Company registration number SC159622 (Scotland)
THISTLE WINDOWS & CONSERVATORIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
THISTLE WINDOWS & CONSERVATORIES LIMITED
COMPANY INFORMATION
Directors
Edward Nicol Robson
Ian James Bruce
Company number
SC159622
Registered office
Thistle House
Woodside Road
Bridge of Don
Aberdeen
United Kingdom
AB23 8EF
Auditor
Azets Audit Services
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
THISTLE WINDOWS & CONSERVATORIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
THISTLE WINDOWS & CONSERVATORIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

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

Review of the business

The directors are satisfied that performance has been in line with expectations and projections.

 

Results and performance

In the financial period the company's revenues increased by 13%. Continued growth off the back of a significant increase in the previous period.

Principal risks and uncertainties

Increases in interest rates and high inflation have impacted on customers committing to new projects. Selling became more difficult towards the end of our financial year. However, having built up a substantial order book, we are confident that there is little risk of trading being impacted.

 

Despite a competitive and challenging market, the directors are confident that the diverse product range and a customer base who place a high value on quality and service, mitigates much of the risk to future profitability.

Key performance indicators

The directors' consider the following to be the Major Key Performance Indicators:

2024             2023

 

Revenue        £14,536,270     £12,839,736

Gross profit %         22.8%             21.0%

Net Assets         £724,784             £810,449

 

The directors are satisfied that the company performed satisfactorily against these and other KPIs. The company’s cash flow remained very strong. This permitted the directors to pay an additional dividend to the shareholders. The company continues to operate within agreed bank facilities and has a strong working capital position.

On behalf of the board

Ian James Bruce
Director
8 April 2025
THISTLE WINDOWS & CONSERVATORIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be that of home improvement specialists.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting £234,000 (2023: £288,000). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Edward Nicol Robson
Ian James Bruce
Future developments

Despite the uncertainties referred to in the Strategic Report, the directors are confident that the company will continue to grow and trade profitably in the forthcoming years.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

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
Ian James Bruce
Director
8 April 2025
THISTLE WINDOWS & CONSERVATORIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

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.

THISTLE WINDOWS & CONSERVATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THISTLE WINDOWS & CONSERVATORIES LIMITED
- 4 -
Opinion

We have audited the financial statements of Thistle Windows & Conservatories Limited (the 'company') for the year ended 31 August 2024 which comprise 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

THISTLE WINDOWS & CONSERVATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THISTLE WINDOWS & CONSERVATORIES LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

THISTLE WINDOWS & CONSERVATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THISTLE WINDOWS & CONSERVATORIES LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Matthew Allan
Senior Statutory Auditor
For and on behalf of Azets Audit Services
8 April 2025
Chartered Accountants
Statutory Auditor
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
THISTLE WINDOWS & CONSERVATORIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
14,536,270
12,839,736
Cost of sales
(11,219,513)
(10,144,043)
Gross profit
3,316,757
2,695,693
Administrative expenses
(2,907,239)
(2,510,162)
Other operating income
-
0
19,521
Operating profit
4
409,518
205,052
Interest receivable and similar income
8
1,459
698
Interest payable and similar expenses
7
(46,644)
(57,447)
Profit before taxation
364,333
148,303
Tax on profit
9
(109,670)
(48,923)
Profit for the financial year
254,663
99,380
Other comprehensive income
Revaluation of tangible fixed assets
(138,464)
-
0
Tax relating to other comprehensive income
32,136
-
0
Total comprehensive income for the year
148,335
99,380
THISTLE WINDOWS & CONSERVATORIES LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,806,493
2,923,979
Current assets
Stocks
12
815,513
1,552,302
Debtors
13
580,986
703,319
Cash at bank and in hand
352,870
290,289
1,749,369
2,545,910
Creditors: amounts falling due within one year
14
(3,052,610)
(3,552,013)
Net current liabilities
(1,303,241)
(1,006,103)
Total assets less current liabilities
1,503,252
1,917,876
Creditors: amounts falling due after more than one year
15
(501,441)
(843,676)
Provisions for liabilities
Deferred tax liability
18
(277,027)
(263,751)
Net assets
724,784
810,449
Capital and reserves
Called up share capital
20
10,000
10,000
Revaluation reserve
388,061
525,309
Profit and loss reserves
326,723
275,140
Total equity
724,784
810,449
The financial statements were approved by the board of directors and authorised for issue on 8 April 2025 and are signed on its behalf by:
Ian James Bruce
Director
Company Registration No. SC159622
THISTLE WINDOWS & CONSERVATORIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
10,000
537,677
451,392
999,069
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
99,380
99,380
Dividends
10
-
-
(288,000)
(288,000)
Transfers
-
(12,368)
12,368
-
Balance at 31 August 2023
10,000
525,309
275,140
810,449
Year ended 31 August 2024:
Profit for the year
-
-
254,663
254,663
Other comprehensive income:
Revaluation of tangible fixed assets
-
(138,464)
-
(138,464)
Tax relating to other comprehensive income
-
32,136
-
0
32,136
Total comprehensive income for the year
-
(106,328)
254,663
148,335
Dividends
10
-
-
(234,000)
(234,000)
Transfers
-
(30,920)
30,920
-
Balance at 31 August 2024
10,000
388,061
326,723
724,784
THISTLE WINDOWS & CONSERVATORIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,155,323
1,263,382
Interest paid
(46,644)
(57,447)
Income taxes paid
-
0
(68,273)
Net cash inflow from operating activities
1,108,679
1,137,662
Investing activities
Purchase of tangible fixed assets
(223,505)
(127,915)
Proceeds from disposal of tangible fixed assets
83,242
67,134
Interest received
1,459
698
Net cash used in investing activities
(138,804)
(60,083)
Financing activities
Repayment of bank loans
(435,016)
(217,852)
Payment of finance leases obligations
(238,278)
(218,052)
Dividends paid
(234,000)
(288,000)
Net cash used in financing activities
(907,294)
(723,904)
Net increase in cash and cash equivalents
62,581
353,675
Cash and cash equivalents at beginning of year
290,289
(63,386)
Cash and cash equivalents at end of year
352,870
290,289
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
1
Accounting policies
Company information

