Registration number:
for the
Year Ended 31 January 2025
H. R. Smith Group Limited
Contents
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Company Information |
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Strategic Report |
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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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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
H. R. Smith Group Limited
Company Information
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Directors |
Mr R E L Smith Miss S F Smith Mrs L M M Sharp-Smith |
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Registered office |
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Principal place of business |
Unit 416 |
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Auditors |
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H. R. Smith Group Limited
Strategic Report for the Year Ended 31 January 2025
The directors present their strategic report for the year ended 31 January 2025.
Fair review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover and gross margin.
In 2025 the group saw an increase in turnover of 5.2% (2024: increase 23.1%). Gross profit percentage has remained consistent at 65.0% in 2025 compared to 65.8% in 2024.
At 31 January 2025 the group had net assets of £57,629,607 (2024: £48,725,754). At 31 January 2025 the company had net assets of £28,124,372 (2024: £28,779,998).
Research and development
The company continues to invest in the important area of research and development for the defence and civil aviation markets’ product needs.
Future developments
The order book remained strong at 31 January 2025. The directors are confident that 2025-26 will show a consistent performance, and will continue to monitor closely.
Principal risks and uncertainties
The group's financial instruments comprise cash at bank and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise adequate finance for group's operations.
The main risks arising from the group's financial instruments is exchange rate risk. Foreign currency risk arises from the sale of goods to customers outside the UK. These sales are priced in Sterling but invoiced in Euros and US dollars.
Approved by the
Director
H. R. Smith Group Limited
Directors' Report for the Year Ended 31 January 2025
The directors present their report and the for the year ended 31 January 2025.
Principal activities
The principal activity of the group is that of the manufacture of test, search and rescue equipment, and aircraft antennae, and the manufacture and distribution of composite materials and related high-technology products. In addition the group is involved in the research and development of new wheelchair applications and manufacture and sales of paediatric wheelchairs. The principal activity of the company is that of a holding company,
Directors of the company
The directors who held office during the year were as follows:
S172 Statement
Throughout the year end 31 January 2025, the Board continued to act, in good faith, to promote the long-term success of the Group, taking into account the factors as listed under section 172(1) of the Companies Act 2006.
The Board recognises that the long-term success of the Group is linked to the value creation for the Group’s stakeholders, and the engagement with all stakeholders plays a vital role to the business. Whilst it aims to act in the best interests of all stakeholders, such interests may conflict one another. The Board will therefore pursue decisions that it believes will help deliver the strategy for the Group and all its stakeholders for the longer term.
The following outlines who the Board considers to be the key stakeholders to the Group, what they believe matters to each of them, and how the Board engages with our stakeholder groups.
Stakeholder groups include:
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Employees |
- The Board recognises that employees have a major part to play in the success of the Group, and that our employees are central to the successful delivery of our strategic objectives. |
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Community and its environment |
- To help us be a responsible business |
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Customers |
- Our customers are vital to our performance |
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Suppliers |
- We recognise that relationships with our suppliers and contractors are important to our financial performance |
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Shareholders |
- Providers of capital and have a financial interest in the performance |
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Stakeholders and why they are important |
What matters to them |
How we engage |
How the Board engages |
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Employees |
-Employment |
-Employment process |
-Weekly meetings with HR manager |
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-Career opportunities |
-Staff events to encourage social interaction |
-Board receives periodic reports on employee matters and updates given by HR team |
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-Apprenticeships |
-Senior management leaders |
-Weekly meetings with Senior management group |
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-Job security |
-Appraisals |
-Open door policy to allow staff direct access to Directors |
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-Fair pay and benefits |
-Staff handbook and policies |
-Health and safety reports |
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-Work-life balance |
-Communication via memos and posters |
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-Training and development |
-Dedicated HR department |
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-Health & safety |
-Training provided |
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-Working conditions |
-Senior management group |
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H. R. Smith Group Limited
Directors' Report for the Year Ended 31 January 2025
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Stakeholders and why they are important |
What matters to them |
How we engage |
How the Board engages |
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Community and its environment |
-Energy usage |
-Internal working group evaluating energy usage |
-Board approval of all charitable donations |
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-Waste management and recycle |
-Donations made to local charities |
-Board oversight and overall responsibility of Business Continuity Plans |
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-Education |
-Social events held locally to support local businesses |
-Board oversight of Corporate Responsibility plans |
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-Charitable donations |
-Direct engagement with local councils and community groups |
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-Employment and conditions |
-Working with local schools, colleges and universities to offer placements and employment |
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-Health and Safety |
