REGISTERED NUMBER: 14650991 (England and Wales)

SMART SEC HOLDINGS LTD

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

UNAUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Consolidated Income Statement

4

Consolidated Other Comprehensive Income

5

Consolidated Balance Sheet

6

Company Balance Sheet

7

Consolidated Statement of Changes in Equity

8

Company Statement of Changes in Equity

9

Consolidated Cash Flow Statement

10

Notes to the Consolidated Cash Flow Statement

11

Notes to the Consolidated Financial Statements

12

DIRECTORS:

F Ahmad

D Nicolaou

REGISTERED OFFICE:

22 Union Street

Barnet

London

EN5 4HZ

REGISTERED NUMBER:

14650991 (England and Wales)

ACCOUNTANTS:

Duncan & Toplis Limited

3rd Floor

Marlborough House

298 Regents Park Road

Finchley

London

N3 2SZ

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

In 2024 the company continued to focus on its principal activity of Security Guarding provision, including front of house and reception services. We have also continued to develop and strengthen our innovative solution offering either through self-delivery or via our trusted service partners, in areas such as access control, alarm and maintenance. CCTV monitoring and remote monitoring systems.

Sales are £16,231,277 for the year ending 31 December 2024 (2023; £10,504,728)

The pre-tax profit is £501,893 for the year ending 31 December 2024 (2023; £101,140 loss)

The security industry continues to follow the trend of our competitors being acquired by larger (FM) organisations. This ongoing trend has been the norm within the industry for the past 15 years. These mergers and acquisitions create a greater gap in the market for Smart Sec Holdings to exploit. Our strategic aim has been to focus on our security and front of house division. Whilst we may diversify slightly in to some security system offerings, we never see ourselves moving in to a full FM provision and will always remain security focused. Our customers often select us solely down to our ability to concentrate in on their security requirements and because we do not dilute our service offering and overstretch our management teams.

Key performance indicators

The group's financial performance is assessed primarily by Turnover, Gross profit, GP as % of Turnover, EBITDA and EBITDA % of Turnover for the financial year.

Turnover

Gross Profit

Gross Profit %

EBITDA

EBITDA %

2024

£16,231,277

£3,380,354

20.8%

£802,114

4.9%

2023

£10,504,728

£1,831,397

17.4%

£189,054

1.8%

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risk and uncertainty relates to any potential downturn in the UK economy. Activity in the UK security services sector however remains strong, so the directors believe the company is well placed to continue to trade successfully in 2025.

It is the desire of the owners of Smart Sec Holdings to be an organisation built upon solid foundation of Trust, Honesty and Openness. It is our desire to be the best and to continue to keep striving for excellence. Smart Sec Solutions has been 100% organically grown. From small acorns grow great oaks. Our desire to grow with out customers has seen us forge some quite outstanding partnerships with many of our customers. It is our belief that once we are tried, we will deliver for you and we will keep being rewarded with new contracts. The journey through 2025 is an exciting one. We have invested heavily in our people, our management team, our senior management team and in the systems division of our business. That investment is now ready to come to fruition and we are confident of our most successful year in our company's history.

SOCIAL RESPONSIBILITY

Environmental, Social and Governance criteria are standards upon which we continue to measure our behaviour as an organisation. We are committed to improving our carbon footprint and are constantly looking at initiatives we can implement as a company in order to do so. One example of this has been changing all of our mobile fleet vehicles to 100% electric cars.

We always seek to employ staff locally to the contracts that we are awarded. This has social and environmental impact. Wherever possible we source supplies such as uniform, mobile phones and other activity related goods from local provider to ensure we support smaller local businesses.

ON BEHALF OF THE BOARD:

F Ahmad - Director

26 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

F Ahmad

D Nicolaou

ENGAGEMENT WITH EMPLOYEES

The Board ensures that decisions are always taken for the long term, and collectively and individually aims to uphold the highest standards of conduct. Similarly, it acknowledges that the Group's employees and customers are their most important assets, and the business can only grow and prosper over the long term if it understands, respects and responds to their views and needs as well as those of other stakeholders within the environment we operate.

Our Directors work closely with their team of Managers in the day to day running of the business and the Group routinely engages with its staff as appropriate and where relevant. All are aware of their expectations and benefit from numerous bonus incentives throughout the year. The Group actively encourages career progression throughout the organisation and our Training Manager provides all employees with appropriate and relevant training and development support to meet their needs. The Group is committed to the fair treatment of all employees, including those with disabilities. It gives full consideration to disabled applications where the requirements of the job can be properly fulfilled and supports them as necessary.

