George Smith Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04410197 (England and Wales)

Financial Statements for the Year Ended 31 December 2021

for

George Smith Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

B J Norris

R Pond

SECRETARY:

S Thompson

REGISTERED OFFICE:

587-589

Kings Road

London

SW6 2EH

REGISTERED NUMBER:

04410197 (England and Wales)

AUDITORS:

Douglas Shaw Limited

7 Brenkley Way

Blezard Business Park

Seaton Burn

Tyne and Wear

NE13 6DS

FIXED ASSETS

Intangible assets

4

1

1

Tangible assets

5

291,243

269,308

291,244

269,309

CURRENT ASSETS

Stocks

726,857

510,785

Debtors

6

634,772

848,862

Cash at bank

2,350,250

1,137,876

3,711,879

2,497,523

CREDITORS

Amounts falling due within one year

7

1,785,839

1,500,924

NET CURRENT ASSETS

1,926,040

996,599

TOTAL ASSETS LESS CURRENT LIABILITIES

2,217,284

1,265,908

CREDITORS

Amounts falling due after more than one year

8

224,581

50,846

NET ASSETS

1,992,703

1,215,062

CAPITAL AND RESERVES

Called up share capital

9

4

4

Share premium

3,318,076

3,318,076

Retained earnings

(1,325,377

)

(2,103,018

)

SHAREHOLDERS' FUNDS

1,992,703

1,215,062

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 15 June 2022 and were signed on its behalf by:

B J Norris - Director

1.	STATUTORY INFORMATION

George Smith Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The directors believe that the company is experiencing good levels of sales and profitability, and that it is well placed to manage its business risks successfully. Accordingly they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover represents the amounts receivable in the ordinary course of business from the provision of goods and services to customers. Turnover is measured at the fair value of the right to consideration net of discounts and value added tax. The company recognises revenue at the point of despatch of goods or provision of services.

Sales order deposits represent amounts received upon orders being made and are held within creditors.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2002, is being amortised evenly over its estimated useful life of fifteen years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

Over the term of the lease

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. The Coronavirus Job Retention Scheme (CJRS) grant has been accounted for under the accrual model.

Grants relating to assets are recognised in income on a systemic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying value of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets, obtained under hire purchase contracts and 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 creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account 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 profit and loss account on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 97 (2020 - 106 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2021

and 31 December 2021

4,898,442

AMORTISATION

At 1 January 2021

and 31 December 2021

4,898,441

NET BOOK VALUE

At 31 December 2021

1

At 31 December 2020

1

5.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2021

84,830

579,218

29,909

300,323

994,280

Additions

1,113

9,354

44,950

59,385

114,802

Disposals

-

-

(29,909

)

-

(29,909

)

At 31 December 2021

85,943

588,572

44,950

359,708

1,079,173

DEPRECIATION

At 1 January 2021

16,266

407,925

29,909

270,872

724,972

Charge for year

20,461

39,079

7,812

25,515

92,867

Eliminated on disposal

-

-

(29,909

)

-

(29,909

)

At 31 December 2021

36,727

447,004

7,812

296,387

787,930

NET BOOK VALUE

At 31 December 2021

49,216

141,568

37,138

63,321

291,243

At 31 December 2020

68,564

171,293

-

29,451

269,308

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

25,515

66,074

Amounts owed by group undertakings

392,685

576,839

Other debtors

216,572

205,949

634,772

848,862

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans and overdrafts

15,419

-

Hire purchase contracts

-

29,186

Payments on account

910,352

569,534

Trade creditors

197,562

318,243

Social security and other taxes

145,753

284,060

Other creditors

50,889

40,112

Directors' current accounts

-

90,000

Accruals and deferred income

464,070

167,397

Deferred government grants

1,794

2,392

1,785,839

1,500,924

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans - 1-2 years

17,356

-

Bank loans - 2-5 years

55,601

-

Bank loans more 5 yr by instal

1,624

-

Hire purchase contracts

-

50,846

Directors' loan accounts

150,000

-

224,581

50,846

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

1,624

-

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.21

31.12.20

value:

£

£

4

Ordinary Shares

£1

4

4

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Graham Thomas Douglas (Senior Statutory Auditor)

for and on behalf of Douglas Shaw Limited

11.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

12.	POST BALANCE SHEET EVENTS

The company has provided financial assistance to a company under common control to acquire the property that George Smith Limited operates from.

13.	ULTIMATE CONTROLLING PARTY

During the previous year, the company issued 2 ordinary shares to Mr. B. J. Norris, a director. As a result the company is now jointly owned and controlled by Henley Limited Partnership II and Mr. B. J. Norris.

Henley Limited Partnership II is incorporated and registered in the United States.