simpson, mclearnon & ferguson limited

Registrationnumber:NI014479

Simpson,McLearnon&FergusonLimited

AnnualReportandFinancialStatements

fortheYearEnded31December2018

Duffy&Co.(A&T)LtdCharteredAccountants&RegisteredAuditors126EglantineAvenueBelfastCoAntrimBT96EU


Contents

CompanyInformation 1StrategicReport 2Director'sReport 3StatementofDirector'sResponsibilities 4IndependentAuditor'sReport 5to7ProfitandLossAccount 8StatementofComprehensiveIncome 9BalanceSheet 10StatementofChangesinEquity 11StatementofCashFlows 12NotestotheFinancialStatements 13to23


CompanyInformation

Directors MrAlanJohnSimpson

Registeredoffice 1KiltongaIndustrialEstateBelfastRoadNewtownardsCoDownBT234TJ

Solicitors StephenPerrott&Co49HighStreetHollywoodBT189AB

Bankers BankofIrelandBallygowanBallygowanRoadBelfastBT57LH

Auditors Duffy&Co.(A&T)LtdCharteredAccountants&RegisteredAuditors126EglantineAvenueBelfastCoAntrimBT96EU

Page1


StrategicReportfortheYearEnded31December2018

Thedirectorpresentshisstrategicreportfortheyearended31December2018.

Principalactivity

Theprincipalactivityofthecompanyisthesaleoftoys,prams,nurserygoodetcFairreviewofthebusiness

Turnoverfortheyearamountedto£10,343,194comparedto£8,892,324forthepreviousyear.

Profitaftertaxamountedto£319,823-(2017 -£231,674).Thetradingresultsandyearendfinancialpositionwereconsideredtobesatisfactory.

Thedirectorsbelieve that thereare furtheropportunities forgrowthasnewstoresareopenedandplansareinplacetoensurethecompanyiswellplacedtoretainitsmarketposition.

Thecompany'skeyfinancialandotherperformanceindicatorsduringtheyearwereasfollows:

Unit 2018 2017Movementinsales % 16 4Grossmargin % 38 37Netprofit % 4 3

Principalrisksanduncertainties

Themanagementofthebusinessandtheexecutionofthecompany'sstrategyaresubjecttoanumberofrisks.Thekeybusinessrisksanduncertaintiesaffectingthecompanyareconsideredtorelatetothecurrenteconomicclimateandcompetitionfromotherkeyplayersinthemarket.

Approvedbythedirectoron20September2019andsignedonitsbehalfby:

.........................................MrAlanJohnSimpsonDirector

Page2


Director'sReportfortheYearEnded31December2018

Thedirectorpresentshisreportandthefinancialstatementsfortheyearended31December2018.

Directorofthecompany

Thedirectorwhoheldofficeduringtheyearwasasfollows:

MrAlanJohnSimpson

Financialinstruments

Objectivesandpolicies

Thecompany'soperationsexposeittoavarietyoffinancialrisksthatincludecreditrisk,liquidityriskand cashflow risk.The company has in place a risk management programme that seeks to limitadverseeffectsonfinancialperformancebymonitoringlevelsofdebtandtherelatedfinancecosts.Pricerisk,creditrisk,liquidityriskandcashflowrisk

Creditrisk

Thecompanyhasno significant concentrationof credit risk.Customerswhowish to tradeoncreditterms are subject to strict verification procedures in advance of credit being awarded and arecontinuallybeingmonitored.Thecurrentprevailingmarketconditionshaverequireddiscountingandlowermarginonwholesale.

Currencyrisk

While the greater part of the company's revenues and expenses are denominated in sterling thecompany is exposed to some foreign exchange risk in the normal course of business.While thecompanyhasnotusedcomplexfinancialinstrumentstodatetohedgeforeignexchangeexposurethispositioniskeptconstantlyunderreview.

