Account in the same period as the related expenditure.
| 2.8 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.9 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 2.10 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds. Page 24
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.11 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
| 2.12 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Page 25
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.12 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 1% | straight line
|  |  |  | Plant and machinery | - | 20% | reducing balance
|  |  |  | Motor vehicles | - | 25% | reducing balance
|  |  |  | Fixtures and fittings | - | 15% | - 33% reducing balance
|  |  |  | Office equipment | - | 15% | - 33% reducing balance
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.
| 2.13 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.14 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.15 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
| 2.16 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. Page 26
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.17 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.18 | Financial instruments
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Page 27
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2.Accounting policies (continued)
| 2.18 | Financial instruments (continued)
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
| 2.19 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
| 2.20 | 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.
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
Judgements Preparation of the financial statements requires management to make significant judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from their estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future periods. No critical judgements have been identified by the directors that have been made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. Key sources of estimation uncertainty Preparation of the financial statements requires management to make significant judgements and estimates. Due to the nature of the business the directors have made reasonable estimates relating to services not invoiced by suppliers. Page 28
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
4. | Turnover
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Sales | 17,975,343 | 16,097,286
|  | 17,975,343 | 16,097,286
Analysis of turnover by country of destination:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| United Kingdom | 432,078 | 392,435
| Rest of Europe | 2,856,855 | 4,001,808
| Rest of the world | 14,686,410 | 11,703,043
|  | 17,975,343 | 16,097,286
| Revenue from software and licences amounts to £15,898,986 (2023 - £14,239,963). Revenue from engineering services amounts to £2,076,356 (2023 - £1,857,323).
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Net rents receivable | 16,483 | 2,880
| Miscellaneous other operating income | 121,597 | 433,504
| Government grants receivable | 5,982 | 15,442
|  | 144,062 | 451,826
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Exchange differences | 367,556 | 129,634
| Other operating lease expense | - | 4,355
| Loss/(profit) on disposal of property, plant and equipment | - | (346)
Page 29
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
7. | Auditors' remuneration
| During the year, the Group obtained the following services from the Company's auditors:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements | 15,750 | 10,230
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Wages and salaries | 4,552,307 | 3,506,696 | 3,693,884 | 3,160,048
| Social security costs | 443,795 | 354,758 | 318,659 | 312,595
| Cost of defined contribution scheme | 369,072 | 241,149 | 365,043 | 227,942
|  | 5,365,174 | 4,102,603 | 4,377,586 | 3,700,585
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Production | 71 | 72
|  | Administration and support | 21 | 27
|  |  | 92 | 99
| The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)
Page 30
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
9. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 331,542 | 393,205
| Group contributions to defined contribution pension schemes | 60,010 | 43,375
|  | 391,552 | 436,580
| During the year retirement benefits were accruing to 4 directors (2023 - 4) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £203,813 (2023 - £264,387).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £5,089 (2023 - £3,068).
10. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank and other interest receivable | 386,333 | 102,017
11. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Interest expense on other finance liabilities | 14,993 | 59,688
Page 31
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
12. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 740,400 | 498,825
| Adjustments in respect of previous periods | (136,705) | (27,051)
|  | 603,695 | 471,774
| Foreign tax | 607,171 | 491,475
|  | 1,210,866 | 963,249
| Total current tax | 1,210,866 | 963,249
| Deferred tax |  |
| Origination and reversal of timing differences | (305,156) | 63,645
| Total deferred tax | (305,156) | 63,645
| Tax on profit | 905,710 | 1,026,894
Page 32
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%) as set out below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 4,720,874 | 3,752,557
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%) | 1,180,218 | 881,851
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 4,117 | 6,323
| Capital allowances for year in excess of depreciation | (6,012) | (8,736)
| Adjustments to tax charge in respect of prior periods | (136,705) | (27,051)
| Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax | (6,917) | 4,589
| Short-term timing difference leading to an increase (decrease) in taxation | (305,156) | 63,645
| Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge | - | (119,375)
| Double taxation relief | 176,165 | 225,648
| Total tax charge for the year | 905,710 | 1,026,894
13. | Dividends
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Final dividend per each ordinary "A" Non-voting | 406,820 | 393,933
| Final dividend per each ordinary "B" Non-voting | 50,019 | 54,490
|  | 456,839 | 448,423
Page 33
|  | SMART MANUFACTURING TECHNOLOGY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| 14. | Tangible fixed assets
|  | Group
|  | Freehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Office equipment | Total
|  | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |
| At 1 January 2024 | 525,322 | 345,192 | 76,688 | 233,646 | 642,208 | 1,823,056
| Additions | 66,015 | - | - | 29,660 | 121,456 | 217,131
| Disposals | - | - | - | (3,829) | - | (3,829)
| At 31 December 2024 | 591,337 | 345,192 | 76,688 | 259,477 | 763,664 | 2,036,358
| Depreciation |  |  |  |  |  |
| At 1 January 2024 | 38,784 | 262,045 | 59,208 | 112,897 | 427,390 | 900,324
| Charge for the year on owned assets | 36,248 | 13,135 | 1,713 | 18,666 | 111,002 | 180,764
| At 31 December 2024 | 75,032 | 275,180 | 60,921 | 131,563 | 538,392 | 1,081,088
| Net book value |  |  |  |  |  |
| At 31 December 2024 | 516,305 | 70,012 | 15,767 | 127,914 | 225,272 | 955,270
| At 31 December 2023 | 486,538 | 83,146 | 17,480 | 120,749 | 214,819 | 922,732
Page 34
|  | SMART MANUFACTURING TECHNOLOGY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
|  | Company
|  | Freehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Office equipment | Total
|  | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |
| At 1 January 2024 | 525,322 | 243,102 | 42,999 | 140,408 | 611,597 | 1,563,428
| Additions | - | - | - | 20,291 | 120,091 | 140,382
| At 31 December 2024 | 525,322 | 243,102 | 42,999 | 160,699 | 731,688 | 1,703,810
| Depreciation |  |  |  |  |  |
| At 1 January 2024 | 38,784 | 179,168 | 36,148 | 66,661 | 389,110 | 709,871
| Charge for the year on owned assets | 27,996 | 12,912 | 1,713 | 12,283 | 110,782 | 165,686
| At 31 December 2024 | 66,780 | 192,080 | 37,861 | 78,944 | 499,892 | 875,557
| Net book value |  |  |  |  |  |
| At 31 December 2024 | 458,542 | 51,022 | 5,138 | 81,755 | 231,796 | 828,253
| At 31 December 2023 | 486,538 | 63,934 | 6,851 | 73,747 | 222,487 | 853,557
Page 35
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. | Fixed asset investments
| Group
|  | Investments in subsidiary companies
|  | £
| At 1 January 2024 | 21,257
| Disposals | (21,257)
| At 31 December 2024 | -
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 January 2024 | 336,475
| At 31 December 2024 | 336,475
Page 36
SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Class of shares | Holding
| Smart Manufacturing Technology (Beijing) Ltd | Room 1611, Building C, Golden Tower No. 82 Middle Section of East Fourth Ring Road Chaoyang District Beijing, 100124 China | Ordinary | 100%
| Smart Manufacturing Technology Japan Ltd | Mori First Bldg. 4F 2-593 Saiwai-cho Saiwai-ku Kawasaki-Shi Kanagawa 212-0011 Japan | Ordinary | 100%
| Smart Manufacturing Technology LLC | 101 West Big Beaver Suite 1400 Troy MI 48084 USA | Ordinary | 100%
| SMT Masta Private Limited | S. No. 55/1, 56/1 57/2D A51/206 Elimenta,Akshar Land, Near Balaji Edu Tathwadi Pune Mh 411033 In Pune India | Ordinary | 99%
16. | Debtors
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade debtors | 5,263,993 | 3,166,700 | 2,902,754 | 2,099,930
| Amounts owed by group undertakings | - | - | 135,861 | -
| Other debtors | 7,300,905 | 7,085,980 | 6,789,857 | 6,397,467
| Prepayments and accrued income | 679,749 | 569,197 | 404,866 | 245,299
| Amounts recoverable on long-term contracts | - | 81,275 | - | 81,275
|  | 13,244,647 | 10,903,152 | 10,233,338 | 8,823,971
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SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
17. | Cash and cash equivalents
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Cash at bank and in hand | 11,813,635 | 10,164,136 | 10,175,125 | 7,971,690
|  | 11,813,635 | 10,164,136 | 10,175,125 | 7,971,690
18. | Creditors: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade creditors | 454,454 | 331,923 | 122,763 | 306,637
| Amounts owed to group undertakings | - | - | 203,635 | 283,254
| Corporation tax | 577,773 | 337,427 | 489,429 | 46,957
| Other taxation and social security | 155,966 | 142,750 | 97,232 | 80,417
| Other creditors | 416,178 | 523,624 | 285,446 | 278,745
| Accruals and deferred income | 3,955,226 | 3,098,164 | 3,108,183 | 2,512,537
|  | 5,559,597 | 4,433,888 | 4,306,688 | 3,508,547
19. | Creditors: Amounts falling due after more than one year
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Other creditors | 57,953 | -
|  | 57,953 | -
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SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
20. | Financial instruments
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Financial assets |  |  |  |
| Financial assets measured at amortised cost | 24,378,533 | 20,498,091 | 20,003,597 | 16,550,362
| Financial liabilities measured at amortised cost | (2,003,547) | (3,277,910) | (1,655,647) | (3,328,233)
| I tems of income, expense, gains or losses The total income for the group for financial assets not measured at fair value through profit or loss is £386,224 (2023 - £102,017). The total income for the company for financial assets not measured at fair value through profit or loss is £386,224 (2023 - £100,635). The total interest expenses for the group for financial liabilities not measured at fair value through profit or loss is £14,993 (2023 - £59,688). The total interest expense for the company for financial liabilities not measured at fair value through profit or loss is £Nil (2023 - £2,856).
