Caseware UK (AP4) 2023.0.135 2023.0.135 2023-11-302023-11-3054falsetruetruetrue57true2022-12-01falseNo description of principal activity 01498182 2022-12-01 2023-11-30 01498182 2021-12-01 2022-11-30 01498182 2023-11-30 01498182 2022-11-30 01498182 2021-12-01 01498182 c:Director1 2022-12-01 2023-11-30 01498182 c:Director2 2022-12-01 2023-11-30 01498182 c:RegisteredOffice 2022-12-01 2023-11-30 01498182 d:PlantMachinery 2022-12-01 2023-11-30 01498182 d:PlantMachinery 2023-11-30 01498182 d:PlantMachinery 2022-11-30 01498182 d:PlantMachinery d:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 01498182 d:MotorVehicles 2022-12-01 2023-11-30 01498182 d:MotorVehicles 2023-11-30 01498182 d:MotorVehicles 2022-11-30 01498182 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 01498182 d:FurnitureFittings 2022-12-01 2023-11-30 01498182 d:FurnitureFittings 2023-11-30 01498182 d:FurnitureFittings 2022-11-30 01498182 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 01498182 d:OwnedOrFreeholdAssets 2022-12-01 2023-11-30 01498182 d:CurrentFinancialInstruments 2023-11-30 01498182 d:CurrentFinancialInstruments 2022-11-30 01498182 d:CurrentFinancialInstruments 1 2023-11-30 01498182 d:CurrentFinancialInstruments 1 2022-11-30 01498182 d:Non-currentFinancialInstruments 2023-11-30 01498182 d:Non-currentFinancialInstruments 2022-11-30 01498182 d:CurrentFinancialInstruments d:WithinOneYear 2023-11-30 01498182 d:CurrentFinancialInstruments d:WithinOneYear 2022-11-30 01498182 d:Non-currentFinancialInstruments d:AfterOneYear 2023-11-30 01498182 d:Non-currentFinancialInstruments d:AfterOneYear 2022-11-30 01498182 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-11-30 01498182 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-11-30 01498182 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-11-30 01498182 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-11-30 01498182 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2023-11-30 01498182 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2022-11-30 01498182 d:ShareCapital 2023-11-30 01498182 d:ShareCapital 2022-11-30 01498182 d:ShareCapital 2021-12-01 01498182 d:SharePremium 2022-12-01 2023-11-30 01498182 d:SharePremium 2023-11-30 01498182 d:SharePremium 2022-11-30 01498182 d:SharePremium 2021-12-01 01498182 d:RetainedEarningsAccumulatedLosses 2022-12-01 2023-11-30 01498182 d:RetainedEarningsAccumulatedLosses 2023-11-30 01498182 d:RetainedEarningsAccumulatedLosses 2021-12-01 2022-11-30 01498182 d:RetainedEarningsAccumulatedLosses 2022-11-30 01498182 d:RetainedEarningsAccumulatedLosses 2021-12-01 01498182 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-11-30 01498182 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-11-30 01498182 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:UnlistedNon-exchangeTraded 2023-11-30 01498182 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:UnlistedNon-exchangeTraded 2022-11-30 01498182 d:AcceleratedTaxDepreciationDeferredTax 2023-11-30 01498182 d:AcceleratedTaxDepreciationDeferredTax 2022-11-30 01498182 d:TaxLossesCarry-forwardsDeferredTax 2023-11-30 01498182 d:TaxLossesCarry-forwardsDeferredTax 2022-11-30 01498182 c:OrdinaryShareClass1 2022-12-01 2023-11-30 01498182 c:OrdinaryShareClass1 2023-11-30 01498182 c:OrdinaryShareClass1 2022-11-30 01498182 c:FRS102 2022-12-01 2023-11-30 01498182 c:Audited 2022-12-01 2023-11-30 01498182 c:FullAccounts 2022-12-01 2023-11-30 01498182 c:PrivateLimitedCompanyLtd 2022-12-01 2023-11-30 01498182 d:WithinOneYear 2023-11-30 01498182 d:WithinOneYear 2022-11-30 01498182 d:BetweenOneFiveYears 2023-11-30 01498182 d:BetweenOneFiveYears 2022-11-30 01498182 d:MoreThanFiveYears 2023-11-30 01498182 d:MoreThanFiveYears 2022-11-30 01498182 d:HirePurchaseContracts d:WithinOneYear 2023-11-30 01498182 d:HirePurchaseContracts d:WithinOneYear 2022-11-30 01498182 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-11-30 01498182 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-11-30 01498182 f:PoundSterling 2022-12-01 2023-11-30 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 01498182









