Company registration number 02125993 (England and Wales)
SECURITY WINDOW SHUTTERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SECURITY WINDOW SHUTTERS LIMITED
COMPANY INFORMATION
Directors
Mr D Edmondson
Mr C Reoch
Company number
02125993
Registered office
Hornby Road
Claughton
Lancaster
LA2 9LA
Auditor
MHA
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
SECURITY WINDOW SHUTTERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 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
SECURITY WINDOW SHUTTERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of business

The company continues to manufacture and supply physical security products and roller garage doors to a network of trade customers throughout the UK and the Republic of Ireland.

 

The directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

 

The company's product range can be broken down into four principal areas:

•    Security Shutters

•    Fire Shutters & Industrial Doors

•    Collapsible Gates

•    Roller & Sectional Garage Doors

 

As for many businesses of our size, the business environment in which we operate continues to be challenging. In particular the roller garage door market is highly competitive, and we continue to see new entrants competing on price rather than specification. Fortunately, we believe the company and our product offering is in a strong position and planned developments and improvements will ensure we remain competitive.

 

We are, of course, also subject to consumer spending patterns and consumers' overall level of disposable income within the UK economy. With these risks and uncertainties in mind we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

 

The Company’s key target in 2024 was to successfully recover margins, this was achieved to plan and ensured that increased levels of profitability were reported.

 

The Company successfully integrated a new aluminium slat roll-former which led to improved manufacturing efficiency and cost control for the roller garage door range.

 

Trading results and key performance indicators

 

The Company’s key financial and other performance indicators during the year were as follows:

 

2024         2023

Company turnover (£'000)            20,764        20,857

Operating profit (£'000)                1,340        721

Profit after tax (£'000)                1,374        588

Shareholders’ funds (£'000)            6,979        6,205

Current assets as a % of current liabilities    290%        274%

Average number of employees            117        124

 

 

 

SECURITY WINDOW SHUTTERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

Financial risk management objectives and policies

 

It is the Company’s policy to manage foreign currency risk through the use of relevant financial instruments.

 

It is policy only to place financial instruments for a maximum of twelve months into the future and that the value of these instruments will not exceed forecast purchases from overseas denominated suppliers. It is not the policy of the company to speculate in the foreign currency markets.

 

Brexit

The company imports a significant proportion of components used in the manufacture of its products from Europe. During 2024 the business continued its partnership with Import Agents to ensure the smooth flow of product into the UK.

 

Raw Material Shortages and Pricing

The company saw more stable pricing from its suppliers in 2024. The company successfully passed any increases on to its customers through selling price increases.

Development and performance

Further details on the performance of the Company during the year, and the position at the end of it, is given in the review of trading results and key performance indicators.

Future developments

Demand for our roller garage door range improved in 2024 reflecting the introduction of a competitively priced Alluguard branded door. The directors expect volume growth to be lower in 2025.

 

The focus of the business remains on managing margins and costs to ensure continued better profitability levels are seen in 2025.

 

The directors expect difficult domestic market conditions to continue into 2025 and will monitor the situation and react accordingly.

 

On behalf of the board

Mr D Edmondson
Director
23 April 2025
SECURITY WINDOW SHUTTERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the manufacture and supply of physical security products and roller garage doors to a network of trade customers throughout the UK and the Republic of Ireland.

Results and dividends

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

Ordinary dividends were paid amounting to £600,005. 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 D Edmondson
Mr C Reoch
Financial instruments
Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations asscociated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets throughout the company.

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the company's receiveables are shown on the face of the balance sheet.

Research and development

The Company continues to consider research and development in its operations in seeking to make its processes more efficient.

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

 

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

SECURITY WINDOW SHUTTERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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 D Edmondson
Director
23 April 2025
SECURITY WINDOW SHUTTERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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:

 

 

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.

SECURITY WINDOW SHUTTERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SECURITY WINDOW SHUTTERS LIMITED
- 6 -
Opinion

We have audited the financial statements of Security Window Shutters Limited (the 'company') for the year ended 31 December 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:

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 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 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.

