Company registration number 02967006 (England and Wales)
FORD WINDOWS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FORD WINDOWS LIMITED
COMPANY INFORMATION
Directors
A J Thorpe
P Shackley
W Shackley
C Shackley
Secretary
A J Thorpe
Company number
02967006
Registered office
82 Catley Road
Darnall
Sheffield
South Yorkshire
S9 5JF
Auditor
Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
FORD WINDOWS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 22
FORD WINDOWS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Fair review of the business
The company welcomed two new directors to the board in Q3 of the previous year – Wesley Shackley & Courtney Shackley, 2023 was the first full year with all four directors on the board.
The business has had a downturn in turnover throughout 2023 which relates to the decrease in houses sold throughout the UK. New homes registered in the private sector were 42% lower than in 2022 Q2. Supply and demand therefore saw a drop which continued throughout 2023.
The company continue to be restrictive with its customer base based on their type and location.
Price increases from their top three suppliers were not as frequent which helped towards GP. Gross profit shrunk by 10.38%. Production staff efficiencies and use of sub-contractors have been closely monitored which has resulted in margins of 22% (2022 – 22%).
The balance sheet shows a liquidity level of £4,332,364 and total net assets of £5,415,454.
Key performance indicators
Key performance indicators (KPIs) used to measure progress are as follows:
2023
% to Turnover
2022
% to Turnover
% Increase
£'000
£'000
/(decrease)
Turnover
17,910
19,649
(8.85)%
Gross Profit
3,956
22.09%
4,414
22.46%
(10.38)%
Profit Before Tax
1,498
8.37%
2,100
10.69%
(28.65)%
Wages to turnover
(3,633)
20.28%
(3,738)
19.03%
1.26%
Material costs have been closely monitored throughout the year mainly due to economic pressures however surcharges have fallen off and fixed prices have been agreed toward the end of 2023, therefore helping matters going into 2024.
Manufacturing and fitting labour, form a substantial proportion of the underlying cost base which requires constant monitoring for the maintenance of the company’s profitability. In addition to the above stock holding levels are also recorded and used on a monthly basis to assess both profitability and liquidity.
Production, processing and installation errors are investigated monthly to avoid and improve upon problems which may become reoccurring. This has especially been considered due to the downturn in turnover thus tightening the gap for any errors. The directors are confident that with the continuous efforts being made by the quality control department, another improvement to the company’s performance will be made throughout the 2024 financial year.
The company regulates its carbon footprint by seeking movement in all available factors including recycling its main material back to the suppliers originally purchased from and switching vehicles to electric.
FORD WINDOWS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties
Management continues to consider competitive pressure within the window manufacturing and glazing sector and has done so especially throughout 2023 due to inflationary economic pressures.
Price increases have remained site-specific to essentially mitigate risks of losing potential turnover from current customers. The market has seen a loss of some competitors in 2023 which has led to additional work being taken on in the year.
The company is not dependent upon any single customer, retaining current customers by continuing to maintain the quality of products and services provided.
A J Thorpe
Director
15 July 2024
FORD WINDOWS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activities of the company throughout the year were those of UPVC window manufacturing and the supply of glass and double glazing.
Results and dividends
The results for the year are set out on page 9.
Interim ordinary dividends were paid amounting to £2,000,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A J Thorpe
P Shackley
W Shackley
C Shackley
Future developments
The directors aim to maintain the management policies which have led to the company's profits over recent years. Demand in the market is strong and the market is consolidating, with a number of key competitors struggling, therefore enabling the company to continue to grow its operations. There are also plans to expand the product line to include composite doors alongside existing operations.
In addition to this, the directors have continued to monitor staff levels closely and believe the company now has the correct mix and number of employees to meet the turnover goals for the next financial year.
Auditor
The auditor, Hart Shaw LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
Each of the directors in office at the date of approval of this annual report confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and
the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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
A J Thorpe
Director
15 July 2024
FORD WINDOWS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors are responsible for preparing the Strategic Report, the Directors' 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;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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.
FORD WINDOWS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORD WINDOWS LIMITED
- 5 -
Opinion
We have audited the financial statements of Ford Windows Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet 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 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
FORD WINDOWS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FORD WINDOWS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
At the outset and throughout the planning stage, laws and regulations were discussed with both the management team and the audit team to:
identify laws and regulations which were significant to the entity.
understand how the entity was complying with relevant frameworks.
understand the effectiveness of those controls.
enquire into any knowledge of actual, suspected, or alleged fraud prior to commencing the fieldwork.
understand and challenge where errors could arise as a result of fraud or error.
Using our knowledge of the client and general commercial and sector experience we built on our understanding and our response to those risks.
FORD WINDOWS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FORD WINDOWS LIMITED
- 7 -
The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements.
Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low. In response, our approach included but was not limited to:
communicating identified laws and regulations to the audit team.
ensuring the audit team had recent, relevant experience and were aware of the significant laws and regulations relating to the entity and its sector along with the competence to identify instances of non-compliance.
