Registered number: 04063012
Glass and Glazing Federation
(A company limited by guarantee)
Annual report and financial statements
For the year ended 31 December 2023
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Glass and Glazing Federation
(A company limited by guarantee)
Company Information
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Statutory Auditor & Chartered Accountants
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168 Shoreditch High Street
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Glass and Glazing Federation
(A company limited by guarantee)
Contents
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Independent auditor's report
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Consolidated statement of comprehensive income
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Consolidated balance sheet
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Consolidated statement of changes in equity
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Company statement of changes in equity
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Consolidated statement of cash flows
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Notes to the financial statements
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Glass and Glazing Federation
(A company limited by guarantee)
Group strategic report
For the year ended 31 December 2023
Following the mini-budget in September 2022, 2023 started with very weak GDP growth of 0.1%*. This was coupled with stubbornly high inflation (10.1% January 2023*), high interest rates and a looming threat of recession. By the end of 2023 the UK economy presented with seeming resilience with only a “technical” recession being recorded in the second half of the year. However, this is believed to have damaged consumer confidence and the UK press persistently reported a Cost of Living Crisis, meaning households had less disposable income. Residential house sales, believed to be as a result of record high mortgage interest rates, were down 48%** on the 2022 volumes and house prices fell by an overall of 1.4%**.
With the GGF Group of businesses relying on the residential home sector as part of it’s revenue line, prudent budgeting provided the advantage of planning for a reducing market.
* Source - Office of National Statistics
** Source - HMRC (Business and Industry) Accredited official statistics
Business review and principal challenges
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Being reliant on reliable management information is a material success factor in a data-hungry society and so investment in IT infrastructure formed part of the key focus areas for the GGF in 2023. Investing in IT security, system development and bolstering the resource within the team delivered a sounder platform for deeper development work into 2024 and beyond.
The Federation also undertook it’s first subscription model review since company inception in 1977, with the re-modelling completed with member engagement and input throughout the process. The overall outcome is that minimal member losses were recorded but with fairer distribution of subscription charges across the membership base. Whilst it is always regretful when the Federation loses any industry member, it was necessary to address the disparity in subscription charging to future-proof the stability to revenue, addressing the risk of volatility of income. This was prevalent when one of the largest UK installation businesses entered into administration in Q4 2023, resulting in significant revenue loss for the whole organisation.
The GGF accelerated Government engagement throughout 2023 in recognition that the glazing sector has formerly lacked consultation in key decisions. A few milestones in this space include “A Window of Opportunity”; an independently verified infographic that demonstrates how behind our European counterparts we are in the UK in terms of high performing glazing products in homes, contributing to overall energy conservation. This enabled deeper consultation with ministers, policy makers and civil servants, to understand the challenges the UK will face in the housing stock if we do nothing. The GGF continued to promote the Fabric First approach to Government as their currently strategy on Heat Pumps currently disregards glazing products as part of decarbonising the UK housing stock.
Finally, with reducing residential home sales, property prices reducing and costs of home improvements spiralling, against a backdrop of high inflation and low disposable income for consumers, ultimately diversifying revenue is key to the ongoing future of the GGF and it’s group of companies and growth in revenue has formed a key line of effort in the Group strategy.
Page 1
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Glass and Glazing Federation
(A company limited by guarantee)
Group strategic report (continued)
For the year ended 31 December 2023
The salary spend has marginally increased in 2023 due to benchmarking of pay against the market but the business has repurposed surplus budget where possible. Notably, 2023 also saw an increase in travel costs due to reduction of remote working in favour of deepening relationships with members and industry stakeholders and the benefit that face to face conversations can deliver. Progress on winding up the the GGF Pension scheme continued and this is expected to complete in 2024 meaning that the financial liability will then end. Other notable changes from the detailed accounts include, investment in colleague training, reduction in legal expenses, and investment in industry networking and advertising.
Broadly, the costs have remained static and as referenced earlier, repurposing of budgeted spend has been the key to maintaining stability. The GGF investments performed well, with growth being just a little under the median inflation rate in 2023. The investment strategy remains consistent with previous years; mixed risk with the portfolio being geared toward safe and ethical investments. The overall turnover increased in part due to the joining of new members and the associated subscription fees (net growth in membership was +16%) and the financial performance of the Group’s subsidiary businesses, in spite of the economic challenges.