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.

SECURITY WINDOW SHUTTERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SECURITY WINDOW SHUTTERS LIMITED (CONTINUED)
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

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.

Matters on which we are required to report by exception

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 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 responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

SECURITY WINDOW SHUTTERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SECURITY WINDOW SHUTTERS LIMITED (CONTINUED)
- 8 -

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

Jenny McCabe FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Lancaster, United Kingdom
23 April 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
SECURITY WINDOW SHUTTERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
20,764,230
20,857,268
Cost of sales
(14,212,966)
(15,207,419)
Gross profit
6,551,264
5,649,849
Distribution costs
(1,028,991)
(872,137)
Administrative expenses
(4,182,450)
(4,076,297)
Other operating income
-
0
20,026
Operating profit
4
1,339,823
721,441
Interest receivable and similar income
7
54,093
25,725
Interest payable and similar expenses
8
-
0
(20,201)
Profit before taxation
1,393,916
726,965
Tax on profit
9
(19,839)
(138,491)
Profit for the financial year
1,374,077
588,474

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SECURITY WINDOW SHUTTERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
1,374,077
588,474
Other comprehensive income
-
-
Total comprehensive income for the year
1,374,077
588,474
SECURITY WINDOW SHUTTERS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
732,000
976,000
Tangible assets
12
1,240,959
941,742
Investments
13
40,000
40,000
2,012,959
1,957,742
Current assets
Stocks
15
1,761,609
2,249,983
Debtors
16
4,526,054
2,803,456
Cash at bank and in hand
1,591,210
1,926,771
7,878,873
6,980,210
Creditors: amounts falling due within one year
17
(2,714,303)
(2,554,334)
Net current assets
5,164,570
4,425,876
Total assets less current liabilities
7,177,529
6,383,618
Provisions for liabilities
Deferred tax liability
18
198,770
178,931
(198,770)
(178,931)
Net assets
6,978,759
6,204,687
Capital and reserves
Called up share capital
20
52,632
52,632
Share premium account
12,370
12,370
Capital redemption reserve
400
400
Profit and loss reserves
6,913,357
6,139,285
Total equity
6,978,759
6,204,687

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 23 April 2025 and are signed on its behalf by:
Mr D Edmondson
Director
Company registration number 02125993 (England and Wales)
SECURITY WINDOW SHUTTERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
52,632
12,370
400
5,550,811
5,616,213
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
588,474
588,474
Balance at 31 December 2023
52,632
12,370
400
6,139,285
6,204,687
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
1,374,077
1,374,077
Dividends
10
-
-
-
(600,005)
(600,005)
Balance at 31 December 2024
52,632
12,370
400
6,913,357
6,978,759
SECURITY WINDOW SHUTTERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
873,066
1,126,167
Interest paid
-
0
(20,201)
Income taxes refunded
-
0
109,928
Net cash inflow from operating activities
873,066
1,215,894
Investing activities
Purchase of tangible fixed assets
(662,715)
(505,172)
Proceeds from disposal of tangible fixed assets
-
0
6,299
Interest received
54,093
1,725
Dividends received
-
0
24,000
Net cash used in investing activities
(608,622)
(473,148)
Financing activities
Dividends paid
(600,005)
-
0
Net cash used in financing activities
(600,005)
-
Net (decrease)/increase in cash and cash equivalents
(335,561)
742,746
Cash and cash equivalents at beginning of year
1,926,771
1,184,025
Cash and cash equivalents at end of year
1,591,210
1,926,771
SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information

Security Window Shutters Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hornby Road, Claughton, Lancaster, LA2 9LA.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have assessed the working capital of the company and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
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 5 years.

1.6
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.

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold property
Over the shorter of the estimated useful life of the asset and the lease term
Plant and machinery
20% straight line
Motor vehicles
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.11
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.