BROWNHILLS GLASS COMPANY LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2023

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
COMPANY INFORMATION


Directors
Mr M E Harrison 
Mr M Bate 




Registered number
01498182



Registered office
Beecham Close
Aldridge

Walsall

West Midands

WS9 8UZ




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

158 Edmund Street

Birmingham

B3 2HB





 
BROWNHILLS GLASS COMPANY LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 26


 
BROWNHILLS GLASS COMPANY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

Introduction
 
The directors present below their strategic report for the year ended 30 November 2023.
The business continues to be engaged in the activities of flat glass merchanting and bespoke architectural glass processing.

Business review
 
FY23 was a more challenging year for the business following on from two strong prior years. The headline figures mask some important details which provide context why FY23 was a less successful year and also why from FY24 onwards Brownhills Glass (“BGC”) will make a significant step forward.  In early FY23 a decision was taken to cease glass processing at another location within United Glass Group (“UGG”). The implications for BGC were significant; from May through to the year end operations at BGC underwent a transformation to accommodate certain equipment relocated from the closing site. This resulted in the temporary outsourcing of some products, at the expense of gross margin, to continue to satisfy customer requirements. Internal efficiencies dropped with the inevitable pressures of dovetailing trying to maintain normal levels of service with commissioning new machinery and training staff. Without doubt there are unquantified costs baked into FY23 for this process; both in product margin and labour costs. There were 3rd party machine move and installation costs of £104k during the year too. FY23 was largely a year of operational disruption but in FY24 the business is now reaping the benefits; the product offering from BGC is enhanced (and being well received by customers) and margins are the best seen for many years.  
The longer-term strategy of the business remains largely unchanged; BGC continues to be focused on shortening processing lead-times whilst maintaining quality and service. In a fragmented market with multiple local competitors the directors believe getting these key metrics right will win repeat business, loyal custom and move the point of discussion away from price. Part of the operational changes referred to above include expanding BGC’s logistic capabilities. This allows BGC to explore new geographical markets with the South and Southwest of particular interest. Like our competitors BGC has felt cost pressure on wages, business rates and utility supplies. The directors feel FY23 is likely the high point of these pressures and the investment made in machinery (automation) and energy conservation initiatives mean some of the cost pressure has been alleviated through improving unit rates (in the case of electric) and/or reduced overall consumption. 
The directors of UGG continue to have a strategic ambition to develop BGC into one of the groups key glass processing centres. Geographically the site is well suited to head north, south, and east with excellent transport links.

Principal risks and uncertainties
 
The directors are integrally involved in the day-to-day running of the business. 
For several years, the key risk has been maintaining reliable sources of glass supply. However, the directors consider this risk to have diminished with all major manufacturers supplying into the UK market without restriction.
The directors feel the key risk has changed from supply to demand side with order books fluctuating on processing activities and price pressure apparent in merchanting operations. To mitigate this risk the business will redouble efforts to provide customers excellent service and quality and look to internal efficiencies and automation to offset significant changes in the cost of employment and general site operations.

Page 1

 
BROWNHILLS GLASS COMPANY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023

Financial key performance indicators
 
The directors consider turnover and EBITDA as key financial indicators and manage the business with these metrics at the forefront of decision making.
Turnover of £8.95m was consistent with FY22 (£8.93m) as was the mix of work between processing and merchanting. This is considered a success given the challenges of the market and the reorganisation.
EBITDA was £486k and when adding back exceptional 3rd party costs £590k. This compares to £935k in FY22. With the work undertaken in FY23 the benefits are coming to fruition; despite an increasingly challenging market place the current EBTIDA run rate supports a return to FY22 levels of EBTIDA.


This report was approved by the board on 28 August 2024 and signed on its behalf.



Mr M E Harrison
Director

Page 2

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

The directors present their report and the financial statements for the year ended 30 November 2023.

Directors' responsibilities statement

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 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 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £295,132 (2022 - profit £238,468).

Directors

The directors who served during the year were:

Mr M E Harrison 
Mr M Bate 

Disclosure of information to auditors

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's auditors are 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's auditors are aware of that information.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 3

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023

This report was approved by the board on 28 August 2024 and signed on its behalf.
 





