Company Registration No. 04380501 (England and Wales)
SMTM HOLDING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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 2020
31 December 2020
- 1 -
2020
2019
as restated
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
4
1,687,721
1,415,907
Investments
5
243,911
243,911
1,931,632
1,659,818
Current assets
Trade and other receivables
7
552,576
509,885
Cash and cash equivalents
152,228
4,788
704,804
514,673
Current liabilities
8
(808,270)
(378,937)
Net current (liabilities)/assets
(103,466)
135,736
Total assets less current liabilities
1,828,166
1,795,554
Non-current liabilities
9
(822,614)
(828,904)
Provisions for liabilities
(34,630)
(34,630)
Net assets
970,922
932,020
Equity
Called up share capital
10
5,451
5,451
Share premium account
59,319
59,319
Revaluation reserve
11
182,263
182,263
Retained earnings
723,889
684,987
Total equity
970,922
932,020
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 24 June 2021 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 2020
- 2 -
Share capital
Share premium account
Revaluation reserve
Retained earnings
Total
£
£
£
£
£
As restated for the period ended 31 December 2019:
Balance at 1 January 2019
5,451
59,319
814,733
879,503
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
-
52,517
52,517
Transfers
-
-
182,263
(182,263)
-
Balance at 31 December 2019
5,451
59,319
182,263
684,987
932,020
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
-
38,902
38,902
Balance at 31 December 2020
5,451
59,319
182,263
723,889
970,922
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 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 a
mounts
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
As part of making the above assessment the directors have considered the impact of the global Covid-19 pandemic both on the company and its wider group. The company and group have been able to maintain their day-to-day activities during the pandemic, albeit at a reduced level than initially budgeted. The duration of the Covid-19 pandemic remains unclear at this time, and it is not possible to reliably estimate the impact on the financial position and results of the company for future years. However the directors have undertaken a review of the business in the current situation and consider it to be appropriate to prepare the financial statements on a going concern basis.
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 a
t
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.
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
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.
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.
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
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.
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
paymen
ts 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. A
m
ounts 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
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.
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 6 -
2
Change in accounting policy
In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period and prior period:
2017 Triennial review: Investment Property
The 2017 Triennial review amendments removed the exemption previously available from the remeasurement of investment properties at fair value where fair value could not be reliably measured without undue cost or effort. Where an entity rents investment property to another group entity they must account for this property either at fair value or by transferring the property to property, plant and equipment and applying a cost model in accordance with section 17. When an entity first applies the Triennial review 2017 amendment, as an exception to retrospective application the entity is also permitted to use the fair value of its intra-group investment property as its deemed cost at the date of transition.
The company has chosen to account for investment properties rented to another group entity using the cost model and have applied the exemption to retrospective application. The impact on the comparative financial statements is stated below:
2019 signed
Adjustment
2019 restated
Statement of financial position
Investment properties
1,415,907
(1,415,907)
-
Property, plant and equipment
-
1,415,907
1,415,907
Retained earnings
867,250
(182,263)
684,987
Revaluation reserve
-
182,263
182,263
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
3
3
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
4
Property, plant and equipment
Freehold land and buildings
Assets under construction
Total
£
£
£
Cost or valuation
At 1 January 2020
1,125,000
290,907
1,415,907
Additions
294,314
294,314
At 31 December 2020
1,125,000
585,221
1,710,221
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
22,500
22,500
At 31 December 2020
22,500
22,500
Carrying amount
At 31 December 2020
1,102,500
585,221
1,687,721
At 31 December 2019
1,125,000
290,907
1,415,907
Investment properties rented to another group entity are accounted for using the cost model. The carrying value of
these
investment properties included within property, plant and equipment
is £1,687,721
(2019 - £1,415,907).
Freehold land and buildings comprises a property held at Hawthorn House, Helions Bumpstead Road, Haverhill. The fair value of the property has been arrived at on the basis of a valuation carried out at 13 January 2016 by Kemsley LLP, Chartered Surveyors, who are not connected with the company. The valuation was made using the comparable and investment methods. In the valuation, the assumption made was market rent of £80,000. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The revaluation surplus is disclosed in note 1
1.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings
2020
2019
£
£
Cost
1,096,206
1,096,206
Accumulated depreciation
(285,013)
(263,089)
Carrying value
811,193
833,117
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
5
Fixed asset investments
2020
2019
£
£
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 2020
- 9 -
6
Subsidiaries
These financial statements are separate company financial statements for 31 December 2020.