ON BEHALF OF THE BOARD:

F Ahmad - Director

26 September 2025

TURNOVER

16,231,277

10,504,728

Cost of sales

12,850,923

8,673,331

GROSS PROFIT

3,380,354

1,831,397

Administrative expenses

2,903,102

1,650,513

OPERATING PROFIT

477,252

180,884

Interest receivable and similar income

-

18

477,252

180,902

Interest payable and similar expenses

4

184,897

282,244

PROFIT/(LOSS) BEFORE TAXATION

5

292,355

(101,342

)

Tax on profit/(loss)

6

75,508

2,798

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

216,847

(104,140

)

Profit/(loss) attributable to:

Owners of the parent

216,847

(104,140

)

PROFIT/(LOSS) FOR THE YEAR

216,847

(104,140

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

216,847

(104,140

)

Note

Prior year adjustment

8

(141,771

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

75,076

Total comprehensive income attributable to:

Owners of the parent

75,076

(104,140

)

FIXED ASSETS

Tangible assets

9

2,020,936

1,976,118

Investments

10

-

-

2,020,936

1,976,118

CURRENT ASSETS

Stocks

11

96,660

845

Debtors

12

2,014,517

2,291,849

Cash at bank and in hand

606,961

324,787

2,718,138

2,617,481

CREDITORS

Amounts falling due within one year

13

3,419,095

3,299,441

NET CURRENT LIABILITIES

(700,957

)

(681,960

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,319,979

1,294,158

CREDITORS

Amounts falling due after more than one year

14

(985,753

)

(1,174,063

)

PROVISIONS FOR LIABILITIES

16

(2,444

)

(5,160

)

NET ASSETS

331,782

114,935

CAPITAL AND RESERVES

Called up share capital

17

300

300

Retained earnings

18

331,482

114,635

SHAREHOLDERS' FUNDS

331,782

114,935

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company and the group to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the group keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company and the group as at the end of each financial year and of the group's profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company and the group.

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

F Ahmad - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

300

300

300

300

TOTAL ASSETS LESS CURRENT LIABILITIES

300

300

CAPITAL AND RESERVES

Called up share capital

17

300

300

SHAREHOLDERS' FUNDS

300

300

Company's profit for the financial year

-

-

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

F Ahmad - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 9 February 2023

-

218,775

218,775

Changes in equity

Profit for the period

-

37,631

37,631

Total comprehensive income

-

37,631

37,631

Issue of share capital

300

-

300

Balance at 31 December 2023

300

256,406

256,706

Prior year adjustment

-

(141,771

)

(141,771

)

As restated

300

114,635

114,935

Changes in equity

Profit for the year

-

216,847

216,847

Total comprehensive income

-

216,847

216,847

Balance at 31 December 2024

300

331,482

331,782

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

300

-

300

Balance at 31 December 2023

300

-

300

Changes in equity

Balance at 31 December 2024

300

-

300

Cash flows from operating activities

Cash generated from operations

1

832,003

939,870

Interest paid

(184,897

)

(282,244

)

Tax paid

(76,867

)

7,178

Net cash from operating activities

570,239

664,804

Cash flows from investing activities

Purchase of tangible fixed assets

(96,728

)

(171,230

)

Sale of tangible fixed assets

12,094

-

Acquisition of subsidiaries

-

480,172

Interest received

-

18

Net cash from investing activities

(84,634

)

308,960

Cash flows from financing activities

New loans in year

375,000

-

Loan repayments in year

(418,447

)

(502,913

)

Amount introduced by directors

1,456

-

Amount withdrawn by directors

(164,754

)

(146,364

)

Share issue

-

300

Net cash from financing activities

(206,745

)

(648,977

)

Increase in cash and cash equivalents

278,860

324,787

Cash and cash equivalents at beginning of year

2

324,787

-

Cash and cash equivalents at end of year

2

603,647

324,787

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

9.2.23

Year Ended

to

31.12.24

31.12.23

as restated

£

£

Profit/(loss) before taxation

292,355

(101,342

)

Depreciation charges

39,816

8,171

Acquisition of fixed asset

-

(1,932,074

)

