Company registration number 05766476 (England and Wales)
ALUPROF UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ALUPROF UK LIMITED
COMPANY INFORMATION
Director
W Brozyna
Company number
05766476
(England and Wales)
Registered office
Unit A5 Altrincham Business Park
Stuart Road Broadheath
Altrincham
Cheshire
WA14 5GJ
Auditor
Champion Accountants LLP
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
ALUPROF UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
ALUPROF UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Review of the business
The company continues to sell and distribute aluminium architectural systems and related technical products.
The director seeks to convey a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. This review is consistent with the size and complexity of our business and in consideration of the risks and uncertainties faced.
This was another year of robust company performance amidst a dynamic macroeconomic landscape. The year has been marked by significant shifts in resource allocation, labour market adjustments, and fiscal policies, which have directly influenced the construction sector. Despite these challenges, our business has achieved a considerable milestone, securing a 21% growth in our garage door systems product range. We also maintained profitability and EBITDA on targeted levels. This performance reflects our unwavering commitment to excellence and innovation in response to the needs of the market.
Our strategic decision to restructure and bolster our sales force was instrumental in navigating the uncertainties of the past year. This reorganisation has not only enhanced our service delivery but has significantly contributed to our competitive edge within the industry.
Principal risks and uncertainties
The director considers the principal risks and uncertainties of the company to include cost inflation, rising interest rates and the aftershocks of Brexit and Covid-19.
Cost inflation
Through a mixture of detailed forecasts and network feedback the company can accurately predict future stock demands. This knowledge enables the company to make informed stock decisions and allows us to deliver strong lead times.
Interest Rates
Throughout the year the company maintained a strong balance sheet and significant cash balances. This focus shielded the company from the impacts of rising interest rates and enabled the company to capitalise on arising opportunities.
Brexit
Our company’s principal activity is the distribution of European Aluminium products throughout the United Kingdom and Republic of Ireland. Our primary concern during the Brexit process was to ensure the seamless flow of products through our network. We addressed this issue by developing close relations with Customs Clearance agents and through internal staff training.
Covid-19
During pandemic the company acted in a way to safeguard the health and wellbeing of staff and customers. We adopted flexible and remote working practices to ensure we continued delivering excellence in a safe and responsible manner. The company has now returned to pre-pandemic working practices.
ALUPROF UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
The company’s key financial and performance indicators during the year comprised of;
- Company Turnover £28,287,351 (2022: £30,750,385)
- Gross Profit £5,011,772 (2022: £5,624,813)
- Profit after tax £1,236,830 (2022: £1,919,856)
- Employee numbers 32 (2022: 33)
Future Developments
Our 2024 roadmap is clear and ambitious. We are dedicated to the development of high-performing, eco-friendly products, aligning with the global and national impetus for green transformation. In parallel, we plan to introduce our advanced range of products to the residential market, meeting the burgeoning demand for efficient and smart home solutions.
We also seek to expand our offerings in the highly specialised fire safety market. We recognise the value of safety and reliability in our products and aspire to set new industry benchmarks through targeted research and development.
Furthermore, our major projects team is eager to lend their expertise to the large-scale commercial developments expected throughout the coming year. Through vertical integration, we offer unique advantages that promote efficiency, innovation, and seamless project execution. We trust in our strategic initiatives and look forward to forging new partnerships, nurturing existing relationships, and delivering excellence throughout 2024.
W Brozyna
Director
16 February 2024
ALUPROF UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be the sale and distribution of aluminium architectural systems.
Results and dividends
The results for the year are set out on page 8.
During the year a special dividend of £18.18 (2022: £nil), an interim dividend of £12.06 (2022: £14.90) and final dividend of £8.17 (2022: £16.51) per Ordinary Share was paid in respect of the financial year ended 31st December 2023.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
W Brozyna
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 88 day's purchases, based on the average daily amount invoiced by suppliers during the year.
Auditor
Champion Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
ALUPROF UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is 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, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the company's ability to continue as a going concern.
The director is 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. He is 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.
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
On behalf of the board
W Brozyna
Director
16 February 2024
ALUPROF UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALUPROF UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Aluprof UK Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 UK adopted international accounting standards.
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 UK adopted international accounting standards; 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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
ALUPROF UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALUPROF UK LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: IFRS, Companies Act 2006 & GDPR.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment
accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
ALUPROF UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALUPROF UK LIMITED
- 7 -
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to deferred income, depreciation methods & cut-off.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key revenue lines, in particular cut-off, for evidence of management bias.
- Performing a physical verification of key assets and stock items (including testing of the stock system).
- Obtaining third-party confirmation of material bank balances.
- Documenting and verifying all significant related party balances and transactions.
There are inherent limitations in the 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. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Mark Turner FCA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP
16 February 2024
Chartered Accountants
Statutory Auditor
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
ALUPROF UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Revenue
3
28,287,351
30,750,385
Cost of sales
(23,275,579)
(25,125,572)
Gross profit
5,011,772
5,624,813
Administrative expenses
(3,308,023)
(3,204,725)
Operating profit
4
1,703,749
2,420,088
Investment revenues
7
29,624
Finance costs
8
(78,673)
(72,100)
Profit before taxation
1,654,700
2,347,988
Income tax expense
9
(417,870)
(428,132)
Profit and total comprehensive income for the year
1,236,830
1,919,856
The income statement has been prepared on the basis that all operations are continuing operations.
ALUPROF UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
Assets
Non-current assets
Intangible assets
11
136
1,076
Property, plant and equipment
12
809,124
976,653
Other receivables
14
1,005,035
1,814,295
977,729
Current assets
Inventories
13
305,444
421,448
Trade and other receivables
14
4,460,542
6,684,236
Cash and cash equivalents
1,946,753
3,102,197
6,712,739
10,207,881
Total assets
8,527,034
11,185,610
Equity and liabilities
Current liabilities
Trade and other payables
16
6,463,454
8,173,521
Current tax liabilities
236,401
224,956
Lease liabilities
17
229,112
248,303
Provisions
19
247,293
218,672
7,176,260
8,865,452
Non-current liabilities
Lease liabilities
17
258,889
353,075
Deferred tax liabilities
18
64,936
64,414
323,825
417,489
Total liabilities
7,500,085
9,282,941
Equity
Called up share capital
21
55,000
55,000
Retained earnings
971,949
1,847,669
Total equity
1,026,949
1,902,669
Total equity and liabilities
8,527,034
11,185,610
The financial statements were approved and signed by the director and authorised for issue on 16 February 2024
W Brozyna
Director
Company Registration No. 05766476
ALUPROF UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
55,000
1,655,433
1,710,433
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,919,856
1,919,856
Transactions with owners:
Dividends
10
-
(1,727,620)
(1,727,620)
Balance at 31 December 2022
55,000
1,847,669
1,902,669
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,236,830
1,236,830
Transactions with owners:
Dividends
10
-
(2,112,550)
(2,112,550)
Balance at 31 December 2023
55,000
971,949
1,026,949
ALUPROF UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,724,409
4,260,055
Interest paid
(78,673)
(72,100)
Income taxes paid
(405,903)
(356,960)
Net cash inflow from operating activities
1,239,833
3,830,995
Investing activities
Purchase of property, plant and equipment
(210,725)
(280,419)
Proceeds from disposal of property, plant and equipment
11,751
6,501
Interest received
29,624
Net cash used in investing activities
(169,350)
(273,918)
Financing activities
Payment of lease liabilities
(113,377)
(50,968)
Dividends paid
(2,112,550)
(1,727,620)
Net cash used in financing activities
(2,225,927)
(1,778,588)
Net (decrease)/increase in cash and cash equivalents
(1,155,444)
1,778,489
Cash and cash equivalents at beginning of year
3,102,197
1,323,708
Cash and cash equivalents at end of year
1,946,753
3,102,197
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Aluprof UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit A5 Altrincham Business Park, Stuart Road Broadheath, Altrincham, Cheshire, WA14 5GJ. The company's principal activities and nature of its operations are disclosed in the director's report.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The director has at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus he continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is recognised when products and services are delivered.
1.4
Intangible 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:
Licences, software and development costs
Licence are amortised on a straight line basis over the assets estimated useful economic life of ten years
Software is amortised on a straight line basis over the assets estimated useful economic life of three years
Product development costs are amortised on a straight line basis over the assets estimated useful economic life of three years.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation 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:
Leasehold improvements
Straight line over the life of the lease
Fixtures and fittings
15% on reducing balance basis
Plant and equipment
Straight line over 15 years
Computers
Straight line over 5 years
Right-of-use assets
Period of the lease
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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 recognised in the income statement.
1.6
Impairment of tangible and intangible assets
At each reporting 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.
1.7
Inventories
Inventories 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 inventories to their present location and condition.
The FIFO cost model has been adopted for valuing inventories.
1.8
Cash and cash equivalents
Cash and cash equivalents 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.
1.9
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.10
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:
it has been incurred principally for the purpose of repurchasing it in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
1.14
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 inventories or non-current 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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.17
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.
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Estimation techniques include methods of depreciation as stated within the accounting policies. The provision for bad debts is measured by the collectability of individual debtors and is determined by the management. Estimation techniques are also used to derive the estimated useful life of the intangible assets and the amortisation required in order to write down these assets over their lifetime. Discount factor used in the net present value calculation of lease liabilities.
3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Building Systems
18,076,995
22,422,123
Roller Shutters
9,938,774
8,106,141
Other
271,582
222,121
28,287,351
30,750,385
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
90,274
(67,356)
Research and development costs
13,798
16,043
Fees payable to the company's auditor for the audit of the company's financial statements
10,500
10,500
Depreciation of property, plant and equipment
372,945
368,853
Profit on disposal of property, plant and equipment
(6,442)
(4,301)
Amortisation of intangible assets (included within administrative expenses)
940
2,245
Cost of inventories recognised as an expense
23,275,579
25,125,572
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
1
1
Administration
25
25
Sales
6
7
Total
32
33
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,464,006
1,546,608
Social security costs
161,073
182,696
Pension costs
36,513
42,990
1,661,592
1,772,294
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
115,740
122,185
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
(Continued)
- 18 -
7
Investment income
2023
2022
£
£
Interest income
Financial instruments measured at amortised cost:
Other interest income on financial assets
29,624
Income above relates to assets held at amortised cost, unless stated otherwise.
8
Finance costs
2023
2022
£
£
Interest on lease liabilities
75,164
71,327
Other interest payable
3,509
773
Total interest expense
78,673
72,100
9
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
411,517
436,141
Adjustments in respect of prior periods
5,831
(11,900)
Total UK current tax
417,348
424,241
Deferred tax
Origination and reversal of temporary differences
(11,958)
3,891
Changes in tax rates
12,480
522
3,891
Total tax charge
417,870
428,132
On 1st April 2023, the rate of applicable UK corporation tax increased from 19% to 25%.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Income tax expense
(Continued)
- 19 -
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
£
£
Profit before taxation
1,654,700
2,347,988
Expected tax charge based on a corporation tax rate of 23.52% (2022: 19.00%)
389,185
446,118
Effect of expenses not deductible in determining taxable profit
10,374
4,238
Adjustment in respect of prior years
5,831
(11,694)
Effect of change in UK corporation tax rate
12,480
Research and development tax credit
(10,530)
Taxation charge for the year
417,870
428,132
10
Dividends
2023
2022
2023
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary shares
Interim dividend paid
12.06
14.90
663,300
819,500
Final dividend paid
8.17
16.51
449,350
908,120
Special dividend paid
18.18
-
999,900
-
38.41
31.41
2,112,550
1,727,620
During the prior year the dividend distribution policy was revised, and a special dividend was voted in order to apply the new policy to previous years.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Intangible assets
Licences, Software & Development
£
Cost
At 1 January 2022
166,207
At 31 December 2022
166,207
At 31 December 2023
166,207
Amortisation and impairment
At 1 January 2022
162,886
Charge for the year
2,245
At 31 December 2022
165,131
Charge for the year
940
At 31 December 2023
166,071
Carrying amount
At 31 December 2023
136
At 31 December 2022
1,076
At 31 December 2021
3,321
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Property, plant and equipment
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Right-of-use assets
Total
£
£
£
£
£
£
Cost
At 1 January 2022
365,551
681,695
76,999
77,966
1,217,435
2,419,646
Additions
142,986
7,325
6,307
123,801
280,419
Disposals
(28,278)
(28,278)
At 31 December 2022
365,551
796,403
84,324
84,273
1,341,236
2,671,787
Additions
69,174
901
5,724
134,926
210,725
Disposals
(18,851)
(18,851)
At 31 December 2023
365,551
846,726
85,225
89,997
1,476,162
2,863,661
Accumulated depreciation and impairment
At 1 January 2022
138,195
544,424
37,771
53,330
578,639
1,352,359
Charge for the year
51,729
68,930
6,891
9,639
231,664
368,853
Eliminated on disposal
(26,078)
(26,078)
At 31 December 2022
189,924
587,276
44,662
62,969
810,303
1,695,134
Charge for the year
51,729
72,011
6,039
8,742
234,424
372,945
Eliminated on disposal
(13,542)
(13,542)
At 31 December 2023
241,653
645,745
50,701
71,711
1,044,727
2,054,537
Carrying amount
At 31 December 2023
123,898
200,981
34,524
18,286
431,435
809,124
At 31 December 2022
175,627
209,127
39,662
21,304
530,933
976,653
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2023
2022
£
£
Net values at the year end
Property
376,089
395,751
Motor vehicles
55,345
135,181
431,434
530,932
Total additions in the year
134,926
123,801
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Inventories
2023
2022
£
£
Finished goods
305,444
421,448
14
Trade and other receivables
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Trade receivables
4,320,327
6,549,977
-
-
Amount owed by parent undertaking
1,005,035
Prepayments
140,215
134,259
-
-
4,460,542
6,684,236
1,005,035
-
Trade receivables includes an impairment of £158,986 (2022: £248,508).
