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Registered number: 05719596







SMARTER SERVICES LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025






















TWP Accounting LLP
Chartered Accountants & Statutory Auditors
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE

 
SMARTER SERVICES LTD
 

COMPANY INFORMATION


Directors
J Southwell 
K Gbangbola 




Company secretary
Ella Oates



Registered number
05719596



Registered office
Lancaster House
11 Churchfield Road

Walton Upon Thames

Surrey

KT12 2TY




Independent auditor
TWP Accounting LLP

The Old Rectory

Church Street

Weybridge

Surrey

KT13 8DE





 
SMARTER SERVICES LTD
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10 - 11
Statement of Changes in Equity
12
Notes to the Financial Statements
13 - 29


 
SMARTER SERVICES LTD
 

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2025

Introduction
 
The directors present their strategic report for the year ended 28 February 2025.

Review of the business
 
The principal activity of the Company during the financial year was that of cleaning, grounds maintenance and maintenance activities. There have been no significant changes in the Company’s principal activities in the year under review.

The company operated a mix of hard and soft FM services in the built environment delivering services extensively to the Housing Association, Build to Rent, Co-Living and Purpose Built Student Accommodation markets operating predominantly in the South of England.

Principal risks and uncertainties
 
Wage inflation. The primary cost to the Company in the delivery of its services to its customers is wages. Annual legislative changes in living wages, National Insurance and pensions have a direct impact on gross margins. To mitigate this, the majority of contracts contain clauses referring changes in legislation, CPI increases or annual contract pricing review mechanisms allowing the business to increase pricing to minimise the impact of pressure on wage inflation.

Loss of key customers. Due to increased competition, challenging economic conditions and other commercial factors. Risk is mitigated by long term contracts, maintaining and monitoring service level agreements, regular operational and strategic review meetings with key stakeholders as well as engagement with customers throughout the tender process periodically.

Quality, Health, Safety & environmental. The company’s performance would be significantly impacted by a failure to maintain high standards in health safety protocols. This could result in harm to employees and claims against the business (legal & financial) which may in turn damage the reputation of the business. To mitigate these risks the Company has:
 
         o    Invested in online health and safety training
         o    Engages with health & safety consultants to prepare, review and update risk and method statements
         o    Established a health and safety committee to review and address key risks
         o    Maintained independent certifications with CHAS, ISO9001, ISO14001 and ISO45001

Counterparty risk. The company deals with many counterparties including clients, banks, finance providers and insurers to maintain its business. This risk is mitigated by limiting the dependency on any single strategic partner.

New and emerging technologies. The company may be detrimentally impacted by failing to adopt and embed new and emerging technologies to assist with front line deliverables and critical infrastructure.

Rapid advancement in technology poses both a risk and an opportunity to the Company, increasing the importance of being proactive in the sourcing of all available technology that will benefit the company. 

To mitigate the potential impacts of operational inefficiencies, poorer customer satisfaction or putting the Company at a competitive disadvantage we have implemented:
 
        -    AI Committee
        -    Innovation steering group
        -    Introduced market leading software

Page 1

 
SMARTER SERVICES LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025

Development and performance
 
The Facilities Management industry has a positive growth outlook, despite macro-economic instability caused by inflation, energy costs and labour market legislation changes.

Despite these challenges, the business is forecast to achieve growth in both revenue and profitability whilst minimising impact on gross margins.

The Company continues to seek further acquisitions as part of the long-term growth ambitions and is actively sourcing acquisition targets.

Financial key performance indicators
 
2025
2024 (Unaudited)
      £'000
      £'000
Turnover

14,708

11,918

Gross Margin

2,821

2,498

Gross Profit Margin %

19.2%

21.0%

EBITDA (before exceptional items)

643

893

Average Number of Employees

518

350


Turnover has increased year on year. This was due a combination of annual price increases, new contract wins along with migration of client contracts from our subsidiary entities to Smarter Services Ltd. Gross margin percentage decreased due to the revenue mix of contracts migrated from the subsidiaries as well as increasing fleet management costs.

Significant increase in administrative expenses compared with the prior year represents investment in IT systems, administrative functions to support future growth and restructuring costs post-acquisition of the acquired entities.


This report was approved by the board on 28 November 2025 and signed on its behalf.



