Company registration number 11906897 (England and Wales)
SUPER TOUGHENED GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
SUPER TOUGHENED GROUP LTD
COMPANY INFORMATION
Directors
Mr R K Hirani
Mr S D Meghani
Mr Amit Patel
Secretary
Mr R K Hirani
Company number
11906897
Registered office
65-67 Wembley Hill Road
Wembley
Middlesex
HA9 8DP
Auditor
King & King Chartered Accountants & Statutory Auditors
65-67 Wembley Hill Road
Wembley
Middlesex
HA9 8DP
SUPER TOUGHENED GROUP LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
SUPER TOUGHENED GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.

Principal activities

The principal activity of the group during the reporting period continued to be that of manufacture and supply of toughened and processed glass.

Review of the business

The management considered the underlying performance, the state of affairs and the future prospects of the Group’s business to be satisfactory. The group’s revenue decreased during the year to £14.58m compared to £17.97m in 2023. Post year end demand for our products has remained relatively stable.

 

The group made a gross profit during the year of £5,000,186 (2023: £4,848,137) with an increase in margin to 34.29% (2023: 26.97%). The gross profit margin has improved due to lower energy prices and group has entered into fixed price agreements for raw materials with its suppliers.

 

At the statement of financial position date, the net assets of the group stood at £47,714,018 (2023: £43,107,633), the increase of £4,606,385. The group's cash position at the statement of financial position date was £947,745 (2023: £3,730,424).

 

Future development & events after reporting date

Post year end group sold one of its investment property on 16th December 2024.

The outlook for the next financial year is challenging due to economic uncertainty caused by inflation and high interest rates. The market continues to be competitive and the group has strategy and business model to sustain and improve profitability and growth. The aim is to achieve this by refining the business model to deliver a high level customer care, profit margins and use of optimum resources and processes. The group strives to improve its offering by maintaining a good relationship with suppliers, customers and employees.

 

Principal risks and uncertainties

There are several potential risks and uncertainties which could have an impact on the group's financial performance.

 

Raw material

The pricing for these raw material is largely determined by national and international factors which are beyond the management's control. Short term volatility in the pricing of such inputs and any reduction in availability can impact the group’s financial performance. However, a significant proportion is covered by supply agreements with customers which mitigate this risk.

 

Environmental liabilities

The group conducts its operations in such a manner as to ensure compliance with environmental laws and regulations. If events occur where action is necessary to maintain compliance, the group will devote suitable resources to the issue in order to remedy the situation.

 

Employees

The workforce employed is small therefore, the group recognises the importance of this resource and as such reviews its remuneration and recruitment policies on a regular basis, in order to ensure the they continue to retain and attract the best possible workforce.

 

SUPER TOUGHENED GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

Future trading and liquidity risk

The financial stability of the group depends on its future trading and liquidity. The group regularly prepares budget and cash flow forecasts based on the likely levels of demand from key customers. The resulting working capital projections are reviewed regularly to ensure cash resources are adequate. The group is reliant on timely receipt from customers. Short term cash flow need is monitored on a daily and weekly basis to ensure commitments are met on a timely basis.

 

Product quality control

Maintaining a high level of quality in the products is key to the group. The business is exposed to warranty, product recall and liability claims in the event that our products fail to perform as expected. In order to mitigate this risk, the group has extensive quality assurance checks embedded in all parts of the business, from design and development to the production process and delivery to the customers. This role is performed by a dedicated quality control team, who report to management on a regular basis.

 

Health and safety

Providing a safe working environment is a key priority for the group. The group has health and safety programs and regular risk assessments, which are implemented and enforced throughout the group and overseen by management.

Key performance indicators

The directors have identified the following "Key performance indicators" to help, understand and measure the performance of the group.

2024 2023

£ £

Revenue 14,582,471 17,976,717

Operating (loss)/ profit (15,382) (973,306)

Gross profit margin 34.29% 26.97%

 

The directors also use non-financial performance indicators to monitor, control performance and manage risks. These indicators are regularly reviewed to ensure that they remain appropriate and relevant to monitor the challenges, complexities and improvements in the business. In any event the directors are of the opinion that underlying financial statements would enable key financial KPI's to be evaluated.