-Recruitment process |
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-Solar panels on new building |
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-Departmental Business Continuity plans |
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Customers |
-Design, innovation and technology |
-Industry events |
-Monthly updates given by Head of business development |
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-Customer service |
-Attendance at exhibitions and airshows |
-Monthly Board meetings and updates on trading |
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- Price and price consistency |
-Direct communication and marketing |
-Financial, sales and trading analysis and KPIs |
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- Delivering on time |
-Annual review of new technology developments |
-Trading analysis and sales data is shared with the Board on a weekly basis |
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-Products and services all produced in UK and in house |
-Social media and websites |
-Customer feedback |
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-Vertical integration |
-Internal KPIs |
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-Range of products and service availability |
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-Safety |
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Suppliers |
-Payment terms |
-Day to day contact between colleagues and suppliers |
-Weekly updates given by purchasing manager |
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-Fair contractual arrangements |
-Modern Slavery Statement |
-Weekly meetings with Senior management group |
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-Communication |
-Resolution of issues in a timely manner |
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-Anti-bribery and corruption |
-Payment within agreed terms |
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-Ethical behaviour in supply chain |
-KPIs and feedback |
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-Ethics policy |
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Shareholders |
-Long term sustainability of the business |
-General meetings |
-Monthly Board meetings |
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-Reputation |
-External audit |
-Board review and approval of financial statements |
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-Financial performance |
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-Efficiency |
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-Remuneration & Dividends |
H. R. Smith Group Limited
Directors' Report for the Year Ended 31 January 2025
Going concern
The directors' have considered the future trading position of the group, and based on actual results since the year end, are confident that a going concern principle can be applied in the financial statements.
Results and Dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £nil (2024 - £3,000,000). The directors do not recommend payment of a dividend.
Political donations
The group made the following donations to political organisations in the year; The Bruges Group £15,000 (2024 - £23,600); Reform UK Party Ltd £50,000 (2024 - £nil); Finchley & Golders Green Conservative Association £10,000 (2024 - £nil).
Environmental matters
As all subsidiaries within the group are either small or medium sized companies, they are exempt under these regulations and are not required to report on their emissions, energy consumption or energy efficiency activities.
As the parent company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is also not required to report on its emissions, energy consumption or energy efficiency activities.
Employee involvement
The group's policy is to consult and discuss with employees matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Information included in the Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risks and uncertainties.
Disclosure of information to the auditor
Each director has taken the 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.
Approved by the
Director
H. R. Smith Group Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, Directors' 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company 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 and apply them consistently; |
• | make judgements 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; and |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
H. R. Smith Group Limited
Independent Auditor's Report to the Members of H. R. Smith Group Limited
Opinion
We have audited the financial statements of H. R. Smith Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 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 the parent company's affairs as at 31 January 2025 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 auditor 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 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 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 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 directors are responsible for the 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.
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 Strategic Report and 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 Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
H. R. Smith Group Limited
Independent Auditor's Report to the Members of H. R. Smith Group Limited
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 Strategic Report and 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 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 Statement of Directors' Responsibilities 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.
Auditor’s 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.
Extent to which the audit was capable of detecting irregularities, including fraud
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 considered the nature of the group’s industry and its control environment and reviewed the groups’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
H. R. Smith Group Limited
Independent Auditor's Report to the Members of H. R. Smith Group Limited
|
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
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• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
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.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
H. R. Smith Group Limited
Consolidated Profit and Loss Account for the Year Ended 31 January 2025
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Note |
2025 |
2024 |
|
|
Turnover |
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|
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Cost of sales |
( |
( |
|
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Gross profit |
|
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|
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Administrative expenses |
( |
( |
|
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Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
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Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The above results were derived from continuing operations.
