The directors present the strategic report for the year ended 31 October 2024.
Glasdon Group Limited and its subsidiaries are engaged in the design, manufacture and marketing of award winning environmental, litter and waste collection/recycling and road, winter and water safety products as well as a diverse range of building systems, industrial housing and passenger and cycle shelters.
Turnover for the current year decreased by 8.5% to £36,479,389 and gross profit decreased by 11.0% to £20,107,202. Profit on ordinary activities before taxation was £8,962,933 compared with £7,119,786 in the previous year, with the increase attributable to an improved performance from the actively managed investment and property portfolios.
The group utilised cash of £2,904,809 during 2024 (2023: utilised £978,667) after total capital expenditure of £4,104,577 and additions to the investment property portfolio of £11,151,611, of which £8,189,756 was funded from withdrawals from the actively managed investment portfolio. Net cash inflow from operating activities was £4,234,663 compared to £5,855,274 in the previous year. The group cash flow statement is set out on page 23 of the financial statements.
The principal risks and uncertainties impacting the group along with the procedures in place to mitigate these risks and uncertainties are described below:
Market uncertainty
- Diversity of product portfolio, operations and markets.
- Robust and prudent working capital management and cash retention policies.
Reduction in Government spending
- Diversification and expansion into different domestic and overseas markets.
- Permanent emphasis on new product development and diversification.
- Continual focus on research and development, product quality, innovation and customer service.
Failure of a major supplier
- Detailed financial review and audit of all prospective new suppliers.
- Continual monitoring of the financial position of all suppliers.
- Dual sourcing and supply arrangements with a broad supplier base.
- Regular review of supplier contingency plans by senior management.
Reliance on and retention of key personnel
- Comprehensive and structured succession planning strategy.
- Graduate and apprentice recruitment programme to maintain the succession pool.
- Active encouragement of promotion within the Group.
- Established staff appraisal system and annual employee opinion survey plus training and development programmes.
- Competitive remuneration and benefits packages, including a final salary pension scheme.
Pension obligation and funding
- Engagement of external advisors, investment managers and actuaries.
- Annual and triennial scheme valuations.
- Close and continual monitoring of all scheme risks and investment strategy by the Trustees.
The board will continue to monitor developments and all emerging risks extremely closely and will take further action as appropriate.
Streamlined energy and carbon reporting
Carbon emissions and energy consumption
Glasdon Group Greenhouse Gas (GHG) Emissions and Energy Use Data for the period 1 November 2023 to 31 October 2024 is shown in Table 1, Table 2 and Table 3.
Table 1. Energy consumption from business activities in FY22, FY23 and FY24, in line with DEFRA 2024
Indicator | Metric | FY24 (Group) | FY23 (Group) | FY22 (Group) |
Electricity
| kWh | 596,613
| 619,820 | 624,823 |
Fuels
| kWh
| 955,012 | 969,021 | 1,823,735 |
Transport (company owned vehicles)
| kWh | 389,688 | 484,621 | 1,301,831 |
Total
| kWh
| 1,941,313 | 2,073,462 | 3,750,389 |
Table 2. GHG emissions from business activities in FY22, FY23 and FY24, in line with the GHG Protocol.
Indicator | Metric | FY24 (Group) | FY23 (Group) | FY22 (Group) |
Scope 1 emissions (stationary combustion) | Tonnes CO2e
| 159.32 | 159.09 | 149.57 |
Scope 1 emissions (company-owned vehicles) | Tonnes CO2e
| 89.76 | 115.97 | 162.4 |
Scope 1 emissions (fugitive emissions) | Tonnes CO2e
| 2.37 | 6.95 | 0.27 |
Total scope 1 emissions | Tonnes CO2e
| 251.45 | 282.01 | 312.24 |
Total scope 2 emissions (location-based)
| Tonnes CO2e | 123.53 | 128.35 | 120.83 |
Total scope 2 emissions (market-based) | Tonnes CO2e
| 17.90 | - | - |
Scope 3 emissions (business travel)
| Tonnes CO2e
| - | - | - |
Total scope 3 emissions | Tonnes CO2e
| - | - | - |
Total scope 1, 2 & 3 emissions (location-based)
| Tonnes CO2e | 374.98 | 410.36 | 433.07 |
Total scope 1, 2 & 3 emissions (market-based)
| Tonnes CO2e | 269.34 | 282.01 | 312.24 |
Table 3. Intensity ratio
Indicator | Metric | FY24 (Group) | FY23 (Group) | FY22 (Group) |
Intensity Metric: Scope 1-3 Location-based | tCO2e per m² occupied
| 0.011 | 0.013 | 0.013 |
Intensity Metric: Scopes 1-3 Market-based | tCO2e per m² occupied | 0.008 | 0.009 | 0.009 |
The information provided above relates to the financial year from 1st November 2023 to 31st October 2024 and has been provided in respect of the group as a whole. This is the third year for which we have calculated and reported our emissions and energy performance, in accordance with the Streamlined Energy and Carbon Reporting (SECR) requirement and GHG Protocol guidance. We have included emissions data from the previous two years, which we have previously calculated. In future reports, we will continue to disclose historic figures to provide a comparison year.
