Company registration number 14479988 (England and Wales)
A & B GLASS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
A & B GLASS GROUP LIMITED
COMPANY INFORMATION
Director
Mr P McManus
(Appointed 11 November 2022)
Company number
14479988
Registered office
2 Addison Road
Sudbury
CO10 2YW
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
A & B GLASS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
A & B GLASS GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 1 -

The director presents the strategic report for the period ended 31 October 2023.

Review of the business

During the year the group's trading companies were SDSDAB Limited and A&B Glass Company Limited. As a result of strong demand in construction, A&B Glass operated throughout the year at full, or close to full capacity. Turnover for the year at £30,937,837 was 11% higher than £27,894,988 for the prior year ended 31 October 2022. However, price rather than volume was the main driver of growth, and although operating profit was broadly in line with 2022, in percentage terms it dropped from 4.0% to 3.1%.

The company’s inability to pass on higher input prices and overhead costs (particularly labour costs), resulted in a reduction in profit for the year from £855,436 to £536,578.

SDSDAB Limited turnover for the year at £1,240,544 was higher than £1,193,937 for the year ended 31 October 2022, and lower overheads meant that profit before tax of £837,712 was significantly higher than £123,611 the previous year. SDSDAB profitability is likely to reduce in future accounting periods no new lease arrangements are planned to replace existing leases come to an end.

As this is the group's first trading period, there are no comparatives. For the period ended 31 October 2023 the group's turnover was £29,365,871 with a profit before tax of £1,236,785.

Business environment

The industry has traditionally been extremely competitive, and the group has always faced intense price pressure in the marketplace.

Throughout 2021 & 2022 the industry faced a combination of supply chain issues and both general and industry-specific cost inflation. While these factors eased somewhat over the last year, this has been offset by increased customer reluctance to accept any upward price movement, particularly as demand eased towards the end of the financial year.

Strategy

The group continues to service the newbuild and commercial refurbishment sectors.

At the date of this report, the director has no plans to materially change this strategy.

Future outlook

Despite the macro-economic uncertainty and industry-specific challenges, the group has a sizeable order book and will continue to work diligently to protect margins and profitability wherever possible. During the year the group’s investment in the integrated service hub contributed to improved response and customer satisfaction levels, which have become an increasingly important KPI for both newbuild and commercial customers.

In 2022 the group started a significant capital project to replace old production machinery and this will continue throughout 2024 and beyond. It is hoped that increased levels of automation will both increase product quality and enable the redeployment and upskilling of much of the production team.

 

 

A & B GLASS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 2 -
Principal risks and uncertainties

The director has considered the principal risks and uncertainties during the coming year, many of which are driven by factors which cannot be controlled, or which are difficult to predict.

The key business risk affecting the group's financial performance is considered to be 'the UK economy. The director will closely monitor the impact of this and the risk factors below and will take swift strategic action should the need arise.

Price Risk

The group is exposed to increasing commodity price risk as a result of its purchasing requirements. The director continually monitor prices, but in the current economic climate, the ability to fix prices or engage alternative suppliers is effectively non-existent.

Credit Risk

The group has policies that require appropriate health checks on both potential and existing customers. This credit risk is managed on a proactive basis through the sales process through to debt collection and recovery.

Liquidity Cashflow Risk

Cashflow and liquidity risk is managed and minimised by diligent management of the credit control function, and credit terms are strictly enforced. In order to maintain the group’s invoice discounting facility, the business insures virtually all debts and maintains a broad spread of customers in all divisions.

Brexit Risk

The group's turnover for the year has been derived from its principal activity wholly undertaken in the United Kingdom. The directors see currency fluctuations as a result of purchasing requirements as the main Brexit risk.

Key performance indicators

The director considers that the key financial indicators of the business are turnover, gross profit, operating profit, net bank borrowings and short term liquidity. The Director and senior management continually monitor and report on these financial KPls and are satisfied with the group's performance in relation to them.

Other performance indicators

An important non-financial KPI is the reportable accidents per employee of which there were none in the current or prior period.

