ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Registered number:
For the Year Ended
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SMD (Holdings) Limited
Company Information
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SMD (Holdings) Limited
Contents
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SMD (Holdings) Limited
Group Strategic Report
For the Year Ended 30 September 2019
The group's balance sheet as detailed on page 10 shows shareholder funds of £7,202,533.
Group turnover for the year fell by 2.3% and gross margin fell by 0.3% however the gross margin percentage increased to 27.4% from 26.8% due to improved rates of return on point of sale investment. The company remains committed to investing in the ILIV brand through targeted promotional and marketing activity and this strategy is allowing new export markets and UK sales channels to increase sales volumes. Increases in overhead expenditure is kept under tight control and efficiencies from the introduction of the new ERP operating system in 2017 are starting to bear fruit.
Economic Downturn
The success of the business is reliant on consumer spending in soft furnishing and commercial spending within healthcare, education and hospitality. A downturn in any area could affect group sales and so senior management keep abreast of economic conditions. In the case of a severe economic downturn, marketing and pricing strategies are modified to reflect the new conditions. Proportion of Fixed Overheads as a Percentage of Turnover A proportion of the group’s overheads are fixed. There is a risk that any significant decrease in revenue may lead to an inability to remain profitable. Management closely monitor fixed overheads against budgets on a monthly basis and cost savings are made when there is an anticipated decline in revenue. Competition The markets in which the group operates are highly competitive. As a result there is constant downward pressure on margins. The group strives to develop its sourcing routes to ensure the lowest cost of production is maintained. People The group operates a wellbeing programme for employees which covers off health checks, team building, charity events amongst others. The directors have started an office development project which will improve the working environment at the main office in Preston. Engagement surveys are conducted annually and feedback from listening groups is acted on. Fluctuations in Currency The majority of the group’s purchases come from overseas and are dominated in foreign currencies. The group is therefore, exposed to foreign currency fluctuations. As required, the business uses forward contracts and other derivatives / financial instruments to reduce the exposure for 12 months into the future.
The group views its banking covenants as its key financial KPI and due to the improvement in cash during the year significant headroom exists for investments for the future.
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SMD (Holdings) Limited
Group Strategic Report (continued)
For the Year Ended 30 September 2019
The group uses a number of KPI's to deliver improvements in performance of working capital and customer service levels.
Working capital KPI's include debtor and creditor days, stock turn and cashflow benchmarked against predefined budget numbers. Customer service KPI's include customer retention and acquisition, along with on time delivery performance.
Financial instruments
Funding and liquidity The objective is to ensure that there is continuity of funding, that cash levels are sufficient to meet the ongoing needs of the business, and that there is flexibility to deal with unforeseen events. The policy is to smooth the cash management of the business and to arrange funding ahead of requirements, should it be needed. Credit risk The objective is to reduce the risk of loss arising from default by customers. The policy is to ensure customer debt and credit ratings are routinely monitored. Interest risk management The objective is to limit the group's exposure to interest rate fluctuations. At present, the group only has secured bank borrowings in the form of a bank overdraft and maintains a policy of interest rate management. Foreign currency risk management The group's objective is to mitigate the effect of exchange rate volatility by using forward contracts to purchase foreign currency. Derivatives The group has forward contracts in place at the year end that are classified as derivatives.
This report was approved by the board and signed on its behalf.
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SMD (Holdings) Limited
Directors' Report
For the Year Ended 30 September 2019
The directors present their report and the financial statements for the year ended 30 September 2019.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £810,479 (2018 - £685,212).
The directors do not recommend payment of a final dividend.
The directors who served during the year were:
The directors review the critical success factors of the business on a regular basis to ensure all group companies can contribute successfully in the future.
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SMD (Holdings) Limited
Directors' Report (continued)
For the Year Ended 30 September 2019
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
The consolidated accounts have been prepared on a going concern basis. The following paragraphs set out the basis of which the directors have reached their conclusion.
