Company registration number SC100482 (Scotland)
RAVENSBY GLASS COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
RAVENSBY GLASS COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr HF Ogilvie
Mr NG Cunningham
Mr SH Duncan
Mr MN Fenton
Mr FA Gall
Mr HA Ogilvie
(Appointed 26 May 2023)
Mrs H Redford
Secretary
Mr NG Cunningham
Company number
SC100482
Registered office
8 Tom Johnston Road
West Pitkerro Industrial Estate
Dundee
DD4 8XD
Auditor
MMG Archbold Limited
78-84 Bell Street
Dundee
DD1 1RQ
RAVENSBY GLASS COMPANY LIMITED
CONTENTS
Page
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 20
RAVENSBY GLASS COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -
The directors present the strategic report for the year ended 31 October 2023.
Review of the business
Despite The Companys quest for greater operational efficiency and continuing endeavour to promote sales in its product range within the construction industry sector The Board were determined to take whatever action was deemed necessary to stem reversed trading fortunes which has resulted in significant decisions being implemented in regard to numbers employed and plant utilisation. The associated costs were significant resulting in the operating loss posted within this Report which incorporates the costs of significant redundancies within the staff numbers necessary to address revised budgets.
The Directors none the less continue to remain confident in their future outlook for The Company and its prospects as having undertaken strategic consolidation of operations it may take some time to successfully attain new budgeted standards.
The loss was reached following close scrutiny of administrative expenses coupled to optimising of all margins, as well as by addressing managerial issues and contingencies. Rationalisation and reviews throughout the business on an ongoing basis see considerable adjustments made to our ongoing budgets, all of which have been increasingly necessary to keep the cost base in check against markedly inflationary spirals in respect of all our raw materials within the period.
The balance between Commercial market glazing and Domestic supply markets saw the customer base seeing altered proportions of involvement. Asset additions in both plant & machinery during the period under review were stalled and the effect of this is under continuing review.
The results for the year and financial position of the company are as shown in the annexed financial statements.
RAVENSBY GLASS COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Principal risks and uncertainties
Financial key performance indicators (KPIs)
The directors rely upon a number of financial KPIs and for the year under review, consider all of these to be in line with expectations.
Non financial key performance indicators (KPIs)
The directors consider a number of non financial performance indicators on an ongoing basis, such as statistical information relating to staff turnover and absence, supplier and customer service levels and the monitoring of health and safety and security incident reports.
Financial risk management
Retained profits finance on-going operating requirements and major capital expenditure.
Credit risk
The company trades with only recognised, creditworthy third parties. In addition, receivable balances are monitored on an ongoing basis with the result that the company's exposure to bad debts is not significant.
Liquidity risk
The company monitors its cash position on an ongoing basis to mitigate the risk of potential cashflow issues which may have an impact on the operational requirements of the company.
Competitive risk assessment
The company operates within a highly competitive environment and acknowledges that whilst exercising due diligence and prudence as a matter of policy, it cannot always rely on the information used in assessing competitive risk to be wholly reliable.
Environmental risk assessment
The directors recognise the company's environmental responsibilities and the increasing legislation in this area. The company complies with relevant legislation and also strives to ensure that environmental best practices are adopted, particularly in fuel efficiency, pollution control and waste management. The company's operations address industry specific requirements, and the directors are satisfied that the company continues to improve its environmental contribution.
Uncertainties and prospects
The main uncertainties facing the Company are the extent to which the national economic climate will affect product demand directly linked to the companys area of expertise. Those particular uncertainties involve the building and construction industry opportunities in respect of which the directors take a continuing closely scrutinised view on an ongoing basis.
It is to be hoped that with the pandemic behind us advancement is not further impeded by any future such constraints although the energy impact and tighter margins do prevail.
The directors remain confident that future growth opportunities exist for its glass products and they will advance to focus on that sector of opportunity for the foreseeable future. They believe that the Group is well enough placed financially, and in terms of the strength of its management team, to maintain its underlying performance and build upon it. Rationalisation of all its operations remains paramount to the Companys ongoing prospects.
RAVENSBY GLASS COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Mr NG Cunningham
Secretary
24 July 2024
RAVENSBY GLASS COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 October 2023.
Principal activities
The principal activity of the company continued to be that of the manufacturing of insulating glass units,
combined with tempering, laminating, painting and further machine processing of float, patterned and coated solar
control glasses.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr HF Ogilvie
Mr NG Cunningham
Mr KG Small
(Resigned 8 April 2024)
Mr SH Duncan
Mr MN Fenton
Mr FA Gall
Mr HA Ogilvie
(Appointed 26 May 2023)
Mrs H Redford
Future developments
It is anticipated that with continuing managerial monitoring of the operating practices introduced activities will enable some controlled expansion where possible and consistent with market opportunities within their respective fields of operations. The Board did relocate much of the older equipment with the original factory during the 2022-23 period.