Liquidityandcashflowrisk

Thecompany'spolicyistoensurethatsufficientresourcesareavailableeitherfromcashbalancesandcashflowstoensureallobligationscanbemetwhentheyfalldue.Futuredevelopments

Thedirectorsaimtocontinuetoseeknewopportunitiestoexpandthebusinesswithintheirexistingareasofexpertise.Disclosureofinformationtotheauditors

Thedirectorhastakenstepsthatheoughttohavetakenasadirectorinordertomakehimselfawareof any relevant audit information and to establish that the company's auditors are aware of thatinformation.Thedirectorconfirmsthatthereisnorelevantinformationthatheknowsofandofwhichheknowstheauditorsareunaware.

Approvedbythedirectoron20September2019andsignedonitsbehalfby:

.........................................MrAlanJohnSimpsonDirector

Page3


StatementofDirector'sResponsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financialstatementsinaccordancewithapplicablelawandregulations.

Companylawrequiresthedirectortopreparefinancialstatementsforeachfinancialyear.Underthatlawthedirectorhaselectedtopreparethefinancialstatements inaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice (UnitedKingdomAccountingStandardsandapplicable law).Undercompanylawthedirectormustnotapprovethefinancialstatementsunlessheissatisfiedthattheygivea trueand fairviewof thestateofaffairsof thecompanyandof theprofitor lossof thecompanyforthatperiod.Inpreparingthesefinancialstatements,thedirectorisrequiredto:• selectsuitableaccountingpoliciesandapplythemconsistently;

• makejudgementsandaccountingestimatesthatarereasonableandprudent;

• statewhether applicableUKAccountingStandardshavebeen followed, subject to anymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and

• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatthecompanywillcontinueinbusiness.

Thedirectorisresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowandexplainthecompany'stransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionofthecompanyandenablehimtoensurethatthefinancialstatementscomplywiththeCompaniesAct2006.Heisalsoresponsibleforsafeguardingtheassetsofthecompanyandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

Page4


IndependentAuditor'sReporttotheMembersofSimpson,McLearnon&FergusonLimited

Opinion

WehaveauditedthefinancialstatementsofSimpson,McLearnon&FergusonLimited(the'company')for the year ended 31 December 2018, which comprise the Profit and Loss Account, Statement ofComprehensiveIncome,BalanceSheet,StatementofChangesinEquity,StatementofCashFlows,andNotes to the Financial Statements, including a summary of significant accounting policies. ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards, includingFinancialReportingStandard102TheFinancialReportingStandardapplicableintheUKandRepublicofIreland(UnitedKingdomGenerallyAcceptedAccountingPractice).

Thisreportismadesolelytothecompany’smembers,asabody,inaccordancewithChapter3ofPart16 of theCompaniesAct 2006.Our auditwork has beenundertaken so thatwemight state to thecompany’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.To the fullestextentpermittedby law,wedonotacceptorassumeresponsibility toanyoneother than thecompanyand thecompany’smembersasabody, forourauditwork, for thisreport,orfortheopinionswehaveformed.

Inouropinionthefinancialstatements:

• giveatrueandfairviewofthestateofthecompany'saffairsasat31December2018andofitsprofitfortheyearthenended;

• havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice;and

• havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.

Basisforopinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(ISAs(UK))andapplicable law. Our responsibilities under those standards are further described in the Auditor’sresponsibilitiesfortheauditofthefinancialstatementssectionofourreport.Weareindependentofthecompanyinaccordancewiththeethicalrequirementsthatarerelevanttoourauditofthefinancialstatements in theUK, including theFRC’sEthicalStandard, andwehave fulfilled our other ethicalresponsibilities inaccordancewith these requirements.Webelieve that theaudit evidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.Conclusionsrelatingtogoingconcern

WehavenothingtoreportinrespectofthefollowingmattersinrelationtowhichtheISAs(UK)requireustoreporttoyouwhere:

• the directors’ use of the going concern basis of accounting in the preparation of the financialstatementsisnotappropriate;or

•thedirectorshavenotdisclosed inthefinancialstatementsany identifiedmaterialuncertaintiesthatmaycastsignificantdoubtaboutthecompany’sabilitytocontinuetoadoptthegoingconcernbasis of accounting for a period of at least twelve months from the date when the financialstatementsareauthorisedforissue.