On behalf of the board

Mr P McManus
Director
4 April 2024
A & B GLASS GROUP LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 3 -

The director presents his annual report and financial statements for the period ended 31 October 2023.

Principal activities

The company's principal activity is that of an ultimate holding company. The group's main activity continues to be the manufacture, installation and maintenance of UPVC windows, doors and conservatories.

SDSDAB Limited also provides management services to all group companies and owns assets which are leased to A&B Glass Company Limited and John Fredericks Plastics Limited, which was formally disposed of by A&B Glass Company Limited, its immediate holding company, on 31 October 2019.

Results and dividends

The results for the period are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

Mr P McManus
(Appointed 11 November 2022)
Financial instruments

The group's treasury activities are operated within policies and procedures approved by the Board, which include defined controls on the use of financial instruments managing the group's risk.

 

The group finances its operations by a mixture of retained profits, cash, and an invoice discounting facility

 

Engagement with employees

The group is an equal opportunity employer and is committed to ensuring no employee or applicant is treated less favourably on grounds of age, race, religion, gender, ethnic origin, disability or sexual orientation.

The group continues to support the employment of disabled persons, wherever practicable, and to ensure that they share in the training, career development and promotion opportunities available to all employees.

As the group has adjusted to macro-economic changes and industry-specific pressures employees have continued to adapt superbly to generate efficiency gains and cost savings throughout the business. As pressure on margins have become more acute, this is a significant contributor to the year’s results.

The director is hugely appreciative of these efforts and would like to thank everyone for all their hard work, not just for the last twelve months, but from May 2020 when internal and external problems meant the group faced an uncertain future. He also recognises that moving forward, employee engagement is crucial to staff recruitment, development and retention.

Engagement with suppliers, customers and others

The group is reliant on a small number of key suppliers, most of whom are industry-specific. Close working relationships have always been key and particularly so since May 2020 as the industry has faced significant challenges maintaining continuity of supply in the light of worldwide shortages of raw materials and reduction in shipping capacity.

Both the newbuild and commercial divisions of the group operate in a very price-competitive environment and have a relatively small number of large customers. These customers provide the business with long term contract work.

As detailed in the Strategic Report, the group changed funders and bankers during the year, and managing relationships with both are crucial. This involves ensuring access to funding, the management of headroom and cashflow; together with the smooth interaction between internal and external personnel.

A & B GLASS GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 4 -
Post reporting date events

There are no material post balance sheet events to report.

Auditor

Ensors Accountants LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going Concern

The group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report.

The director has reviewed the group's recent trading performance and its forecasts through to October 2024 to assess the required level of finance. In their consideration of going concern, the director has reviewed the cash forecasts and revenue projections, which they believe are prudent. Forecasts for the year ended 31 October 2024 show that the group will remain profitable and there is sufficient headroom in the available funding facility to continue as a going concern and meet its liabilities as they fall due.

The group's trading entities are well-established and have long-standing relationships with both customers and suppliers. The steadily increasing turnover, consistent profitability and positive cash generation over the last three years have all given the director confidence that the group enjoys a new-found flexibility that will allow it to adapt to challenges to the commercial environment that may arise in the future. For these reasons the director adopts the going concern basis in preparing these financial statements.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr P McManus
Director
4 April 2024
A & B GLASS GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 5 -

The director is responsible for preparing the Annual Report 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). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

A & B GLASS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A & B GLASS GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of A & B Glass Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 October 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

A & B GLASS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A & B GLASS GROUP LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, 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 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 director is responsible for assessing 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor's 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.

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

A & B GLASS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A & B GLASS GROUP LIMITED
- 8 -

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 an auditor's 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 as a body, for our audit work, for this report, or for the opinions we have formed.