J Southwell
Director

Page 2

 
SMARTER SERVICES LTD
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2025

The directors present their report and the financial statements for the year ended 28 February 2025.

Results and dividends

The profit for the year, after taxation, amounted to £275,957 (2024 - £810,496).

During the year the company paid dividends of £nil (2024 - £205,882).

Directors

The directors who served during the year were:

J Southwell 
K Gbangbola 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give  
a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 3

 
SMARTER SERVICES LTD
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2025

Auditor

The auditor, TWP Accounting LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 November 2025 and signed on its behalf.
 





J Southwell
Director

Page 4

 
SMARTER SERVICES LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SMARTER SERVICES LTD
 

Opinion


We have audited the financial statements of Smarter Services Ltd (the 'Company') for the year ended 28 February 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 28 February 2025 and of its 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's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
SMARTER SERVICES LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SMARTER SERVICES LTD (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 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 Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
SMARTER SERVICES LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SMARTER SERVICES LTD (CONTINUED)


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.


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:
Obtain an understanding of the policies and procedures management have in place to detect and prevent fraud and non-compliance with laws and regulations.
Enquire of management any cases of actual or suspected fraud and non-compliance with laws and regulations.
Enquire of management and those charged with governance around actual and potential litigation and claims. 
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Assess the key risk areas within the financial statements which are susceptible to fraud or error and design our audit approach thereon.
Perform substantive tests on a sample of transactions throughout the financial statements to ensure that no material errors have been identified.
Perform cut off tests on a sample of transactions to ensure income has been accounted for in the correct period.
Review of after year end information to ensure expenditure has been accounted for in the correct period.
Perform analytical review procedures to identify any irregularities and investigation thereon.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Other matters 
 

The financial statements of the Company for the year ended 29 February 2024 were not audited. The comparatives presented as part of these financial statements of the Company have not been audited as a result.


Page 7

 
SMARTER SERVICES LTD
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SMARTER SERVICES LTD (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Philip Munk FCA, FCCA (Senior Statutory Auditor)
  
for and on behalf of
TWP Accounting LLP
 
Chartered Accountants & Statutory Auditors
  
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE

28 November 2025
Page 8

 
SMARTER SERVICES LTD
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2025

2025
2024 (Unaudited)
£
£

  

Turnover
 8 
14,707,531
11,917,730

Cost of sales
  
(11,886,538)
(9,419,590)

Gross profit
  
2,820,993
2,498,140

Administrative expenses
  
(2,407,556)
(1,780,414)

Operating profit
  
413,437
717,726

 
Presented as:
  

Earnings before interest, tax, depreciation and amortisation (EBITDA), before exceptional items
  
642,627
892,895

Exceptional items
 17 
(170,515)
(122,000)

Depreciation
  
(55,966)
(50,461)

Amortisation
  
(2,709)
(2,708)

Operating profit
  
413,437
717,726

Income from fixed assets investments
 12 
-
351,449

Interest receivable and similar income
 13 
1,533
2,004

Interest payable and similar expenses
 14 
(79,013)
(93,956)

Profit before tax
  
335,957
977,223

Tax on profit
 15 
(60,000)
(166,727)

Profit for the financial year
  
275,957
810,496

There was no other comprehensive income for 2025 (2024 (Unaudited) - £NIL).

The notes on pages 13 to 29 form part of these financial statements.

Page 9

 
SMARTER SERVICES LTD
REGISTERED NUMBER: 05719596

BALANCE SHEET
AS AT 28 FEBRUARY 2025

28 February
29 February
2025
2024 (Unaudited)
Note
£
£

Fixed assets
  

Intangible assets
 5 
3,121
5,830

Tangible assets
 6 
146,151
150,600

Investments
 7 
1,326,140
1,326,140

  
1,475,412
1,482,570

Current assets
  

Stocks
 9 
34,654
54,248

Debtors: amounts falling due within one year
 18 
2,211,640
1,943,958

Cash at bank and in hand
 19 
86,636
459,779

  
2,332,930
2,457,985

Creditors: amounts falling due within one year
 20 
(2,011,428)
(2,423,713)

Net current assets
  
 
 