Otherinformation

The directors are responsible for the other information. The other information comprises theinformationincludedintheannualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationand,excepttothe extent otherwise explicitly stated in our report, we do not express any form of assuranceconclusionthereon.

Page5



In connection with our audit of the financial statements, our responsibility is to read the otherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancial statements or our knowledge obtained in the audit or otherwise appears to bemateriallymisstated. Ifwe identify suchmaterial inconsistencies or apparentmaterialmisstatements,we arerequired to determine whether there is a material misstatement in the financial statements or amaterialmisstatementoftheotherinformation.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.

Wehavenothingtoreportinthisregard.OpiniononothermatterprescribedbytheCompaniesAct2006

Inouropinion,basedontheworkundertakeninthecourseoftheaudit:

• theinformationgivenintheStrategicReportandDirector'sReportforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements;and

• theStrategicReportandDirector'sReporthavebeenpreparedinaccordancewithapplicablelegalrequirements.

Mattersonwhichwearerequiredtoreportbyexception

Inthelightofourknowledgeandunderstandingofthecompanyanditsenvironmentobtainedinthecourse of the audit,we have not identifiedmaterialmisstatements in the StrategicReport and theDirector'sReport.

WehavenothingtoreportinrespectofthefollowingmatterswheretheCompaniesAct2006requiresustoreporttoyouif,inouropinion:

• adequateaccountingrecordshavenotbeenkept,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus;or

• thefinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or• certaindisclosuresofdirectors’remunerationspecifiedbylawarenotmade;or• wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

Responsibilitiesofthedirector

AsexplainedmorefullyintheStatementofDirector'sResponsibilities[setoutonpage4],thedirectorisresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview,andforsuchinternalcontrolasthedirectordeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,thedirectorisresponsibleforassessingthecompany'sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoing concernbasis of accountingunless the director either intends to liquidate the company or toceaseoperations,orhavenorealisticalternativebuttodoso.Auditor’sresponsibilitiesfortheauditofthefinancialstatements

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthat includesouropinion.Reasonableassuranceisahighlevelofassurance,but isnotaguaranteethatanauditconductedinaccordancewithISAs(UK)willalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

As part of an audit in accordancewith ISAs (UK),we exercise professional judgment andmaintainprofessionalscepticismthroughouttheaudit.Wealso:

Page6



•

Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsive to thoserisks,andobtainauditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

•Obtain an understanding of internal control relevant to the audit in order to design auditprocedures thatareappropriate in thecircumstances,butnot for thepurposeof expressinganopinionontheeffectivenessofthecompany’sinternalcontrol.

• Evaluate theappropriateness of accountingpoliciesusedand the reasonableness of accountingestimatesandrelateddisclosuresmadebythedirector.

•

Concludeon theappropriatenessof thedirector'suseof thegoingconcernbasisof accountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsor conditions that may cast significant doubt on the company's ability to continue as a goingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreport to therelateddisclosures in thefinancialstatementsor, ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausethecompanytoceasetocontinueasagoingconcern.

•Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures, and whether the financial statements represent the underlying transactions andeventsinamannerthatachievesfairpresentation.

•Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusinessactivitieswithinthecompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthecompanyaudit.Weremainsolelyresponsibleforourauditopinion.

Wecommunicatewith those chargedwithgovernance regarding, amongothermatters, theplannedscope and timingof the audit and significant audit findings, including any significant deficiencies ininternalcontrolthatweidentifyduringouraudit.

......................................DesmondDuffy(SeniorStatutoryAuditor)ForandonbehalfofDuffy&Co.(A&T)Ltd,StatutoryAuditor

126EglantineAvenueBelfastCoAntrimBT96EU

20September2019

Page7


ProfitandLossAccountfortheYearEnded31December2018

Note2018£

2017£

Turnover 3 10,343,194 8,892,324

Costofsales (6,424,591) (5,647,277)

Grossprofit 3,918,603 3,245,047

Administrativeexpenses (3,507,062) (2,988,340)

Otheroperatingincome 4 4,810 50,000

Operatingprofit 5 416,351 306,707Interestpayableandsimilarexpenses 6 (7,980) (16,845)

(7,980) (16,845)

Profitbeforetax 408,371 289,862

Taxation 10 (88,548) (58,188)

Profitforthefinancialyear 319,823 231,674

Theaboveresultswerederivedfromcontinuingoperations.