Barry Gostling (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
4 April 2024
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
A & B GLASS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 9 -
Period
ended
31 October
2023
Notes
£
Turnover
3
29,365,871
Cost of sales
(20,676,507)
Gross profit
8,689,364
Administrative expenses
(7,258,602)
Operating profit
4
1,430,762
Interest payable and similar expenses
8
(193,977)
Profit before taxation
1,236,785
Tax on profit
9
(292,797)
Profit for the financial period
26
943,988
Profit for the financial period is all attributable to the owner of the parent company.
Total comprehensive income for the period is all attributable to the owner of the parent company.
A & B GLASS GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
Notes
£
£
Fixed assets
Negative goodwill
11
(1,233,701)
Other intangible assets
11
83,569
Total intangible assets
(1,150,132)
Tangible assets
12
1,769,035
618,903
Current assets
Stocks
15
987,614
Debtors
16
6,616,508
Cash at bank and in hand
1,393,279
8,997,401
Creditors: amounts falling due within one year
17
(5,418,509)
Net current assets
3,578,892
Total assets less current liabilities
4,197,795
Creditors: amounts falling due after more than one year
18
(2,756,492)
Provisions for liabilities
Provisions
21
52,426
Deferred tax liability
22
432,389
(484,815)
Net assets
956,488
Capital and reserves
Called up share capital
25
12,500
Profit and loss reserves
26
943,988
Total equity
956,488

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 4 April 2024
04 April 2024
Mr P  McManus
Director
Company registration number 14479988 (England and Wales)
A & B GLASS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 11 -
2023
Notes
£
£
Fixed assets
Investments
13
2,546,809
Current assets
Cash at bank and in hand
160,647
Creditors: amounts falling due within one year
17
(368,500)
Net current liabilities
(207,853)
Total assets less current liabilities
2,338,956
Creditors: amounts falling due after more than one year
18
(1,926,500)
Net assets
412,456
Capital and reserves
Called up share capital
25
12,500
Profit and loss reserves
26
399,956
Total equity
412,456

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £399,956.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved and signed by the director and authorised for issue on 4 April 2024
04 April 2024
Mr P  McManus
Director
Company registration number 14479988 (England and Wales)
A & B GLASS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 11 November 2022
-
0
-
0
-
Period ended 31 October 2023:
Profit and total comprehensive income
-
943,988
943,988
Issue of share capital
25
12,500
-
12,500
Balance at 31 October 2023
12,500
943,988
956,488
A & B GLASS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 11 November 2022
-
0
-
0
-
Period ended 31 October 2023:
Profit and total comprehensive income
-
399,956
399,956
Issue of share capital
25
12,500
-
12,500
Balance at 31 October 2023
12,500
399,956
412,456
A & B GLASS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 14 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
960,657
Interest paid
(193,977)
Income taxes paid
(47,866)
Net cash inflow/(outflow) from operating activities
718,814
Investing activities
Purchase of business
(274,725)
Purchase of intangible assets
1,322,768
Purchase of tangible fixed assets
(934,456)
Proceeds from disposal of tangible fixed assets
40,791
Net cash generated from/(used in) investing activities
154,378
Financing activities
Proceeds from issue of shares
12,500
Repayment of borrowings
(152,777)
Payment of finance leases obligations
509,270
Net cash generated from/(used in) financing activities
368,993
Net increase in cash and cash equivalents
1,242,185
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
1,242,185
Relating to:
Cash at bank and in hand
1,393,279
Bank overdrafts included in creditors payable within one year
(151,094)
A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 15 -
1
Accounting policies
Company information

A & B Glass Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of A & B Glass Group Limited and all of its subsidiaries.

1.1
Reporting period

These financial statements are presented for the period between 11 November 2022 and 31 October 2023, a period of less than one year, due to alignment with the statutory year-ends of the other companies within the group. The company was incorporated, and trade commenced, on 11 November 2022.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company A & B Glass Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2023. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the sale of goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods and, where applicable installation), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to labour costs and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.7
Intangible fixed assets - goodwill

Goodwill, representing the excess of the purchase price compared with the fair value of assets acquired, is capitalised and written off over 7 years in respect of the trade of acquired subsidiaries as, in the opinion of the directors, these represent the periods over which the goodwill will be effective. Amortisation is charged within administrative expenses.