321,502
 
 
34,272

Total assets less current liabilities
  
1,796,914
1,516,842

Creditors: amounts falling due after more than one year
 21 
(459,044)
(454,929)

 
Presented as:
  

Loans and overdrafts
 22 
(2,500)
(12,500)

Obligations under finance lease
 23 
(501)
(7,697)

Amounts owed to group undertakings
 21 
(451,234)
(276,843)

Other creditors
 21 
(4,809)
(157,889)

  
(459,044)
(454,929)

Provisions
  

Deferred tax
 24 
(34,005)
(34,005)

  
 
 
(34,005)
 
 
(34,005)

Net assets
  
1,303,865
1,027,908


Capital and reserves
  

Called up share capital 
 25 
1,000
1,000

Profit and loss account
 26 
1,302,865
1,026,908

  
1,303,865
1,027,908


Page 10

 
SMARTER SERVICES LTD
REGISTERED NUMBER: 05719596

BALANCE SHEET (CONTINUED)
AS AT 28 FEBRUARY 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 November 2025.




J Southwell
Director

The notes on pages 13 to 29 form part of these financial statements.

Page 11

 
SMARTER SERVICES LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2025


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 March 2023
1,000
422,294
423,294



Profit for the year
-
810,496
810,496

Dividends to parent
-
(205,882)
(205,882)



At 1 March 2024
1,000
1,026,908
1,027,908



Profit for the year
-
275,957
275,957


At 28 February 2025
1,000
1,302,865
1,303,865


The notes on pages 13 to 29 form part of these financial statements.

Page 12

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

1.


General information

Smarter Services Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is disclosed on the company information page.

The principal activity of the company is the provision of general cleaning services for buildings.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The company have taken exemption from preparing a cashflow statement. The consolidated results and cashflow statements for the company are included within the publicly available financial statements of Smarter Services Group Limited.

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the consolidated results for the company and its subsidiary undertaking are included within the publicly available financial statements of Smarter Services Group Limited. The financial statements present information about the company as an individual entities and not about its group.

 
2.3

Going concern

The company’s business activities, together with the factors likely to affect its future development and its financial position are as described in the strategic report.

The financial statements have been prepared on a going concern basis, which the directors consider to be appropriate, notwithstanding that Smarter Services Group Ltd at the balance sheet date had net liabilities

The group net liabilities position arises owing to shareholder funding in the form of loan notes. The loan notes were issued at the time Key Capital Partners, a growth focussed UK private equity manager, invested in the business in 2023. The group has support from the shareholders such that interest on shareholder loans will only be considered for payment to the extent that this does not place financial strain on the business.

Following some large new contract wins with both new and existing clients in the year to February 2026 it is expected that sales and EBITDA will grow during the next twelve months and beyond.

Page 13

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

2.Accounting policies (continued)

 
2.4

Revenue

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover form the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

 
2.5

Leases

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income statement as incurred.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. 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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.10

Intangible assets

Goodwill
 
 Goodwill represents the difference between amounts paid on the cost of a business combination
  and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and
  liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is
  measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is
  amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over
  its useful economic life which the Directors have determined to be 15 years.
 
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Intangible assets are related to Computer Software. Computer Software is amortised to the income statement over its estimated economic life of 5 years.

Page 15

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
Straight line
Motor vehicles
-
25%
Straight line
Office equipment
-
25%
Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 16

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

2.Accounting policies (continued)

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 17

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Employees

Staff costs, including directors' remuneration, were as follows:


2025
2024 (Unaudited)
£
£

Wages and salaries
9,071,220
6,751,634

Social security costs
837,188
556,391

Cost of defined contribution scheme
165,063
148,197

10,073,471
7,456,222


The average monthly number of employees, including directors, during the year was 518 (2024 - 350).


4.


Judgments in applying accounting policies and key sources of estimation uncertainty

The Directors continuously evaluate estimates and judgements. Conclusions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Useful life of Goodwill
Goodwill is derived from the value placed on the customer lists and ongoing trade of the purchased subsidiaries. It is the Directors' view that the useful life of goodwill is 15 years, being the reasonable estimate of the average life of ongoing contracts at any given point.  This is monitored regulalry by management in order to determine if any impairement or amendments to this judegement and policy is required.

Page 18

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

5.