On behalf of the board

Mr R K Hirani
Director
17 February 2025
SUPER TOUGHENED GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

The directors present their annual report and the audited financial statements for the year ended 31 May 2024.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further 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 R K Hirani
Mr S D Meghani
Mr Amit Patel
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

The auditor, King & King, Chartered Accountants and Statutory Auditor is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of risks to financial instruments and is included within principal risks and uncertainties..

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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R K Hirani
Director
17 February 2025
SUPER TOUGHENED GROUP LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SUPER TOUGHENED GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPER TOUGHENED GROUP LTD
- 5 -
Opinion

We have audited the financial statements of Super Toughened Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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.

Other information

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.

With respect to the Strategic Report and Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

 

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

SUPER TOUGHENED GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPER TOUGHENED GROUP LTD
- 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SUPER TOUGHENED GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPER TOUGHENED GROUP LTD
- 7 -
Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

 

 

 

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls.

 

We also obtained an understanding of the legal and regulatory framework that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or avoid a material penalty. This included health and safety law.

Audit response to the risk identified

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

 

In addition to the above, our procedures to respond to risks identified included the following:

 

 

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit.

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.

SUPER TOUGHENED GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPER TOUGHENED GROUP LTD
- 8 -

Use of our 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.

Rajesh Patel (Senior Statutory Auditor)
For and on behalf of King & King Chartered Accountants and statutory auditor
65-67 Wembley Hill Road
Wembley
Middlesex
HA9 8DP
17 February 2025
SUPER TOUGHENED GROUP LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
14,582,471
17,976,717
Cost of sales
(9,582,285)
(13,128,580)
Gross profit
5,000,186
4,848,137
Distribution costs
(734,206)
(1,059,187)
Administrative expenses
(5,625,967)
(5,274,286)
Other operating income
1,344,605
512,030
Operating loss
4
(15,382)
(973,306)
Interest receivable and similar income
7
2,024,095
2,117,027
Interest payable and similar expenses
8
(717,396)
(115,557)
Fair value gains and losses on investment properties
9
4,981,241
-
Profit before taxation
6,272,558
1,028,164
Tax on profit
10
(1,666,173)
(495,287)
Profit for the financial year
28
4,606,385
532,877
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
SUPER TOUGHENED GROUP LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024
31 May 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
7,671,202
9,205,441
Tangible assets
12
3,122,711
3,594,794
Investment property
13
24,467,178
19,485,937
35,261,091
32,286,172
Current assets
Stocks
16
308,274
359,547
Debtors
17
1,954,824
2,265,981
Investments
18
22,925,000
17,850,280
Cash at bank and in hand
947,745
3,730,424
26,135,843
24,206,232
Creditors: amounts falling due within one year
19
(2,781,679)
(3,193,882)
Net current assets
23,354,164
21,012,350
Total assets less current liabilities
58,615,255
53,298,522
Creditors: amounts falling due after more than one year
20
(9,048,121)
(9,361,786)
Provisions for liabilities
Deferred tax liability
23
1,853,116
829,103
(1,853,116)
(829,103)
Net assets
47,714,018
43,107,633
Capital and reserves
Called up share capital
26
2,400
2,400
Share premium account
27
18,750,000
18,750,000
Profit and loss reserves
28
28,961,618
24,355,233
Total equity
47,714,018
43,107,633

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 February 2025 and are signed on its behalf by:
17 February 2025
Mr S D Meghani
Director
Company registration number 11906897 (England and Wales)
SUPER TOUGHENED GROUP LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024
31 May 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
29,713,776
29,713,776
Current assets
Debtors
17
4,939
6,040
Cash at bank and in hand
55,947
61,205
60,886
67,245
Creditors: amounts falling due within one year
19
(6,764)
(6,240)
Net current assets
54,122
61,005
Net assets
29,767,898
29,774,781
Capital and reserves
Called up share capital
26
2,400
2,400
Share premium account
27
18,750,000
18,750,000
Profit and loss reserves
28
11,015,498
11,022,381
Total equity
29,767,898
29,774,781