Thistle Windows & Conservatories Limited is a private company limited by shares incorporated in Scotland. The registered office and business address is Thistle House, Woodside Road, Bridge of Don, Aberdeen, United Kingdom, AB23 8EF.

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 pound sterling.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

 

It is the opinion of the directors that the company will remain cash generative and profitable for the foreseeable future. Despite the company's net current liability position, the directors believe through careful cash management and use of the overdraft facility agreed with the bank when required the company will continue to be able to meet its liabilities as they fall due.

 

Therefore the directors are of the opinion that it is correct to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable from the sale and installation of windows, conservatories, kitchens, home improvements and related products. Turnover also includes income from the sale of completed homes at a development site.

Revenue from the supply only of windows, conservatories, kitchens, home improvements and related products is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the supply and installation of windows, conservatories, kitchens, home improvements and related products is recognised by reference to the stage of completion, when the stage of completion, costs incurred and costs to complete can be measured reliably. The stage of completion is calculated by comparing costs incurred mainly in relation to contractual hourly staff rates and materials, as a proportion of total cost. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.4
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.

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -

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 land and buildings
2% on cost
Plant and machinery
25% on reducing balance
Fixtures, fittings & equipment
25% on cost
Motor vehicles
15% on cost

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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).

1.6
Stocks

Stocks and work in progress 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.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

1.11
Employee benefits

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

 

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

1.12
Retirement benefits

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

1.13
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 balance sheet 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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.14
Foreign exchange

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

2
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.

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.

Work in progress

In recognising profit on work in progress jobs that span the year end, an estimate is required of the expected margin on individual jobs (where the final outcome can be assessed with reasonable certainty). When making the judgement, the directors evaluate this based on past experience and their best knowledge of the status of the job.

Valuation of leasehold land and buildings

In valuing the leasehold land and buildings management have used an expert to provide a valuation. The most recent valuation was in 2024 and management have used their judgement to estimate the market value of the remaining parts of the property not subject to this valuation at the balance sheet date.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Home improvements
13,350,725
11,277,552
Supply only
726,545
1,116,705
Property development
459,000
445,479
14,536,270
12,839,736
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
23,000
23,000
Depreciation of owned tangible fixed assets
208,670
160,172
Depreciation of tangible fixed assets held under finance leases
113,168
97,349
Loss/(profit) on disposal of tangible fixed assets
14,533
(16,115)
Operating lease charges
63,823
56,151
5
Employees

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

2024
2023
Number
Number
Installation
99
89
Sales
12
14
Administration
31
31
Total
142
134
2024
2023
£
£
Wages and salaries
4,792,862
4,342,546
Social security costs
456,706
432,919
Pension costs
158,629
158,299
5,408,197
4,933,764
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
134,283
120,000
Company pension contributions to defined contribution schemes
47,133
55,430
181,416
175,430
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
20,308
42,516
Other interest on financial liabilities
5
2
20,313
42,518
Other finance costs:
Interest on finance leases and hire purchase contracts
26,331
14,929
46,644
57,447
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,459
698
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
64,258
-
0
Deferred tax
Origination and reversal of timing differences
45,412
48,923
Total tax charge
109,670
48,923

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (from 19% as previously enacted). This new law was substantively enacted on 24 May 2021. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Taxation
(Continued)
- 18 -

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
364,333
148,303
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
91,083
31,915
Tax effect of expenses that are not deductible in determining taxable profit
2,937
4,089
Permanent capital allowances in excess of depreciation
15,650
6,107
Remeasurement of deferred tax for changes in tax rates
-
0
6,812
Chargeable losses
(32,135)
-
0
Deferred tax through other comprehensive income
32,135
-
0
Taxation charge for the year
109,670
48,923