The Board will continue to consider further investment commitments in glass processing plant and undertake these on an ongoing basis to address both in-house product and processing improvements and to enable The Company to remain at the forefront of our markets.
Ongoing research and development will be undertaken consistent with any appropriate opportunities arising.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
By order of the board
Mr NG Cunningham
Mr NG Cunningham
Secretary
Director
24 July 2024
RAVENSBY GLASS COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are 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 directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
RAVENSBY GLASS COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RAVENSBY GLASS COMPANY LIMITED
- 6 -
Opinion
We have audited the financial statements of Ravensby Glass Company Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its loss 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.
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 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
RAVENSBY GLASS COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RAVENSBY GLASS COMPANY LIMITED
- 7 -
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 directors' 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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have 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.
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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates;
We identified the laws and regulations applicable to the company through discussions with management and through our own knowledge of the industry;
We enquired with management about their own identification and assessment of the risk of irregularities;
We considered the opportunities that may exist within the organisation for fraud and identified the greatest risk in relation to revenue recognition, valuation of work in progress and management override of internal controls. Our audit procedures to respond to these risks included, but were not limited to;
Reviewing the financial statement disclosure and testing of financial statement balances to supporting documentation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries with management and inspecting legal correspondence;
We communicated relevant identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to any indications of fraud or non-compliance throughout the audit;
We performed analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatements due to fraud;
Testing journal entries to identify unusual transactions and evaluated the underlying rationale;
Testing of the completeness and correct allocation of revenue in the year;
Evaluating evidence of any bias by the directors that may represent a material misstatement by comparing accounting estimates such as work in progress and accruals to the underlying supporting documentation and assessing the rationale applied.
RAVENSBY GLASS COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RAVENSBY GLASS COMPANY LIMITED
- 8 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those leading to a material misstatement in the financial statements or non-compliance with regulation. As a result of these, we considered the opportunities that may exist within the organisation for fraud and audit procedures were designed in response to the risks identified, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve, for example, forgery, deliberate concealment, or collusion.
As part of an audit in accordance with ISAs (UK), professional judgement was exercised, and professional scepticisms was maintained throughout the audit.
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.
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.
Paul Crichton BAcc CTA CA
Senior Statutory Auditor
For and on behalf of MMG Archbold Limited
24 July 2024
Statutory Auditor
78-84 Bell Street
Dundee
DD1 1RQ
RAVENSBY GLASS COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
£
£
Turnover
18,270,693
21,103,019
Cost of sales
(14,861,921)
(16,788,992)
Gross profit
3,408,772
4,314,027
Administrative expenses
(4,548,531)
(4,366,515)
Other operating income
90,269
90,046
Operating (loss)/profit
(1,049,490)
37,558
Interest receivable and similar income
7,767
1,350
Interest payable and similar expenses
(180,866)
(114,088)
Loss before taxation
(1,222,589)
(75,180)
Tax on loss
(38,274)
106,396
(Loss)/profit for the financial year
(1,260,863)
31,216
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RAVENSBY GLASS COMPANY LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
4,913,833
7,179,611
Current assets
Stocks
1,441,318
1,819,713
Debtors
4
3,426,894
4,552,753
Cash at bank and in hand
534,491
446,920
5,402,703
6,819,386
Creditors: amounts falling due within one year
5
(5,203,184)
(7,066,568)
Net current assets/(liabilities)
199,519
(247,182)
Total assets less current liabilities
5,113,352
6,932,429
Creditors: amounts falling due after more than one year
6
(1,782,001)
(2,437,541)
Provisions for liabilities
(97,326)
Net assets
3,234,025
4,494,888
Capital and reserves
Called up share capital
5,000
5,000
Profit and loss reserves
7
3,229,025
4,489,888
Total equity
3,234,025
4,494,888
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
Mr NG Cunningham
Director
Company registration number SC100482 (Scotland)
RAVENSBY GLASS COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2021
5,000
4,458,672
4,463,672
Year ended 31 October 2022:
Profit and total comprehensive income
-
31,216
31,216
Balance at 31 October 2022
5,000
4,489,888
4,494,888
Year ended 31 October 2023:
Loss and total comprehensive income
-
(1,260,863)
(1,260,863)
Balance at 31 October 2023
5,000
3,229,025
3,234,025
RAVENSBY GLASS COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
12
1,095,076
1,849,079
Interest paid
(180,866)
(114,088)
Income taxes (paid)/refunded
(24,490)
127,432
Net cash inflow from operating activities
889,720
1,862,423
Investing activities
Purchase of tangible fixed assets
(176,065)
(3,328,319)
Proceeds from disposal of tangible fixed assets
1,413,250
167,502
Interest received
7,767
1,350
Net cash generated from/(used in) investing activities
1,244,952
(3,159,467)
Financing activities
Repayment of borrowings
(372,933)
Repayment of bank loans
(277,405)
(286,161)
New HP in the year
-
1,809,982
Payment of finance leases obligations
(1,396,763)
(421,491)
Net cash (used in)/generated from financing activities
(2,047,101)
1,102,330
Net increase/(decrease) in cash and cash equivalents
87,571
(194,714)
Cash and cash equivalents at beginning of year
446,920
641,634
Cash and cash equivalents at end of year
534,491
446,920
RAVENSBY GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
1
Accounting policies
Company information
Ravensby Glass Company Limited is a private company limited by shares incorporated in Scotland. The registered office is 8 Tom Johnston Road, West Pitkerro Industrial Estate, Dundee, DD4 8XD.