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
performing analytical procedures to identify any unusual or unexpected relationships.
discussions with those charged with governance regarding any instances of non-compliance with laws and regulations or any actual or potential litigation and claims.
reviewing legal and professional costs for any indication of non-compliance with laws and regulations.
Management override is the most likely way in which fraud might present itself and as such is inherently high risk on any audit. In relation to how the risk of management override of controls was addressed, our approach included but was not limited to:
assessing whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
investigating rationale of significant or unusual transactions and agreeing to underlying records.
reviewing related parties and transactions with them to ensure these were not outside the normal course of business.
enquiring with management as to whether they had any knowledge of any actual or suspected fraud.
reviewing of all material journal entries made throughout the year as well as those made to prepare the financial statements.
review of legal fees.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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.
FORD WINDOWS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FORD WINDOWS LIMITED
- 8 -
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.
Natalie Bracey
Senior Statutory Auditor
For and on behalf of Hart Shaw LLP
30 July 2024
Chartered Accountants
Statutory Auditor
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
FORD WINDOWS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
17,909,955
19,648,515
Cost of sales
(13,954,126)
(15,234,603)
Gross profit
3,955,829
4,413,912
Administrative expenses
(2,460,881)
(2,300,159)
Operating profit
4
1,494,948
2,113,753
Interest receivable and similar income
7
22,050
69
Interest payable and similar expenses
8
(18,698)
(13,763)
Profit before taxation
1,498,300
2,100,059
Tax on profit
9
(389,166)
(396,755)
Profit for the financial year
1,109,134
1,703,304
Retained earnings brought forward
6,306,318
5,463,014
Dividends
10
(2,000,000)
(860,000)
Retained earnings carried forward
5,415,452
6,306,318
The Statement of Income and Retained Earnings has been prepared on the basis that all operations are continuing operations.
FORD WINDOWS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,446,176
1,449,215
Current assets
Stocks
12
358,876
474,476
Debtors
13
4,817,416
6,407,964
Cash at bank and in hand
1,376,140
986,138
6,552,432
7,868,578
Creditors: amounts falling due within one year
14
(2,220,068)
(2,603,589)
Net current assets
4,332,364
5,264,989
Total assets less current liabilities
5,778,540
6,714,204
Creditors: amounts falling due after more than one year
15
(217,886)
(288,084)
Provisions for liabilities
Deferred tax liability
18
145,200
119,800
(145,200)
(119,800)
Net assets
5,415,454
6,306,320
Capital and reserves
Called up share capital
20
2
2
Profit and loss reserves
5,415,452
6,306,318
Total equity
5,415,454
6,306,320
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 15 July 2024 and are signed on its behalf by:
A J Thorpe
Director
Company registration number 02967006 (England and Wales)
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Ford Windows Limited is a private company, limited by shares and incorporated in England and Wales. The registered office is 82 Catley Road, Darnall, Sheffield, South Yorkshire, S9 5JF.
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.
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.
This 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:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of IC 107 Limited. These consolidated financial statements are available from its registered office, 80 Catley Road, Darnall, Sheffield, S9 5JF.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
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 completion of the 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.
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings freehold
2% straight line
Leasehold improve'ts
2% straight line
Plant and machinery
20% reducing balance
Fixtures and equipment
20-33% reducing balance
Motor vehicles
25% reducing balance
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.
At each reporting end date, the company reviews the carrying amount 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.
1.5
Impairment of fixed assets
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.
1.6
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.
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.
1.7
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.
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
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.
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.
Trade debtors and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
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.
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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 and loans from fellow group companies, 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
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.
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.
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
17,909,955
19,648,515
The total turnover of the company for the year has been derived from its principal activities wholly undertaken in the United Kingdom.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,000
6,600
Depreciation of owned tangible fixed assets
193,338
185,335
Depreciation of tangible fixed assets held under finance leases
69,399
32,020
Loss/(profit) on disposal of tangible fixed assets
3,902
(107)
Operating lease charges
50,400
49,974
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management and administration
36
37
Production
112
119
Total
148
156
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,106,445
4,150,138
Social security costs
391,632
403,896
Pension costs
91,956
89,630
4,590,033
4,643,664
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
210,041
129,326
Company pension contributions to defined contribution schemes
9,253
9,253
219,294
138,579
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
86,120
40,253
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
22,004
Other interest income
46
69
Total income
22,050
69
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
7,156
9,976
Interest on finance leases and hire purchase contracts
11,542
3,787
18,698
13,763
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
363,766
347,135
Adjustments in respect of prior periods
20
Total current tax
363,766
347,155
Deferred tax
Origination and reversal of timing differences
25,400
49,600
Total tax charge
389,166
396,755
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,498,300
2,100,059
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
374,575
399,011
Tax effect of expenses that are not deductible in determining taxable profit
(289)
212
Effect of change in corporation tax rate
(22,167)
Group relief
(16)
Permanent capital allowances in excess of depreciation
11,647
(52,072)
Under provided in prior years
20
Movement in deferred tax
25,400
49,600
Taxation charge for the year
389,166
396,755
10
Dividends
2023
2022
£
£
Interim paid
2,000,000
860,000
No dividends (2022 - £Nil) have been proposed after the year end.