Vision and strategy for 2024
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Diversifying revenue lines, investment in industry for the whole of industry benefit and using the reserves to invest in organisation infrastructure are key themes within the Group’s long term strategy. Focus in 2023 has been on developing the purpose of the GGF, coupled with the vision and the values that underpin who we are. The Company articles has not been updated in 10 years and so the work in 2024 has centred around addressing the structure of the Board of Directors, their purpose and objectives and subsequently underpinning this with a transparent governance structure. Other lines of effort identified include customer centricity and their experience when engaging with the GGF Group of businesses, and how we use our knowledge for the good of the whole industry, exclusive of commercial gain.
2024 strategic focus is therefore to identify customer pain points, identify investment opportunities to support development of customer centric propositions and to ensure that the GGF proposition is clear and tangible, thus attracting industry members to enjoy membership. Delivering refreshed company articles and Federation rules is key to baselining that growth.
This report was approved by the board and signed on its behalf.
N J Little
Director and GGF President
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Page 2
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Glass and Glazing Federation
(A company limited by guarantee)
Directors' report
For the year ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors' responsibilities statement
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The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the group's financial statements 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 group 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 the group and to 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in directors' reports may differ from legislation in other jurisdictions.
The profit for the year, after taxation, amounted to £1,249,165 (2022 - £134,333).
The directors who served during the year were:
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R J Sellman (resigned 30 March 2023)
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C N Smalley (appointed 1 May 2023)
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C J Davis (appointed 29 June 2023)
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G P M Mendham (resigned 28 September 2023)
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Page 3
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Glass and Glazing Federation
(A company limited by guarantee)
Directors' report (continued)
For the year ended 31 December 2023
The Federation will continue to develop its membership base within the confines of the strict entry criteria to ensure it represents the best in the industry. Continued development of the subsidiary companies will ensure that the federation remains a leading trade organisation fully able to meet the requirements of its membership by delivering high levels of service and multiple exclusive benefits.
Further information regarding the group's vision and strategy for 2024 is given in the Strategic Report.
The group has exposure to three main areas of risk – liquidity risk, customer credit exposure risk and price risk. The company has established a risk and financial management framework whose primary objective is to mitigate the group’s exposure to risk in order to protect the company from events that may hinder its performance.
Liquidity risk
Liquidity risk is the risk that the group will encounter difficulty in meeting its financial obligations as they fall due. The group's objective in managing liquidity risk is to ensure that this does not arise. Having assessed future cash flow requirements the group expects to be able to meet its financial obligations through the cash flows that are generated from its operating activities. The group is in a position to meet its commitments and obligations as they fall due.
Customer credit exposure risk
The group offers credit terms to its customers which allow for payment of the debt after delivery of the goods or services. The group is at risk to the extent that a customer may be unable to pay the debt within those terms. This risk is mitigated by the strong on-going customer relationships and by only granting credit to customers who are able to demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the group’s trade debtors are shown in note 19.
Price risk
Price risk arises on financial instruments due to fluctuations in commodity prices or equity prices. Listed investments with a fair value of £6,720,928 (2022 - £5,307,155) at the year end are exposed to price risk, which is mitigated by the active management of the group's investment portfolio with the assistance of external financial advisers.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.
Post balance sheet events
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There have been no significant events affecting the group since the year end.
Page 4
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Glass and Glazing Federation
(A company limited by guarantee)
Directors' report (continued)
For the year ended 31 December 2023
Under section 487(2) of the Companies Act 2006, Kreston Reeves LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Page 5
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Glass and Glazing Federation
(A company limited by guarantee)
Independent auditor's report to the members of Glass and Glazing Federation
We have audited the financial statements of Glass and Glazing Federation (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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
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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 group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the 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.
Page 6
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Glass and Glazing Federation
(A company limited by guarantee)
Independent auditor's report to the members of Glass and Glazing Federation (continued)
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the group 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 group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' 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
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As explained more fully in the directors' responsibilities statement set out on page 3, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Page 7
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Glass and Glazing Federation
(A company limited by guarantee)
Independent auditor's report to the members of Glass and Glazing Federation (continued)
Auditor's responsibilities for the audit of the financial statements
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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 Group financial statements.