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £6,883 (2023 - £6,570 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 17 February 2025 and are signed on its behalf by:
17 February 2025
Mr S D Meghani
Director
Company registration number 11906897 (England and Wales)
SUPER TOUGHENED GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2022
2,400
18,750,000
23,822,356
42,574,756
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
532,877
532,877
Balance at 31 May 2023
2,400
18,750,000
24,355,233
43,107,633
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
4,606,385
4,606,385
Balance at 31 May 2024
2,400
18,750,000
28,961,618
47,714,018
SUPER TOUGHENED GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2022
2,400
18,750,000
11,028,950
29,781,350
Year ended 31 May 2023:
Loss and total comprehensive income for the year
-
-
(6,569)
(6,569)
Balance at 31 May 2023
2,400
18,750,000
11,022,381
29,774,781
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
(6,883)
(6,883)
Balance at 31 May 2024
2,400
18,750,000
11,015,498
29,767,898
SUPER TOUGHENED GROUP LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
1,857,605
1,968,338
Interest paid
(717,396)
(115,557)
Income taxes paid
(318,844)
(7,120,869)
Net cash inflow/(outflow) from operating activities
821,365
(5,268,088)
Investing activities
Purchase of tangible fixed assets
(62,169)
(74,012)
Proceeds from disposal of tangible fixed assets
179,157
-
Purchase of investment property
-
(18,068,760)
Purchase of investments
(20,925,000)
-
Proceeds from disposal of investments
15,850,280
11,816,628
Interest received
2,024,095
2,117,027
Net cash used in investing activities
(2,933,637)
(4,209,117)
Financing activities
Proceeds from new bank loans
-
19,898,061
Repayment of bank loans
(409,607)
(10,061,497)
Payment of finance leases obligations
(260,800)
(324,570)
Net cash (used in)/generated from financing activities
(670,407)
9,511,994
Net (decrease)/increase in cash and cash equivalents
(2,782,679)
34,789
Cash and cash equivalents at beginning of year
3,730,424
3,695,635
Cash and cash equivalents at end of year
947,745
3,730,424
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
1
Accounting policies
Company information

Super Toughened Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 65-67 Wembley Hill Road, Wembley, Middlesex, HA9 8DP.

 

The group consists of Super Toughened Group Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

 

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

 

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Super Toughened Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The directors have prepared detailed financial projections for 15 months to 31 May 2026. These projections are based on assumptions that the directors consider to be reasonable and achievable.

 

In preparing these projections, the directors have also considered the potential impact of possible recession and the ongoing inflation in the UK economy. As at the date of approving these financial statements the group’s trading volumes and client base have not been significantly affected by the state of the UK economy, although it is difficult to evaluate all the potential implications on the group’s trade, customers and the wider economy.

 

The group incurred an operating loss of £15,382 and the statement of financial position shows net assets of £47,714,018.

 

After considering the above matters, current trading levels, and the existing banking facilities available to the group, the directors believe that the group will have adequate resources to meet its liabilities as they fall due so as to operate as a going concern for at least twelve months following the date of approval of these financial statements. The directors therefore consider it appropriate to continue to apply the going concern basis for preparing the financial statements.

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
1.5
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.

 

Revenue is recognised as the customer obtains control over the glass and glass-related products upon delivery. This is based on the judgement that performance obligation had been satisfied upon transfer of control. Unless there is specific reason to use an alternative assumption, the company considers the control over the glass and glass related products to rest with customer once the customer has either accepted the glass at their premises or has collected the glass themselves from the company's premises.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 10 years

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

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:

Plant and equipment
10% reducing balance
Fixtures and fittings
10% reducing balance
Motor vehicles
20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stocks are recognised as an expense in the period in which the related revenue is recognised.

 

Cost is determined on the first-in, first-out method. 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.

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.

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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.

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 20 -
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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

1.19
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.

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful life of property, plant and equipment

Management reviews the useful life of property, plant and equipment on a regular basis. Any changes in estimates may effect the carrying amounts of the respective property, plant and equipment with a corresponding effect on the related depreciation charge.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provision of bad debts

An allowance for bad debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified. The trade receivables balance is assessed at the end of each reporting period whether there is evidence of impairment and recognises a bad debt allowance if such evidence arises.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
14,582,471
17,976,717
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,582,471
17,976,717
2024
2023
£
£
Other revenue
Interest income
2,024,095
2,117,027
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange gains
(1,480)
(731)
Fees payable to the group's auditor for the audit of the group's financial statements
6,500
6,000
Depreciation of owned tangible fixed assets
389,135
389,290
Depreciation of tangible fixed assets held under finance leases
-
121,845
(Profit)/loss on disposal of tangible fixed assets
(34,040)
549,169
Amortisation of intangible assets
1,534,240
1,534,241
Operating lease charges
1,440,097
1,438,778
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
114
113
3
3
10
10
-
-
5
5
-
-
Total
129
128
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,438,695
3,465,568
-
0
-
0
Social security costs
407,178
391,708
-
-
Pension costs
700,000
480,000
-
0
-
0
4,545,873
4,337,276
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
131,980
126,523
Company pension contributions to defined contribution schemes
460,000
480,000
591,980
606,523
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
107
10
Other interest income
2,023,988
2,117,017
Total income
2,024,095
2,117,027
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
708,282
351,615
Interest on finance leases and hire purchase contracts
9,114
11,055
Other interest
-
(247,113)
Total finance costs
717,396
115,557
9
Fair value gains/(losses)
2024
2023
£
£
Changes in the fair value of investment properties
4,981,241
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
742,762
562,151
Adjustments in respect of prior periods
(100,602)
(2,998)
Total current tax
642,160
559,153
Deferred tax
Origination and reversal of timing differences
1,024,013
(63,866)
Total tax charge
1,666,173
495,287
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Taxation
(Continued)
- 25 -

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
6,272,558
1,028,164
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
1,568,140
205,633
Tax effect of expenses that are not deductible in determining taxable profit
587
885
Gains not taxable
(8,510)
-
0
Permanent capital allowances in excess of depreciation
44,296
49,404
Amortisation on assets not qualifying for tax allowances
383,560
308,232
Under/(over) provided in prior years
(100,603)
-
0
Deferred tax adjustments in respect of prior years
-
0
(5,001)
Deferred tax adjustments
(221,297)
(63,866)
Taxation charge
1,666,173
495,287
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
15,342,405
Amortisation and impairment
At 1 June 2023
6,136,964
Amortisation charged for the year
1,534,240
At 31 May 2024
7,671,204
Carrying amount
At 31 May 2024
7,671,201
At 31 May 2023
9,205,441
The company had no intangible fixed assets at 31 May 2024 or 31 May 2023.
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2023
7,259,640
907,551
868,583
9,035,774
Additions
56,990
5,179
-
0
62,169
Disposals
(179,157)
-
0
-
0
(179,157)
At 31 May 2024
7,137,473
912,730
868,583
8,918,786
Depreciation and impairment
At 1 June 2023
4,233,832
703,563
503,585
5,440,980
Depreciation charged in the year
295,219
20,917
72,999
389,135
Eliminated in respect of disposals
(34,040)
-
0
-
0
(34,040)
At 31 May 2024
4,495,011
724,480
576,584
5,796,075
Carrying amount
At 31 May 2024
2,642,462
188,250
291,999
3,122,711
At 31 May 2023
3,025,808
203,988
364,998
3,594,794
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
343,244
526,500
-
0
-
0
Motor vehicles
202,702
253,378
-
0
-
0
545,946
779,878
-
-
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 June 2023 and 31 May 2024
19,485,937
-
Net gains or losses through fair value adjustments
4,981,241
-
At 31 May 2024
24,467,178
-
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
13
Investment property
(Continued)
- 27 -

Investment properties comprise of freehold which was purchased on 11 July 2014. This is held at fair value as at 31 May 2024 on the basis of a valuation carried out by the directors. The valuation which does not differ from the valuation at the end of the reporting period, was arrived by reference to market evidence of transactions prices for similar properties.