Thecompanyhasnorecognisedgainsorlossesfortheyearotherthantheresultsabove.

Thenotesonpages13to23formanintegralpartofthesefinancialstatements.Page8


StatementofComprehensiveIncomefortheYearEnded31December2018

2018£

2017£

Profitfortheyear 319,823 231,674

Totalcomprehensiveincomefortheyear 319,823 231,674



(Registrationnumber:NI014479)BalanceSheetasat31December2018

Note2018£

2017£

Fixedassets Tangibleassets 11 949,296 928,097Investments 12 2 2

949,298 928,099

Currentassets Stocks 13 3,060,000 2,705,000Debtors 14 900,589 1,184,863Cashatbankandinhand 1,696,042 857,825

5,656,631 4,747,688

Creditors:Amountsfallingduewithinoneyear 16 (3,673,946) (3,043,175)

Netcurrentassets 1,982,685 1,704,513

Totalassetslesscurrentliabilities 2,931,983 2,632,612

Provisionsforliabilities 17 (43,550) (34,002)

Netassets 2,888,433 2,598,610

Capitalandreserves Calledupsharecapital 19 1,000 1,000Capitalredemptionreserve 20 5 5Profitandlossaccount 20 2,887,428 2,597,605

Totalequity 2,888,433 2,598,610

Approvedandauthorisedbythedirectoron20September2019

.........................................

MrAlanJohnSimpsonDirector



StatementofChangesinEquityfortheYearEnded31December2018

Sharecapital£

Capitalredemptionreserve

£

Profitandlossaccount

£Total£

At1January2018 1,000 5 2,597,605 2,598,610Profitfortheyear - - 319,823 319,823

Totalcomprehensiveincome - - 319,823 319,823Dividends - - (30,000) (30,000)

At31December2018 1,000 5 2,887,428 2,888,433

Sharecapital£


£

Profitandlossaccount

£Total£

At1January2017 5 5 2,392,931 2,392,941Profitfortheyear - - 231,674 231,674

Totalcomprehensiveincome - - 231,674 231,674Dividends - - (27,000) (27,000)Newsharecapitalsubscribed 995 - - 995

At31December2017 1,000 5 2,597,605 2,598,610



StatementofCashFlowsfortheYearEnded31December2018

Note2018£

2017£

Cashflowsfromoperatingactivities

Profitfortheyear 319,823 231,674Adjustmentstocashflowsfromnon-cashitems Depreciationandamortisation 5 97,417 89,805Financecosts 6 7,980 16,845Incometaxexpense 10 88,548 58,188

513,768 396,512Workingcapitaladjustments (Increase)/decreaseinstocks 13 (355,000) 35,720Decreaseintradedebtors 14 284,274 72,137Increase/(decrease)intradecreditors 16 607,801 (14,756)

Cashgeneratedfromoperations 1,050,843 489,613

Incometaxespaid 10 (56,030) (51,384)

Netcashflowfromoperatingactivities 994,813 438,229

Cashflowsfrominvestingactivities Acquisitionsoftangibleassets (118,616) (78,942)

Cashflowsfromfinancingactivities Interestpaid 6 (7,980) (16,845)Proceedsfromissueofordinaryshares,netofissuecosts - 995Repaymentofbankborrowing - (40,074)Repaymentofotherborrowing - (100,000)Paymentstofinanceleasecreditors - (445)Dividendspaid 21 (30,000) (27,000)

Netcashflowsfromfinancingactivities (37,980) (183,369)

Netincreaseincashandcashequivalents 838,217 175,918

Cashandcashequivalentsat1January 857,825 681,907

Cashandcashequivalentsat31December 1,696,042 857,825



NotestotheFinancialStatementsfortheYearEnded31December2018

1 Generalinformation

Thecompanyisaprivatecompanylimitedbysharecapital,incorporatedinNorthernIreland.