Impairment of financial assets

Financial assets 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.

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.

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.

1.12
Equity instruments

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

1.13
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.

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.15
Retirement benefits

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

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Leases

In categorising leases as finance leases or operating leases, management make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.

Useful economic life of intangible assets

The useful economic life of goodwill and other intangible fixed assets is based upon the directors' assessment of various pertinent matters including but not restricted to, the stability of the industry, key contracts, lifespan of the main products, barriers to competition and the durability of customer and supplier bases. The useful economic life of each category of intangible fixed assets, including goodwill is stated within note 1.5 to the financial statements.

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.

Impairment of assets

The company records provisions where it has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reasonable estimation of the obligation can be made. The recording of provisions is an area which requires the exercise of management judgement relating to the nature, timing and probability of the liability. The company's balance sheet includes provisions for doubtful debts, stock and contract provisions.

 

The recoverability of trade debtors is regularly reviewed and in light of the available economic information specific to each debtor and specific provisions are recognised for balances considered to be irrecoverable.

 

Stock is assessed for impairment at each reporting date by the directors and any excess of the carrying amount of stock over its estimated selling price less costs to sell is recognised as an impairment loss.

Impairment assessment and estimation of recoverable value of goodwill

Management have adopted the useful economic lives identified above.

 

At each balance sheet date management review whether this is still appropriate and also whether the carrying value of each class of intangible asset is impaired.

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of security products and roller garage doors
20,764,230
20,857,268
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
20,613,758
20,336,241
Republic of Ireland
837
9,994
Rest of Europe
65,288
452,548
Rest of World
84,347
58,485
20,764,230
20,857,268
2024
2023
£
£
Other revenue
Interest income
54,093
1,725
Dividends received
-
24,000
Commissions received
-
0
20,026
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(252,488)
(163,220)
Research and development costs
35,254
43,615
Fees payable to the company's auditor for the audit of the company's financial statements
21,000
19,650
Depreciation of owned tangible fixed assets
361,262
295,198
Loss on disposal of tangible fixed assets
2,236
2,489
Amortisation of intangible assets
244,000
244,000
Operating lease charges
648,481
674,950
SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
5
Employees

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

2024
2023
Number
Number
Administration
9
11
Sales
14
13
Manufacturing
94
100
Total
117
124

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,134,148
4,006,786
Social security costs
395,114
399,682
Pension costs
118,235
91,583
4,647,497
4,498,051
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
364,147
226,178
Company pension contributions to defined contribution schemes
22,472
7,736
386,619
233,914

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
257,007
104,525
Company pension contributions to defined contribution schemes
14,316
2,283

Key management personnel are considered to be the directors of the company and as such no separate disclosure is made in these financial statements.

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
54,093
1,725
Income from fixed asset investments
Income from shares in group undertakings
-
0
24,000
Total income
54,093
25,725
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
-
0
20,201
SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
19,559
130,296
Changes in tax rates
-
0
8,195
Previously unrecognised tax loss, tax credit or timing difference
280
-
0
Total deferred tax
19,839
138,491

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
1,393,916
726,965
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
348,479
170,982
Tax effect of expenses that are not deductible in determining taxable profit
14,772
76,308
Tax effect of income not taxable in determining taxable profit
-
0
(5,645)
Effect of change in corporation tax rate
-
0
8,195
Group relief
(404,042)
(111,349)
Amortisation on assets not qualifying for tax allowances
61,000
-
0
Deferred tax adjustments in respect of prior years
280
-
0
Other
(650)
-
0
Taxation charge for the year
19,839
138,491

The standard rate of tax applied to reported profit on ordinary activities is 25% (2023: 23.5%). The Finance Act 2021, effective from 1 April 2023, created a 25% main rate, 19% small profits rate and a marginal rate. Deferred tax has been calculated at 25% (2023: 25%).