1.8
Intangible fixed assets other than goodwill

Other intangible assets are recognised at cost and subsequently measured at cost less accumulated amortisation and accumulated amortisation and accumulated impairment losses. Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
25% per annum
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
5% - 15% straight line or over the remaining life of the lease
Plant and equipment
25% per annum reducing balance
Fixtures and fittings
15% - 25% per annum reducing balance
Motor vehicles
20% - 25% per annum reducing balance
A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.10
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Invoice financing

The Group has an invoice discounting agreement. The amount owed by customers to the Group is included within trade debtors and the amount owed to the invoice discounting company is included within creditors. The amount owed to the invoice discounting company represents the difference between the amounts advanced by the discounting company and the invoices discounted. The interest element of the invoice discounting charges and other related costs are recognised as they accrue and included in the Statement of Comprehensive Income within interest payable and similar expenses.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Provisions

Provisions is made for liabilities arising in respect of extended warranty claims on warranties provided in conjunction with the sale of goods. Provisions are recognised when the group has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be estimated reliably.

 

The provision is based on expected costs to be incurred over the next 3 to 10 years based on previous warranty claims.

1.18
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 21 -
1.21
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company and group as a lessee.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Cost of stock

The cost element of stock carried forward in the statement of financial position is estimated by the directors based on raw material cost plus an appropriate proportion of labour and overheads. This therefore represents a critical accounting estimate arrived at by the directors based on their experience.

Impairment of assets

In determining whether there are indicators of impairment of the company's tangible and intangible assets management make judgements. The factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

 

Using the information available at the statement of financial position date, the directors make judgements based on their experience on the level of impairment required for stock and trade debtors and the provision for future warranty costs. Further information received after the statement of financial position date may impact on the level of provision.

Revenue recognition

The group applies its policies on turnover and long term contracts when recognising revenue and profit on partially completed contracts. The application of this policy requires judgements to be made in respect of the total expected costs to complete and the profit margin achievable on each contract. The company has in place established internal control processes to ensure that the evaluation of costs and revenues is based upon appropriate estimates.

3
Turnover

The whole of the turnover is attributable to the principal business activity.

 

All turnover arose within the United Kingdom.

4
Operating profit
2023
£
Operating profit for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
543,469
Profit on disposal of tangible fixed assets
(27,404)
Amortisation of intangible assets
(183,938)
Impairment of intangible assets
11,302
Operating lease charges
421,418
A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 23 -
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
6,000
Audit of the financial statements of the company's subsidiaries
23,000
29,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2023
2023
Number
Number
Production and administration
198
1

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
6,526,382
-
0
Social security costs
625,116
-
Pension costs
147,353
-
0
7,298,851
-
0
7
Director's remuneration
2023
£
Remuneration for qualifying services
314,771
Company pension contributions to defined contribution schemes
24,800
339,571
A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
7
Director's remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
£
Remuneration for qualifying services
314,771
Company pension contributions to defined contribution schemes
24,800
8
Interest payable and similar expenses
2023
£
Interest on invoice finance arrangements
119,329
Interest on finance leases and hire purchase contracts
74,604
Other interest
44
Total finance costs
193,977
9
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
144,434
Deferred tax
Origination and reversal of timing differences
148,363
Total tax charge
292,797

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Profit before taxation
1,236,785
Expected tax charge based on the standard rate of corporation tax in the UK of 22.49%
278,153
Tax effect of expenses that are not deductible in determining taxable profit
4,069
Depreciation on assets not qualifying for tax allowances
131,134
Other differences
(4,326)
Fixed asset timing differences
(231,010)
Timing differences
114,777
Taxation charge
292,797
A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 25 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
Notes
£
In respect of:
Intangible assets
11
11,302
Recognised in:
Administrative expenses
11,302

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

11
Intangible fixed assets
Group
Negative goodwill
Software
Total
£
£
£
Cost
At 11 November 2022
-
0
-
0
-
0
Additions - internally developed
-
0
94,652
94,652
Additions - separately acquired
(1,428,722)
-
0
(1,428,722)
Additions - business combinations
-
0
11,302
11,302
At 31 October 2023
(1,428,722)
105,954
(1,322,768)
Amortisation and impairment
At 11 November 2022
-
0
-
0
-
0
Amortisation charged for the period
(195,021)
11,083
(183,938)
Impairment losses
-
0
11,302
11,302
At 31 October 2023
(195,021)
22,385
(172,636)
Carrying amount
At 31 October 2023
(1,233,701)
83,569
(1,150,132)
The company had no intangible fixed assets at 31 October 2023.