Energy efficient actions taken
During the reporting year, Glasdon has implemented several measures to reduce energy consumption and subsequently its carbon footprint.
Glasdon has taken numerous actions to reduce energy consumption and increase energy efficiency at its sites, this includes:
Replacement of lights with LEDs
Removal of radiators from certain offices where it was not needed
Increasing the use of electric company-owned vehicles
Installing sensor lights and timers on equipment and signage
Introduction of green gas
Replacement of diesel car washer with electric models
Maintaining the use of renewable electricity, including cleaning solar panels regularly to increase performance
Training teams on best practice for energy efficiency
Optimising heat efficiency through installation of automated doors to prevent heat loss
Organisational boundaries
In line with the reporting requirements for SECR, the organisational boundary encompasses Glasdon Group Limited. The reported emissions and energy consumption data included the following business units/offices/facilities:
• Glasdon Group Limited – Blackpool, England
• Glasdon International Limited – Blackpool, England
• Glasdon UK Limited – Poulton, England
• Glasdon UK Limited – Blackpool, England
Methodology
Glasdon collects and reports data in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition, as well as the ISO14064-1 standard.
Data is based on energy and fuel consumption for the period 1st November 2023 to 31st October 2024.
Primary activity data was multiplied by the relevant emission factor to calculate the kWh figures (Table 1) and the tonnes of carbon dioxide equivalent figures (Table 2). As per best practice, scope 2 emissions were dual reported and calculated using both location- and market-based approaches. The location-based electricity was calculated by multiplying primary consumption data by the average emissions intensity of the grid where the energy is consumed.
Market-based electricity was calculated to account for the use of renewable electricity by quantifying the emissions based on contractual instruments of the purchased electricity products. Contractual instruments for Glasdon include Energy Attribute Certificates, such as Renewable Energy Certificates (RECs), as well as a direct contract under a renewable energy or low-carbon tariff, which provides a supplier-specific emission factor for market-based emissions. Market-based emissions have been calculated in accordance with the GHG Protocol Scope 2 Guidance Amendment, utilising the supplier-specific emission factor from the direct contract for the applicable sites. As a result, this approach has led to an increase in reported market-based emissions.
Emission factors
Emission factors were sourced from DEFRA 2024, published by the UK Department for Energy Security and Net Zero, EMBER 2024, published by Carbon Database Initiative, and EPA 2024, published by the US Environmental Protection Agency.
Other information and explanations
Future developments
The directors plan to maintain the management policies that have produced the satisfactory results achieved during the year.
Financial instruments
The group makes little use of financial instruments other than an operational bank account and so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material to the assessment of assets, liabilities, financial position and profit or loss of the group.
Liquidity management
The board have made the decision to continue to invest further monies into an actively managed investment portfolio to generate a new stream of income separate from the trading activities of the group.
Research and development
The group is totally committed to research and development and maintains a dedicated team to meet customers' changing requirements and to develop new market opportunities. It is continuing policy of the group to invest in formal international protection of its intellectual property rights wherever applicable and to defend vigorously those rights against infringement.
This statement by the board describes how the responsibilities under Section 172 (1) (a) to (f) of the Companies Act 2006 have been approached and discharged.
The directors consider that they have acted in good faith to promote the success of the group for the benefit of its stakeholders, in relation to matters set out in Section 172 of the Act.
The directors have determined the group’s key stakeholders to be employees, customers, suppliers, shareholders, pension scheme members and the local communities in which we operate. These stakeholders are critical to the ongoing success of the business and so it is recognised that engagement is an important aspect in those relationships.
The directors understand that their relationships with its stakeholders are dynamic, and that stakeholders’ interests may change over time. In response to this, the directors keep themselves informed of the group’s key stakeholders’ interests through a combination of direct and indirect engagement. The directors recognise their responsibility towards stakeholders at all times when discharging their duties.
