Company registration number 04380501 (England and Wales)
SMTM HOLDING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
SMTM HOLDING LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
SMTM HOLDING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
3
1,637,104
1,671,679
Investments
4
243,911
243,911
1,881,015
1,915,590
Current assets
Trade and other receivables
6
2,590,326
1,360,293
Cash and cash equivalents
4,846
1,368
2,595,172
1,361,661
Current liabilities
7
(2,808,694)
(1,514,516)
Net current liabilities
(213,522)
(152,855)
Total assets less current liabilities
1,667,493
1,762,735
Non-current liabilities
8
(640,267)
(744,272)
Provisions for liabilities
(45,566)
(45,566)
Net assets
981,660
972,897
Equity
Called up share capital
9
5,451
5,451
Share premium account
59,319
59,319
Revaluation reserve
10
182,263
182,263
Retained earnings
734,627
725,864
Total equity
981,660
972,897
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered 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 22 September 2023 and are signed on its behalf by:
Mr T Ghandour
Director
Company Registration No. 04380501
SMTM HOLDING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Share capital
Share premium account
Revaluation reserve
Retained earnings
Total
£
£
£
£
£
Balance at 1 January 2021
5,451
59,319
182,263
723,889
970,922
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
1,975
1,975
Balance at 31 December 2021
5,451
59,319
182,263
725,864
972,897
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
8,763
8,763
Balance at 31 December 2022
5,451
59,319
182,263
734,627
981,660
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
SMTM Holding Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hawthorn House, Moonhall Business Park, Helions Bumpstead Road, Haverhill, CB9 7AA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
Property rented to a group entity is accounted for as property, plant and equipment using the cost model.
1.5
Non-current investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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 individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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 receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
Classification of 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 deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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 deducting all of its liabilities.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
1.11
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
3
3
3
Property, plant and equipment
Freehold land and buildings
£
Cost or valuation
At 1 January 2022 and 31 December 2022
1,728,755
Depreciation and impairment
At 1 January 2022
57,076
Depreciation charged in the year
34,575
At 31 December 2022
91,651
Carrying amount
At 31 December 2022
1,637,104
At 31 December 2021
1,671,679
Freehold land and buildings comprises an investment property held at Hawthorn House, Helions Bumpstead Road, Haverhill. The investment property is rented to another group entity and is accounted for using the cost model. The carrying value of the investment property included within property, plant and equipment is £1,637,104 (2021 - £1,671,679).
In 2016, the property was valued at £1,125,000 by Kemsley LLP, Chartered Surveyors, who are not connected with the company. Following the transition to the FRS 102 Triennial Review, this fair value was chosen as the property's deemed cost.
If the investment property had been measured using the historical cost method, the carrying amounts would be as follows:
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Property, plant and equipment
(Continued)
- 7 -
Freehold land and buildings
2022
2021
£
£
Cost
1,699,961
1,699,961
Accumulated depreciation
(353,587)
(319,012)
Carrying value
1,346,374
1,380,949
4
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
243,911
243,911
The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
5
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Don Construction Products Limited
England and Wales
Manufacture of paints, varnishes and similar coatings, mastics and sealants
Ordinary
100.00
0
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
6
Trade and other receivables
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
2,585,282
1,356,762
Other receivables
5,044
3,531
2,590,326
1,360,293
7
Current liabilities
2022
2021
£
£
Bank loans
101,321
79,567
Trade payables
6,047
6,314
Amounts owed to group undertakings
2,698,075
1,426,075
Other payables
3,251
2,560
2,808,694
1,514,516
8
Non-current liabilities
2022
2021
£
£
Bank loans and overdrafts
640,267
744,272
The loan is secured by four legal charges dated 8th January 2007, 19th December 2007, 11th January 2008 and 10th January 2018, held over the freehold land and buildings known as Hawthorn House, Helions Bumpstead Road, Haverhill, Sufolk, CB9 7AA. All four charges are held by Barclays Bank PLC.
Creditors which fall due after five years are as follows:
2022
2021
£
£
Payable by instalments
149,297
264,791
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,451
5,451
5,451
5,451
10
Revaluation reserve
The revaluation reserve relates to the revaluation of property, plant and equipment immediately before its reclassification as investment property.
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Colin Hamilton
Statutory Auditor:
Ward Williams
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
12
Related party transactions
The company has taken advantage of the exemption in FRS102 section 33 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the parent company. The consolidated financial statements are available from Hawthorn House, Helions Bumpstead Road, Haverhill, Suffolk, CB9 7AA.
13
Parent company
The ultimate parent company is Don Construction Holdings Limited, a company registered in England and Wales.
The consolidated financial statements of Don Construction Holdings Limited can be obtained from Hawthorn House, Helions Bumpstead Road, Haverhill, Suffolk, CB9 7AA.
2022-12-312022-01-01false22 September 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityThis audit opinion is unqualifiedMr T GhandourMr J F IgoeMr I S MitrovMr D I Fraser043805012022-01-012022-12-31043805012022-12-31043805012021-12-3104380501core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3104380501core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-3104380501core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3104380501core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3104380501core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3104380501core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3104380501core:CurrentFinancialInstruments2022-12-3104380501core:CurrentFinancialInstruments2021-12-3104380501core:ShareCapital2022-12-3104380501core:ShareCapital2021-12-3104380501core:SharePremium2022-12-3104380501core:SharePremium2021-12-3104380501core:RevaluationReserve2022-12-3104380501core:RevaluationReserve2021-12-3104380501core:RetainedEarningsAccumulatedLosses2022-12-3104380501core:RetainedEarningsAccumulatedLosses2021-12-3104380501core:ShareCapital2020-12-3104380501core:SharePremium2020-12-3104380501core:RevaluationReserve2020-12-3104380501core:RetainedEarningsAccumulatedLosses2020-12-3104380501bus:Director12022-01-012022-12-3104380501core:RetainedEarningsAccumulatedLosses2021-01-012021-12-31043805012021-01-012021-12-3104380501core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3104380501core:LandBuildingscore:OwnedOrFreeholdAssets2022-01-012022-12-3104380501core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-3104380501core:WithinOneYear2022-12-3104380501core:WithinOneYear2021-12-3104380501core:Non-currentFinancialInstruments2022-12-3104380501core:Non-currentFinancialInstruments2021-12-3104380501bus:PrivateLimitedCompanyLtd2022-01-012022-12-3104380501bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-3104380501bus:FRS1022022-01-012022-12-3104380501bus:Audited2022-01-012022-12-3104380501bus:Director22022-01-012022-12-3104380501bus:Director32022-01-012022-12-3104380501bus:Director42022-01-012022-12-3104380501bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP