Company registration number 03451163 (England and Wales)
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JANUARY 2024
Premier House
127 Duckmoor Road
Ashton Gate
Bristol
England
BS3 2BJ
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr J P Shearn
Mr C J Shearn
Secretary
Mr C J Shearn
Company number
03451163
Registered office
18 Rickford Road
NAILSEA
North Somerset
BS48 4PY
Auditor
TC Group
Premier House
127 Duckmoor Road
Ashton Gate
Bristol
England
BS3 2BJ
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 28
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The directors present the strategic report for the year ended 31 January 2024.
Fair review of the business
Over the last twelve months the Company has recruited a professional production manager with over 20 years of experience in the industry resulting in improved manufacturing processes enabling the Company to increase its productivity. Some machines will be replaced in the coming months to help improve efficiency and quality. The company has sufficient capacity over and above the usual production levels at the present so any improvements in efficiency are considered as a positive growth.
As the industry is experiencing growth in all sectors so the demands on the Company have increased and have continued to do so since the year-end.
The turnover for the year was £6,637,776 compared to £7,173,516 for 2023. The gross profit margin increased from 52.8% to 57.4%. This is largely due to the increase in selling prices to offset the impact of increasing costs of raw materials.
The profit after taxation was £664,104 compared to £1,064,002 in 2023, and the decrease is due to increasing administrative costs such as light and heat which is largely caused by renewal of contracts at a much more competitive rate at the time. These costs are expected to decrease again at the end of the short term contract.
Net assets increased from £5,575,043 to £5,817,147 and this is largely due to an increase in a cash balance following from decrease in trade debtors.
Principal risks and uncertainties
The past 12 months have seen numerous factors contribute to uncertainty in the supply chain and upward pressures on costs. The Company has a network of reliable suppliers, with whom management work closely to advance orders and secure prices, as well as maintain availability to meet contractual needs. Prices are monitored regularly against a panel of suppliers to ensure that we are getting the best value to be able to pass onto our customers.
However, the Company has healthy cash reserves which minimise any uncertainties that may be facing the business.
Mr J P Shearn
Director
29 October 2024
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company is the manufacture and installation of windows, doors and conservatories.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were declared amounting to £422,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J P Shearn
Mr C J Shearn
Future developments
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the foreseeable future.
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.
Auditor
In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the company will be put at a General Meeting.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 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
Mr J P Shearn
Mr C J Shearn
Director
Director
29 October 2024
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
- 5 -
Opinion
We have audited the financial statements of Seal-Lite Windows Doors & Conservatories Limited (the 'company') for the year ended 31 January 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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 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 January 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.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
- 6 -
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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
- 7 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
- 8 -
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.
Amanda Kruger FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
29 October 2024
Office: Bristol
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
year
Year
ended
ended
31 January
31 January
2024
2023
Notes
£
£
Turnover
3
6,637,776
7,173,516
Cost of sales
(2,825,237)
(3,379,299)
Gross profit
3,812,539
3,794,217
Administrative expenses
(2,992,407)
(2,472,217)
Other operating income
533
Operating profit
4
820,665
1,322,000
Interest receivable and similar income
7
58,732
11,456
Profit before taxation
879,397
1,333,456
Tax on profit
8
(215,293)
(269,454)
Profit for the financial year
664,104
1,064,002
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
year
Year
ended
ended
31 January
31 January
2024
2023
£
£
Profit for the year
664,104
1,064,002
Other comprehensive income
-
-
Total comprehensive income for the year
664,104
1,064,002
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,363,594
1,430,159
Current assets
Stocks
12
220,687
222,116
Debtors
13
503,454
806,556
Cash at bank and in hand
4,893,619
4,134,399
5,617,760
5,163,071
Creditors: amounts falling due within one year
14
(981,133)
(898,682)
Net current assets
4,636,627
4,264,389
Total assets less current liabilities
6,000,221
5,694,548
Provisions for liabilities
Provisions
15
80,210
Deferred tax liability
16
102,864
119,505
(183,074)
(119,505)
Net assets
5,817,147
5,575,043
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
5,817,047
5,574,943
Total equity
5,817,147
5,575,043
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
Mr J P Shearn
Mr C J Shearn
Director
Director
Company Registration No. 03451163
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
100
4,825,941
4,826,041
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
1,064,002
1,064,002
Dividends
9
-
(315,000)
(315,000)
Balance at 31 January 2023
100
5,574,943
5,575,043
Period ended 31 January 2024:
Profit and total comprehensive income for the period
-
664,104
664,104
Dividends
9
-
(422,000)
(422,000)
Balance at 31 January 2024
100
5,817,047
5,817,147
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,357,961
1,261,218
Income taxes paid
(207,305)
(241,847)
Net cash inflow from operating activities
1,150,656
1,019,371
Investing activities
Purchase of tangible fixed assets
(40,368)
(262,573)
Proceeds from disposal of tangible fixed assets
12,200
15,461
Interest received
58,732
11,456
Net cash generated from/(used in) investing activities
30,564
(235,656)
Financing activities
Dividends paid
(422,000)
(245,000)
Net cash used in financing activities
(422,000)
(245,000)
Net increase in cash and cash equivalents
759,220
538,715
Cash and cash equivalents at beginning of year
4,134,399
3,595,684
Cash and cash equivalents at end of year
4,893,619
4,134,399
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
1
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.
In the opinion of the directors there are no significant judgements or areas of estimation uncertainty.
2
Accounting policies
Company information
Seal-Lite Windows Doors & Conservatories Limited is a private company limited by shares incorporated in England and Wales. The registered office is 18 Rickford Road, NAILSEA, North Somerset, BS48 4PY.
The principal place of business is 1 Tweed Road, Clevedon, North Somerset BS21 6RR.
2.1
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. The principal accounting policies adopted are set out below.
2.2
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.
2.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, 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.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 15 -
2.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years. As at 01 February 2021 goodwill was fully amortised.
2.5
Tangible fixed assets
Tangible fixed assets 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:
Freehold land and buildings
2% Straight Line Basis
Plant and machinery
15% Reducing Balance Basis
Office Equipment
33% Straight Line Basis
Motor vehicles
25% 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.
With regard to the depreciation of freehold buildings, the directors consider that compliance with FRS 102 section 17 is inconsistent with the requirement to give a true and fair view, for the reasons described below:
The company maintains its freehold building in an excellent state of repair. Therefore in the opinion of the directors the residual value of the freehold building is highly unlikely to be less than its historic cost, particularly given the tendency for freehold buildings to appreciate in the longer term.
Hence, in the opinion of the directors the annual depreciation charge attaching to the freehold building is trivial and may be regarded as nil.
The directors have concluded that the financial statements present a true and fair view and have complied with accounting standards and applicable legislation subject to this departure.
2.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Stocks are measured on the FIFO basis.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 16 -
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.
2.7
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.
2.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 17 -
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
2.9
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.
2.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, 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 is for a warranty provision based on 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.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
2
Accounting policies
(Continued)
- 19 -
2.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Manufacturing
6,637,776
7,173,516
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
6,637,776
7,173,516
2024
2023
£
£
Other revenue
Interest income
58,732
11,456
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
17,850
20,000
Depreciation of owned tangible fixed assets
103,258
69,011
Profit on disposal of tangible fixed assets
(8,525)
(4,504)
Operating lease charges
33,430
22,982
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and sales
18
15
Installation and production
31
45
Total
49
60
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,749,358
1,600,159
Social security costs
172,284
162,663
Pension costs
339,645
37,314
2,261,287
1,800,136
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
17,560
17,664
Company pension contributions to defined contribution schemes
300,000
-
317,560
17,664
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Directors' remuneration
(Continued)
- 21 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 0).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
58,427
11,152
Other interest income
305
304
Total income
58,732
11,456
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
58,427
11,152
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
231,934
205,974
Deferred tax
Origination and reversal of timing differences
(16,641)
63,480
Total tax charge
215,293
269,454
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
8
Taxation
(Continued)
- 22 -
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
879,397
1,333,456
Expected tax charge based on the standard rate of corporation tax in the UK of 24.00% (2023: 19.00%)
211,055
253,357
Tax effect of expenses that are not deductible in determining taxable profit
4,223
2,426
Permanent capital allowances in excess of depreciation
15
13,671
Taxation charge for the period
215,293
269,454
9
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary A Shares
Final paid
875.00
70,000
Interim paid
4,075.00
3,200.00
326,000
186,000
4,075.00
4,075.00
326,000
256,000
Ordinary B Shares
Interim paid
4,800.00
2,950.00
96,000
59,000
Total dividends
Final paid
70,000
Interim paid
422,000
245,000
422,000
315,000
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2023
14,000
Disposals
(14,000)
At 31 January 2024
Amortisation and impairment
At 1 February 2023
14,000
Disposals
(14,000)
At 31 January 2024
Carrying amount
At 31 January 2024
At 31 January 2023
11
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Office Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
952,140
1,034,265
132,735
371,726
2,490,866
Additions
30,083
10,285
40,368
Disposals
(13,942)
(32,143)
(46,085)
At 31 January 2024
952,140
1,064,348
129,078
339,583
2,485,149
Depreciation and impairment
At 1 February 2023
825,592
128,068
107,047
1,060,707
Depreciation charged in the year
31,853
5,335
66,070
103,258
Eliminated in respect of disposals
(13,942)
(28,468)
(42,410)
At 31 January 2024
857,445
119,461
144,649
1,121,555
Carrying amount
At 31 January 2024
952,140
206,903
9,617
194,934
1,363,594
At 31 January 2023
952,140
208,673
4,667
264,679
1,430,159
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
12
Stocks
2024
2023
£
£
Raw materials and consumables
166,302
138,366
Work in progress
54,385
83,750
220,687
222,116
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
487,182
725,228
Other debtors
50
50,943
Prepayments and accrued income
16,222
30,385
503,454
806,556
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
396,455
448,343
Corporation tax
230,603
205,974
Other taxation and social security
228,270
180,156
Other creditors
94,163
38,639
Accruals and deferred income
31,642
25,570
981,133
898,682
15
Provisions for liabilities
2024
2023
£
£
Warranty provision
80,210
-
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
15
Provisions for liabilities
(Continued)
- 25 -
Movements on provisions:
Warranty provision
£
Additional provisions in the year
80,210
16
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
102,864
119,505
2024
Movements in the year:
£
Liability at 1 February 2023
119,505
Credit to profit or loss
(16,641)
Liability at 31 January 2024
102,864
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 26 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
339,645
37,314
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.
18
Related party transactions
Summary of transactions with other related parties
Mrs Joanna Shearn (wife of Mr C J Shearn)
During the year ended 31 January 2024 dividends were paid in the sum of £48,000 (2023 - £29,500) to Mrs Joanna Shearn.
Mrs Joanne Shearn (wife of Mr J P Shearn)
During the year ended 31 January 2024 dividends were paid in the sum of £48,000 (2023 - £29,500) to Mrs Joanne Shearn.
19
Operating lease commitments
Lessee
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
14,578
21,680
Between two and five years
11,263
34,277
25,841
55,957
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
80
80
80
80
Ordinary B Shares of £1 each
20
20
20
20
100
100
100
100
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
21
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
The loan was fully repaid on 8 February 2023.
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Mr C J Shearn - Interest free loan repayable on demand
-
50,735
(50,735)
-
50,735
(50,735)
-
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
664,104
1,064,002
Adjustments for:
Taxation charged
215,293
269,454
Investment income
(58,732)
(11,456)
Gain on disposal of tangible fixed assets
(8,525)
(4,504)
Depreciation and impairment of tangible fixed assets
103,258
69,011
Increase in provisions
80,210
-
Movements in working capital:
Decrease/(increase) in stocks
1,429
(27,265)
Decrease in debtors
303,102
35,835
Increase/(decrease) in creditors
57,822
(133,859)
Cash generated from operations
1,357,961
1,261,218
SEAL-LITE WINDOWS DOORS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
23
Analysis of changes in net debt
2024
£
Opening net funds
Cash at bank and in hand
4,134,399
Changes in net debt arising from:
Cash flows of the entity
759,220
Closing net funds as analysed below
4,893,619
Closing net funds
Cash at bank and in hand
4,893,619
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