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:
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company, group and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to FCA rules, health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to: posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of investment properties. Audit procedures performed by the group engagement team included:
∙Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and
∙Assessment of identified fraud risk factors; and
∙Challenging assumptions and judgements made by management in its significant accounting estimates; and
∙Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
∙Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
∙Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant tax and regulatory authorities; and
∙Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
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. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
Page 8
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Glass and Glazing Federation
(A company limited by guarantee)
Independent auditor's report to the members of Glass and Glazing Federation (continued)
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
∙Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
Allan Pinner FCCA (senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Statutory Auditor
Chartered Accountants
London
27 August 2024
Page 9
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Glass and Glazing Federation
(A company limited by guarantee)
Consolidated statement of comprehensive income
For the year ended 31 December 2023
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Income from fixed assets investments
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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Actuarial (losses)/gains on defined benefit pension scheme
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Effect of penison surplus not recognised
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Other comprehensive income for the year
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Total comprehensive income for the year
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There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.
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The notes on pages 15 to 44 form part of these financial statements.
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Page 10
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Glass and Glazing Federation
(A company limited by guarantee)
Registered number: 04063012
Consolidated balance sheet
As at 31 December 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Net assets excluding pension liability
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 44 form part of these financial statements.
Page 11
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Glass and Glazing Federation
(A company limited by guarantee)
Registered number: 04063012
Company balance sheet
As at 31 December 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Net assets excluding pension liability
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Profit and loss account brought forward
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Other changes in the profit and loss account
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Profit and loss account carried forward
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 44 form part of these financial statements.
Page 12
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Glass and Glazing Federation
(A company limited by guarantee)
Consolidated statement of changes in equity
For the year ended 31 December 2023
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Actuarial gains on pension scheme
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Transfer to/from profit and loss account
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Actuarial losses on pension scheme
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The notes on pages 15 to 44 form part of these financial statements.
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Company statement of changes in equity
For the year ended 31 December 2023
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Actuarial gains on pension scheme
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Transfer to/from profit and loss account
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Actuarial losses on pension scheme
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The notes on pages 15 to 44 form part of these financial statements.
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Page 13
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Glass and Glazing Federation
(A company limited by guarantee)
Consolidated statement of cash flows
For the year ended 31 December 2023
Cash flows from operating activities
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Profit for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Interest received and investment income
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Decrease/(increase) in debtors
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(Decrease)/increase in creditors
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(Decrease)/increase in provisions
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Defined benefit pension scheme contributions
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Defined benefit pension scheme settlements
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Purchase of listed investments
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Sale of listed investments
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Net cash from investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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Page 14
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
Glass and Glazing Federation is a private company limited by guarantee and is incorporated in England with the registration number 04063012. The address of the registered office is 40 Rushworth Street, London, England, SE1 0RB.
The principal activity of the group is that of operating as an employers' trade federation for the glass and glazing industry.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in Pound Sterling and are rounded to the nearest Pound.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Page 15
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Turnover within the group companies comprise:
∙revenue from subscriptions to the employers' trade federation for the glass and glazing industry;
∙revenue from the Fenestration Self-Assessment Scheme service;
∙revenue due from the rating of Energy Efficient Windows;
∙revenue from the provision of training services, recognised on the completion of these services;
∙revenue from insurance premiums on the installation of windows and conservatories, recognised upon either acceptance of an offer of insurance by the customer or recording of an installation by a registered installer; and
∙revenue from software development, systems implementation and operations services.
Dividends receivable are recognised when they become payable by the subsidiary undertaking. Interim equity dividends are recognised when received. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
The current economic conditions continue to create uncertainty within the group and company's operating environment. The group and company’s forecasts and projections, taking into account possible changes in trading performance arising from this uncertainty, show that the group and company should be able to operate within the level of its current resources and facilities. After making enquiries, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. The group and company therefore continues to adopt the going concern basis in preparing its financial statements.
Page 16
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
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Operating leases: the group as lessor
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Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
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Operating leases: the group as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Page 17
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Defined contribution pension plan
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the group in independently administered funds.
Defined benefit pension plan
The group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the group's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.
Interest income is recognised in profit or loss using the effective interest method.
Page 18
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
Page 19
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Investment property rented to other group entities and accounted for under the cost model is stated at historical cost less accumulated depreciation and any accumulated impairment losses.
At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
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Long term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
Page 20
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
Page 21
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Page 22
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation.
Increases in provisions are generally charged as an expense to profit or loss.
Page 23
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
|
Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following judgements have had the most significant impact on amounts recognised in the financial statements:
Investment properties
The group holds investment property with fair value of £1,205,982 (2022 - £1,205,982) at the year end (see note 18). In order to determine the fair value of investment property the directors have used a valuation technique based on comparable market data. The determined fair value of the investment property is most sensitive to fluctuations in the property market.
