REGISTERED NUMBER: SC681333 (Scotland)

Financial Statements for the Year Ended 31 March 2025

for

SMC MANUFACTURING (UK) LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

D Kalnina

REGISTERED OFFICE:

Unit 20 Morrich House, Davidson Drive,

Castle Avenue Industrial Estate

Invergordon

Ross-Shire

IV18 0S

REGISTERED NUMBER:

SC681333 (Scotland)

AUDITORS:

Feist Hedgethorne Limited

Statutory Auditors

Chartered Accountants

Preston Park House

South Road

Brighton

East Sussex

BN1 6SB

FIXED ASSETS

Tangible assets

4

96,528

89,550

CURRENT ASSETS

Stocks

5

505,124

433,745

Debtors

6

200,068

186,244

Cash at bank and in hand

41,744

11,972

746,936

631,961

CREDITORS

Amounts falling due within one year

7

(2,935,993

)

(2,209,854

)

NET CURRENT LIABILITIES

(2,189,057

)

(1,577,893

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,092,529

)

(1,488,343

)

CAPITAL AND RESERVES

Called up share capital

8

133

133

Retained earnings

(2,092,662

)

(1,488,476

)

SHAREHOLDERS' FUNDS

(2,092,529

)

(1,488,343

)

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 19 December 2025 and were signed by:

D Kalnina - Director

1.	STATUTORY INFORMATION

SMC Manufacturing (UK) Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

Monetary amounts in these financial statements are rounded to the nearest Pound (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents the fair value of consideration received of receivable net of VAT and trade discounts and represents the amount receivable for goods supplied and services rendered.

Revenue from the sale of cosmetics is recognised when goods are invoiced and despatched to customers and is therefore recognised when the significant risks and rewards of the goods have transferred to the buyer.

Tangible fixed assets

Tangible fixed assets other than plant and machinery are recorded at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

15% on cost

Computer equipment

-

25% on cost

Office equipment

-

15% on cost

Impairment

At each balance sheet date, the company reviews the carrying amount of its assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks

Stocks, which consist of cosmetic products, are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. Estimated selling price less costs to complete and sell is based on the estimated selling price of the goods less any estimated completion or selling costs likely to be incurred on the sale.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised.

At the end of each reporting period, stocks are assessed for impairment and the identified inventory is written down to estimated selling price less costs to complete and sell, and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stock is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Stock is valued using the average cost method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 company operates a defined contribution pension scheme. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid, the company has no further payment obligations.

The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability on the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

Financial instruments

Financial assets, liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidence a residual interest in the assets of the entity after deducting all of its financial liabilities.

Going concern

The accounts have not been prepared on a going concern basis because, following the year end, the Company transferred its trade to another group company and is in the process of transferring its remaining assets. The Company is expected to cease trading and be dissolved once these steps have completed. The director has therefore concluded that the going concern basis is not appropriate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 21 (2024 - 33 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2024

127,576

9,498

16,609

153,683

Additions

24,682

17,466

5,093

47,241

At 31 March 2025

152,258

26,964

21,702

200,924

DEPRECIATION

At 1 April 2024

51,536

1,977

10,620

64,133

Charge for year

34,136

1,869

4,258

40,263

At 31 March 2025

85,672

3,846

14,878

104,396

NET BOOK VALUE

At 31 March 2025

66,586

23,118

6,824

96,528

At 31 March 2024

76,040

7,521

5,989

89,550

5.

STOCKS

2025

2024

£

£

Stock

505,124

433,745

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

119,999

136,348

Amounts owed by group undertakings

9,079

6,079

Other debtors

70,990

43,817

200,068

186,244

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

55,765

48,616

Amounts owed to group undertakings

2,801,020

1,754,335

Taxation and social security

16,170

146,397

Other creditors

63,038

260,506

2,935,993

2,209,854

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

100

A Ordinary

£1

100

100

33

B Ordinary

£1

33

33

133

133

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for opinion

We were unable to obtain sufficient and appropriate audit evidence regarding the opening position of one of the company's bank accounts at 31 March 2025. At the year ended 31 March 2024, our audit report was qualified in respect of this same bank account where despite the best efforts of the company directors contacting the bank, the bank would not provide the relevant information necessary to the directors.

Chris Morey (Senior Statutory Auditor)

for and on behalf of Feist Hedgethorne Limited

10.	RELATED PARTY DISCLOSURES

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.

There are no other related party transactions requiring disclosure.

11.	POST BALANCE SHEET EVENTS

After the year end the director approved the transfer of the company's trade and business assets, including stock, equipment and customer contracts to a new company, DK Beauty Labs Limited. The transfer is intended to support the ongoing growth of the business by aligning the trading entity's name with the rest of the group and establishing a company with no prior trading history. Once the transfer has been completed and all remaining liabilities have been settled, the director intends to cease trading and apply for the company to be struck off the Company House register.

12.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is D Kalnina.

The company is a wholly owned subsidiary of its immediate parent company AJP 2021 Limited. AJP 2021 Limited is a wholly owned subsidiary of DK Universe Limited. The only group in which the results of the company are consolidated is that headed by DK Universe Limited as the ultimate parent company and controlling party. Copies of its consolidated financial statements can be obtained from the company's Board of Directors, 51-53 West Street, Brighton, England, BN1 2RA.