Theaddressofitsregisteredofficeis:1KiltongaIndustrialEstateBelfastRoadNewtownardsCoDownBT234TJ

Thesefinancialstatementswereauthorisedforissuebythedirectoron20September2019.

2 AccountingpoliciesSummaryofsignificantaccountingpoliciesandkeyaccountingestimates

Theprincipalaccountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelow. These policies have been consistently applied to all the years presented, unless otherwisestated.Statementofcompliance

ThesefinancialstatementswerepreparedinaccordancewithFinancialReportingStandard102'TheFinancialReportingStandardapplicableintheUKandRepublicofIreland'.Basisofpreparation

These financial statements have been prepared using the historical cost convention except that asdisclosedintheaccountingpoliciescertainitemsareshownatfairvalue.Groupaccountsnotprepared

Groupaccountsarenotpreparedastheconsolidatedaccountswouldnotbemateriallydifferentfromthecompanyaccounts.Goingconcern

The financial statements have been prepared on a going concern basis and in accordance withaccountingstandardsissuedbytheFinancialReportingCounciloftheUK.

Page13



JudgementsThepreparationofthefinancialstatementsrequiresthemanagementtomakejudgements,estimatesandassumptionsthataffecttheamountsreported.Theseestimatesandjudgementsarecontinuallyreviewedandarebasedonexperienceandotherfactors,includingexpectationoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Inventoryprovisioning -Thecompany sellsproductsand is subject to changingconsumerdemandsand trends.Asaresultitisnecessarytoconsidertherecoverabilityofthecostofinventoryandtheassociated provisioning required.When calculating the inventory provision, management considersthe nature and condition of the inventory, as well as applying assumptions around anticipatedsaleabilityofgoods.Impairmentofdebtors-Thecompanymakesanestimateoftherecoverablevalueoftradeandotherdebtors.When assessing impairment of trade and other debtors, management considers factorsincluding the current credit rating of the debtor, the ageing profile of the debtors and historicalexperience.

Revenuerecognition

Turnovercomprisesthefairvalueoftheconsiderationreceivedorreceivableforthesaleofgoodsandprovision of services in the ordinary course of the company’s activities. Turnover is shown net ofsales/valueaddedtax,returns,rebatesanddiscounts.

Thecompanyrecognisesrevenuewhen:Theamountofrevenuecanbereliablymeasured;itisprobablethatfutureeconomicbenefitswillflowtotheentity;andspecificcriteriahavebeenmetforeachofthecompany'sactivities.Tax

Thetaxexpensefortheperiodcomprisescurrentanddeferredtax.Taxisrecognisedinprofitorloss,exceptthatachangeattributabletoanitemofincomeorexpenserecognisedasothercomprehensiveincomeisalsorecogniseddirectlyinothercomprehensiveincome.

Thecurrentincometaxchargeiscalculatedonthebasisoftaxratesandlawsthathavebeenenactedor substantively enacted by the reporting date in the countries where the company operates andgeneratestaxableincome.

Deferred tax is recognised in respect of all timing differences between taxable profits and profitsreportedinthefinancialstatements.

Unrelievedtaxlossesandotherdeferredtaxassetsarerecognisedwhenitisprobablethattheywillberecoveredagainstthereversalofdeferredtaxliabilitiesorotherfuturetaxableprofits.

Deferredtaxismeasuredusingthetaxratesandlawsthathavebeenenactedorsubstantivelyenactedbythereportingdateandthatareexpectedtoapplytothereversalofthetimingdifference.Tangibleassets

Tangible assets are stated in the statement of financial position at cost, less any subsequentaccumulateddepreciationandsubsequentaccumulatedimpairmentlosses.