The impact of the Covid-19 virus outbreak started to affect the performance of the group from the middle of March 2020. At this time the group was operating at a level above budget in terms of profitability and with significant headroom in its funding facilities and was well placed to enter this turbulent period. Since this time, SMD group has continued to operate, albeit at a reduced level, due to the varied sales channels it operates in which includes providing products for the healthcare sector. Costs have been significantly reduced, partly due to the use of the Employee Retention Scheme set up by the government, and this will continue whilst we increase activity over the next few months. The group is following government guidance on safe working and, where possible, working from home. Forecast modelling, including stress testing, has been undertaken and this shows that the group will remain profitable in the year to September 2020, although at a lower level than the previous year. This modelling predicts that a return to more normalised levels of trading will not occur until well into 2021 and that the group has more than sufficient funding available to move to this state and continue to invest in new product development and an organisation and cultural structure backed by investment in technology which limits travelling and promotes working from home. Profitability for the year to September 2021 is predicted to increase on the year to September 2020. There is no requirement at this time for the SMD group to apply for the Coronavirus Business Interruption Scheme (CBILS) and the forecasts point to the group continuing to operate within it's banking covenants. The Group currently meets its working capital requirements through its cash balances and bank funding. Based on the Group's forecasts and projections, the directors believe they have sufficient facilities to trade through the next 12 month period. Therefore, the directors believe it is appropriate to prepare the accounts to 30 September 2019 on a going concern basis and there will be no adverse effect on solvency for more than 12 months after the date of approval of the consolidated financial statements.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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SMD (Holdings) Limited
Independent Auditors' Report to the Members of SMD (Holdings) Limited
We have audited the financial statements of SMD (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2019, which comprise the Group Profit and Loss Account, the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's or the parent Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a
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SMD (Holdings) Limited
Independent Auditors' Report to the Members of SMD (Holdings) Limited (continued)
material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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:
As explained more fully in the Directors' Responsibilities Statement 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
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SMD (Holdings) Limited
Independent Auditors' Report to the Members of SMD (Holdings) Limited (continued)
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 Auditors' 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.
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 Auditors' Report.
This report is made solely to the Company's members in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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 for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Lancashire Gate
21 Tiviot Dale
Stockport
Cheshire
SK1 1TD
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SMD (Holdings) Limited
Consolidated Profit and Loss Account
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Consolidated Statement of Comprehensive Income
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Registered number: 04594575
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 37 form part of these financial statements.
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SMD (Holdings) Limited
Registered number: 04594575
Company Balance Sheet
As at
The profit after tax of the parent Company for the year was £202,642 (2018: £358,281).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 37 form part of these financial statements.
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SMD (Holdings) Limited
Consolidated Statement of Changes in Equity
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Consolidated Statement of Changes in Equity
For the Year Ended 30 September 2018
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SMD (Holdings) Limited
Company Statement of Changes in Equity
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Company Statement of Changes in Equity
For the Year Ended 30 September 2018
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SMD (Holdings) Limited
Consolidated Statement of Cash Flows
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
SMD (Holdings) Limited is a private company limited by members capital incorporated in England. The address of the registered office and principal place of business is Pittman Way, Fulwood, Preston, PR2 9ZD.
The nature of the group's operation and its principal activity is that of the design, manufacture and distribution of ready-made products and fabrics.
2.Accounting policies
The financial statements have been prepared under the historical cost convention 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 October 2014.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilites of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at the opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
2.Accounting policies (continued)
The consolidated accounts have been prepared on a going concern basis. The following paragraphs set out the basis of which the directors have reached their conclusion.
