Company registration number 06930456 (England and Wales)
SUPALITE TILED ROOF SYSTEMS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SUPALITE TILED ROOF SYSTEMS LTD
COMPANY INFORMATION
Directors
Mr D Watters
Miss N A Watters
Mr S L Hacking
Mr A J Watters
Mr W Clarkson
Company number
06930456
Registered office
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Unit 180 / 181 Bradkirk Place
Walton Summit
Bamber Bridge
Preston
PR5 8AJ
SUPALITE TILED ROOF SYSTEMS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
SUPALITE TILED ROOF SYSTEMS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
2023 saw more challenges for the business, one of the main challenges that our company faced in the year was the reduced demand for our products. Due to the economic uncertainty, many consumers postponed or cancelled their purchases of non-essential items, such as home improvement projects, furniture and appliances. This resulted in a lower volume of sales and a decline in turnover.
Moreover, we faced increased competition from suppliers offering budget alternatives to attract customers. To cope with this situation, we had to invest more in marketing and customer service and reduce overhead costs.
Another challenge that affected our business performance in 2023 was the inflation rate, which reached its highest level since 1992. Furthermore, the inflation eroded our customers' purchasing power and made them more price-sensitive and cautious. To mitigate this impact, we had to monitor and adjust our pricing strategy regularly and seek new sources of supply and efficiency gains.
Total sales for 2023 amounted to £14.15 million, a 10% decrease from the previous year.
The sales figures fell below the budgeted targets and the performance achieved in 2022.
We saw a significant improvement in our gross profit margin in 2023 due to reduced raw material costs. We negotiated favourable contracts with our suppliers, translating into a higher gross margin and a lower break-even point. Our gross profit margin increased from 37% in 2022 to 41% in 2023, this enhanced our profitability and competitiveness in the market.
We continued to invest in machinery and vehicles, taking delivery of three new delivery vehicles in 2023. Given that the emission rules regarding accessing central London had changed, we had to upgrade the fleet to comply with the regulations.
We kept our staff numbers steady from 2022 to 2023, which helped us maintain operational efficiency.
A key strategy we implemented to reduce our operating costs is the consolidation of our premises. By relocating some of our departments to a single location, we significantly saved rent, utilities, maintenance and transportation expenses.
The Company has achieved a pre-tax profit of £1.83 million, less than the £2.017 million in the prior year. Even though the net profit has decreased, we have shown strength and created a strong basis for future expansion. The Balance Sheet net assets have risen from £6.05 million to £6.90 million.
SUPALITE TILED ROOF SYSTEMS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties
The company has a policy to identify key business risks and manage them appropriately.
The company’s principal financial instruments continue to be bank balances, trade debtors, trade creditors, and finance leases. These instruments finance daily business operations.
Around 60% of our trade debtors are assisted through credit facilities. Credit is only provided when suitable credit insurance cover is in place, or the customer has built up a reliable trading history based on paying on time, etc, and balances are kept within the insurer's pre-determined limits.
The remaining 40% of our trade debtors are on pro forma terms. In most cases, payment is received before the product is manufactured or, in the worst case, 72 hours before delivery.
The business has excellent cash flow with around 40% pro forma payments.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The business has obligations under finance leases and hire purchase contracts. Liquidity risk related to these contracts is managed by ensuring sufficient funds to meet payments.
The company is careful to keep its borrowing within comfortable gearing limits while maintaining its ability to invest in its people, plant, and premises.
Other information and explanations
The following are used in budget preparation for 2024:
Gross margins will increase in the first half of the year, with a slight decrease during Q3 & Q4.
Direct costs will remain at 6.5% of sales.
Machinery investments are expected to continue in 2024 by commissioning a mezzanine at Bradkirk Place to accommodate production processes at this location.
Further investment in commercial vehicles in 2024 to replace end-of-life vehicles.
Sales have been 13% behind the forecast through the year's first half. However, growth is anticipated in the second half of the year.