The directors have overall responsibility for delivering the group’s strategy and values and for ensuring high standards of governance. The primary aim of the directors is to promote the long-term sustainable success of the group to generate long-term benefit for all stakeholders.
Decision making
The group has processes in place to capture and consider the views of all its stakeholders and share their views at relevant levels within the business, including the board, to ensure that regard is given to these views in decision-making processes.
The board recognises that difficult decisions must sometimes be taken which require each director to exercise independent judgement and apply reasonable care, skill and diligence in the decision-making process. In doing so, the board recognises its responsibilities to the group’s different stakeholders. The board also considers the group’s purpose, vision and values together with its strategic priorities.
Employee engagement
Our workforce is our most valuable asset. The directors recognise that the importance of a highly engaged and motivated workforce is core to our business and the delivery of the group’s strategic ambitions.
The directors consider the health, safety and wellbeing of our employees is one of the primary considerations in the management of the business and in the way we do business.
Safe working practices that minimise environmental impact are key to the success of the business and are vitally important for our stakeholders, the communities and the environments we work in.
The group invests in training, coaching and skills acquisition. Personal development of our employees is a key pillar of our group’s strategy. We aim to be a responsible employer in our approach to the pay and benefits of our employees.
We encourage employees to participate in the development and growth of the business and share in its success.
The directors recognise and understand the importance of keeping employees fully informed on all matters concerning them and this is achieved in a number of ways including the intranet, newsletters, site notices, meetings, verbal and written communications. All employees are also requested to participate in an online annual employee opinion survey in order to help in assessing our employees’ concerns and aspirations.
Regular updates on performance (both financial and non-financial) are also shared with all our employees.
The board and senior management are responsible for ensuring that the group’s purpose, vision and values are effectively communicated to employees and the group’s activities reflect the culture we wish to instil in our employees.
The group is committed to promoting a diverse and inclusive workforce, reflective of the communities in which it does business. We approach diversity in the broadest sense, recognising that successful businesses flourish through embracing diversity into their business and developing talent at every level in the organisation.
Customers
Customer care is at the heart of everything we do. The directors recognise that the importance of creating long lasting relationships with both our direct and indirect customers is fundamental to the way we do business.
The group has built, and continues to grow, the business on a reputation for delivering excellent customer service. The group, through the senior management team and employees, strives continuously to improve in every aspect of the products and services it provides for the mutual benefit of all stakeholders.
The group prides itself on anticipating customers’ product needs and the core of our business is to provide quality products which improve public spaces, enhance water and road safety and protect the environment. These products help communities, businesses, schools and our other customers to practice sustainability.
Our commitment to customer service means that a fully trained team of sales representatives and technical staff are available to our customers for product demonstrations, enquiries and after sales service.
The group supports multiple channels of communication with its customers through regular dialogue, customer satisfaction surveys, customer telephone support and social media. Customer feedback is gathered through these channels and acted upon to assist in the development of the group’s strategy.
Business relationships
The directors recognise the need to foster the group’s business relationships with customers, suppliers and others and ensures that the group has processes in place to engage and consult with all its business partners on a regular basis to develop and maintain lasting and meaningful relationships.
The group has a clear policy of selecting, managing and monitoring its suppliers. The group enjoys good relationships with suppliers and has established a network of proven, high quality suppliers who work with us to meet our stringent quality standards.
The group proactively engages and consults with its suppliers as required to understand their views and needs. The group is mindful of payment policies, practices and performance with respect to its suppliers and takes steps to ensure that agreed payment terms are strictly adhered to (as a signatory of the Prompt Payment Code) so as not to adversely affect supplier cash flows and ability to trade.
In making decisions and internal process improvements, consideration is given to the potential impact of proposed changes upon suppliers and other business partners, as well as the importance of maintaining the group’s integrity, brand and reputation.
Community and environment
The directors recognise the importance of continuing to lead the group in such a way that it contributes to wider society.
The group plays an active part in supporting and strengthening the local communities in which we operate. Through the D.J. Sidebottom / Glasdon Charitable Programme, made up of a board of programme managers who are all passionate about social responsibility and giving back to the community, we aim to support charities, organisations and community groups in various worthwhile endeavours both locally and globally. The charitable causes we support are for the benefit or advancement of the environment, relief for those in need by reason of youth, age, ill health disability or financial hardship, as well as local community development and the advancement of health and life saving research.