Mr M E Harrison
Director

Page 4

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROWNHILLS GLASS COMPANY LIMITED
 

Opinion


We have audited the financial statements of Brownhills Glass Company Limited (the 'Company') for the year ended 30 November 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 30 November 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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


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.


Page 5

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROWNHILLS GLASS COMPANY LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the 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.


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 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
 

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 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.


Page 6

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROWNHILLS GLASS COMPANY LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.


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.
Based on our understanding of the Company and industry, we identified the key laws and regulations affecting the Company are:

Companies Act 2006;
Tax Legislation; and
Health and Safety and Employment Legislation.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

Management bias in respect of accounting estimates and judgements made;
Management override of control; and
Posting of unusual journals or transactions.

We focused on those areas that could give rise to a material misstatement in the Company's financial statements.

Our procedures included, but were not limited to:

Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
Reviewing minutes of meetings of those charged with governance where available;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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







Page 7

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROWNHILLS GLASS COMPANY LIMITED (CONTINUED)


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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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 for our audit work, for this report, or for the opinions we have formed.





Stephen Newman (Senior Statutory Auditor)
  
for and on behalf of
PKF Smith Cooper Audit Limited
 
Statutory Auditors
  
158 Edmund Street
Birmingham
B3 2HB

29 August 2024
Page 8

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
8,952,521
8,933,201

Cost of sales
  
(5,508,208)
(5,427,217)

Gross profit
  
3,444,313
3,505,984

Administrative expenses
  
(3,230,841)
(2,721,174)

Operating profit
 5 
213,472
784,810

Interest payable and similar expenses
 8 
(508,604)
(388,418)

(Loss)/profit before tax
  
(295,132)
396,392

Tax on (loss)/profit
 9 
-
(157,924)

(Loss)/profit for the financial year
  
(295,132)
238,468

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 26 form part of these financial statements.

Page 9

 
BROWNHILLS GLASS COMPANY LIMITED
REGISTERED NUMBER: 01498182

BALANCE SHEET
AS AT 30 NOVEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets

 11 

1,757,200
1,389,433

Current assets
  

Stocks
 12 
475,707
782,847

Debtors: amounts falling due within one year
 13 
17,036,693
18,268,744

Cash at bank and in hand
 14 
5,633
54,949

  
17,518,033
19,106,540

Creditors: amounts falling due within one year
 15 
(2,232,092)
(2,588,740)

Net current assets
  
 
 
15,285,941
 
 
16,517,800

Total assets less current liabilities
  
17,043,141
17,907,233

Creditors: amounts falling due after more than one year
 16 
(11,715,419)
(11,809,379)

Provisions for liabilities
  

Deferred tax
 20 
(298,330)
(298,330)

  
 
 
(298,330)
 
 
(298,330)

Net assets
  
5,029,392
5,799,524


Capital and reserves
  

Called up share capital 
 21 
104
104

Share premium account
 22 
39,996
39,996

Profit and loss account
 22 
4,989,292
5,759,424

  
5,029,392
5,799,524


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2024.




Mr M E Harrison
Director

The notes on pages 12 to 26 form part of these financial statements.

Page 10

 
BROWNHILLS GLASS COMPANY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 December 2021
104
39,996
5,520,956
5,561,056


Comprehensive income for the year

Profit for the year
-
-
238,468
238,468



At 1 December 2022
104
39,996
5,759,424
5,799,524


Comprehensive income for the year

Loss for the year
-
-
(295,132)
(295,132)

Dividends
-
-
(475,000)
(475,000)


At 30 November 2023
104
39,996
4,989,292
5,029,392


The notes on pages 12 to 26 form part of these financial statements.

Page 11

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

1.


General information

Brownhills Glass Company Limited is a private limited company, limited by shares and incorporated in England. The address of the registered office is given in the company information of these financial statements. The company's registration number is 01498182. The nature of the company's operations and principal activities are described in the Strategic report on page 1.
The financial statements are prepared in Sterling which is the functional currency of the company. The financial statements level of rounding is to the nearest £1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of United Glass Group Ltd as at 30 November 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

Page 12

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income 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.

 
2.5

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of comprehensive income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.6

Finance costs

Finance costs are charged to the Statement of comprehensive income 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.

 
2.7

Borrowing costs

All borrowing costs are recognised in the Statement of comprehensive income in the year in which they are incurred.

Page 13

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in Statement of comprehensive income 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 Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income 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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

 
2.10

Tangible fixed assets

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.