 

The historic cost of the freehold investment property was £1,417,176 (2023: £1,417,176)

 

Company purchased an investment property on 25th October 2022 for the sum of £18,068,760. As at 31 May 2024, the fair value of the investment property was £23,050,000 on the basis of valuation carried out by the directors. Changes in fair value are recognised in the statement of comprehensive income. This is held as security by the bank by way of legal charge dated 25/10/2022. There is fixed and floating debenture from the company and subsidiary company, including a first ranking fixed charge over Unit E, Chiltern Park, Boscombe Rd, Dunstable LU5 4LT.

 

Investment property Unit E Chiltern Park was sold post year end on 16th December 2024.

 

 

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
29,713,776
29,713,776
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023 and 31 May 2024
29,713,776
Carrying amount
At 31 May 2024
29,713,776
At 31 May 2023
29,713,776
15
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Super Toughened Glass Ltd
65-67 Wembley Hill Road,Wembley, Middlesex HA9 8DP
Ordinary
100.00
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 28 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
177,825
185,607
-
-
Work in progress
130,449
173,940
-
-
308,274
359,547
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,745,454
2,049,002
-
0
-
0
Corporation tax recoverable
-
0
189,056
-
0
-
0
Amounts owed by group undertakings
-
-
2,538
2,538
Other debtors
23,701
27,923
2,401
3,502
Prepayments and accrued income
185,669
-
0
-
0
-
0
1,954,824
2,265,981
4,939
6,040

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

18
Current asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
22,925,000
17,850,280
-
-

Unlisted investments have fixed coupon rates at 7.0% - 10.5% (2023: 7.0% - 10.5%) and mature between 14th December 2023 and 30 May 2025 (2023: 1 January 2023 and 30 September 2024). They are measured at amortised cost.

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
378,836
494,894
-
0
-
0
Obligations under finance leases
22
20,116
260,800
-
0
-
0
Trade creditors
647,372
1,598,310
-
0
240
Corporation tax payable
134,260
-
0
-
0
-
0
Other taxation and social security
305,046
290,434
39
-
Deferred income
24
89,219
49,649
-
0
-
0
Other creditors
1,094,890
395,564
-
0
-
0
Accruals and deferred income
111,940
104,231
6,725
6,000
2,781,679
3,193,882
6,764
6,240

The hire purchase and liability obligations are secured against the assets to which they relate.

20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
9,048,121
9,341,670
-
0
-
0
Obligations under finance leases
22
-
0
20,116
-
0
-
0
9,048,121
9,361,786
-
-

The hire purchase obligations are secured against the assets to which they relate.

 

The bank loan is repayable by instalments by 25th October 2027. Interest charged on the loan at 2.15% p.a. over Bank of England base rate. The Bank loan is secured by way of fixed charge over the freehold property of the company. The parent company has given cross guarantee and and debenture.

 

The bank loan was paid in full post year end on 16th December 2024.

 

21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
9,426,957
9,836,564
-
0
-
0
Payable within one year
378,836
494,894
-
0
-
0
Payable after one year
9,048,121
9,341,670
-
0
-
0
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
21
Loans and overdrafts
(Continued)
- 30 -

The bank loan is repayable by instalments by 25th October 2027. Interest charged on the loan at 2.15% p.a. over Bank of England base rate. Fixed and floating debenture from the company and the parent company, including a first ranking fixed charge over Unit E, Chiltern Park, Boscombe Rd, Dunstable LU5 4LT.

 

Invoice discounting facility is secured by fixed and floating charge over all the assets of the company.