Thecostoftangibleassetsincludesdirectlyattributableincrementalcostsincurredintheiracquisitionandinstallation.Depreciation

Depreciation is charged so as towrite off the cost of assets, other than land andproperties underconstructionovertheirestimatedusefullives,asfollows:

Page14



Assetclass DepreciationmethodandrateMotorvehicles 25%reducingbalanceFixturesandfittings 25%reducingbalanceBuildings 2%straightline

Investments

Investments in equity shares which are publicly traded or where the fair value can be measuredreliably are initiallymeasured at fair value,with changes in fair value recognised in profit or loss.Investmentsinequityshareswhicharenotpubliclytradedandwherefairvaluecannotbemeasuredreliablyaremeasuredatcostlessimpairment.

Interest income on debt securities, where applicable, is recognised in income using the effectiveinterestmethod.Dividendsonequitysecuritiesarerecognisedinincomewhenreceivable.Cashandcashequivalents

Cashandcashequivalentscomprisecashonhandandcalldeposits,andothershort-termhighlyliquidinvestmentsthatarereadilyconvertibletoaknownamountofcashandaresubjecttoaninsignificantriskofchangeinvalue.Tradedebtors

Tradedebtors are amounts due from customers formerchandise sold or services performed in theordinarycourseofbusiness.

Trade debtors are recognised initially at the transaction price. They are subsequentlymeasured atamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.Aprovisionfortheimpairmentoftradedebtorsisestablishedwhenthereisobjectiveevidencethatthecompanywillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.Stocks

Stocksarestatedatthelowerofcostandestimatedsellingpricelesscoststocompleteandsell.Costisdeterminedusingtheweightedaveragemethod.

The cost of finishedgoods andwork in progress comprises directmaterials and,where applicable,direct labourcostsand thoseoverheads thathavebeen incurred inbringing the inventories to theirpresentlocationandcondition.Ateachreportingdate,stocksareassessedforimpairment.Ifstocksare impaired,thecarryingamount isreducedto itssellingprice lesscoststocompleteandsell; theimpairmentlossisrecognisedimmediatelyinprofitorloss.Tradecreditors

Tradecreditorsareobligationstopayforgoodsorservicesthathavebeenacquiredintheordinarycourseofbusinessfromsuppliers.Accountspayableareclassifiedascurrentliabilitiesifthecompanydoesnothaveanunconditional right, at the endof the reportingperiod, to defer settlement of thecreditorforatleasttwelvemonthsafterthereportingdate.Ifthereisanunconditionalrighttodefersettlement for at least twelve months after the reporting date, they are presented as non-currentliabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured atamortisedcostusingtheeffectiveinterestmethod.Leases

Leases inwhichsubstantiallyall the risksandrewardsofownershipare retainedby the lessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleasesarechargedtoprofitorlossonastraight-linebasisovertheperiodofthelease.

Page15



Sharecapital

Ordinarysharesareclassifiedasequity.Equityinstrumentsaremeasuredatthefairvalueofthecashorotherresourcesreceivedorreceivable,netofthedirectcostsofissuingtheequityinstruments.Ifpaymentisdeferredandthetimevalueofmoneyismaterial,theinitialmeasurementisonapresentvaluebasis.Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financialstatementsinthereportingperiodinwhichthedividendsaredeclared.Definedcontributionpensionobligation

Adefinedcontributionplanisapensionplanunderwhichfixedcontributionsarepaidintoapensionfundandthecompanyhasnolegalorconstructiveobligationtopayfurthercontributionsevenifthefunddoesnotholdsufficientassetstopayallemployeesthebenefitsrelatingtoemployeeserviceinthecurrentandpriorperiods.

Contributionstodefinedcontributionplansarerecognisedasemployeebenefitexpensewhentheyaredue. Ifcontributionpaymentsexceedthecontributiondue forservice, theexcess isrecognisedasaprepayment.