Intangible assets






Computer software

£



Cost


At 1 March 2024
13,544



At 28 February 2025

13,544



Amortisation


At 1 March 2024
7,714


Charge for the year on owned assets
2,709



At 28 February 2025

10,423



Net book value



At 28 February 2025
3,121



At 29 February 2024 (Unaudited)
5,830



Page 19

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

6.


Tangible fixed assets







Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 March 2024
167,511
85,155
37,605
290,271


Additions
37,253
-
14,263
51,516



At 28 February 2025

204,764
85,155
51,868
341,787



Depreciation


At 1 March 2024
79,116
41,838
18,717
139,671


Charge for the year on owned assets
38,776
7,554
9,635
55,965



At 28 February 2025

117,892
49,392
28,352
195,636



Net book value



At 28 February 2025
86,872
35,763
23,516
146,151



At 29 February 2024 (Unaudited)
88,395
43,317
18,888
150,600


7.


Fixed asset investments








Investments in subsidiary companies

£



Cost or valuation


At 1 March 2024
1,326,140



At 28 February 2025
1,326,140




Page 20

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Mayhew Property Care Limited
England
Ordinary
100%
Low Cost Cleaning Supplies Limited
England
Ordinary
100%

The registered office for the above subsidiaries is the same as the Company's.

The Directors intend to hive up the trade and assets of these subsidiaries in the near future, however no final decision has been made regarding this. Please see the Post Balance Sheet note for further details.


8.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024 (Unaudited)
£
£

Cleaning services
11,086,133
9,122,737

Maintenance services
2,456,153
2,071,431

Grounds services
1,165,245
723,562

14,707,531
11,917,730


All turnover arose within the United Kingdom.


9.


Stocks

28 February
29 February
2025
2024 (Unaudited)
£
£

Materials
34,654
54,248

34,654
54,248


Page 21

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

10.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2025
2024 (Unaudited)
£
£

Auditor's remuneration
12,400
-

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


11.


Directors' remuneration

2025
2024 (Unaudited)
£
£

Directors' emoluments
167,410
212,612

Company contributions to defined contribution pension schemes
16,194
46,117

183,604
258,729


During the year retirement benefits were accruing to 2 directors (2024 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £145,410 (2024 - £123,423).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £15,721 (2024 - £44,521).


12.


Income from investments

2025
2024 (Unaudited)
£
£





Dividends received
-
351,449

-
351,449


Page 22

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

13.


Interest receivable

2025
2024 (Unaudited)
£
£


Other interest receivable
1,533
2,004

1,533
2,004


14.


Interest payable and similar expenses

2025
2024 (Unaudited)
£
£


Bank interest payable
2,913
5,288

Other loan interest payable
21,406
20,150

Discounting charges
54,694
68,518

79,013
93,956


15.


Taxation


2025
2024 (Unaudited)
£
£

Corporation tax


Current tax on profits for the year
60,000
157,000


60,000
157,000


Total current tax
60,000
157,000

Deferred tax


Origination and reversal of timing differences
-
9,727

Total deferred tax
-
9,727


60,000
166,727
Page 23

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
 
15.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024 (Unaudited)
£
£


Profit on ordinary activities before tax
335,957
977,223


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
83,989
244,306

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
16,584
11,927

Capital allowances for year in excess of depreciation
195
(6,231)

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
2,831
1,793

Changes in provisions leading to an increase (decrease) in the tax charge
-
(6,933)

Dividends from UK companies
-
(87,862)

Group relief
(40,841)
-

Other differences leading to an increase (decrease) in the tax charge
(2,758)
9,727

Total tax charge for the year
60,000
166,727


16.


Dividends

28 February
29 February
2025
2024 (Unaudited)
£
£


Dividends paid
-
205,882

-
205,882










 

Page 24

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

17.


Exceptional items

2025
2024 (Unaudited)
£
£


Staff salaries
74,524
-

Staff national insurance
67,834
122,000

Staff pension
881
-

Professional fees
27,276
-

170,515
122,000


18.


Debtors

28 February
29 February
2025
2024 (Unaudited)
£
£


Trade debtors
1,843,945
1,550,596

Amounts owed by group undertakings
87,116
100,000

Other debtors
55,292
55,263

Prepayments and accrued income
225,287
238,099

2,211,640
1,943,958



19.