Details of the company's subsidiaries at 31 December 2020 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 2020
- 10 -
7
Trade and other receivables
2020
2019
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
538,489
422,108
Other receivables
14,087
87,777
552,576
509,885
Trade receivables disclosed above are measured at amortised cost.
8
Current liabilities
2020
2019
£
£
Bank loans
45,453
74,981
Trade payables
22,632
2,886
Amounts owed to group undertakings
738,075
300,000
Other payables
2,110
1,070
808,270
378,937
9
Non-current liabilities
2020
2019
£
£
Bank loans and overdrafts
822,614
828,904
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, CB
9
7AA. All four charges are held by Barclays Bank PLC.
Creditors which fall due after five years are as follows:
2020
2019
£
£
Payable by instalments
303,310
315,370
10
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
5,451
5,451
5,451
5,451
SMTM HOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 11 -
11
Revaluation reserve
The revaluation reserve relates to the revaluation of property, plant and equipment immediately before its reclassification as investment property.
A deferred tax liability of £34,630 (2019: £34,630) has been recognised in respect of the revaluation reserve.
12
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.
The senior statutory auditor was Colin Hamilton.
The auditor was Ward Williams.
13
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.
14
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.
2020-12-31
2020-01-01
false
24 June 2021
CCH Software
CCH Accounts Production 2021.100
No description of principal activity
This audit opinion is unqualified
Mr T Ghandour
Mr J F Igoe
04380501
2020-01-01
2020-12-31
04380501
2020-12-31
04380501
2019-12-31
04380501
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-12-31
04380501
core:ConstructionInProgressAssetsUnderConstruction
2020-12-31
04380501
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-12-31
04380501
core:ConstructionInProgressAssetsUnderConstruction
2019-12-31
04380501
core:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
04380501
core:CurrentFinancialInstruments
core:WithinOneYear
2019-12-31
04380501
core:CurrentFinancialInstruments
2020-12-31
04380501
core:CurrentFinancialInstruments
2019-12-31
04380501
core:Non-currentFinancialInstruments
2020-12-31
04380501
core:Non-currentFinancialInstruments
2019-12-31
04380501
core:ShareCapital
2020-12-31
04380501
core:ShareCapital
2019-12-31
04380501
core:SharePremium
2020-12-31
04380501
core:SharePremium
2019-12-31
04380501
core:RevaluationReserve
2020-12-31
04380501
core:RevaluationReserve
2019-12-31
04380501
core:RetainedEarningsAccumulatedLosses
2020-12-31
04380501
core:RetainedEarningsAccumulatedLosses
2019-12-31
04380501
core:ShareCapital
2018-12-31
04380501
core:SharePremium
2018-12-31
04380501
core:RevaluationReserve
2018-12-31
04380501
2018-12-31
04380501
bus:Director1
2020-01-01
2020-12-31
04380501
core:RevaluationReserve
2019-01-01
2019-12-31
04380501
core:RetainedEarningsAccumulatedLosses
2020-01-01
2020-12-31
04380501
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-01-01
2020-12-31
04380501
2019-01-01
2019-12-31
04380501
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-12-31
04380501
core:ConstructionInProgressAssetsUnderConstruction
2019-12-31
04380501
2019-12-31
04380501
core:ConstructionInProgressAssetsUnderConstruction
2020-01-01
2020-12-31
04380501
core:Subsidiary1
2020-01-01
2020-12-31
04380501
core:Subsidiary1
1
2020-01-01
2020-12-31
04380501
core:WithinOneYear
2020-12-31
04380501
core:WithinOneYear
2019-12-31
04380501
bus:PrivateLimitedCompanyLtd
2020-01-01
2020-12-31
04380501
bus:SmallCompaniesRegimeForAccounts
2020-01-01
2020-12-31
04380501
bus:FRS102
2020-01-01
2020-12-31
04380501
bus:Audited
2020-01-01
2020-12-31
04380501
bus:Director2
2020-01-01
2020-12-31
04380501
bus:FullAccounts
2020-01-01
2020-12-31
xbrli:pure
xbrli:shares
iso4217:GBP