Page 14

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
15%
Motor vehicles
-
25%
Fixtures and fittings
-
15%

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 the Statement of comprehensive income.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of comprehensive income.

 
2.12

Debtors

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.

 
2.13

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.

 
2.14

Creditors

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 15

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

  
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Tangible fixed assets
The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives of all assets are determined at the time the asset is acquired and reviewed at least annually for appropriateness by the directors.

Page 16

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

4.


Turnover

The whole of the turnover is attributable to sales of goods

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
272,134
149,994

Fees payable to the Company's auditors for the audit of the Company's annual financial statements
13,250
22,615

Other operating lease rentals
402,234
403,503

Defined contribution pension cost
52,535
48,027


6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,807,343
1,596,012

Social security costs
178,484
173,167

Cost of defined contribution scheme
52,535
48,027

2,038,362
1,817,206


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
2
2



Administration
22
21



Production
33
31

57
54

Page 17

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
113,933
147,541

Company contributions to defined contribution pension schemes
9,567
9,270

123,500
156,811


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
-
813

Other loan interest payable
445,356
358,762

Finance leases and hire purchase contracts
7,082
3,111

Other interest payable
56,166
25,732

508,604
388,418


9.


Taxation


2023
2022
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
-
157,924

Total deferred tax
-
157,924


Taxation on profit on ordinary activities
-
157,924
Page 18

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(295,132)
396,392


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23% (2022 - 19%)
(67,880)
75,314

Effects of:


Expenses not deductible for tax purposes
-
271

Capital allowances for year in excess of depreciation
-
(144,346)

Unrelieved tax losses carried forward
67,880
-

Group relief
-
68,761

Deferred taxation
-
157,924

Total tax charge for the year
-
157,924


Factors that may affect future tax charges

The Company has estimated losses of £300,000 (2022 - £nil) available for carry forward against future trading profits.
In the budget on 31 March 2021, the UK Government announced a proposal to increase the rate of Corporation tax from 19% to 25%, which will increase the Company's tax rate from 1 April 2023. This rate was substantively enacted on 24 May 2021, and has led to the Company's deferred tax liabilities being recalculated at the higher rate of 25%.


10.


Dividends

2023
2022
£
£


Ordinary
475,000
-

Page 19

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

11.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost


At 1 December 2022
3,274,369
309,869
251,201
3,835,439


Additions
290,108
2,087
33,556
325,751


Transfers intra group
907,814
30,070
67,121
1,005,005


Disposals
(249,740)
(74,655)
-
(324,395)



At 30 November 2023

4,222,551
267,371
351,878
4,841,800



Depreciation


At 1 December 2022
2,036,862
286,234
122,910
2,446,006


Charge for the year
242,379
6,082
23,673
272,134


Transfers intra group
538,817
22,736
35,598
597,151


Disposals
(164,899)
(65,792)
-
(230,691)



At 30 November 2023

2,653,159
249,260
182,181
3,084,600



Net book value



At 30 November 2023
1,569,392
18,111
169,697
1,757,200



At 30 November 2022
1,237,507
23,635
128,291
1,389,433

The net book value of assets held under finance leases or hire purchase contracts, included above, is £222,420 (2022 - £168,155).


12.


Stocks

2023
2022
£
£

Raw materials, consumables and work in progress
475,707
782,847


Page 20

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

13.


Debtors

2023
2022
£
£


Trade debtors
1,266,378
1,436,518

Amounts owed by group undertakings
15,549,663
16,658,141

Other debtors
73,080
78,830

Prepayments and accrued income
147,572
95,255

17,036,693
18,268,744


The company discounts its trade debtors. The debtors discounted at the year end were £1,374,735 (2022 - £1,307,109).


14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
5,633
54,949



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Other loans
140,526
136,334

Trade creditors
615,608
549,828

Other taxation and social security
230,010
315,169

Obligations under finance lease and hire purchase contracts
58,452
38,348

Invoice discounting creditor
924,516
993,340

Other creditors
5,105
218,354

Accruals and deferred income
257,875
337,367

2,232,092
2,588,740


The invoice discounting creditor is secured by a fixed and floating charge over the assets of the company.
Other loans totalling £93,895 (2022 - £83,823) are secured by a fixed and floating charge over the assets of the company and related undertakings.
Obligations under finance lease' and hire purchase contracts are secured over the assets to which they relate.