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
10
Dividends
2024
2023
£
£
Final paid
600,005
-
0
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,220,000
Amortisation and impairment
At 1 January 2024
244,000
Amortisation charged for the year
244,000
At 31 December 2024
488,000
Carrying amount
At 31 December 2024
732,000
At 31 December 2023
976,000
12
Tangible fixed assets
Leasehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
316,326
2,860,795
8,139
3,185,260
Additions
330,872
331,843
-
0
662,715
Disposals
-
0
(59,310)
(8,139)
(67,449)
At 31 December 2024
647,198
3,133,328
-
0
3,780,526
Depreciation and impairment
At 1 January 2024
247,480
1,987,899
8,139
2,243,518
Depreciation charged in the year
49,164
312,098
-
0
361,262
Eliminated in respect of disposals
-
0
(57,074)
(8,139)
(65,213)
At 31 December 2024
296,644
2,242,923
-
0
2,539,567
Carrying amount
At 31 December 2024
350,554
890,405
-
0
1,240,959
At 31 December 2023
68,846
872,896
-
0
941,742
SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in associates
14
40,000
40,000
14
Associates

Details of the company's associates at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
C&P Security Products Limited
England
Ordinary
20.00
15
Stocks
2024
2023
£
£
Raw materials and consumables
1,745,663
2,214,719
Finished goods and goods for resale
15,946
35,264
1,761,609
2,249,983
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,800,342
2,591,412
Amounts owed by group undertakings
1,500,000
-
0
Other debtors
23,265
23,155
Prepayments and accrued income
202,447
188,889
4,526,054
2,803,456
17
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,437,905
1,406,972
Amounts owed to group undertakings
144,713
144,713
Corporation tax
58,091
58,091
Other taxation and social security
635,785
474,523
Other creditors
24,307
31,619
Accruals and deferred income
413,502
438,416
2,714,303
2,554,334
SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
18
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
198,770
178,931
2024
Movements in the year:
£
Liability at 1 January 2024
178,931
Charge to profit or loss
19,839
Liability at 31 December 2024
198,770

The directors do not expect the net reversal of the deferred tax asset in the year beginning after the reporting period to be materially different from the movement shown in the current year.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,235
91,583

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.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
52,632
52,632
52,632
52,632
SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
21
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
391,672
575,714
Between two and five years
2,140,163
2,080,529
In over five years
1,322,326
1,909,652
3,854,161
4,565,895
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
21,985
-
23
Related party transactions

The company has taken advantage of the exemption as provided by paragraph 33.1A of FRS 102 from disclosing transactions with other group members.

 

The company had sales of £243,397 (2023: £237,451) and purchases of £128,737 (2023: £99,627) with C&P Security Products Limited, where the company holds a 20% investment. These transactions were at arm's length commercial rates. At the year end a net £57,372 (2023: £33,486) was owed by C&P Security Products Limited to the company.

24
Ultimate controlling party

The company's immediate parent company is Stella SWS Limited, a limited company registered in the United Kingdom which prepares publicly available consolidated accounts. The largest group for which Security Window Shutters Limited is a member and for which consolidated accounts are prepared is Polaris Holding, a company incorporated in France whose principal place of business is Route de Toulouse, CS 57668 Escalquens 31676 LABEGE CEDEX (France).

 

There is no ultimate controlling party of the the company at 31 December 2024 or 2023.

SECURITY WINDOW SHUTTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,374,077
588,474
Adjustments for:
Taxation charged
19,839
138,491
Finance costs
-
0
20,201
Investment income
(54,093)
(25,725)
Loss on disposal of tangible fixed assets
2,236
2,489
Amortisation and impairment of intangible assets
244,000
244,000
Depreciation and impairment of tangible fixed assets
361,262
295,198
Movements in working capital:
Decrease in stocks
488,374
455,099
(Increase)/decrease in debtors
(1,722,598)
398,641
Increase/(decrease) in creditors
159,969
(990,701)
Cash generated from operations
873,066
1,126,167
26
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,926,771
(335,561)
1,591,210
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