H. R. Smith Group Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 January 2025
|
2025 |
2024 |
|
|
Profit for the year |
|
|
|
Currency translation gain/(loss) taken to retained earnings |
61,623 |
(47,763) |
|
Total comprehensive income for the year |
|
|
H. R. Smith Group Limited
(Registration number: 11734308)
Consolidated Balance Sheet as at 31 January 2025
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Note |
2025 |
2024 |
|
|
Fixed assets |
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Intangible assets |
|
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Tangible assets |
|
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|
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Current assets |
|||
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Stocks |
|
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Debtors |
|
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
|
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Total assets less current liabilities |
|
|
|
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Provisions for liabilities |
( |
( |
|
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Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
20,880 |
20,880 |
|
|
Non-distributable profits |
55,643 |
(5,980) |
|
|
Retained earnings |
57,553,084 |
48,710,854 |
|
|
Shareholders' funds |
57,629,607 |
48,725,754 |
Approved and authorised by the
Director
H. R. Smith Group Limited
(Registration number: 11734308)
Balance Sheet as at 31 January 2025
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Note |
2025 |
2024 |
|
|
Fixed assets |
|||
|
Investments |
|
|
|
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Current assets |
|||
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Debtors |
|
|
|
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Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
20,880 |
20,880 |
|
|
Retained earnings |
28,103,492 |
28,759,118 |
|
|
Shareholders' funds |
28,124,372 |
28,779,998 |
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes.
The company made a loss after tax for the financial year of £655,626 (2024 - profit of £22,530,630).
Approved and authorised by the
Director
H. R. Smith Group Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 January 2025
Equity attributable to the parent company
|
Share capital |
Non-distributable profits |
Retained earnings |
Total |
|
|
At 1 February 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
Other movements on reserves |
- |
(47,763) |
- |
(47,763) |
|
At 31 January 2024 |
20,880 |
(5,980) |
48,710,854 |
48,725,754 |
|
Share capital |
Non-distributable profits |
Retained earnings |
Total |
|
|
At 1 February 2024 |
|
( |
|
|
|
Profit for the year |
- |
- |
|
|
|
Other movements on reserves |
- |
61,623 |
- |
61,623 |
|
At 31 January 2025 |
|
|
|
|
H. R. Smith Group Limited
Statement of Changes in Equity for the Year Ended 31 January 2025
|
Share capital |
Retained earnings |
Total |
|
|
At 1 February 2023 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 January 2024 |
20,880 |
28,759,118 |
28,779,998 |
|
Share capital |
Retained earnings |
Total |
|
|
At 1 February 2024 |
|
|
|
|
Loss for the year |
- |
( |
( |
|
At 31 January 2025 |
|
|
|
H. R. Smith Group Limited
Consolidated Statement of Cash Flows for the Year Ended 31 January 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
Investment income |
(1,078,620) |
(835,227) |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease/(increase) in stocks |
|
( |
|
|
Increase in trade debtors |
( |
( |
|
|
(Decrease)/increase in trade creditors |
( |
|
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
( |
|
|
|
Acquisition of intangible assets |
- |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Amounts introduced by directors |
|
|
|
|
Amounts withdrawn by directors |
( |
( |
|
|
Dividends paid to equity shareholders |
- |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 February |
|
|
|
|
Effect of exchange rate fluctuations on cash held |
|
( |
|
|
Cash and cash equivalents at 31 January |
14,441,392 |
16,823,570 |
|
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Unit 416
Tarsmill Court
Rotherwas Industrial Estate
Hereford
HR2 6JZ
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
The parent company and its subsidiaries are qualifying entities for the purposes of FRS 102, being members of this group which prepares publicly available consolidated financial statements, which are intended to give a true and fair view of its assets, liabilities, financial position and profit or loss of the group. The parent company and its subsidiaries have therefore taken advantage of exemptions from the following disclosure requirements for parent company and subsidiary information presented within the consolidated financial statements:
- the requirements of Section 4 'Statement of Financial Position' paragraph 4.12(a);
- the requirements of Section 3 'Financial Statement Presentation' paragraph 3.17(d);
- the requirements of certain paragraphs within Sections 11 and 12 relating to Financial Instruments';
- the requirements of Section 26 'Share-based Payment';
The company has taken advantage of exemption under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group..
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January 2025 please see note 13 for details of the subsidiaries.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
2 |
Accounting policies (continued) |
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.
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.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
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.
