Company registration number 07150011 (England and Wales)
IQ GLASS SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
IQ GLASS SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
R Beaumont
M Piekarewicz
R Clayton
G Davis
D Finnegan
A Slatford
E Greene
J Jones
M Napier
Company number
07150011
Registered office
Sky House
Raans Road
Amersham
Buckinghamshire
HP6 6JQ
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
IQ GLASS SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 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 - 23
IQ GLASS SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The company’s HQ and International showroom is located in Amersham, Buckinghamshire.
Satellite offices in Taunton for the South-West & Channel Islands region, and Grendon for the Midlands, Northern England, and Scotland, serve the growing customer base in those regions.
The company offers premium glazing products under a number of its own brands including: Minimal Sliding Windows, Sieger Systems, Mondrian steel & fire-rated systems, MIRO internal systems, MARS & ARES automated rooflights, Invisio structural glazing, and AVINO for a full range of timber products.
IQ has become synonymous amongst architects and specifiers for innovative and technical high specification residential and commercial glazing.
The IQ team work passionately to deliver stunning glazing designs to clients in the UK and internationally. We continue to provide early engagement with clients and architects to develop their schemes through the initial design and budget to completion of the project.
The directors are pleased to report that the period under review saw the company's turnover at £21.04m. Gross margins have improved in the year, increasing from 39.02% to 48.69% in the year. The company’s level of turnover and gross profit are key performance indicators that are monitored monthly by the management team.
We also had strong revenue income from other business activities such as our affiliated partner scheme, property rentals and commission fees contributing to our overall profitability.
The company remains firmly established as one of the UK’s leaders in architectural glazing and high specification aluminium, timber, and steel systems in the residential and commercial markets.
The directors remain confident that the company will perform strongly in the coming years. The company has an experienced and dedicated team of employees who are committed to providing a high quality product for all of its clients.
Principal risks and uncertainties
The directors are aware of the risk and uncertainties within the construction industry, and is well placed to adapt to all circumstances and has taken measures to mitigate these risks, principally surrounding non-payment of debts. Additionally, the directors work closely with their supply-chain partners in the UK and Europe to provide premium products and to provide foresight of any product cost or supply changes.
Liquidity risk
The company aims to mitigate liquidity risk by closely managing cash generation by its operating business and monitoring performance. Capital investment is closely controlled with authorisation up to Director level.
Interest rate risk
The company's exposure to changes in market interest rates is not considered to be a significant financial risk as the group does not operate a bank overdraft and has no borrowings.
Foreign currency risk
The company trades primarily in the UK and as such the level of foreign currency risk is quite low.
Credit risk
It is the company's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. The company only offers terms to recognised creditworthy third parties. In addition, receivables balances are monitored on an ongoing basis, along with debtor days, and action is taken promptly when payment terms are breached.
IQ GLASS SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
G Davis
Director
11 September 2024
IQ GLASS SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of providing and installing architectural and structural glazing.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £7,130,913. 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:
R Beaumont
M Piekarewicz
R Clayton
G Davis
D Finnegan
A Slatford
E Greene
J Jones
M Napier
Auditor
The auditor, JS. Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
IQ GLASS SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.
On behalf of the board
G Davis
Director
11 September 2024
IQ GLASS SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IQ GLASS SOLUTIONS LIMITED
- 5 -
Opinion
We have audited the financial statements of IQ Glass Solutions Limited (the 'company') for the year ended 31 March 2024 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 March 2024 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.
IQ GLASS SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IQ GLASS SOLUTIONS LIMITED (CONTINUED)
- 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.
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 sector, we identified that the principal risks of non-compliance with laws and regulations related to, but was not limited to, the Companies Act 2006, tax, employment, pension and health and safety legislation and 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.
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 management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.
IQ GLASS SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IQ GLASS SOLUTIONS LIMITED (CONTINUED)
- 7 -
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
in addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Christopher Moss BSc F.C.A.
Senior Statutory Auditor
For and on behalf of JS. Audit Limited
13 September 2024
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
IQ GLASS SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
21,044,275
22,185,995
Cost of sales
(10,797,957)
(13,528,111)
Gross profit
10,246,318
8,657,884
Administrative expenses
(5,431,951)
(5,672,280)
Other operating income
1,057,969
1,258,608
Operating profit
4
5,872,336
4,244,212
Interest receivable and similar income
7
100,597
13,878
Amounts written off investments
8
6,213
(35,406)
Profit before taxation
5,979,146
4,222,684
Tax on profit
9
(1,455,802)
(744,488)
Profit for the financial year
4,523,344
3,478,196
The profit and loss account has been prepared on the basis that all operations are continuing operations.
IQ GLASS SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
19,776
17,834
Tangible assets
12
682,125
725,179
Investments
13
1,003,508
701,901
1,746,521
Current assets
Stocks
14
418,069
440,866
Debtors
15
6,177,976
6,811,396
Cash at bank and in hand
4,705,800
6,369,603
11,301,845
13,621,865
Creditors: amounts falling due within one year
16
(7,681,380)
(8,375,986)
Net current assets
3,620,465
5,245,879
Total assets less current liabilities
4,322,366
6,992,400
Provisions for liabilities
Deferred tax liability
17
31,915
94,380
(31,915)
(94,380)
Net assets
4,290,451
6,898,020
Capital and reserves
Called up share capital
19
106
106
Capital redemption reserve
17
17
Profit and loss reserves
4,290,328
6,897,897
Total equity
4,290,451
6,898,020
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 11 September 2024 and are signed on its behalf by:
G Davis
Director
Company registration number 07150011 (England and Wales)
IQ GLASS SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
106
17
5,882,706
5,882,829
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
3,478,196
3,478,196
Dividends
10
-
-
(2,463,005)
(2,463,005)
Balance at 31 March 2023
106
17
6,897,897
6,898,020
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
4,523,344
4,523,344
Dividends
10
-
-
(7,130,913)
(7,130,913)
Balance at 31 March 2024
106
17
4,290,328
4,290,451
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information
IQ Glass Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sky House, Raans Road, Amersham, Buckinghamshire, HP6 6JQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of IQ Glass Group Holdings Limited. These consolidated financial statements are available from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for provision and installation of architectural and structural glazing, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
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 & licences
10% per annum straight line basis
Website
20% per annum straight line basis
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.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% per annum straight line basis
Plant and equipment
25% per annum reducing balance basis
Motor vehicles
25% per annum reducing balance basis
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.8
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.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.17
The comparative figures have been restated to more accurately disclose elements of the company's income as other income, whereas it was previously included in turnover. The amount reclassified is £976,751. There has been no impact on the prior year results or the brought forward reserves.
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. The critical estimate made by the directors in preparing these financial statements relates to their assessment of the level of accrued and deferred income in relation to the stage of completion of contract work as detailed in Note 1.3.
3
Turnover and other revenue
2024
2023
as restated
£
£
Turnover analysed by class of business
Provision of architectural and structural glazing
21,044,275
22,185,995
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 16 -
2024
2023
as restated
£
£
Turnover analysed by geographical market
United Kingdom
21,044,275
21,373,483
Europe
-
619,436
Rest of the World
-
193,076
21,044,275
22,185,995
2024
2023
as restated
£
£
Other revenue
Interest income
100,597
13,878
Commissions received
233,237
193,460
Rental income
170,482
281,857
Management charges receivable
654,250
783,291
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(121,561)
(155,912)
Fees payable to the company's auditor for the audit of the company's financial statements
18,975
18,575
Depreciation of owned tangible fixed assets
285,573
279,782
Loss/(profit) on disposal of tangible fixed assets
11,396
(14,548)
Amortisation of intangible assets
6,058
4,458
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and support
77
91
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,240,719
3,493,048
Social security costs
352,945
380,668
Pension costs
89,957
94,144
3,683,621
3,967,860
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
958,311
786,118
Company pension contributions to defined contribution schemes
45,925
46,077
1,004,236
832,195
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2023 - 7).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
161,161
154,104
Company pension contributions to defined contribution schemes
1,321
1,321
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
100,597
13,878
8
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
6,213
(35,406)
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,518,267
728,059
Deferred tax
Origination and reversal of timing differences
(62,465)
16,429
Total tax charge
1,455,802
744,488
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:
2024
2023
£
£
Profit before taxation
5,979,146
4,222,684
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,494,787
802,310
Tax effect of expenses that are not deductible in determining taxable profit
1,515
6,882
Group relief
(42,451)
(61,165)
Permanent capital allowances in excess of depreciation
1,951
(6,458)
Deferred tax change in tax rates
2,919
Taxation charge for the year
1,455,802
744,488
A UK corporation tax rate of 25% was announced in the Chancellor’s Budget of 3 March 2021 and will apply from 1 April 2023. Deferred tax has been calculated at this rate.