15
Trade receivables - credit risk
Fair value of trade receivables
The director considers that the carrying amount of trade and other receivables is approximately equal to their fair value.
Expected credit loss assessment
2023
2022
Balance
Rate
Loss allowance
Balance
Rate
Loss allowance
Trade receivables
£
%
£
£
%
£
Trade receivables due within 3 months
3,769,270
-
-
6,090,402
-
-
Trade receivables due within 6 months
566,315
-
-
459,575
-
-
4,335,585
-
6,549,977
-
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
16
Trade and other payables
2023
2022
£
£
Trade payables
5,046,731
5,717,257
Amount owed to parent undertaking
449,350
908,050
Accruals
96,500
128,885
Social security and other taxation
858,843
1,405,689
Other payables
12,030
13,640
6,463,454
8,173,521
Amounts owed to parent undertakings are interest free and repayable on demand.
17
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
275,090
303,444
In two to three years
308,826
365,014
In over three years
7,528
79,242
Lease liabilities in the financial statements
591,444
747,700
Future finance charges and other adjustments
(103,443)
(146,322)
Lease liabilities in the financial statements
488,001
601,378
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2023
2022
£
£
Current liabilities
229,112
248,303
Non-current liabilities
258,889
353,075
488,001
601,378
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
75,164
71,327
The fair value of the company's lease obligations is approximately equal to their carrying amount.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
ACAs
£
Liability at 1 January 2022
60,523
Deferred tax movements in prior year
Charge/(credit) to profit or loss
3,891
Liability at 1 January 2023
64,414
Deferred tax movements in current year
Charge/(credit) to profit or loss
(11,958)
Effect of change in tax rate - profit or loss
12,480
Liability at 31 December 2023
64,936
19
Provisions for liabilities
Analysis of provisions
Provisions are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2023
2022
£
£
Current liabilities
247,293
218,672
Movements on provisions:
£
At 1 January 2023
218,672
Additional provisions in the year
28,621
At 31 December 2023
247,293
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
36,513
42,990
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.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
55,000
55,000
55,000
55,000
22
Capital risk management
The company is not subject to any externally imposed capital requirements.
23
Related party transactions
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Parent company
18,107
526
14,675,845
18,238,237
Entities with joint control or significant influence over the company
8,184,591
6,452,503
18,107
526
22,860,436
24,690,740
Interest received
2023
2022
£
£
Parent company
29,624
-
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Parent company
3,754,146
4,190,907
Entities with joint control or significant influence over the company
1,624,658
1,456,246
5,378,804
5,647,153
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Parent company
1,005,035
-
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Related party transactions
(Continued)
- 26 -
During the year, the company provided a loan of £1,000,000 to its parent company, Aluprof SA.
The loan is due for repayment in June 2025, and interest is charged at a rate of 1.04% above the SONIA rate.
Other information
During the course of the year the company purchased technical consulting services from WB Business Consulting Ltd amounting to £15,264 (2022 - £15,264). The director is related to WB Business Consulting Ltd by way of his interest in the Ordinary Share capital of that company. There was no balance outstanding at the year end during the current and prior year. The transactions were conducted on an arm's length basis and were subject to normal company terms and conditions.
24
Controlling party
The entire issued share capital was aquired on the 3rd April 2006 by Aluprof SA which is incorporated in Poland. The Group Report can be obtained from Krajowy Rejestr Sadowy in Poland. The ultimate controlling party is Grupa Kety SA which is a company that is listed on the Warsaw Stock Exchange.
25
Cash generated from operations
2023
2022
£
£
Profit for the year before income tax
1,654,700
2,347,988
Adjustments for:
Finance costs
78,673
72,100
Investment income
(29,624)
Gain on disposal of property, plant and equipment
(6,442)
(4,301)
Amortisation and impairment of intangible assets
940
2,245
Depreciation and impairment of property, plant and equipment
372,945
368,853
Increase in provisions
28,621
45,876
Movements in working capital:
Decrease in inventories
116,004
252,773
Decrease/(increase) in trade and other receivables
1,218,659
(1,615,316)
(Decrease)/increase in trade and other payables
(1,710,067)
2,789,837
Cash generated from operations
1,724,409
4,260,055
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