Going concern
After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make 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 these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:.
Stock provision
The company manufactures and sells search and rescue equipment and is subject to changing consumer demands and market trends. As a result, it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the age, nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. The appropriateness of this stock provision is regularly assessed in light of subsequent performance.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
2 |
Accounting policies (continued) |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is one year.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
2 |
Accounting policies (continued) |
Intangible assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at fair value at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds
and the carrying value of the asset, and is credited or charged to profit or loss.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and assets under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold land and buildings |
2% on cost |
|
Leasehold land and buildings |
2% on cost |
|
Plant and equipment |
15 years S/L and 10-15% on cost |
|
Fixtures and fittings |
10-20% on cost |
|
Motor vehicles |
25% R/B and 20% S/L |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Software |
20% on cost |
|
Website |
20% on cost |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
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.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
2 |
Accounting policies (continued) |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Finished goods cost is defined as discounted average selling price, which takes account of a margin reduction.
Raw materials cost is defined as the last purchase price.
Finished goods and raw materials are subject to stock provisions as noted in the critical accounting policy.
Work in progress is valued by reference to the stage of completion of a part at the balance sheet date, and is based on a discounted average selling price, which takes account of a margin reduction.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Trade creditors
Trade creditors 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 the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past
event, it is probable that the company will be required to settle that obligation and a reliable estimate can be
made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the
obligation is recognised at present value. When a provision is measured at present value, the unwinding of the
discount is recognised as a finance cost in profit or loss in the period in which it arises
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
2 |
Accounting policies (continued) |
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
2 |
Accounting policies (continued) |
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
|
Turnover |
The turnover and profit before tax are attributable to the one principal activity of the group. A geographical analysis of turnover has not been provided due to the commercial sensitivity of the information.
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Foreign exchange (gains)/losses |
( |
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
|
Research and development expenditure |
3,402,430 |
3,065,830 |
|
Interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income |
768,911 |
632,180 |
|
Interest on bank deposits |
|
|
|
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Other interest expense |
|
|
|
|
|
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Engineering |
|
|
|
Directors |
|
|
|
Sales |
|
|
|
Quality Assurance |
|
|
|
|
|
Company
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
573,223 |
581,556 |
|
Social security costs |
94,764 |
106,740 |
|
Pension costs, defined contribution scheme |
2,274 |
2,274 |
|
670,261 |
690,570 |
The average number of persons employed by the company during the year, analysed by category was as follows:
Directors: 3 (2024: 3)
Quality Assurance: 2 (2024: 2)
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
8 |
Directors' remuneration (continued) |
In respect of the highest paid director:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements of the group and company |
13,400 |
10,750 |
|
Audit of the financial statements of the company's subsidiaries |
30,150 |
47,950 |
|
|
|
|
2025 |
2024 |
|
|
All other non-audit services |
29,500 |
30,461 |
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
1,728,523 |
775,000 |
|
UK corporation tax adjustment to prior periods |
7,486 |
(34,996) |
|
Foreign tax |
170,313 |
232,649 |
|
1,906,322 |
972,653 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing 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 (2024 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
10 |
Taxation (continued) |
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Adjustments in respect of prior periods |
|
( |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
- |
|
Tax increase/(decrease) from effect of revenues exempt from taxation |
( |
- |
|
Expenses not deductible for tax purposes |
|
|
|
Change in deferred tax credit |
( |
( |
|
Additional deduction for R&D expenditure |
( |
( |
|
Other adjustments, including effect of change in rate |
- |
|
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2025 |
Liability |
|
Accelerated capital allowances |
|
|
Other short term timing differences |
( |
|
Fixed asset timing differences |
|
|
|
|
2024 |
Liability |
|
Accelerated capital allowances |
|
|
Other short term timing differences |
( |
|
|
Company
The company has no deferred tax assets or liabilities.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
Intangible assets |
Group
|
Goodwill |
Software |
Website |
Total |
|
|
Cost or valuation |
||||
|
At 1 February 2024 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
At 31 January 2025 |
|
|
|
|
|
Amortisation |
||||
|
At 1 February 2024 |
|
|
|
|
|
Charge for the year |
- |
|
|
|
|
At 31 January 2025 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 January 2025 |
- |
- |
|
|
|
At 31 January 2024 |
- |
|
|
|
Company
The company had no intangible fixed assets at 31 January 2025 or 31 January 2024.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
Tangible assets |
Group
|
Freehold Land and buildings |
Leasehold Land and Buildings |
Fixtures and Fittings |
Plant and Machinery |
Motor vehicles |
Assets under construction |
Total |
|
|
Cost or valuation |
|||||||
|
At 1 February 2024 |
|
|
|
|
|
|
|
|
Transfers |
|
- |
- |
- |
- |
( |
- |
|
Additions |
|
- |
|
|
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
- |
( |
|
At 31 January 2025 |
|
|
|
|
|
|
|
|
Depreciation |
|||||||
|
At 1 February 2024 |
|
|
|
|
|
- |
|
|
Charge for the year |
|
- |
|
|
|
- |
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
- |
( |
|
At 31 January 2025 |
|
|
|
|
|
- |
|
|
Carrying amount |
|||||||
|
At 31 January 2025 |
|
- |
|
|
|
|
|
|
At 31 January 2024 |
|
- |
|
|
|
|
|
Included in the cost of land and buildings is freehold land of £729,736 (2024: £336,105) which is not depreciated.