10
Dividends
2024
2023
£
£
Interim paid
7,130,913
2,463,005
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Intangible fixed assets
Patents & licences
Website
Total
£
£
£
Cost
At 1 April 2023
25,000
22,292
47,292
Additions
8,000
8,000
Disposals
(25,000)
(25,000)
At 31 March 2024
30,292
30,292
Amortisation and impairment
At 1 April 2023
25,000
4,458
29,458
Amortisation charged for the year
6,058
6,058
Disposals
(25,000)
(25,000)
At 31 March 2024
10,516
10,516
Carrying amount
At 31 March 2024
19,776
19,776
At 31 March 2023
17,834
17,834
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
591,465
541,980
447,460
1,580,905
Additions
239,339
2,126
13,000
254,465
Disposals
(62,916)
(9,082)
(71,998)
At 31 March 2024
830,804
481,190
451,378
1,763,372
Depreciation and impairment
At 1 April 2023
339,579
346,655
169,492
855,726
Depreciation charged in the year
166,161
47,383
72,029
285,573
Eliminated in respect of disposals
(53,822)
(6,230)
(60,052)
At 31 March 2024
505,740
340,216
235,291
1,081,247
Carrying amount
At 31 March 2024
325,064
140,974
216,087
682,125
At 31 March 2023
251,886
195,325
277,968
725,179
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
13
Fixed asset investments
2024
2023
£
£
Listed investments
1,003,508
The company's fixed asset investments were valued by reference to published readily ascertainable market values.
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 April 2023
1,003,508
Valuation changes
6,213
Disposals
(1,009,721)
At 31 March 2024
-
Carrying amount
At 31 March 2024
-
At 31 March 2023
1,003,508
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
418,069
440,866
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,545,417
1,399,855
Amounts owed by group undertakings
4,335,741
4,868,000
Other debtors
506
155,539
Prepayments and accrued income
296,312
388,002
6,177,976
6,811,396
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,330,326
1,987,754
Amounts owed to group undertakings
339,807
7,807
Corporation tax
1,074,290
505,393
Other taxation and social security
152,739
113,347
Other creditors
52,216
51,464
Accruals and deferred income
4,732,002
5,710,221
7,681,380
8,375,986
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
31,915
94,380
2024
Movements in the year:
£
Liability at 1 April 2023
94,380
Credit to profit or loss
(62,465)
Liability at 31 March 2024
31,915
The deferred tax liability set out above is expected to reverse within 3 to 4 years and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,957
94,144
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.
Contributions totalling £12,116 (2022: £11,299) were payable to the scheme at the end of the year and are included in creditors.
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Oridnary A shares of £1 each
80
80
106
80
Ordinary B shares of £1 each
10
10
-
10
Ordinary C shares of £1 each
10
10
-
10
Ordinary D shares of £1 each
1
1
-
1
Ordinary E shares of £1 each
2
2
-
2
Ordinary F shares of £1 each
2
2
-
2
Ordinary G shares of £1 each
1
1
-
1
106
106
106
106
20
Financial commitments, guarantees and contingent liabilities
The company is party to a cross guarantee between IQ Glass Group Holdings Limited, IQ Glass Group Limited and Sieger Systems Limited in favour of the group's bankers. The maximum potential liability as at 31 March 2024 was £3,888,889 (2023: £Nil).
21
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
361,144
361,144
Between two and five years
1,444,576
1,444,576
In over five years
2,287,245
2,648,389
4,092,965
4,454,109
22
Related party transactions
Other information
The company is a wholly owned subsidiary of a group that prepares publicly available consolidated financial statements, namely the group headed by IQ Glass Group Holdings Limited, and has therefore taken advantage of the exemption available under Financial Reporting Standard 102 not to disclose related party transactions entered into between two or more members of the group.
IQ GLASS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
23
Ultimate controlling party
The company is a wholly owned subsidiary of IQ Glass Group Limited, a company incorporated in England and Wales. The company's ultimate parent undertaking is IQ Glass Group Holdings Limited, a company incorporated in England and Wales which prepares consolidated financial statements, copies of which can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ. The ultimate controlling party is deemed to be The IQ Glass Employee Ownership Trust.
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