22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
20,116
260,800
-
0
-
0
In two to five years
-
0
20,116
-
0
-
0
20,116
280,916
-
-

Finance lease obligations 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

23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
607,806
829,103
Revaluations
1,245,310
-
1,853,116
829,103
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
829,103
-
Charge to profit or loss
1,024,013
-
Liability at 31 May 2024
1,853,116
-

The net deferred tax liability expected to reverse in 2025 is £1,296,916

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
24
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
89,219
49,649
-
-
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
763,741
542,869

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2,400
2,400
2,400
2,400
27
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
18,750,000
18,750,000
18,750,000
18,750,000
28
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
24,355,233
23,822,356
11,022,381
11,028,950
Profit/(loss) for the year
4,606,385
532,877
(6,883)
(6,569)
At the end of the year
28,961,618
24,355,233
11,015,498
11,022,381
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
28
Profit and loss reserves
(Continued)
- 32 -
Group
Company
2024
2023
2024
2023
£
£
£
£
Non-distributable profits included above
At the beginning of the year
-
-
-
-
Non distributable profits in the year
3,735,930
-
-
-
At the end of the year
3,735,930
-
-
-
Distributable profits
25,225,688
24,355,233
11,015,498
11,022,381
29
Operating lease commitments
Lessee

The company leases warehouse and office space. Rent review was carried out and revised terms agreed for 5 years to 28/01/2030.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,440,096
1,723,382
-
-
Between two and five years
7,661,313
6,893,527
-
-
In over five years
1,691,037
-
-
-
10,792,446
8,616,909
-
-
SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
29
Operating lease commitments
(Continued)
- 33 -
Lessor

The company has two investment property that generate rental income. Rental income earned during the year was £1,344,605 (2023: £512,030). All operating lease contracts contain market review and break clauses in the event that the lessee exercises its option either to renew or terminate the lease. The lessee does not have an option to purchase the property at the expiry of the lease.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,350,246
845,335
-
-
Between two and five years
4,129,034
3,364,449
-
-
In over five years
5,334
72,639
-
-
5,484,614
4,282,423
-
-

Rents recognised as income in the year amount to £1,344,605 (2023: £512,030)

30
Events after the reporting date

Investment property Unit E Chiltern Park was sold post year on 16th December 2024 and bank loan paid in full on the same date.

 

No other significant or material transaction has taken place after the reporting date of 31 May 2024.

31
Related party transactions

The company has taken advantage of the exemption provided by section 33.1A of Financial Reporting Standard 102 from the requirement to disclose transactions undertaken or balances carried forward as at the balance sheet date with wholly owned members of Super Toughened Group Limited.

 

By virtue of common directorships, the company is related to Super Sealed Units Ltd, a company incorporated in the England. During the year total sales to Super Sealed Units Ltd were for the sum of £1,514,052 (2023: £2,463,417) and purchases of £42,388 (2023: £41,425)

 

As at year end balance amount payable to Super Sealed Units Ltd was £711,064 (2023: £11,064)

 

During the year group made pension contributions to key management personnel including directors for sum of £700,000 (2023: £480,000)

32
Controlling party

No single entity or individual has ultimate control. On 24 June 2019, Super Toughened Group Ltd, a company incorporated in England & Wales became the immediate parent company of Super Toughened Glass Limited, a subsidiary.

SUPER TOUGHENED GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 34 -
33
Cash generated from group operations
2024
2023
£
£
Profit after taxation
4,606,385
532,877
Adjustments for:
Taxation charged
1,666,173
495,287
Finance costs
717,396
115,557
Investment income
(2,024,095)
(2,117,027)
(Gain)/loss on disposal of tangible fixed assets
(34,040)
549,169
Fair value gain on investment properties
(4,981,241)
-
0
Amortisation and impairment of intangible assets
1,534,240
1,534,241
Depreciation and impairment of tangible fixed assets
389,135
511,135
Movements in working capital:
Decrease/(increase) in stocks
51,272
(110,954)
Decrease in debtors
123,203
387,330
(Decrease)/increase in creditors
(230,393)
21,074
Increase in deferred income
39,570
49,649
Cash generated from operations
1,857,605
1,968,338
34
Analysis of changes in net debt - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
3,730,424
(2,782,679)
947,745
Borrowings excluding overdrafts
(9,836,564)
409,607
(9,426,957)
Obligations under finance leases
(280,916)
260,800
(20,116)
(6,387,056)
(2,112,272)
(8,499,328)
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