3 Revenue

Theanalysisofthecompany'srevenuefortheyearfromcontinuingoperationsisasfollows:2018£

2017£

Saleofgoods 10,343,194 8,892,324

4 Otheroperatingincome

Theanalysisofthecompany'sotheroperatingincomefortheyearisasfollows:2018£

2017£

Miscellaneousotheroperatingincome 4,810 50,000

5 Operatingprofit

Arrivedataftercharging/(crediting)2018£

2017£

Depreciationexpense 97,417 89,805Operatingleaseexpense-plantandmachinery 3,086 2,743

6 Interestpayableandsimilarexpenses2018£

2017£

Interestonbankoverdraftsandborrowings 7,980 16,236Interestonobligationsunderfinanceleasesandhirepurchasecontracts - 40Interestexpenseonotherfinanceliabilities - 569

7,980 16,845Page16



7 Staffcosts

Theaggregatepayrollcosts(includingdirector'sremuneration)wereasfollows:

2018£

2017£

Wagesandsalaries 1,702,021 1,415,170Socialsecuritycosts 75,972 65,639Othershort-termemployeebenefits 7,406 7,063Pensioncosts,definedcontributionscheme 14,587 3,912Otheremployeeexpense 7,691 7,410

1,807,677 1,499,194

Theaveragenumberofpersonsemployedbythecompany(includingthedirector)duringtheyear,analysedbycategorywasasfollows:

2018No.

2017No.

Administrationandsupport 9 9Sales,marketinganddistribution 138 132

147 141

8 Director'sremuneration

Thedirector'sremunerationfortheyearwasasfollows:2018£

2017£

Remuneration 43,000 42,000

9 Auditors'remuneration2018£

2017£

Auditofthefinancialstatements 7,000 7,000

10 Taxation

Taxcharged/(credited)intheincomestatementPage17



2018£

2017£

CurrenttaxationUKcorporationtax 79,000 56,032

DeferredtaxationArisingfromoriginationandreversaloftimingdifferences 9,548 2,156

Taxexpenseintheincomestatement 88,548 58,188

ThetaxonprofitbeforetaxfortheyearisthesameasthestandardrateofcorporationtaxintheUK(2017-thesameasthestandardrateofcorporationtaxintheUK)of19%(2017-19.25%).

Thedifferencesarereconciledbelow:

2018£

2017£

Profitbeforetax 408,371 289,862

Corporationtaxatstandardrate 77,590 55,798Effectofexpensenotdeductibleindeterminingtaxableprofit(taxloss) 10,958 2,390

Totaltaxcharge 88,548 58,188

Deferredtax

Deferredtaxassetsandliabilities

2018Liability

£

Acceleratedtaxdepreciation 43,550

2017Liability

£

Acceleratedtaxdepreciation 34,002

Page18



11 Tangibleassets

Landandbuildings

£

Furniture,fittingsandequipment

£

Motorvehicles

£Total£

CostorvaluationAt1January2018 1,012,998 620,427 9,000 1,642,425Additions - 118,616 - 118,616

At31December2018 1,012,998 739,043 9,000 1,761,041

DepreciationAt1January2018 333,099 375,393 5,836 714,328Chargefortheyear 20,260 76,366 791 97,417

At31December2018 353,359 451,759 6,627 811,745

Carryingamount

At31December2018 659,639 287,284 2,373 949,296

At31December2017 679,899 245,034 3,164 928,097

Includedwithinthenetbookvalueoflandandbuildingsaboveis£659,639(2017-£679,899)inrespectoffreeholdlandandbuildings.

Assetsheldunderfinanceleasesandhirepurchasecontracts

Thenetcarryingamountof tangibleassets includesthe followingamounts inrespectofassetsheldunderfinanceleasesandhirepurchasecontracts:

2018£

2017£

Motorvehicle - -

12 Investmentsinsubsidiaries,jointventuresandassociates2018£

2017£

Investmentsinsubsidiaries 2 2

Subsidiaries £

CostorvaluationAt1January2018 2

Provision

Carryingamount

At31December2018 2

At31December20172

Page19



Detailsofundertakings

Detailsoftheinvestmentsinwhichthecompanyholds20%ormoreofthenominalvalueofanyclassofsharecapitalareasfollows:

Undertaking Registeredoffice HoldingProportionofvotingrightsandsharesheld

2018 2017SubsidiaryundertakingsSMFToys(Ireland)Ltd Ordinary 100% 100%

Ireland

TheprincipalactivityofSMFToys(Ireland)Ltdisistheretailsaleoftoys.