More information on impairment movements in the period is given in note 10.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 26 -
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 11 November 2022
-
0
-
0
-
0
-
0
-
0
Additions
17,694
420,711
45,638
450,817
934,860
Business combinations
-
0
645,195
30,710
715,126
1,391,031
Disposals
-
0
-
0
-
0
(13,387)
(13,387)
At 31 October 2023
17,694
1,065,906
76,348
1,152,556
2,312,504
Depreciation and impairment
At 11 November 2022
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
2,111
192,987
18,055
330,316
543,469
At 31 October 2023
2,111
192,987
18,055
330,316
543,469
Carrying amount
At 31 October 2023
15,583
872,919
58,293
822,240
1,769,035
The company had no tangible fixed assets at 31 October 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2023
£
£
Plant and equipment
757,226
-
0
Motor vehicles
767,629
-
0
1,524,855
-
13
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
14
-
0
2,546,809
A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
13
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 11 November 2022
-
Additions
2,546,809
At 31 October 2023
2,546,809
Carrying amount
At 31 October 2023
2,546,809
14
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
SDSDAB Limited
Addison Road, Chiltern Industrial Estate, Sudbury, Suffolk, CO10 2YW, England
Ordinary
100.00
-
A&B Glass Holding Company Limited
As above
Ordinary
0
100.00
A&B Glass Company Limited
As above
Ordinary
0
100.00
Asset Manufacturing Limited *
As above
Ordinary
0
100.00
A&B Glass Properties Limited *
As above
Ordinary
0
100.00
Coastal Windows Limited *
As above
Ordinary
0
100.00
Coastal Limited *
As above
Ordinary
0
100.00

* All these subsidiary undertakings under S394A and S448A of the Companies Act 2006 are exempt from preparing and filing individual accounts. These companies have taken exemption in S479A of the Companies Act 2006 from the requirements in the Act for their individual accounts to be audited.

15
Stocks
Group
Company
2023
2023
£
£
Raw materials and consumables
456,240
-
Work in progress
192,599
-
Finished goods and goods for resale
338,775
-
0
987,614
-
A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 28 -
16
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
4,867,659
-
0
Other debtors
302,075
-
0
Prepayments and accrued income
337,513
-
0
5,507,247
-
Amounts falling due after more than one year:
Trade debtors
1,109,261
-
0
Total debtors
6,616,508
-
17
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
19
151,094
-
0
Obligations under finance leases
20
529,164
-
0
Other borrowings
19
41,667
-
0
Trade creditors
2,121,559
-
0
Corporation tax payable
156,623
-
0
Other taxation and social security
202,492
-
Other creditors
1,687,362
368,500
Accruals and deferred income
528,548
-
0
5,418,509
368,500

The invoice financing is secured by a fixed and floating charge over the Companies assets and undertakings.

 

Obligations under hire purchase are secured on the underlying assets.

 

Amounts owed to group undertakings are interest free and repayable on demand.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 29 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Obligations under finance leases
20
829,992
-
0
Other creditors
1,926,500
1,926,500
2,756,492
1,926,500
19
Loans and overdrafts
Group
Company
2023
2023
£
£
Bank overdrafts
151,094
-
0
Other loans
41,667
-
0
192,761
-
Payable within one year
192,761
-
0

The long-term loan has been part guaranteed by the UK Government under the Coronavirus Business Interruption Loan scheme ("CBILS"), The guarantee provides a partial guarantee, should the Group default on repaying the CBILS facility.

The Group borrowed £500,000 from IGF Business Credit Limited during the year ended 31 October 2021 under the CBILS. The loan is being repaid over a loan term of three years from the date the loan is first drawn down. Interest will be charged at 5.95% per annum over the base rate of National Westminster bank plc (currently 5.25%).