Miss N A Watters
Director
30 August 2024
SUPALITE TILED ROOF SYSTEMS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of conservatory sales.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £843,433. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D Watters
Miss N A Watters
Mr S L Hacking
Mr A J Watters
Mr C M Stewart
(Resigned 31 May 2024)
Mr W Clarkson
Auditor
The auditor, Pierce C A Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Miss N A Watters
Director
30 August 2024
SUPALITE TILED ROOF SYSTEMS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SUPALITE TILED ROOF SYSTEMS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPALITE TILED ROOF SYSTEMS LTD
- 5 -
Opinion
We have audited the financial statements of Supalite Tiled Roof Systems Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SUPALITE TILED ROOF SYSTEMS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPALITE TILED ROOF SYSTEMS LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:
The nature of the company’s activities and its control environment.
Results of our enquiries of management.
The company’s procedures and controls on compliance with laws and regulations and the risks of fraud.
Discussions among the audit engagement team concerning potential indicators of fraud.
We are also required to perform specific procedures to respond to the risk of management override.
As a result of our audit procedures we did not identify a material risk of fraud or other non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
SUPALITE TILED ROOF SYSTEMS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPALITE TILED ROOF SYSTEMS LTD
- 7 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Paul Moulding (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
2 September 2024
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
SUPALITE TILED ROOF SYSTEMS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
14,152,225
15,724,198
Cost of sales
(8,362,243)
(9,983,046)
Gross profit
5,789,982
5,741,152
Administrative expenses
(3,958,290)
(3,708,590)
Operating profit
4
1,831,692
2,032,562
Interest receivable and similar income
8
26,826
10,727
Interest payable and similar expenses
9
(19,219)
(26,075)
Profit before taxation
1,839,299
2,017,214
Tax on profit
10
(137,398)
(305,873)
Profit for the financial year
1,701,901
1,711,341
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SUPALITE TILED ROOF SYSTEMS LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
4,611
Tangible assets
13
854,519
769,618
859,130
769,618
Current assets
Stocks
14
1,336,358
1,599,841
Debtors
15
5,410,784
4,746,852
Cash at bank and in hand
1,687,234
1,957,627
8,434,376
8,304,320
Creditors: amounts falling due within one year
16
(2,014,138)
(2,690,851)
Net current assets
6,420,238
5,613,469
Total assets less current liabilities
7,279,368
6,383,087
Creditors: amounts falling due after more than one year
17
(157,983)
(141,484)
Provisions for liabilities
Deferred tax liability
19
212,249
190,935
(212,249)
(190,935)
Net assets
6,909,136
6,050,668
Capital and reserves
Called up share capital
21
132
132
Profit and loss reserves
6,909,004
6,050,536
Total equity
6,909,136
6,050,668
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
Miss N A Watters
Director
Company registration number 06930456 (England and Wales)
SUPALITE TILED ROOF SYSTEMS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
132
5,514,195
5,514,327
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,711,341
1,711,341
Dividends
11
-
(1,175,000)
(1,175,000)
Balance at 31 December 2022
132
6,050,536
6,050,668
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,701,901
1,701,901
Dividends
11
-
(843,433)
(843,433)
Balance at 31 December 2023
132
6,909,004
6,909,136
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Supalite Tiled Roof Systems Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Mentor House, Ainsworth Street, Blackburn, Lancashire, BB1 6AY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of Supalite Group Limited. These consolidated financial statements are available from its registered office.