13 Stocks2018£

2017£

Otherinventories 3,060,000 2,705,000

14 Debtors2018£

2017£

Tradedebtors 641,276 908,594Otherdebtors 68,505 117,183Prepayments 190,808 159,086

Totalcurrenttradeandotherdebtors 900,589 1,184,863

15 Cashandcashequivalents2018£

2017£

Cashatbank 1,696,042 857,825

16 CreditorsPage20



Note2018£

2017£

Duewithinoneyear Tradecreditors 2,885,564 2,441,011Socialsecurityandothertaxes 450,052 390,110Outstandingdefinedcontributionpensioncosts 7,034 2,727Otherpayables 365 71,112Accruedexpenses 251,929 82,183Incometaxliability 10 79,002 56,032

3,673,946 3,043,175

17 DeferredtaxandotherprovisionsDeferredtax

£Total£

At1January2018 34,002 34,002Increase(decrease)inexistingprovisions 9,548 9,548

At31December2018 43,550 43,550

18 Pensionandotherschemes

Definedcontributionpensionscheme

Thecompanyoperatesadefinedcontributionpensionscheme.Thepensioncostchargefortheyearrepresents contributions payable by the company to the scheme and amounted to £14,587 (2017 -£3,912).

Contributionstotalling£7,034(2017-£2,727)werepayabletotheschemeattheendoftheyearandareincludedincreditors.

19 SharecapitalAllotted,calledupandfullypaidshares

2018 2017 No. £ No. £

Ordinaryof£1each 995 995 995 995AOrdinaryof£1each 1 1 1 1BOrdinaryof£1each 1 1 1 1COrdinaryof£1each 1 1 1 1DOrdinaryof£1each 1 1 1 1EOrdinaryof£1each 1 1 1 1 1,000 1,000 1,000 1,000

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20 Reserves


Thecapitalredemptionreserveisasaresultofthepurchasebythecompanyofitsownsharesinapreviousyear.

21 Dividends

Interimdividendspaid

2018£

2017£

Interimdividendof£2.01(2017-£5.025)pereachOrdinary 2,000 5,000Interimdividendof£12,000.00(2017-£10,000.00)pereachAOrdinary 12,000 10,000Interimdividendof£5,000.00(2017-£2,000.00)pereachBOrdinary 5,000 2,000Interimdividendof£7,000.00(2017-£Nil)pereachCOrdinary 7,000 -Interimdividendof£2,000.00(2017-£5,000.00)pereachDOrdinary 2,000 5,000Interimdividendof£2,000.00(2017-£5,000.00)pereachEOrdinary 2,000 5,000 30,000 27,000

22 RelatedpartytransactionsKeymanagementcompensation

2018£

2017£

Salariesandothershorttermemployeebenefits 47,771 47,389Dividendspaidtodirectors

2018£

2017£

MrAlanJohnSimpson Interimdividend 2,000 5,000

Summaryoftransactionswithsubsidiaries

SimpsonMcLearnon&FergusonLimitedsuppliestoysandnurserygoodstoitssubsidiarySMFToys(Ireland)Ltd.Incomeandreceivablesfromrelatedparties

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2018Subsidiary

£Saleofgoods 311,090Settlementofliabilities (433,945)

(122,855)Amountsreceivablefromrelatedparty 347,080

2017Subsidiary

£Saleofgoods 307,863Receiptofservices 20,000Settlementofliabilities (374,903)

(47,040)Amountsreceivablefromrelatedparty 469,934

Loanstorelatedparties

2017

Keymanagement

£Atstartofperiod 100,000Repaid (100,000)

Atendofperiod -

Termsofloanstorelatedparties

Theloanisrepayableondemand.

23 Parentandultimateparentundertaking

TheultimatecontrollingpartyisAlanSimpson.

24 APBEthicalStandardsrelevantcircumstances

In common with other businesses our size and nature we use our auditors to prepare and submitreturnstotaxauthoritiesandassistwiththepreparationofthefinancialstatements.

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simpson, mclearnon & ferguson limited

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