20
Finance lease obligations
Group
Company
2023
2023
£
£
Future minimum lease payments due under finance leases:
Within one year
620,949
-
0
In two to five years
928,431
-
0
1,549,380
-
Less: future finance charges
(190,224)
-
0
1,359,156
-
0

Obligations under hire purchase contracts are secured on the underlying assets.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 30 -
21
Provisions for liabilities
Group
Company
2023
2023
£
£
52,426
-
Movements on provisions:
Group
£
At 11 November 2022
50,118
Additional provisions in the year
2,308
At 31 October 2023
52,426

The warranty provision relates to potential costs arising under a warranty on products. The provision is based on expected costs to be incurred based on previous warranty claims.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
2023
Group
£
Accelerated capital allowances
426,024
Tax losses
6,365
432,389
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 11 November 2022
-
-
Charge to profit or loss
432,389
-
Liability at 31 October 2023
432,389
-

The deferred tax liabilities set out above mainly relate to accelerated capital allowances that are expected to reverse over the period that the underlying fixed assets are depreciated.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 31 -
23
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
147,353

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share-based payment transactions

Share based payment arrangements (share options) in respect of Directors involving a total of 102,273 Ordinary Shares of £0.10 with and exercise price of £0.10 per share were granted in May 2023. The options are exercisable in the event of a sale. Any share based payment charge is anticipated to be immaterial.

25
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary A shares of 10p each
95,000
9,500
Ordinary B shares of 10p each
30,000
3,000
125,000
12,500
26
Reserves
Profit and loss reserves

The profit and loss account reserve represents cumulative profit and loss net of distributions to owners.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 32 -
27
Acquisition of a business

On 15 November 2022 the group acquired 100 percent of the issued capital of SDSDAB Limited and its wholly owned subsidiaries.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
11,302
(11,302)
-
Property, plant and equipment
1,391,435
-
1,391,435
Investments
2,302,505
(2,302,505)
-
Inventories
1,199,850
-
1,199,850
Trade and other receivables
8,796,446
-
8,796,446
Cash and cash equivalents
(234,725)
-
(234,725)
Borrowings
(194,444)
-
(194,444)
Obligations under finance leases
(849,886)
-
(849,886)
Trade and other payables
(5,725,452)
-
(5,725,452)
Tax liabilities
(24,189)
-
(24,189)
Provisions
(110,421)
-
(110,421)
Deferred tax
(319,892)
-
(319,892)
Total identifiable net assets
6,242,529
(2,313,807)
3,928,722
Goodwill
(1,428,722)
Total consideration
2,500,000
The consideration was satisfied by:
£
Cash
40,000
Deferred consideration
1,331,200
Loan notes
1,128,800
2,500,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
29,365,871
Profit after tax
731,635
A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 33 -
28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2023
£
£
Within one year
470,718
-
Between two and five years
1,421,169
-
1,891,887
-
29
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2023
£
£
Acquisition of tangible fixed assets
1,234,854
-
30
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
£
Aggregate compensation
877,020
31
Controlling party

As at the year end P McManus is considered the ultimate controlling party, as a Director and the majority shareholder in A&B Glass Group Limited.

A & B GLASS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
- 34 -
32
Cash generated from/(absorbed by) group operations
2023
£
Profit for the period after tax
943,988
Adjustments for:
Taxation charged
292,797
Finance costs
193,977
Gain on disposal of tangible fixed assets
(27,404)
Amortisation and impairment of intangible assets
(172,636)
Depreciation and impairment of tangible fixed assets
543,469
Decrease in provisions
(1,389,195)
Movements in working capital:
Decrease in stocks
212,236
Decrease in debtors
2,082,416
Decrease in creditors
(1,718,991)
Cash generated from/(absorbed by) operations
960,657
33
Analysis of changes in net debt - group
11 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
-
1,393,279
1,393,279
Bank overdrafts
-
0
(151,094)
(151,094)
-
1,242,185
1,242,185
Borrowings excluding overdrafts
-
(41,667)
(41,667)
Obligations under finance leases
-
(1,359,156)
(1,359,156)
-
(158,638)
(158,638)
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