1.2
Going concern
The directors are not aware of any material uncertainties affecting the company and consider that the company will have sufficient resources to continue trading for the foreseeable future. As a result the directors have continued to adopt the going concern basis in preparing the financial statements.true
1.3
Turnover
Turnover represents amounts receivable for goods and services provided net of VAT and trade discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents
10% Straight Line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
20% Reducing Balance
Fixtures, fittings & equipment
15% Reducing Balance
Motor vehicles
25% Reducing Balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred taxation balance has not been discounted.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. 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 profit and loss accounts so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sale of conservatories
14,152,225
15,724,198
2023
2022
£
£
Other significant revenue
Interest income
33,402
10,727
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
117,452
142,311
Depreciation of tangible fixed assets held under finance leases
74,511
30,859
Loss on disposal of tangible fixed assets
13,286
121
Amortisation of intangible assets
383
-
Operating lease charges
402,799
437,662
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,000
11,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
71
72
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,294,386
2,147,069
Social security costs
204,129
207,748
Pension costs
36,792
36,633
2,535,307
2,391,450
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
294,475
307,618
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
99,292
106,179
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
26,826
5,873
Other interest income
4,854
Total income
26,826
10,727
9
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
16,946
10,843
Other interest
2,273
15,232
19,219
26,075
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
162,560
343,070
Adjustments in respect of prior periods
(46,476)
(66,034)
Total current tax
116,084
277,036
Deferred tax
Origination and reversal of timing differences
21,314
28,837
Total tax charge
137,398
305,873
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,839,299
2,017,214
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
432,613
383,271
Tax effect of expenses that are not deductible in determining taxable profit
1,769
1,680
Effect of change in corporation tax rate
1,261
Group relief
(4,481)
(2,598)
Other permanent differences
2
(10,446)
Under/(over) provided in prior years
(46,476)
(66,034)
Patent box relief
(245,270)
Enhanced capital allowances claimed
(2,020)
Taxation charge for the year
137,398
305,873
11
Dividends
2023
2022
£
£
Interim paid
843,433
1,175,000
12
Intangible fixed assets
Patents
£
Cost
At 1 January 2023
Additions
4,994
At 31 December 2023
4,994
Amortisation and impairment
At 1 January 2023
Amortisation charged for the year
383
At 31 December 2023
383
Carrying amount
At 31 December 2023
4,611
At 31 December 2022
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
937,105
300,706
213,707
1,451,518
Additions
92,340
4,353
213,457
310,150
Disposals
(41,150)
(41,150)
At 31 December 2023
1,029,445
305,059
386,014
1,720,518
Depreciation and impairment
At 1 January 2023
485,553
138,020
58,327
681,900
Depreciation charged in the year
102,273
24,641
65,049
191,963
Eliminated in respect of disposals
(7,864)
(7,864)
At 31 December 2023
587,826
162,661
115,512
865,999
Carrying amount
At 31 December 2023
441,619
142,398
270,502
854,519
At 31 December 2022
451,552
162,686
155,380
769,618
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
85,426
130,491
Motor vehicles
241,961
327,387
130,491
Depreciation charge for the year in respect of leased assets
74,511
30,859
14
Stocks
2023
2022
£
£
Raw materials and consumables
1,247,440
1,538,028
Work in progress
88,918
61,813
1,336,358
1,599,841
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
792,189
858,305
Corporation tax recoverable
247,553
247,553
Amounts owed by group undertakings
4,230,342
3,195,712
Other debtors
6
302,849
Prepayments and accrued income
140,694
142,433
5,410,784
4,746,852
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Net obligations due under hire purchase contracts
18
169,111
126,060
Trade creditors
967,964
1,456,199
Corporation tax
395,645
696,161
Other taxation and social security
439,828
375,967
Other creditors
5,537
7,407
Accruals and deferred income
36,053
29,057
2,014,138
2,690,851
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Net obligations due under hire purchase contracts
18
157,983
141,484
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
169,111
126,060
In two to five years
157,983
141,484
327,094
267,544
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Net obligations due under hire purchase contracts are secured against the assets to which they relate.
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
212,249
190,935
2023
Movements in the year:
£
Liability at 1 January 2023
190,935
Charge to profit or loss
21,314
Liability at 31 December 2023
212,249
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
36,792
36,633
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
A Ordinary shares of £1 each
32
32
32
32
132
132
132
132
SUPALITE TILED ROOF SYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum annual lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
324,678
345,286
Between two and five years
931,388
104,738
1,256,066
450,024
23
Related party transactions
The company has taken advantage of the provisions of FRS 102 to not disclose transactions and balances with companies which are within the same wholly owned group of companies, and which are therefore eliminated on consolidation.
24
Directors' transactions
During the year the company operated a loan account with a director of the company, charging interest at 2% on the overdrawn balance. At the balance sheet date the company was owed £nil (2022 - £267,713) by Mr D Watters and interest charged for the year was £nil (2022 - £4,854).
25
Ultimate controlling party
The company is a wholly owned subsidiary of its ultimate parent company, Supalite Group Limited, a company registered in England and Wales.
The company is ultimately controlled by its directors by virtue of their shareholdings in Supalite Group
Limited.
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