The impact of the Covid-19 virus outbreak started to affect the performance of the group from the middle of March 2020. At this time the group was operating at a level above budget in terms of profitability and with significant headroom in its funding facilities and was well placed to enter this turbulent period. Since this time, SMD group has continued to operate, albeit at a reduced level, due to the varied sales channels it operates in which includes providing products for the healthcare sector. Costs have been significantly reduced, partly due to the use of the Employee Retention Scheme set up by the government, and this will continue whilst we increase activity over the next few months. The group is following government guidance on safe working and, where possible, working from home. Forecast modelling, including stress testing, has been undertaken and this shows that the group will remain profitable in the year to September 2020, although at a lower level than the previous year. This modelling predicts that a return to more normalised levels of trading will not occur until well into 2021 and that the group has more than sufficient funding available to move to this state and continue to invest in new product development and an organisation and cultural structure backed by investment in technology which limits travelling and promotes working from home. Profitability for the year to September 2021 is predicted to increase on the year to September 2020. There is no requirement at this time for the SMD group to apply for the Coronavirus Business Interruption Scheme (CBILS) and the forecasts point to the group continuing to operate within it's banking covenants. The Group currently meets its working capital requirements through its cash balances and bank funding. Based on the Group's forecasts and projections, the directors believe they have sufficient facilities to trade through the next 12 month period. Therefore, the directors believe it is appropriate to prepare the accounts to 30 September 2019 on a going concern basis and there will be no adverse effect on solvency for more than 12 months after the date of approval of the consolidated financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
2.Accounting policies (continued)
Rentals paid under operating leases are charged to the Consolidated Profit and Loss Account on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 October 2017 to continue to be charged over the period to the first market rent review rather than the term of the lease.
Finance costs are charged to the Consolidated Profit and Loss Account 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.
All borrowing costs are recognised in the Consolidated Profit and Loss Account in the year in which they are incurred.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Profit and Loss Account 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 Group in independently administered funds.
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
2.Accounting policies (continued)
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
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.
Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
2.Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted averagebasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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.
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.
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
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.
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Profit and Loss Account in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
The Group enters into financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
2.Accounting policies (continued)
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Profit and Loss Account.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.
The Group uses foreign currency forward contracts to manage its exposure to cash flow risk on its future foreign currency stock purchases. These derivatives are measured at fair value at each balance sheet date.
To the extent the cash flow hedge is effective, movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in profit or loss for the year.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:
Provision for impairment loss on trade debtors The management of the company exercises significant judgement in providing for impairment loss on trade debtors. The value of trade debtors are the year end totalled £3,079,355 (2018: £3,929,553). Provision for obsolete and slow moving stocks The company reviews its stocks to assess loss on account of obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in the profit and loss account, the company makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. The value of stock at the year end totalled £6,632,595 (2018: £7,392,827). Other estimates and judgements Management of the company also exercises significant judgement in estimating the useful life of tangible fixed assets. The net book value of tangible fixed assets at the year end totalled £3,025,476 (2018: £3,063,862). Should these estimates vary, the profit or loss and balance sheet of the following years could be impacted.
Analysis of turnover by country of destination:
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
11.Taxation (continued)
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
15.Tangible fixed assets (continued)
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
25.Share capital (continued)
Capital redemption reserve
Profit and loss account
Cashflow hedge reserve
The cashflow hedge reserve includes all gains and losses made on forward contracts. Non-distributable reserve The non-distributable reserve includes revaluation gains and losses previously recognised. SMD Textiles Employee Benefit Trust The group has prepared its financial statements in line with FRS 102 accounting for Employee Benefit Trusts and consolidated the assets and liabilitites of the SMD Textiles Employee Benefit Trust into its own results.
A guarantee exists in favour of HM Revenue & Customs for £125,000.
During the prior year, SMD Textiles Limited, a subsidiary of SMD (Holdings) Limited entered into a loan agreement with SMD Textiles Limited Employee Benefit Trust. At the year end, £141,266 is outstanding. The amount has been eliminated on consolidation in these financial statements. SMD (Holdings) Limited is the Guarantor for this loan.
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SMD (Holdings) Limited
Notes to the Financial Statements
For the Year Ended 30 September 2019
The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £153,514 (2018: £126,225). Contributions totalling £21,372 (2018: £6,701) were payable to the fund at the balance sheet date.
The group was under the control of Mr R J Kenworthy throughout the current and previous period. Mr R J Kenworthy is the majority shareholder.
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