Custom Glass Limited - Limited company accounts 23.1

REGISTERED NUMBER: 03759518 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

FOR

CUSTOM GLASS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTOR:

J R Hooson

REGISTERED OFFICE:

Custom Complex

Yardley Road

Kirkby

Liverpool

Merseyside

L33 7SS

REGISTERED NUMBER:

03759518 (England and Wales)

AUDITORS:

John Kerr

Statutory Auditors

Chartered Accountants

375 Eaton Road

West Derby

Liverpool

Merseyside

L12 2AH

The director presents his strategic report for the year ended 31 August 2022.

REVIEW OF BUSINESS AND FINANCIAL KEY PERFORMANCE INDICATORS

The principal activity remained the manufacture and sale of double glazed units to the UK glass window and conservatory industry. The director is not aware, at the date of this report, of any likely major changes in the company's activities in the next year.

The economic and trading conditions encountered by the company remain challenging.

In the light of these, the director considers the results for the period and the financial position at the year end to be satisfactory.

The company recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by its activities. The company operates in accordance with policies and initiatives designed to minimise its impact on the environment and these include safe disposal of manufacturing waste, recycling and reducing energy consumption.

Given the uncomplicated nature of the business operations the director considers turnover, profit and net assets to be the Key Performance Indicators. Full details of these numbers are clearly set out in the financial statements and enable an assessment of the development, performance and position of the company to be made.

PRINCIPAL RISKS AND UNCERTAINTIES

Competitive pressure in the UK is a continuing risk for the company which could result in it losing sales to its key competitors. The company manages this risk by providing added value services to its customers, having fast response times not only in supplying products but in handling all customer queries, and by maintaining strong relationships with customers.

The company imports a small proportion of its components and these purchases are made in Euros and it is therefore exposed to the movement in the Euro to Pound exchange rate.

The director confirms that in accordance with the Companies Act 2006, he has considered and reviewed the provisions relating to the financial risk management and policies of the company. As a result of the review, the director has concluded that the company will be able to continue funding its activities through its retained profits and cash flows from ongoing activities.

ON BEHALF OF THE BOARD:

J R Hooson - Director

18 May 2023

The director presents his report with the financial statements of the company for the year ended 31 August 2022.

DIVIDENDS

The total distribution of dividends for the year ended 31 August 2022 will be £ 148,000 .

RESEARCH AND DEVELOPMENT

The company continues to invest in research, development and innovation. This has resulted in a number of updates to existing products. The director regards R&D investment as necessary for continuing success in the medium to long term future.

FUTURE DEVELOPMENTS

The director anticipates continued growth in the business and profits as the company seeks to build upon its investments in technology and quality control.

DIRECTOR

J R Hooson held office during the whole of the period from 1 September 2021 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 company will continue in business.

The director is 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

J R Hooson - Director

18 May 2023

Opinion

We have audited the financial statements of Custom Glass Limited (the 'company') for the year ended 31 August 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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:

-	give a true and fair view of the state of the company's affairs as at 31 August 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

We identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the sectors in which the company operates.

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including relevant legislation such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting relevant correspondence and, identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and, considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships, tested journal entries to identify unusual transactions and, assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to agreeing financial statement disclosures to underlying supporting documentation, reading the minutes of meetings of those charged with governance, enquiring of management as to actual and potential litigation and claims and, reviewing correspondence with relevant authorities.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, 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 a Report of the Auditors 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 as a body, for our audit work, for this report, or for the opinions we have formed.

David Glover FCA (Senior Statutory Auditor)

for and on behalf of John Kerr

Statutory Auditors

Chartered Accountants

375 Eaton Road

West Derby

Liverpool

Merseyside

L12 2AH

18 May 2023

TURNOVER

13,246,539

10,964,235

Cost of sales

8,454,399

7,399,464

GROSS PROFIT

4,792,140

3,564,771

Administrative expenses

1,893,608

1,884,429

2,898,532

1,680,342

Other operating income

3

306,803

265,598

OPERATING PROFIT

5

3,205,335

1,945,940

Interest receivable and similar income

2,510

223

3,207,845

1,946,163

Interest payable and similar expenses

6

24,504

13,139

PROFIT BEFORE TAXATION

3,183,341

1,933,024

Tax on profit

7

620,027

210,860

PROFIT FOR THE FINANCIAL YEAR

2,563,314

1,722,164

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,563,314

1,722,164

FIXED ASSETS

Tangible assets

9

3,420,117

3,660,939

CURRENT ASSETS

Stocks

10

493,387

392,888

Debtors

11

8,236,800

7,812,703

Cash at bank and in hand

4,914,452

2,412,392

13,644,639

10,617,983

CREDITORS

Amounts falling due within one year

12

2,964,955

2,409,972

NET CURRENT ASSETS

10,679,684

8,208,011

TOTAL ASSETS LESS CURRENT LIABILITIES

14,099,801

11,868,950

CREDITORS

Amounts falling due after more than one year

13

(620,054

)

(863,951

)

PROVISIONS FOR LIABILITIES

16

(433,757

)

(374,323

)

NET ASSETS

13,045,990

10,630,676

CAPITAL AND RESERVES

Called up share capital

17

201

201

Share premium

18

599,901

599,901

Retained earnings

18

12,445,888

10,030,574

SHAREHOLDERS' FUNDS

13,045,990

10,630,676

The financial statements were approved by the director and authorised for issue on 18 May 2023 and were signed by:

J R Hooson - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 September 2020

201

8,519,410

599,901

9,119,512

Changes in equity

Dividends

-

(211,000

)

-

(211,000

)

Total comprehensive income

-

1,722,164

-

1,722,164

Balance at 31 August 2021

201

10,030,574

599,901

10,630,676

Changes in equity

Dividends

-

(148,000

)

-

(148,000

)

Total comprehensive income

-

2,563,314

-

2,563,314

Balance at 31 August 2022

201

12,445,888

599,901

13,045,990

1.	STATUTORY INFORMATION

Custom Glass 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

20% on cost

Motor vehicles

-

20% on cost

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 Statement of Comprehensive Income, 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 or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs

The company operates defined contribution pension schemes. Contributions payable to the company's pension schemes are charged to the Income Statement in the period to which they relate.

Government grants

Government grants relating to tangible fixed assets are treated as deferred income and credited to the Income Statement in equal instalments over the anticipated useful lives of the assets to which the grants relate.

Government grants in relation to expenditure are credited to the Income Statement when the expenditure is charged to the Income Statement.

3.	OTHER OPERATING INCOME

31.8.22

31.8.21

£

£

Rents receivable

10,240

10,240

Covid Business Interruption

Payment grants

16,699

6,913

Insurance claims

262,937

-

Job Retention Scheme grants

1,407

232,925

Government grants released

15,520

15,520

306,803

265,598

4.	EMPLOYEES AND DIRECTORS

31.8.22

31.8.21

£

£

Wages and salaries

2,924,406

2,791,651

Social security costs

254,882

236,909

Other pension costs

98,696

93,699

3,277,984

3,122,259

The average number of employees during the year was as follows:

31.8.22

31.8.21

Directors

1

1

Manufacturing and distribution

126

112

127

113

31.8.22

31.8.21

£

£

Director's remuneration

37,747

37,710

Director's pension contributions to money purchase schemes

41,093

41,093

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.8.22

31.8.21

£

£

Operating lease expense

2,091

-

Depreciation - owned assets

228,974

351,058

Depreciation - assets on hire purchase contracts

323,972

224,108

Auditing of financial statements

14,000

14,000

Other non-audit services

14,915

9,135

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.8.22

31.8.21

£

£

Invoice discounting interest

-

1

Hire purchase charges

24,504

13,138

24,504

13,139

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.8.22

31.8.21

£

£

Current tax:

UK corporation tax

560,593

(73,450

)

Deferred tax

59,434

284,310

Tax on profit

620,027

210,860

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.8.22

31.8.21

£

£

Profit before tax

3,183,341

1,933,024

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

604,835

367,275

Effects of:

Expenses not deductible for tax purposes

11,132

13,001

Income not taxable for tax purposes

(2,949

)

(2,949

)

Group relief utilised without payment

(8,347

)

(4,574

)

Research & Development enhanced deductions

(76,379

)

(73,450

)

Enhanced capital allowances deductions

(12,367

)

(88,443

)

Effect of change in rate of tax used for deferred tax provisions

104,102

-

Total tax charge

620,027

210,860

8.

DIVIDENDS

31.8.22

31.8.21

£

£

Interim

148,000

211,000

9.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

COST

At 1 September 2021

2,017,184

5,574,419

806,420

8,398,023

Additions

32,520

230,923

87,930

351,373

Disposals

-

-

(69,461

)

(69,461

)

At 31 August 2022

2,049,704

5,805,342

824,889

8,679,935

DEPRECIATION

At 1 September 2021

582,672

3,813,233

341,179

4,737,084

Charge for year

40,392

408,651

103,903

552,946

Eliminated on disposal

-

-

(30,212

)

(30,212

)

At 31 August 2022

623,064

4,221,884

414,870

5,259,818

NET BOOK VALUE

At 31 August 2022

1,426,640

1,583,458

410,019

3,420,117

At 31 August 2021

1,434,512

1,761,186

465,241

3,660,939

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 September 2021

1,445,198

597,049

2,042,247

Transfer to ownership

(372,877

)

(49,500

)

(422,377

)

At 31 August 2022

1,072,321

547,549

1,619,870

DEPRECIATION

At 1 September 2021

297,321

168,229

465,550

Charge for year

214,464

109,508

323,972

Transfer to ownership

(254,799

)

(38,654

)

(293,453

)

At 31 August 2022

256,986

239,083

496,069

NET BOOK VALUE

At 31 August 2022

815,335

308,466

1,123,801

At 31 August 2021

1,147,877

428,820

1,576,697

10.

STOCKS

31.8.22

31.8.21

£

£

Raw materials

454,875

350,156

Finished goods

38,512

42,732

493,387

392,888

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.22

31.8.21

£

£

Trade debtors

2,458,624

2,240,893

Amounts owed by group undertakings

5,390,241

5,238,525

Other debtors

263,162

157,998

Tax recoverable

-

73,450

Prepayments and accrued income

124,773

101,837

8,236,800

7,812,703

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.22

31.8.21

£

£

Hire purchase contracts (see note 14)

237,417

296,156

Trade creditors

783,049

970,414

Amounts owed to group undertakings

731,002

582,871

Tax

636,972

-

Social security and other taxes

424,735

363,663

Other creditors

3,579

5,105

Accruals and deferred income

141,721

176,243

Deferred government grants

6,480

15,520

2,964,955

2,409,972