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
(32,136)
-
10
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
23.40
28.80
234,000
288,000
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 September 2023
2,185,112
148,011
210,650
1,599,052
4,142,825
Additions
-
0
31,542
36,405
372,644
440,591
Disposals
-
0
-
0
-
0
(276,522)
(276,522)
Revaluation
(138,464)
-
0
-
0
-
0
(138,464)
At 31 August 2024
2,046,648
179,553
247,055
1,695,174
4,168,430
Depreciation and impairment
At 1 September 2023
201,579
123,130
187,179
706,958
1,218,846
Depreciation charged in the year
62,255
12,952
9,721
236,910
321,838
Eliminated in respect of disposals
-
0
-
0
-
0
(178,747)
(178,747)
At 31 August 2024
263,834
136,082
196,900
765,121
1,361,937
Carrying amount
At 31 August 2024
1,782,814
43,471
50,155
930,053
2,806,493
At 31 August 2023
1,983,533
24,881
23,471
892,094
2,923,979

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

2024
2023
£
£
Motor vehicles
599,593
693,035
Computers
34,584
-
0
634,177
693,035

Leasehold land and buildings with a carrying amount of £1,400,000 were revalued at 10 December 2024 by Allied Surveyors Scotland Plc, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors consider the 2024 valuations to be an accurate reflection of market value at the balance sheet date.

 

A further £382,814 of assets within leasehold land and buildings was revalued at 31 August 2024 by management based on their knowledge and expertise.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £1,381,262 (2023 - £1,412,597), being cost £1,566,702 (2023 - £1,566,702) and depreciation £185,440 (2023 - £154,105).

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
12
Stocks
2024
2023
£
£
Raw materials and consumables
130,427
133,957
Work in progress
685,086
1,418,345
815,513
1,552,302
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
518,377
640,170
Other debtors
1,600
1,500
Prepayments and accrued income
61,009
61,649
580,986
703,319
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
101,299
217,950
Obligations under finance leases
17
197,384
194,706
Trade creditors
936,939
1,150,618
Corporation tax
64,258
-
0
Other taxation and social security
514,970
408,610
Other creditors
10,261
16,438
Accruals and deferred income
1,227,499
1,563,691
3,052,610
3,552,013

Bank loans and overdrafts are secured by a floating charge over the premises of the company.

 

Obligations under finance leases are secured over the assets to which they relate.

 

 

 

 

 

 

 

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
257,833
576,198
Obligations under finance leases
17
243,608
267,478
501,441
843,676

Bank loans and overdrafts are secured by a floating charge over the premises of the company.

 

Obligations under finance leases are secured over the assets to which they relate.

16
Loans and overdrafts
2024
2023
£
£
Bank loans
359,132
794,148
Payable within one year
101,299
217,950
Payable after one year
257,833
576,198

Within bank loans is an amount of £359,132 which was drawn down in December 2020, is subject to a fixed rate of 3.03% and is repayable by December 2027. This amount has a floating charge against all assets and property of the company.

17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
221,223
214,820
In two to five years
275,932
302,777
497,155
517,597
Less: future finance charges
(56,163)
(55,413)
440,992
462,184

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
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
247,202
211,807
Tax losses
-
(19,359)
Capital gains
44,827
76,962
Short term timing differences
(15,002)
(5,659)
277,027
263,751
2024
Movements in the year:
£
Liability at 1 September 2023
263,751
Charge to profit or loss
45,412
Credit to other comprehensive income
(32,136)
Liability at 31 August 2024
277,027
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
158,629
158,299

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 shares of £1 each
10,000
10,000
10,000
10,000
THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
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
78,291
57,780
Between two and five years
239,556
230,080
In over five years
4,849,750
4,906,750
5,167,597
5,194,610

The company has an annual commitment for a ground lease on its business premises. The total commitments include these lease payments until expiry in 2114.

22
Related party transactions

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Entities under common control
-
7,147

During this financial year and at the balance sheet date, Thistle Artificial Grass (TAG) related party as a result of there being common directors on their board. During this period, sales of £nil (2023 - £40,412) were generated. Purchases during the year were £96,017 (2023 - £12,269). As at the balance sheet date, trade debtor was receivable of £nil (2023 - £nil) and trade creditors payable of £nil (2023 - £7,147).

23
Directors' transactions

Dividends totalling £187,200 (2023 - £230,400) were paid in the year in respect of shares held by the company's directors.

THISTLE WINDOWS & CONSERVATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
254,663
99,380
Adjustments for:
Taxation charged
109,670
48,923
Finance costs
46,644
57,447
Investment income
(1,459)
(698)
Loss/(gain) on disposal of tangible fixed assets
14,533
(16,115)
Depreciation and impairment of tangible fixed assets
321,838
257,521
Movements in working capital:
Decrease in stocks
736,789
170,593
Decrease in debtors
122,333
37,045
(Decrease)/increase in creditors
(449,688)
609,286
Cash generated from operations
1,155,323
1,263,382
25
Analysis of changes in net debt
1 September 2023
Cash flows
New finance leases
31 August 2024
£
£
£
£
Cash at bank and in hand
290,289
62,581
-
352,870
Borrowings excluding overdrafts
(794,148)
435,016
-
(359,132)
Obligations under finance leases
(462,184)
238,278
(217,086)
(440,992)
(966,043)
735,875
(217,086)
(447,254)
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