1.1
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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 dispatch of the goods), 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 professional 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 contractual hourly staff rates 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.
1.3
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:
Freehold land and buildings
Straight line over 50 years
Plant and equipment
Straight line over 3 to 4 years and 6-7 years
Fixtures and fittings
Straight line over 5-7 years
Motor vehicles
Straight line over 4 years
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 credited or charged to profit or loss.
RAVENSBY GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.5
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.
1.6
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
RAVENSBY GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
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 company 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 company after deducting all of its liabilities.
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.
RAVENSBY GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 when the company has 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.
RAVENSBY GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
147
175
RAVENSBY GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
3
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2022
2,109,858
14,196,088
279,043
963,304
17,548,293
Additions
1,500
20,230
7,860
146,475
176,065
Disposals
(3,181,936)
(143,344)
(270,549)
(3,595,829)
At 31 October 2023
2,111,358
11,034,382
143,559
839,230
14,128,529
Depreciation and impairment
At 1 November 2022
333,638
8,865,529
275,555
893,960
10,368,682
Depreciation charged in the year
41,698
776,930
2,619
63,381
884,628
Eliminated in respect of disposals
(1,658,222)
(143,344)
(237,048)
(2,038,614)
At 31 October 2023
375,336
7,984,237
134,830
720,293
9,214,696
Carrying amount
At 31 October 2023
1,736,022
3,050,145
8,729
118,937
4,913,833
At 31 October 2022
1,776,220
5,330,559
3,488
69,344
7,179,611
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,339,594
4,279,532
Corporation tax recoverable
13,783
Amounts owed by group undertakings
19,751
Other debtors
67,549
259,438
3,426,894
4,552,753
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
227,405
289,497
Trade creditors
816,068
902,753
Taxation and social security
412,903
581,877
Other creditors
3,746,808
5,292,441
5,203,184
7,066,568
RAVENSBY GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
464,309
679,622
Other creditors
1,317,692
1,757,919
1,782,001
2,437,541
7
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
4,489,888
4,458,672
(Loss)/profit for the year
(1,260,863)
31,216
At the end of the year
3,229,025
4,489,888
8
Directors' transactions
Dividends totalling £0 (2022 - £0) were paid in the year in respect of shares held by the company's directors.
9
ULTIMATE PARENT COMPANY
The company is a wholly-owned subsidiary of Malcolm, Ogilvie & Company Limited.
10
CONTINGENT LIABILITIES
The Royal Bank of Scotland plc holds an unlimited inter-company cross guarantee granted by the company together with the parent company in support of group borrowing facilities, supported by a Bond and Floating Charge from the aforementioned companies. Funding arrangements are acknowledged in an unregistered letter of set-off by all group members involved. At the year-end, borrowings of group companies amounted to £2,688,636 (2022 - £3,061,569)
11
RELATED PARTY DISCLOSURES
Control
Throughout the year the company was a wholly-owned subsidiary of Malcolm, Ogilvie & Company Limited. The parent company's shareholders include N G Cunningham and H F Ogilvie and members of their families. The company's registered office is the same as the subsidiary.
Transactions
The company has taken advantage of the disclosure exemption conferred by Financial Reporting Standard 102 Section 33 1A on the basis that the company is a wholly-owned subsidiary included in the financial statements of the ultimate parent company (see above and note 9).
RAVENSBY GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
12
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(1,260,863)
31,216
Adjustments for:
Taxation charged/(credited)
38,274
(106,396)
Finance costs
180,866
114,088
Investment income
(7,767)
(1,350)
Loss/(gain) on disposal of tangible fixed assets
143,965
(157,662)
Depreciation and impairment of tangible fixed assets
884,628
1,239,221
Increase in provisions
97,326
-
Government grants
14,000
(47,500)
Movements in working capital:
Decrease/(increase) in stocks
378,395
(239,344)
Decrease in debtors
1,112,076
822,483
(Decrease)/increase in creditors
(485,824)
194,323
Cash generated from operations
1,095,076
1,849,079
13
Analysis of changes in net debt
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
446,920
87,571
534,491
Borrowings excluding overdrafts
(4,030,688)
650,338
(3,380,350)
Obligations under finance leases
(3,008,670)
1,396,762
(1,611,908)
(6,592,438)
2,134,671
(4,457,767)
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