South Midlands Communications Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 00603500 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

FOR

SOUTH MIDLANDS COMMUNICATIONS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

B.D Gardner

Mrs J. Y Diamond

REGISTERED OFFICE:

S M House

School Close

Chandlers Ford Industrial Estate

Eastleigh

Hampshire

SO53 4BY

REGISTERED NUMBER:

00603500 (England and Wales)

ACCOUNTANTS:

Martin and Company

25 St Thomas Street

Winchester

Hampshire

SO23 9HJ

BANKERS:

HSBC UK Bank Plc

1 Centenary Square

Birmingham

B1 1HQ

FIXED ASSETS

Intangible assets

4

166,758

-

Tangible assets

5

3,695,728

3,728,665

Investments

6

7,754

9,818

3,870,240

3,738,483

CURRENT ASSETS

Stocks

1,468,353

860,721

Debtors

7

1,524,659

2,491,463

Cash at bank and in hand

835,606

633,296

3,828,618

3,985,480

CREDITORS

Amounts falling due within one year

8

1,215,614

576,581

NET CURRENT ASSETS

2,613,004

3,408,899

TOTAL ASSETS LESS CURRENT LIABILITIES

6,483,244

7,147,382

CAPITAL AND RESERVES

Called up share capital

1,144,250

1,144,250

Revaluation reserve

2,646,458

2,646,458

Capital redemption reserve

5,750

5,750

Retained earnings

2,686,786

3,350,924

SHAREHOLDERS' FUNDS

6,483,244

7,147,382

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 March 2023 and were signed on its behalf by:

Mrs J. Y Diamond - Director

1.	STATUTORY INFORMATION

South Midlands Communications 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 as modified by the revaluation of certain assets.

Preparation of consolidated financial statements

The financial statements contain information about South Midlands Communications Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax. The company has one main source of income which comprises of the sale of commercial radio communications equipment and systems.

Goodwill

Goodwill is recognised at cost and amortised evenly over its estimated useful life. It has now been amortised in full.

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.

Development costs are being amortised evenly over their estimated useful life of five years.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided on the following basis:

Freehold property - 2% on cost

Fixtures and fittings - 15-25% on reducing balance

Motor vehicles - 25% on reducing balance

Plant and machinery - 15-25% on reducing balance

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

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

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.

Financial instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classified as financial liabilities. Financial liabilities are presented as such in the balance sheet. Financial costs and gains or losses relating to financial liabilities are included in the profit and loss account. Financial costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Judgements and estimation uncertainty

The directors have made judgements in relation to whether there are any indicators of impairment of the company's tangible fixed assets.

Estimation uncertainty relates to tangible fixed assets, turnover, stock and work in progress.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 42 (2021 - 46 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 July 2021

180,500

-

180,500

Additions

-

208,448

208,448

At 30 June 2022

180,500

208,448

388,948

AMORTISATION

At 1 July 2021

180,500

-

180,500

Charge for year

-

41,690

41,690

At 30 June 2022

180,500

41,690

222,190

NET BOOK VALUE

At 30 June 2022

-

166,758

166,758

At 30 June 2021

-

-

-

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 July 2021

3,670,434

650,279

224,565

9,300

4,554,578

Additions

-

55,817

2,288

-

58,105

Disposals

-

-

(121,464

)

-

(121,464

)

At 30 June 2022

3,670,434

706,096

105,389

9,300

4,491,219

DEPRECIATION

At 1 July 2021

159,529

511,170

148,121

7,093

825,913

Charge for year

47,410

24,108

16,007

552

88,077

Eliminated on disposal

-

-

(118,499

)

-

(118,499

)

At 30 June 2022

206,939

535,278

45,629

7,645

795,491

NET BOOK VALUE

At 30 June 2022

3,463,495

170,818

59,760

1,655

3,695,728

At 30 June 2021

3,510,905

139,109

76,444

2,207

3,728,665

Included in cost or valuation of land and buildings is freehold land of £ 1,300,000 (2021 - £ 1,300,000 ) which is not depreciated.

Cost or valuation at 30 June 2022 is represented by:

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

Valuation in 2020

2,646,458

-

-

-

2,646,458

Cost

1,023,976

706,096

105,389

9,300

1,844,761

3,670,434

706,096

105,389

9,300

4,491,219

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

30.6.22

30.6.21

£

£

Cost

1,023,976

1,023,976

Value of land in freehold land and buildings

1,300,000

1,300,000

Freehold land and buildings were valued on an open market basis on 14 July 2020 by Vail Williams Property Consultants .

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 July 2021

9,818

Impairments

(2,064

)

At 30 June 2022

7,754

NET BOOK VALUE

At 30 June 2022

7,754

At 30 June 2021

9,818

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Communication Technical Services Limited

Registered office: United Kingdom

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

300

300

Hilomast Limited

Registered office: United Kingdom

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

7,400

7,400

Astel Communications Sarl

Registered office: France

Nature of business: Radio Communications

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

-

9,668

Loss for the year

(13,297

)

(4,441

)

The company has now ceased trading and has been liquidated.

Hilomast LLC

Registered office: USA

Nature of business: Mast manufacture and sales

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

116,440

90,042

Profit for the year

26,398

55,434

South Midlands Communications SL

Registered office: Spain

Nature of business: Property development

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

-

(354,532

)

Loss for the year

-

(53,214

)

The company has now ceased trading and has been liquidated.

SMC Solutions LLC

Registered office: USA

Nature of business: Manufacturing masted vehicles

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

-

374

Loss for the year

-

(85,421

)

The company has now ceased trading and has been liquidated.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.22

30.6.21

£

£

Trade debtors

944,084

347,715

Amounts owed by group undertakings

200,963

1,863,155

Other debtors

379,612

280,593

1,524,659

2,491,463

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.22

30.6.21

£

£

Bank loans and overdrafts

-

50,000

Trade creditors

740,709

388,264

Taxation and social security

98,312

35,252

Other creditors

376,593

103,065

1,215,614

576,581

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

30.6.22

30.6.21

£

£

Within one year

4,116

5,545

Between one and five years

3,955

8,071

8,071

13,616