Company
The company had no tangible fixed assets at 31 January 2025 or 31 January 2024.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
Investments |
Company
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 February 2024 and 31 January 2025 |
|
|
Carrying amount |
|
|
At 31 January 2025 |
|
|
At 31 January 2024 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
Street Court, Kingsland, Leominster, Herefordshire, HR6 9QA, United Kingdom |
|
|
|
|
|
Street Court, Kingsland, Leominster, Herefordshire, HR6 9QA, United Kingdom |
|
|
|
|
|
Street Court, Kingsland, Leominster, Herefordshire, HR6 9QA, United Kingdom |
|
|
|
|
|
215 Duravant Dr, Rockford, TN 37853, United States |
|
|
|
|
|
Street Court, Kingsland, Leominster, Herefordshire, HR6 9QA, United Kingdom |
|
|
|
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
13 |
Investments (continued) |
|
Subsidiary undertakings |
|
Techtest Limited The principal activity of Techtest Limited is |
|
Chunc Limited The principal activity of Chunc Limited is |
|
H R Smith (Technical Developments) Limited The principal activity of H R Smith (Technical Developments) Limited is |
|
Specmat Technologies, Inc. The principal activity of Specmat Technologies, Inc. is |
|
H R Smith Aviation Limited The principal activity of H R Smith Aviation Limited is |
|
Stocks |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Raw materials and consumables |
|
|
- |
- |
|
Work in progress |
|
|
- |
- |
|
Finished goods and goods for resale |
|
|
- |
- |
|
|
|
- |
- |
|
Stock provisions have been recognised of £6,484,121 (2024: £7,732,793).
|
Debtors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Trade debtors |
|
|
- |
|
|
|
Amounts owed by group entities |
- |
- |
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
- |
|
|
|
VAT |
|
|
- |
- |
|
|
|
|
|
|
||
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
15 |
Debtors (continued) |
Within other debtors are amounts due from a certain related undertaking connected via common control of £18,738,790 (2024: £13,595,602). Interest is charged on this balance at 5% amounting to £763,188 (2024: £632,180) included in interest receivable and similar income. The loan is unsecured, has no fixed date of repayment and is repayable on demand.
Within other debtors are other amounts due from related undertakings, connected by common control of £2,465,000 (2024: £2,235,110) which are unsecured, interest free and have no fixed date of repayment and are repayable on demand.
Amounts owed by group undertakings are unsecured, interest free and have no fixed date of repayment and are repayable on demand. The directors, having considered the recoverability of these balances, have made a provision amounting to £nil (2024: £437,696), which have been recognised in administrative expenses through profit or loss. During the year, bad debt provisions of £nil (2024: £340,086) were reversed, and amounts of £328,560 (2024: £793,129) were waived in respect of amounts owed by group undertakings.
|
Financial instruments |
Group
Categorisation of financial instruments
|
2025 |
2024 |
|
|
Financial assets measured at amortised cost |
|
|
|
Financial liabilities measured at amortised cost |
|
|
As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments.
|
Creditors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Due within one year |
|||||
|
Trade creditors |
|
|
|
- |
|
|
Amounts due to group entities |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Other payables |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Corporation tax liability |
654,142 |
804,912 |
- |
- |
|
|
|
|
|
|
||
Amounts owed to related undertakings, connected by common control and as included in other creditors of £2,497,207 (2024: £2,513,083), are unsecured, interest free and have no fixed date of repayment and are repayable on demand.