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SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
21. | Deferred taxation
| Group
|  | 2024
|  | £
| At beginning of year | (36,773)
| Charged to the profit or loss | 305,156
| At end of year | 268,383
| Company
|  | 2024
|  | £
| At beginning of year | (70,284)
| Charged to profit or loss | 31,675
| At end of year | (38,609)
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Accelerated capital allowances | 268,383 | (36,773) | (38,609) | (70,284)
|  | 268,383 | (36,773) | (38,609) | (70,284)
22. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 100 (2023 - 100) Ordinary shares of £1.00 each | 100 | 100
|  | 1 (2023 - 1) Ordinary A Non-Voting share of £1.00 | 1 | 1
|  | 1 (2023 - 1) Ordinary B Non-Voting share of £1.00 | 1 | 1
|  |  | 102 | 102
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SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 22.Share capital (continued)
| Rights, preferences and restrictions Ordinary shares have the following rights, preferences and restrictions: Ordinary shares with full and equal rights to participate in voting in all circumstances and in dividends and capital distributions, whether on a winding up or otherwise. Dividends may be declared at different rates including nil, on the different designations of shares. The shares are not redeemable. Ordinary A Non-Voting shares have the following rights, preferences and restrictions: Ordinary shares with no voting rights but have a right to participate in dividends and capital distributions, whether on a winding up or otherwise. Dividends may be declared at different rates including nil, on the different designations of shares. The shares are not redeemable. Ordinary B Non-voting shares have the following rights, preferences and restrictions: Ordinary shares with no voting rights but have a right to participate in dividends and capital distributions, whether on a winding up or otherwise. Dividends may be declared at different rates including nil, on the different designations of shares. The shares are not redeemable.
23. | Pension commitments
The group operates defined contribution pension schemes. The pension cost charge for the year represents contributions payable by the group to the schemes and amounted to £369,072 (2023 - £241,150). Contributions totalling £6,162 (2023 - £1,212) were payable to the schemes at the end of the year and are included in creditors.
24. | Commitments under operating leases
| At 31 December 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Not later than 1 year | 34,834 | 192,585
| Later than 1 year and not later than 5 years | 127,500 | 834
|  | 162,334 | 193,419
| The amount of non-cancellable operating lease payments recognised as an expense during the year was £270,335 (2023 - £263,943).
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SMART MANUFACTURING TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
25. | Charges
The overdraft is secured by National Westminster Bank plc on the following: Debenture dated 17 October 2006 Charge of Deposit dated 17 March 2010 Charge of Deposit dated 27 February 2012 Charge of Deposit dated 6 January 2016
26. | Related party transactions
| During the year entities where key management personnel are directors and shareholders borrowed £380,858 (2023 - £982,625) from the company. Interest has been charged on the loan at a rate of 7% to 24 September 2018, then subsequently 5%. The total amount due to the company at the year end was £2,099,430 (2023 - £1,718,572). During the year entities where key management personnel are directors and shareholders borrowed £Nil (2023 - £Nil) from the company. Expenditure with and payables to related parties were £61,380 (2023 - £Nil). No interest has been charged. The total amount due to the company at the year end is £4,414,862 (2023 - £4,476,242). During the year the company paid rents to entities where key management personnel are directors and shareholders of £215,000 (2023 - £215,000) The director's loan account was overdrawn by £21,055 (2023 - £Nil) at the balance sheet date. The loans were repayable on demand with interest charged at HMRC's official rate.
27. | Controlling party
Smart Manufacturing Technology Limited is controlled by Evergreen PTC Ltd.
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