As part of the board’s commitment to Corporate Social Responsibility, we also offer all staff members the opportunity to have one day paid leave per year where they can undertake volunteer work for a local charity. These “away days” ensure our staff are able to experience volunteering for various local projects they are passionate about and help support the local community.
Sustainability and environmental care are firmly embedded in the group’s culture and corporate strategy. Sustainability runs through all aspects of our business, from energy-saving, recycling and resource-sharing policies in our premises, employee orientation and social commitment, and ultimately flowing into the products we provide to our customers.
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As a group with a commitment to continuously improving our environmental performance, the directors have pledged to reach Net Zero by 2035 (with Scope 1 and 2 to be achieved by 2025).
The group aims to demonstrate environmental sustainability and champion social responsibility in every way possible. A passion for the environment and our local and wider communities has inspired us to integrate sustainable and ethical practices into our day-to-day activities, something which we are continually assessing and improving.
The group has invested considerable resources over the years into understanding our impact on the environment, and we will continue to invest in and improve our environmental accountability for all aspects of our business. A board level project team has been established to map out a clear route of how to get there, as well as dedicated project teams to include employees from across the group.
The group’s pledge to reach Net Zero by 2035 is an enormous step towards sustainability, but we also understand that we have a role to play in addressing wider global needs including health, social protection, education, job opportunities and environmental protection. The group has therefore responded to the United |
Nations’ (UN) call for action by aligning with the Sustainable Development Goals (SDGs).
While the group may fit into most (if not all) of the 17 UN SDGs, we have identified the following four key goals on which we know we can have a direct and positive impact:
8 Decent Work and Economic Growth 10 Reduced Inequalities 12 Responsible Consumption and Production 13 Climate Action
We are currently working on a plan of action to identify how we are already supporting each goal, as well as the steps we can take internally and with our suppliers, distributors, employees and customers to help further this impact. |
Culture and values
The group’s culture is characterised by clear responsibility, mutual respect and trust. Lawful business conduct and fair competition are integral to our business activities and an important condition for maintaining a reputation for the highest standards of business conduct securing long term success.
The group is focused on people, with both customers and suppliers being at the heart of our business. The group embraces diversity, flexibility, sustainability and continuous improvement throughout the organisation. The group has a customer centric philosophy with transparent, fair and simple processes.
The board and senior management have taken active steps to drive cultural change and to ensure corporate strategy and customer orientation principles are embraced across the organisation and to ensure that decisions are taken in line with the group’s values and objectives.
The fundamental principle in the governance of the group is the clear, fair and trusting approach to all interactions with employees, customers and suppliers; this is reflected in the length of service of our employees and management teams and the longevity of the relationships with our customers and suppliers.
By order of the board
The directors present their annual report and financial statements for the year ended 31 October 2024.
The results for the year are set out on page 16.
Particulars of dividends paid are detailed in note 12 to the financial statements.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Disabled persons
In line with policy on equal opportunities, the group endeavours to fulfil its responsibilities towards disabled persons. The nature of certain assembly processes within the group does however preclude the employment of disabled persons in such areas. In all other job functions active consideration is given to the employment of disabled persons and all such vacancies are advised to the appropriate Job Centre to assist in this matter.
Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
Employee involvement
The group recognises the importance of employee involvement in increasing employees understanding of the organisation, utilising their talents, enabling them to influence decisions and thereby encouraging commitment to the goals of the organisation.
The group believes that such involvement will improve efficiency, quality, increase job satisfaction and encourage an environment of co-operation.
In recognition of the importance of employee involvement the group has devoted considerable time and effort to ensuring that employees are well informed about those aspects of its business which will affect them.
Through such employee involvement, the success of the group will be ensured by effective team work leading to a consequential sharing of the rewards by all employees.
The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
During the year the group made charitable donations of £230,225 (2023: £238,089).
We have audited the financial statements of Glasdon Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report
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:
Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the valuation of investment properties, valuation of the defined benefit pension scheme surplus, impairment of stock and the useful life of tooling fixed assets;
Auditing the risk of fraud in revenue by testing a sample of transactions throughout the year, to ensure they have been recorded within the accounts and by testing transactions around the year end to ensure correct cut off procedures have been applied;
Reviewing minutes of meetings of those charged with governance; and
Reviewing legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £6,511,329 (2023 - £6,531,967 profit).
Glasdon Group Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Glasdon House, Preston New Road, Blackpool, FY4 4WA.