Amounts owed to group undertakings are unsecured, interest free and have no fixed date of repayment and are repayable on demand.
Amounts due to directors, as included in other creditors of £645,115 (2024: £584,960), are unsecured, accrue interest at 2% above the Bank of England base rate, have no fixed date of repayment and are repayable on demand.
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
20,880 |
|
20,880 |
Called-up share capital represents the nominal value of shares that have been issued.
Each share is entitled to one vote in any circumstances. Each share is entitled pari passu to dividend payments or other distributions. Each share is also entitled to pari passu to participate in a distribution arising from the winding up of the company.
|
Reserves |
Group
The other reserves relate to foreign exchange differences arising on translation of an overseas subsidiary into the functional currency of the group.
|
Dividends |
|
2025 |
2024 |
|
|
Dividends paid |
- |
3,000,000 |
|
Analysis of changes in net debt |
Group
|
At 1 February 2024 |
Cash flows |
Foreign exchange movements |
At 31 January 2025 |
|
|
Cash and cash equivalents |
||||
|
Cash |
16,823,570 |
(2,443,801) |
61,623 |
14,441,392 |
|
|
||||
|
|
( |
|
|
|
|
Financial commitments, guarantees and contingent liabilities |
Group
The group has total guarantees and commitments of £2,767,726 (2024: £93,301).
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
Related party transactions |
Group
Transactions with related parties
During the year the group entered into the following transactions with related parties:
|
Recharge income
|
Recharge income
|
Sale of services
|
Sale of services
|
|||||
|
Group |
||||||||
|
Companies connected via common control |
185,980 |
173,794 |
- |
- |
||||
|
Directors |
- |
- |
38,075 |
47,658 |
|
Interest income
|
Interest income
|
Rent and other recharges
|
Rent and other recharges
|
|||||
|
Group |
||||||||
|
Companies connected via common control |
763,188 |
632,180 |
73,952 |
32,988 |
During the prior year, the company sold motor vehicles with a carrying value of £36,906 to directors of the company, for proceeds of £65,770. There have been no such transactions for the current year.
Within other debtors is a balance due from a certain related undertaking connected via common control of £18,738,790 (2024: £13,595,602). Interest is charged on this balance at 5% amounting to £763,188 (2024: £632,180) included in interest receivable and similar income. The loan is unsecured, has no fixed date of repayment and is repayable on demand.
Certain costs are recharged to other related parties, and the income received is allocated against that cost in the profit and loss account. Similarly, certain costs are recharged by related parties and these are posted to the profit and loss accounts to which they relate.
The following amounts were outstanding at the reporting end date and are held within trade creditors, other creditors and accruals:
|
Amount due to related parties |
2025
|
2024
|
||
|
Companies connected via common control |
2,503,855 |
2,513,083 |
||
|
Directors |
645,115 |
584,960 |
H. R. Smith Group Limited
Notes to the Financial Statements for the Year Ended 31 January 2025
|
23 |
Related party transactions (continued) |
Within other creditors are balances with close family members of the key management personnel. These amounted to £397,553 (2024: £394,458) at the balance sheet date. Included in the Statement of Comprehensive Income under Loan and Other Interest are amounts charged relating to these creditors amounting to £26,778 (2024: £26,915).
Interest is charged to the company at 2% above the Bank of England base rate where the directors' loan accounts are in credit. Included in the Statement of Comprehensive Income under Loan and Other Interest are amounts charged of £73,867 (2024: £118,093). The loans are unsecured, have no fixed date of repayment and are repayable on demand.
The following amounts were outstanding at the reporting end date and are included within trade debtors, other debtors and accrued income:
|
Amount due from related parties |
2025
|
2024
|
||
|
Companies connected via common control |
21,272,729 |
15,873,489 |
||
|
Directors |
- |
205 |