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
11
Tangible fixed assets
Land and buildings freehold
Leasehold improve'ts
Plant and machinery
Fixtures and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
478,605
98,662
1,337,416
235,276
933,699
3,083,658
Additions
29,400
17,400
255,617
302,417
Disposals
(13,280)
(170,400)
(183,680)
At 31 December 2023
478,605
98,662
1,353,536
252,676
1,018,916
3,202,395
Depreciation and impairment
At 1 January 2023
37,491
16,500
957,482
187,802
435,168
1,634,443
Depreciation charged in the year
9,572
1,972
80,111
14,408
156,674
262,737
Eliminated in respect of disposals
(11,854)
(129,107)
(140,961)
At 31 December 2023
47,063
18,472
1,025,739
202,210
462,735
1,756,219
Carrying amount
At 31 December 2023
431,542
80,190
327,797
50,466
556,181
1,446,176
At 31 December 2022
441,114
82,162
379,934
47,474
498,531
1,449,215
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Motor vehicles
225,408
151,713
12
Stocks
2023
2022
£
£
Raw materials and consumables
299,452
392,344
Work in progress
9,616
70,221
Finished goods and goods for resale
49,808
11,911
358,876
474,476
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,415,584
3,655,431
Amounts owed by group undertakings
2,138,588
2,138,588
Other debtors
86,717
89,294
Prepayments and accrued income
176,527
524,651
4,817,416
6,407,964
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
35,008
33,852
Obligations under finance leases
17
99,759
78,629
Trade creditors
1,625,812
1,971,741
Corporation tax
134,719
177,065
Other taxation and social security
132,404
113,747
Other creditors
95,191
12,121
Accruals and deferred income
97,175
216,434
2,220,068
2,603,589
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
156,803
191,713
Obligations under finance leases
17
61,083
96,371
217,886
288,084
Amounts included above which fall due after five years are as follows:
Payable by instalments
4,206
44,242
16
Loans and overdrafts
2023
2022
£
£
Bank loans
191,811
225,565
Payable within one year
35,008
33,852
Payable after one year
156,803
191,713
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Loans and overdrafts
(Continued)
- 20 -
Bank borrowings are secured by fixed charges over book and other debts, goodwill, uncalled capital and intellectual property and a floating charge over all other assets dated 9 November 1994.
There is an unlimited multilateral guarantee dated 13 December 1999 given by Ford Windows Limited and Griffingold Limited.
There is an unlimited multilateral guarantee dated 19 April 2018 given by IC 107 Limited, Ford Windows Limited and Griffingold Limited.
A £345,000 mortgage loan was taken out by the company on 12 February 2019. This is at an interest rate of 2.25% per annum over the base rate. The loan is repayable within 10 years with monthly repayments of £3,409. The loan is secured by a first legal mortgage over the freehold property at Unit 1, First Road, Blantyre, Glasgow, G72 0ND.
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
99,759
78,629
In two to five years
61,083
96,371
160,842
175,000
All finances leases were taken out over 36 month periods; the interest rate on those finances leases is between 9% and 15% per annum. Obligations under finance leases and hire purchase contracts are secured by related assets.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
149,300
120,900
Short term timing differences
(4,100)
(1,100)
145,200
119,800
2023
Movements in the year:
£
Liability at 1 January 2023
119,800
Charge to profit or loss
25,400
Liability at 31 December 2023
145,200
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Deferred taxation
(Continued)
- 21 -
There is no expiry date on the deferred tax liabilities relating to accelerated capital allowances.
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
91,956
89,630
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
21
Contingent liabilities
During the year an employee had an accident while operating machinery which was reported, as required, to the Health and Safety Executive (HSE). The HSE has since carried out an investigation and the matter has been reviewed by the company's insurers.
The HSE has notified its intention to prosecute the company under the provisions of the Health and Safety at Work etc. Act 1974. The company has yet to enter a plea. However, in setting the level of any fine, the court will determine the category of the risk of harm created by the offence and whether the offence was a significant cause of actual harm, among other factors.
In response, the health and safety compliance manager has worked with external health and safety compliance consultants to restructure and enhance the company’s health and safety procedures.
Given the variability of the factors that the court will examine in setting an appropriate level of fine, the directors are unable to reliably estimate the amount of the obligation. Therefore, they have not recognised a liability or expense in respect of this in the company's financial statements.
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Rent
2023
2022
£
£
Key management personnel
50,400
50,400
FORD WINDOWS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
23
Ultimate controlling party
The immediate parent company is Griffingold Limited.
The ultimate parent company is IC 107 Limited.
IC 107 Limited prepares group financial statements and copies can be obtained from 80 Catley Road, Darnall, Sheffield, S9 5JF.
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