The group consists of Glasdon Group Limited and all of its subsidiaries as detailed in note 17.
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 £. For consolidation purposes, balances relating to the overseas subsidiaries have been translated to £.
The financial statements have been prepared under the historical cost convention, modified to include the freehold property, investment property and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The parent company is a qualifying entity for the purposes of FRS 102, being a member of a group where consolidated financial statements are prepared, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The parent company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The consolidated financial statements incorporate those of Glasdon Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
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.
Turnover is recognised at the point at which the goods or services have been delivered or supplied and the risks and rewards attaching to the product or service have been transferred to the customer. Rental income and management charges are recognised on an accruals basis.
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.
Freehold land is not depreciated. Depreciation has not been charged on freehold buildings as the directors consider the estimated residual value of the property to be a significant proportion of the book value, such that the depreciation would be immaterial. The estimated residual value is expected to be high due to the company's policy of maintaining the property such that physical deterioration does not occur and the costs of such maintenance are charged in the year of incidence.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historic cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
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.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in or .
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, 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, 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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts 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.
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 though 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Defined contribution scheme
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Defined benefit scheme
The group also operates a defined benefit pension scheme. The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
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.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
At the end of the reporting period, management undertake an assessment of stock, based upon their knowledge of the market and the movement of each stock item. Where necessary, an impairment is recognised in the profit and loss account.
The actual net realisable value may differ from the estimated level of recovery.
The directors do not believe that the group or company has an unconditional right to receive a refund of the surplus, nor does it intend to seek a refund in the foreseeable future. Therefore in accordance with FRS 102 Section 28, a defined benefit pension asset has not been recognised.
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.
In order to adhere to the criteria of FRS 102, Section 28 'Employee benefits', the group uses the services of an independent external actuary to deliver the calculation of the defined benefit scheme deficit as at the reporting date.
The valuation is dependant upon, and highly sensitive to, a number of key actuarial assumptions including the life expectancy, discount rate, price inflation rate, and deferred pension increase rate. Further details of the actuarial assumptions used in respect of the valuation are provided in note 23.
The useful economic life and expected residual value of tooling is assessed at the point of purchase based on expected future revenues generated by holding the tooling equipment. This is reviewed at the end of the reporting period, to determine whether the estimates are still appropriate.
As described in note 15 to the financial statements, the fair value of the investment properties at 31 October 2024 has been determined by the directors with reference to the original purchase price paid, independent valuations since the purchase date and current market yields. The properties were last independently valued at 31 October 2023 by Ken Batty Chartered Surveyors. This was on an open market value basis for current use in accordance with RICS Appraisal and Valuation Manual.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 5 (2023 - 5).
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:
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:
Factors affecting future tax and charges
In the March 2021 budget the Chancellor confirmed an increase in the main rate of corporation tax from 19% to 25% with effect from 1 April 2023. The Finance Bill 2021 had its third reading on 24 May 2021 and was considered substantively enacted on this date. The deferred tax timing differences have therefore been accounted for at 25%.
During a previous year, the group and company invested £334,050 in carbon credits to assist with its Net Zero targets. The investment is expected to have a useful life of 40 years.
The carrying value of land and buildings comprises:
The freehold property was revalued at 31 October 2023 by Ken Batty Chartered Surveyors. This was on an open market value basis for current use in accordance with RICS Appraisal and Valuation Manual.
The group net book value includes land of £1,140,094 (2023: £1,140,094) which is not depreciated. The company net book value includes land of £123,172 (2023: £123,172) which is not depreciated.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts for the group would have been approximately £11,068,557 (2023: £8,824,477), being cost of £13,833,213 (2023: £11,589,133) and depreciation of £2,764,656 (2023: £2,764,656). The carrying amounts for the company would have been approximately £1,777,980 (2023: £1,758,377), being cost of £2,359,462 (2023: £2,339,859) and depreciation of £581,482 (2023: £581,482).
The fair value of the investment properties at 31 October 2024 has been determined by the directors with reference to the original purchase price paid, independent valuations since the purchase date and current market yields. The properties were last independently valued at 31 October 2023 by Ken Batty Chartered Surveyors. This was on an open market value basis for current use in accordance with RICS Appraisal and Valuation Manual.