Finance costs

184,897

282,244

Finance income

-

(18

)

517,068

(1,743,019

)

Increase in stocks

(95,815

)

(845

)

Decrease/(increase) in trade and other debtors

569,073

(4,448,269

)

(Decrease)/increase in trade and other creditors

(158,323

)

7,132,003

Cash generated from operations

832,003

939,870

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

606,961

324,787

Bank overdrafts

(3,314

)

-

603,647

324,787

Period ended 31 December 2023

31.12.23

9.2.23

as restated

£

£

Cash and cash equivalents

324,787

-

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

324,787

282,174

606,961

Bank overdrafts

-

(3,314

)

(3,314

)

324,787

278,860

603,647

Debt

Debts falling due within 1 year

(333,996

)

(137,423

)

(471,419

)

Debts falling due after 1 year

(1,174,063

)

188,310

(985,753

)

(1,508,059

)

50,887

(1,457,172

)

Total

(1,183,272

)

329,747

(853,525

)

1.	STATUTORY INFORMATION

Smart Sec Holdings Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating holiday pay accrual. A full line by line review of holiday pay accrual is carried out by management regularly. Whilst every attempt is made to ensure that the holiday pay accrual is as accurate as possible, there remains a risk that the provisions do not match the actual holiday pay for the year.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and Fittings

- 25% on reducing balance

Motor vehicles

- 25% on reducing balance

Computer equipment

- 25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

Period

9.2.23

Year Ended

to

31.12.24

31.12.23

as restated

£

£

Wages and salaries

10,016,951

6,634,372

Social security costs

1,041,019

681,464

Other pension costs

193,852

121,937

11,251,822

7,437,773

The average number of employees during the year was as follows:

Period

9.2.23

Year Ended

to

31.12.24

31.12.23

as restated

Directors

2

1

The average number of employees by undertakings that were proportionately consolidated during the year was 353 (2023 - 405 ) .

Period

9.2.23

Year Ended

to

31.12.24

31.12.23

as restated

£

£

Directors' remuneration

276,411

48,258

Information regarding the highest paid director for the year ended 31 December 2024 is as follows:

Year Ended

31.12.24

£

Emoluments etc

138,311

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

9.2.23

Year Ended

to

31.12.24

31.12.23

as restated

£

£

Bank interest

-

95,854

Loan interest

154,028

186,390

Interest payable

30,869

-

184,897

282,244

5.	PROFIT/(LOSS) BEFORE TAXATION

The profit (2023 - loss) is stated after charging/(crediting):

Period

9.2.23

Year Ended

to

31.12.24

31.12.23

as restated

£

£

Hire of plant and machinery

50,542

19,771

Depreciation - owned assets

39,816

127,275

Auditors' remuneration

17,232

8,000

Foreign exchange differences

29,039

(308

)

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

Period

9.2.23

Year Ended

to

31.12.24

31.12.23

as restated

£

£

Current tax:

UK corporation tax

78,224

(2,684

)

Deferred tax

(2,716

)

5,482

Tax on profit/(loss)

75,508

2,798

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period

9.2.23

Year Ended

to

31.12.24

31.12.23

as restated

£

£

Profit/(loss) before tax

292,355

(101,342

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %)

73,089

(25,336

)

Effects of:

Expenses not deductible for tax purposes

27,158

26,913

Capital allowances in excess of depreciation

-

(14,436

)

Depreciation in excess of capital allowances

4,591

-

Deferred tax

(2,716

)

5,482

Tax relating to Pakistani entities

(26,614

)

10,175

Total tax charge

75,508

2,798

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

8.	PRIOR YEAR ADJUSTMENT

As a result of correction to the prior period in the light of additional information in regards to Loan interest, the comparative balances to 31 December 2023 have been restated as follows:

Income Statement

Previously reported

Prior year adjustment

Restated balance

Interest payable

95,854

186,390

282,244

Tax on profit/(loss)

47,418

(44,620

)

2,798

Profit/(loss) for the financial year

37,630

(141,770

)

(104,140

)

Balance sheet

Previously reported

Prior year adjustment

Restated balance

Bank loans < 1 year

(932,957

)

(241,106

)

(1,174,063

)

Corporation Tax

(84,678

)

44,620

(40,058

)

Prepayments and Accrued income

17,730

54,716

72,446

Retained earnings

(256,405

)

141,770

(114,635

)