Taxation
Provision has been made in the financial statements for deferred tax amounting to £150,358 (2022 - £23,771) at the reporting date (see note 24). This provision is based upon estimates of the availability of future taxable profits, the timing of the reversal of timing differences upon which the provision is based and the tax rates that will be in force at that time together with an assessment of the impact of future tax planning strategies.
Pensions and other post-employment benefits
As detailed in note 28 the company operates a defined benefit pension scheme for the benefit of certain employees. The cost of operating the scheme is determined using actuarial valuations undertaken by the scheme actuary. Their valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of the scheme, such estimates are subject to significant uncertainty.
Provisions and contingent liabilities - insurance backed guarantee policies ('IBG')
Provision is made for the group's future outgoings in relation to its commitment to cover the cost of remedial work, where an IBG has not been put in place for a FENSA Limited consumer. See notes 25 and 26.
This provision requires management’s best estimate of the costs that will be incurred based on legislative and contractual requirements. The amount is subject to estimates in the number of claims expected to be made and the value of potential claims. A change in the value of either estimate would result in a directly proportional adjustment to the value of the provision.
Page 24
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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An analysis of turnover by class of business is as follows:
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Employers' trade federation for the glass and glazing industry
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Insurance premiums on the installation of windows and conservatories
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Fenestration Self-Assessment Scheme
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Software development, systems implementation and operations services
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Thermal efficiency of windows, doors and other products
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All turnover arose within the United Kingdom and the Republic of Ireland.
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Service charge receivable
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The operating profit is stated after charging:
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Other operating lease rentals
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Fees payable to the group's auditor for the audit of the group's financial statements
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Page 25
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined benefit scheme
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Cost of defined contribution scheme
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During the prior year a bulk annuity policy was purchased for the remaining uninsured members of the defined benefit pension scheme and has been accounted for as a settlement cost during the period.
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The average monthly number of employees, including the directors, during the year was as follows:
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Management and administration
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Group contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 1 director (2022 - 2) in respect of defined contribution pension schemes.
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Income from fixed asset investments
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Income/(loss) on fixed asset investments
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Page 26
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Interest payable and similar expenses
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Interest income on pension scheme assets
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Net interest on net defined benefit liability
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Page 27
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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Adjustments to tax charge in respect of prior periods
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Other differences leading to an decrease in the tax charge
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Total tax charge for the year
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In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021. For the financial year ended 31 December 2023, the current weighted averaged tax rate was 23.5%.
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
Page 28
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Charge for the year on owned assets
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Page 29
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Long Term Leasehold Property
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Charge for the year on owned assets
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Page 30
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
16.Tangible fixed assets (continued)
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Long Term Leasehold Property
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Charge for the year on owned assets
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The company has chosen to account for long term leasehold property occupied by other group entities using the cost model. The carrying amount of such property at the reporting date is £2,490,326 (2022 - £2,549,502).
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Page 31
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
Page 32
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Investments in Subsidiary Companies
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The following were subsidiary undertakings of the company:
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British Fenestration Rating Council Limited
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Rushworth Inspection Services and Auditing Limited
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The registered office of each subsidiary undertaking is 40 Rushworth Street, London, England, SE1 0RB.
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Page 33
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Freehold investment property
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The investment property has been valued at the year end by the directors at fair value.
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If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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Accumulated depreciation and impairments
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Long term leasehold investment property
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The long term leasehold investment property has been valued at the year end by the directors at fair value.
Page 34
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Investment property (continued)
At the balance sheet date the group and company had contracted with tenants for the following future minimum lease payments:
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Later than 1 year and not later than 5 years
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Amounts owed by group undertakings
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Page 35
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Financial assets measured at fair value through profit or loss
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Financial assets measured at fair value through profit or loss comprise listed investments.
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Charged to profit or loss
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Page 36
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
24.Deferred taxation (continued)
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Page 37
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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Insurance Backed Guarantees
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Since 2014 it has been mandatory that when a consumer has work done that falls within FENSA's (FENSA Limited, a subsidiary undertaking of the group) remit and the installer is FENSA Approved, the consumer will receive an insurance backed guarantee policy ('IBG') as well as receiving a FENSA certificate for the completed installation. The directors have previously identified that the computerised process by which IBG providers should have been automatically advised to create a policy for a homeowner, had not operated as it should. This process issue has now been rectified.
