Registration number: 11734308 (England and Wales)

H. R. Smith Group Limited

Contents

H. R. Smith Group Limited

Company Information

H. R. Smith Group Limited

Strategic Report for the Year Ended 31 January 2026

The directors present their strategic report for the year ended 31 January 2026.

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 2026 the group saw an increase in turnover of 5.3% (2025: increase 5.2%). Gross profit percentage has remained consistent at 64.34% in 2026 compared to 65.0% in 2025.

At 31 January 2026 the group had net assets of £61,971,260 (2025: £57,629,607). At 31 January 2026 the company had net assets of £28,237,092 (2025: £28,124,372).

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 2026. The directors are confident that 2026-27 will show a consistent performance, and which they continue to monitor closely.

Principal risks and uncertainties

The principal risks and uncertainties facing the Group, and how these are mitigated, are listed below.

Dependence on Suppliers
The Group relies on a network of suppliers to ensure the timely procurement of products for resale. Disruption within the supply chain, supplier failure, capacity constraints, quality of parts purchased or adverse changes in supplier pricing may affect the Group's ability to fulfil customer demand and maintain profitability.

To mitigate this risk, the Group maintains stock holdings where required, and continues to develop relationships with suppliers where possible and regularly reviews supplier performance and availability.

Customer Concentration and Credit Risk
Where a significant proportion of revenue is generated from a limited number of customers, the loss of a key customer or a reduction in purchasing activity may adversely impact financial performance.

The Group seeks to maintain a diversified customer base and regularly reviews customer relationships and creditworthiness.

Inventory Management
The Group is exposed to risks associated with holding inventory, including obsolescence, damage, theft, and fluctuations in demand. Poor inventory management may result in increased costs, reduced margins, or stock shortages that affect customer service levels.

Inventory levels are monitored on an ongoing basis to ensure appropriate stock holdings are maintained while minimising excess inventory exposure.

Global trading and cross territorial economic exposure
Global trading exposes the Group to economic and geopolitical risks across multiple territories, including fluctuations in foreign exchange rates, changes in trade regulations, tariffs, and supply chain disruption.

Management continuously monitors economic developments and seeks to manage costs effectively while maintaining operational flexibility.
 

H. R. Smith Group Limited

Strategic Report for the Year Ended 31 January 2026

Regulatory and Compliance Risk
The Group operates within a regulatory framework that includes company law, tax legislation, employment regulations, and industry-specific requirements. Failure to comply with applicable laws and regulations could result in financial penalties, operational disruption, or reputational damage.

The Group maintains policies and procedures designed to promote compliance and regularly reviews changes in relevant legislation.

The Group also employs a number of highly experienced employees within a designated product Quality department that test to ensure products comply with appropriate standards.

Cybersecurity and Information Technology
The Group relies on information technology systems to support its operations and customer service activities. A cyberattack, data breach, or significant systems failure could disrupt operations, lead to loss of data, and damage the Group's reputation.

Appropriate security controls, backup procedures, and monitoring processes are maintained to reduce the likelihood and impact of such incidents.

Recruitment and Retention of employees
The Group employees a number of highly skilled and experienced employees. A shortage of suitably qualified personnel or the loss of key individuals could adversely affect operational performance and growth objectives.

The Group seeks to provide a positive working environment, and opportunities for employee development and progression. Management has a succession planning process in place and regularly monitors skillsets across each department.

 

Approved by the Board on 15 October 2026 and signed on its behalf by:

Mrs L M M Sharp-Smith
Director

H. R. Smith Group Limited

Directors' Report for the Year Ended 31 January 2026

The directors present their report and the for the year ended 31 January 2026.

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:

Mr R E L Smith

Miss S F Smith

Mrs L M M Sharp-Smith

S172 Statement

Throughout the year end 31 January 2026, 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:
 

H. R. Smith Group Limited

Directors' Report for the Year Ended 31 January 2026

H. R. Smith Group Limited

Directors' Report for the Year Ended 31 January 2026

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 12.

Ordinary dividends were paid amounting to £900k (2025 - £nil). The directors do not recommend further payment of a dividend.

Political donations

The group made the following donations to political organisations in the year; The Bruges Group £13,000 (2025 - £15,000); Reform UK Party Ltd £Nil (2025 - £50,000); Finchley & Golders Green Conservative Association £Nil (2025 - £10,000).

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.

Financial instruments

Objectives and policies

The group's financial instruments comprise cash and cash equivalents, trade receivables, trade payables and other items that arise directly from its operations. The principal purpose of these financial instruments is to provide finance for the group's operations and to manage its working capital requirements.

The main risks arising from the group's financial instruments are foreign currency risk, credit risk and liquidity risk. The directors regularly review and agree policies for managing these risks.

Foreign currency risk - The group is exposed to foreign currency risk arising from transactions denominated in currencies other than Sterling. This risk principally relates to sales made to customers outside the United Kingdom. Whilst contracts are generally priced in Sterling, invoices may be settled in Euros and US Dollars,resulting in exposure to fluctuations in exchange rates between the transaction date and settlement date. The directors monitor foreign currency exposures on an ongoing basis and seek to minimise risk through the timing of currency conversions and by matching foreign currency receipts and payments where practicable.

Credit risk - Credit risk arises principally from trade receivables. The group manages this risk through credit checks on new customers, the establishment of appropriate credit limits and ongoing monitoring of outstanding balances.

Liquidity risk - The group seeks to manage liquidity risk by maintaining adequate cash balances and ensuring sufficient funding is available to meet its liabilities as they fall due

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.

H. R. Smith Group Limited

Directors' Report for the Year Ended 31 January 2026

Disclosure of information to the auditor

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 15 October 2026 and signed on its behalf by:

Mrs L M M Sharp-Smith
Director

H. R. Smith Group Limited

Statement of Directors' Responsibilities

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 2026, 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:

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.

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:

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 8, 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:

H. R. Smith Group Limited

Independent Auditor's Report to the Members of H. R. Smith Group Limited

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.

Felicity Sang (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

22 October 2026

H. R. Smith Group Limited

Consolidated Profit and Loss Account for the Year Ended 31 January 2026

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 2026

H. R. Smith Group Limited

(Registration number: 11734308)
Consolidated Balance Sheet as at 31 January 2026

Approved and authorised by the Board on 15 October 2026 and signed on its behalf by:
 

Mrs L M M Sharp-Smith
Director

H. R. Smith Group Limited

(Registration number: 11734308)
Balance Sheet as at 31 January 2026

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 profit after tax for the financial year of £1,012,720 (2025 - loss of £655,626).

Approved and authorised by the Board on 15 October 2026 and signed on its behalf by:
 

Mrs L M M Sharp-Smith
Director

H. R. Smith Group Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 January 2026
Equity attributable to the parent company