Cash and cash equivalents

28 February
29 February
2025
2024 (Unaudited)
£
£

Cash at bank and in hand
86,636
459,779

86,636
459,779


Page 25

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

20.


Creditors: Amounts falling due within one year

28 February
29 February
2025
2024 (Unaudited)
£
£

Bank loans
10,860
10,881

Trade creditors
262,281
309,283

Amounts owed to group undertakings
53,884
662,080

Corporation tax
60,113
157,113

Other taxation and social security
951,469
700,821

Obligations under finance lease and hire purchase contracts
7,015
26,039

Other creditors
594,372
467,617

Accruals and deferred income
71,434
89,879

2,011,428
2,423,713



21.


Creditors: Amounts falling due after more than one year

28 February
29 February
2025
2024 (Unaudited)
£
£

Bank loans
2,500
12,500

Net obligations under finance leases and hire purchase contracts
501
7,697

Amounts owed to group undertakings
451,234
276,843

Other creditors
4,809
157,889

459,044
454,929


Page 26

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

22.


Loans


Analysis of the maturity of loans is given below:


28 February
29 February
2025
2024 (Unaudited)
£
£

Amounts falling due within one year

Bank loans
10,860
10,881


10,860
10,881


Amounts falling due 2-5 years

Bank loans
2,500
12,500


2,500
12,500


13,360
23,381



23.


Obligations under finance leases


Minimum lease payments under hire purchase fall due as follows:

28 February
29 February
2025
2024 (Unaudited)
£
£


Within one year
7,015
26,039

Between 1-5 years
501
7,697

7,516
33,736


24.


Deferred taxation






2025


£






At beginning of year
(34,005)



At end of year
(34,005)

Page 27

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025
 
24.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

28 February
29 February
2025
2024 (Unaudited)
£
£


Accelerated capital allowances
(34,005)
(34,005)

(34,005)
(34,005)


25.


Share capital

28 February
29 February
2025
2024 (Unaudited)
£
£
Authorised, allotted, called up and fully paid



1,000 (2024 - 1,000) Ordinary shares of £1.00 each
1,000
1,000



26.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.


27.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £165,236 (2024 - £148,197) which is included within Wages and salaries. Contributions totalling £39,116 (2024 - £28,669) were payable to the fund at the balance sheet date and are included in other creditors.

Page 28

 
SMARTER SERVICES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2025

28.


Other Commitments

At 28 February 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

28 February
29 February
2025
2024 (Unaudited)
£
£


Not later than 1 year
158,630
198,862

Later than 1 year and not later than 5 years
117,457
158,872

276,087
357,734


29.


Related party transactions

The company is a wholly owned subsidiary and accordingly has taken the exemptions provided within paragraph 33.1A of FRS 102 and therefore transactions with group companies have not been disclosed.

Total compensation paid to key management personnel, including directors, for services rendered during the financial year amounted to £513,283 (2023: £449,061). This figure comprises salaries, bonuses, employer’s national insurance contributions, pension contributions, and benefits in kind.


30.


Post balance sheet events

The Directors intend to hive up the trade and assets of the two subsidiaries, Low Cost Cleaning Supplies Limited and Mayhew Property Care Limited, into Smarter Services Limited.  However, a final decision as to when this occurs has yet to be made and until such date has been confirmed no adjustments can be made in relation to this.  When the hive up occurs the goodwill from the original date of purchase of the subsidiaries will be reclassified from the investment figure on the balance sheet.  Amortisation from the original date of purchase to the date of the hive up will have been deemed to apply and will also need to be accounted for.  From the hive up date the goodwill and investments will need to be reviewed annually for impairment and goodwill will be amortised according to Smarter Services Limited's goodwill policy.


31.


Controlling party

The company's immediate and parent undertaking is Smarter Services Group Limited, which owns 100% of the shares of Smarter Services Ltd. Smarter Services Group Limited is incorporated in England and Wales.

The ultimate controlling party is considered to be Jason Southwell by virtue of his majority holding of Smarter Services Group Limited. Copies of this company's accounts may be obtained from the secretary at Lancaster House, 11 Churchfield Road, Walton-On-Thames, Surrey, United Kingdom, KT12 2TY.


Page 29