The company has committed to ensuring that any consumer where an IBG was not put in place but should have been, and the terms of an IBG would mean that remedial work would be covered by a claim, the company will honour paying for that remedial work in line with a typical IBG policy terms and conditions.
Although there have been no claims by homeowners to whom IBG policies should have been issued, the provision made in these financial statements represents the directors' best estimate of probable future outgoings as a result of this commitment.
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i) The company forms a VAT group with Borough IT Limited, FENSA Limited, G.G.F. Fund Limited, GGFi Limited, British Fenestration Rating Council Limited, GGF Training Ltd, GGF Property Limited and Rushworth Inspection Services and Auditing Limited and as such is jointly and severally liable for any liabilities as they fall due. No provision has been made because the directors consider that all parties have the financial resources to meet the liability as it falls due and it is therefore unlikely that this company will incur any additional liability. The total VAT not recognised in the company accounts is £465,272 (2022 - £417,154).
ii) In addition to the provision made in respect of missing IBGs (see note 25), the directors have identified further possible outgoings which result in an estimated total exposure of £200,000. This estimate has been made using the information available to the directors up to the date of approval of these financial statements. These estimates are described in more detail at note 3.
Page 38
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
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At 31 December 2023 the group and company had capital commitments as follows:
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Contracted for but not provided in these financial statements
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The company had no capital commitments (2022 - £NIL).
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Page 39
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
Defined contribution scheme
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £234,524 (2022 - £200,939). Contributions totalling £10,858 (2022 - £26,850) were payable to the fund at the balance sheet date and are included in creditors.
Defined benefit scheme
The group operates a defined benefit pension scheme.
The assets of the plan are held separately from those of the company in an independently administered fund. The most recent comprehensive actuarial valuation of the plan was carried out as at 1 January 2019 and there will be no further valuations. The valuation calculations have been updated as at 31 December 2023.
On an ongoing basis the actuarial valuation of the pension plan reported that the value of the plan assets at 31 December 2023 were £1,576,000 (2022 - £1,610,000). The value of the scheme liabilities were £1,582,000 (2022 - £1,616,000), a funding level of 99% (2022 - 99%).
The plan closed to new members on 31 March 2004, all employees are now offered membership to a defined contribution group personal plan.
The expected return on defined benefit pension plan assets is based on the discount rate used to value the liabilities, i.e. the returns available on a high quality corporate bond. No allowance is made for any out-performance expected from the plan's actual asset holding.
The total of the asset values is based on the bid value of the funds invested with Legal & General along with the plan's bank account balance at the review date.
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Composition of plan assets:
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The amounts recognised in profit or loss are as follows:
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Interest income on plan assets
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Page 40
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
28.Pension commitments (continued)
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Reconciliation of fair value of plan liabilities were as follows:
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Opening defined benefit obligation
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Closing defined benefit obligation
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Reconciliation of fair value of plan assets were as follows:
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Opening fair value of scheme assets
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Interest income on plan assets
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Interest on effect of asset ceiling
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Contributions by employer
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Change due to settlements and curtailments
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Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
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Rate of increase in pension payments
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Post-retirement mortality has been calculated using S2NA tables with CMI 2018 projections using a long-term improvement rate of 1.50% (2022 - 1.50%).
75% (2022 - 75%) of members are assumed to take the maximum tax free cash possible.
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Page 41
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
28.Pension commitments (continued)
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Amounts for the current and previous period are as follows:
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Defined benefit pension schemes
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Defined benefit obligation
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Commitments under operating leases
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At 31 December 2023 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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The company had no commitments under non-cancellable operating leases at the balance sheet date.
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Revaluation reserve
This reserve records the revaluation surplus recognised upon transfer of property between tangible fixed assets and investment property, less the related provision for deferred tax.
Other reserves
This is a capital reserve.
Profit & loss account
This reserve comprises all current and prior period retained profits and losses after deducting any distributions.
Page 42
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
Page 43
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Glass and Glazing Federation
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2023
The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
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Related party transactions
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The group is exempt from disclosing related party transactions between companies that are wholly owned within the group.
During the year, the group issued management charges of £38,593 (2022 - £58,446) to G.G.F. Fund Limited ('the Fund'), a related party by virtue of many of the contributing members of the Fund also having membership of the Federation. As at 31 December 2023, there was no balance due from the Fund.
Key management comprises solely the directors of the company. The compensation paid or payable to key management for employee services is disclosed at note 9.
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The company is controlled by its directors.
Page 44
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