Details of the company's subsidiaries at 31 October 2024 are as follows:
The financial assets measured at fair value represent the listed investments. These are funds invested into an actively managed investment portfolio as part of the group's strategy to generate returns separate from the trading activity of the group. The fair value of these investments is the market value, as provided by the investment managers.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
It is impractical to estimate the movement of the deferred tax asset relating to retirement obligations in the 12 months following the balance sheet date, due to the estimation uncertainty over the related obligations, which can only be assessed following the next balance sheet date. This is also true of the deferred tax provision in respect of properties carried at valuation. Furthermore as at the signing date of these financial statements, as the company has not finalised its capital expenditure programme for 2024/25, an assessment as to the likely movement of other related timing differences cannot be made.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The company operates a defined benefit pension scheme in the UK, the Glasdon Group Limited Retirement Benefits Scheme. The scheme is available to employees of Glasdon Group Limited and its subsidiaries, Glasdon (UK) Limited and Glasdon International Limited. Within the scheme there were three sub-schemes, 'Scheme 60', 'Scheme 80' and 'Scheme 100'. The difference between these sub-schemes is the required level of employee and employer contributions, together with the level of benefits.
As the sponsoring employer, the defined benefit pension scheme is accounted for within the financial statements of Glasdon Group Limited.
A triennial valuation of the scheme as at 31 October 2021 was undertaken by Broadstone Consulting Actuaries Limited, independent qualified actuaries, which showed a funding surplus of £9,013,000.
The funding policy is to commission the Scheme Actuary to review whether or not the Trustees' funding objective is being met and, if necessary, the Trustees will agree a recovery plan with the employer.
In the next financial year the company expects to contribute 17.3% of total pensionable salaries for Scheme 60 and Scheme 80; and 13% for Scheme 100.
The mortality table used to calculate life expectation at the current year end was 100% S3PXA CMI 2023 [1.5%]. The assumed life expectations on retirement at age 65 are:
Amounts recognised in the profit and loss account
Amounts taken to other comprehensive income
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
Movements in the present value of defined benefit obligations
The defined benefit obligations arise from plans which are wholly or partly funded.
Movements in the fair value of plan assets
The scheme assets do not include ordinary shares issued, nor property occupied, by the sponsoring employer.
The directors do not believe that the group or company has an unconditional right to receive a refund of the surplus, nor does it intend to seek a refund in the foreseeable future. Therefore in accordance with FRS 102 Section 28, a defined benefit pension asset has not been recognised.
On 16 June 2023 the High Court handed down its decision in The Virgin Media Ltd v NTL Pension Trustees II Limited case, which concerned the implications of section 37 of the Pension Schemes Act 1993. Subsequently Virgin Media Ltd filed an appeal, the hearing for which took place on 27 and 27 June 2024 and on 25 July 2024 it was announced that the Court Appeal upheld the High Court ruling. The Court of Appeal’s ruling confirms that the requirement to obtain 37 confirmation on rule alterations applies to both past and future service rights. Another legal case is due to be heard at some point in 2025, however the details of this as so far unknown, but this may provide further clarity. The Trustees of the Scheme, with their legal advisers, will investigate the possible implications for the Scheme and that of Glasdon Group Limited. As it is not possible at present to estimate the potential impact, if any, on the Scheme, no provision has been made in the financial statements.
A detailed analysis of the rights attaching to each share is detailed in the company's Articles of Association. All classes of shares rank pari passu in all respects but shall constitute separate classes of shares.
Group
Included within the group profit and loss account reserve at 31 October 2024 is £2,257,975 (2023: £nil) in respect of unrealised gains on listed investments which are non-distributable.
Company
Included within the profit and loss account reserve at 31 October 2024 is £9,337,638 (2023: £7,800,508) in respect of unrealised gains on listed investments and investment properties which are non-distributable.
Group
The group has a bond in place with HM Revenue & Customs which at 31 October 2024 amounted to £12,000 (2023: £12,000).
Company
The company has guaranteed the bank borrowings of other group companies which at 31 October 2024 amounted to £nil (2023: £nil). At 31 October 2024 the 'banking group' as a whole was in credit.
The company is registered for VAT under group registration provisions and is therefore jointly and severally liable for the tax owed by the other group companies registered with it. At 31 October 2024 value added tax owed by the other companies registered with it amounted to £356,777 (2023: £561,344).
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Amounts contracted for but not provided in the financial statements:
During the year the group entered into the following transactions with related parties:
The company has taken advantage of the exemption permitted under Section 33.1A from disclosing transactions with its subsidiary companies.
The following amounts were outstanding at the reporting end date:
Details of guarantees given in respect of group companies can be found in note 26.