Page 21

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other loans
11,600,539
11,694,434

Net obligations under finance leases and hire purchase contracts
114,880
114,945

11,715,419
11,809,379


The other loan is secured by a fixed and floating charge over the assets of the company and related undertakings.
Obligations under finance lease' and hire purchase contracts are secured over the assets to which they relate.


17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Other loans
140,526
136,334

Amounts falling due 1-2 years

Other loans
105,176
93,895

Amounts falling due 2-5 years

Other loans
397,604
354,957

Amounts falling due after more than 5 years

Other loans
11,097,759
11,245,582

11,741,065
11,830,768


Other loans of £11,647,170 (2022 - £11,778,257) are repayable in instalments over 29 years. Interest is payable at 11.4% per annum.

Page 22

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
58,452
38,348

Between 1-5 years
114,880
114,945

173,332
153,293

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


19.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
16,894,754
18,228,438


Financial liabilities


Financial liabilities measured at amortised cost
(13,544,169)
(13,929,657)


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings, other debtors and cash at bank and in hand.
Financial liabilities measured at amortised cost comprise other loans, trade creditors, invoice discounting creditor, other creditors and accruals.


20.


Deferred taxation




2023


£






At beginning of year
(298,330)



At end of year
(298,330)

Page 23

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
 
20.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(376,576)
(298,330)

Tax losses carried forward
78,246
-

(298,330)
(298,330)


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



104 (2022 - 104) Ordinary shares of £1.00 each
104
104



22.


Reserves

Share premium account

This reserve records the amount above the nominal value received for the shares issues.

Profit and loss account

This reserve records all current and prior period retained profits and losses.

Page 24

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

23.


Contingent liabilities

A group VAT registration is in force. The company is therefore jointly and severally liable for the amount of VAT owed by United Glass Group Ltd. At the balance sheet date this amounted to £4,386 (2022 - £18,618).
Lloyds Bank plc hold a letter of set off between the company, parent company and fellow subsidiaries, Peterlee Glass Limited, Brownhills Investment Property Limited, Tufwell Glass Limited, Peterlee Two Limited and London Architectural Glass Ltd. The company is therefore jointly and severally liable for the amount owed by United Glass Group Ltd, Peterlee Glass Limited, Brownhills Investments Property Limited, Tufwell Glass Limited, Peterleetwo Limited and London Architectural Glass Ltd to Lloyds Bank plc. The total balances guaranteed at 30 November 2023 amounted to £2,275,166 (2022 - £3,482,833).
Since March 2023, Lombard North Central PLC hold a guarantee and indemnity between the company and fellow subsidiaries, Peterlee Glass Limited, Brownhills Investment Property Limited, Tufwell Glass Limited and London Architectural Glass Ltd. The company is therefore jointly and severally liable for the amount owed by Peterlee Glass Limited, Brownhills Investments Property Limited, Tufwell Glass Limited and London Architectural Glass Ltd to Lombard North Central PLC. The total balances guaranteed at 30 November 2023 amounted to £183,563.


24.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the pension scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £52,535 (2022 - £48,027). Contributions totalling £3,273 (2022 - £6,042) were payable to the fund at the balance sheet date and are included in creditors.


25.


Commitments under operating leases

At 30 November 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
395,839
414,031

Later than 1 year and not later than 5 years
1,167,614
1,223,276

Later than 5 years
268,750
518,136

1,832,203
2,155,443

Page 25

 
BROWNHILLS GLASS COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

26.


Related party transactions

Other loans of £11,647,170 (2022 - £11,778,257) referred to in note 17 is owed to a related party.
 
The company has taken advantage of the exemption in section 33.1A of Financial Reporting Standard 102 from the requirement to disclose transactions with wholly owned members of the group.
The company has taken advantage of the exemption under Financial Reporting Standard 102 Section 1.12 Reduced Disclosures For Subsidiaries from disclosing key management compensation in total.


27.


Controlling party

The company is a wholly owned subsidiary undertaking of United Glass Group Ltd, which is also the ultimate parent company. The registered address of the parent company is Beecham Close, Aldridge, Walsall, West Midlands, WS9 8UZ. 
United Glass Group Ltd prepares group financial statements and copies can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
At the balance sheet date, the ultimate controlling party was M E Harrison by virtue of his shareholding in United Glass Group Ltd. Subsequently, at the time of approval of these financial statements, the ultimate controlling party is now Duke Royalty UK Limited by virtue of their shareholding in United Glass Group Ltd. 
 
Page 26