Company registration number 02488234 (England and Wales)
GJB DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
GJB DEVELOPMENTS LIMITED
COMPANY INFORMATION
Directors
S Gardiner
S McLaughlin
C Sharpe
R Waller
Company number
02488234
Registered office
21 Totman Crescent
Rayleigh
Essex
SS6 7UY
Auditor
Mercer & Hole LLP
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
Buckinghamshire
MK9 1BP
GJB DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
GJB DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

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

Fair review of the business

The invasion of Ukraine in February 2022 triggered the start of a renewed spiral in supply chain costs for the fenestration sector. Unlike the cost spiral that followed the first lock down in 2020 the associated increases in household living costs and interest rates resulted in a significant decline in consumer confidence, a leading indicator for most of our business. This in turn has caused a marked decline in consumer demand for fenestration products, sadly this has led to a number of businesses in our sector closing.

 

We have an effective and professional sales and marketing team who have risen to the challenges of a tough market by continuing to increase our market share in our traditional segments and by continuing to add other segments with more resilient end-user demand. We are pleased to report that in the year to 31 October 2024 we continued our trend of top-line growth against a backdrop which has seen many of our competitors report reductions in sales. Delivering this strategy has required continued investment in people, sales and marketing resource and continued investment in our manufacturing activities.

 

Increases in base rates since December 2021 have significantly added to the cost of borrowing on all of the group debt facilities but we are pleased to note the downward trend in borrowing costs. The group remains well financed, compliant with all of its debt covenants and with significant headroom on its working capital facilities.

 

We have responded to the growing demand for our products with significant increases in capacity. Some of this has been delivered through capital expenditure investing in new plant and equipment and other significant increases have been delivered through the efforts of our colleagues in constantly improving the way in which we work. We continue to seek opportunities to improve our processes and to be innovative in the both the products we manufacture and the way in which we go to market.

 

The group has continued support from the shareholders and continues to make significant investments in new plant, machinery and stock to support shorter lead-times and a growing product portfolio.

Environmental and Social Governance (ESG)
The directors have chosen to include an ESG statement in these financial statements. We believe that as a major player in the fenestration industry and an employer of over 300 people our group has an obligation to our environment and to the communities in which we operate.

The board of GJB Holdings Limited has made a commitment to our group being carbon neutral by 31 October 2030. This will be delivered by a mixture of changes in the way we operate our business and carbon offset agreements for those emissions which we are unable to eradicate.

We are fortunate in having key suppliers who also take a responsible approach to the management of their emissions and we will continue to work with them and with others in our supply chain to manage the impact on the environment from our supply chain.

We have already achieved ISO 14001 at both of our factories and ISO 50001 (environmental and energy management) is in place at the company's factories. This is an important step in our continuous process of embedding environment and energy management within our business and in managing our Scope 1 and 2 emissions. We will use the valuable information delivered through our energy management systems to implement new approaches to the way we operate our business. We have already implemented a policy for all company cars to be fully electric and replaced the worst performing vehicles in our commercial fleet with new lower emission vehicles.

We place emphasis on minimising waste through robust waste management policies which seek to deliver environmentally appropriate recycling wherever viable. Our suppliers of PVCu systems have strong recycling credentials meaning that a significant proportion of our finished goods are made from recycled materials. We seek to recycle as much of the waste produced within our operations as possible and we also offer recycling facilities to many of our smaller customers by offering a waste to recycling facility at our “Listers Hubs”.
GJB DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
We believe that it is important that we contribute to the communities in which we operate and to the wider social environment. We actively encourage our staff to participate in community activities and where appropriate we offer them support in delivering on these personal commitments.

The wellbeing of all of our colleagues is an important part of the way we operate the business. All employees receive additional benefits in the form of life assurance cover and access to other benefits programmes providing health and wellbeing support. We also continue a programme of training which will ensure that every part of our business has at least one person who holds a certification from Mental Health England in Mental Health First Aid. In addition, all of our colleagues now benefit from the availability of a wide range of support and counselling advice provided as part of their employment package.
Principal risks and uncertainties

The company's market is England and Wales and therefore the performance of the UK economy and consumer spending continues to be a dominant risk factor for the performance of the company. During the year to 31 October 2024 consumer confidence remained constrained by rises in the cost of living and continued economic uncertainty. Our response to this has been to focus on increasing our market share and balancing our risk across our various routes to market with an increased proportion of our sales being made through customers serving more resilient markets such as social housing.

 

We maintain a broad customer base retaining significant geographic and sector spread and our product range gives us access to a diverse demographic of consumers through our retail and trade customer base. We monitor our customer concentration by type and by market and target our sales effort to manage our exposure to economic change.

 

The company buys primarily from other UK companies, these in turn may source goods internationally. Ultimately the company is exposed through the supply chain to price risks which could result from exchange rate movements and a potential reduction in supply due to geopolitical change. The company monitors these risks on a continuous basis.

 

The company does not have any significant reliance on labour or other services from non-UK resident sources.

 

Price risk, credit risk, liquidity risk and cashflow risk

The company does not use hedging or other complex financial instruments.

 

The company has close relationships with major suppliers and closely monitors the underlying drivers for changes in supply chain costs. This allows us to manage our value chain. The directors do not consider that the company has a significant price risk.

 

The company has a diverse customer base with no customer representing more than 7% of group turnover. The company operates a tight credit control procedure including setting and enforcing credit limits using credit checking agencies.

 

The company also insures its trade debtors. The directors do not consider there to be a significant credit risk.

 

Subordinated loans carry a fixed interest rate and loans from the commercial lender are on a rate linked to the Bank of England Base Rate. The significant rises in the base rate over the period since December 2021 have increased the cost of group borrowing but this has been to some degree mitigated by the reduction in margins charged on term debt as a result of the debt restructuring completed in October 2022. The downward trend in the Bank of England base rate is already reducing ongoing borrowing costs. The directors do not consider that the group or this company have a significant liquidity risk.

 

The review of the business commented on the mix between short- and long-term debt due the restructuring of the group's debt. This group continues to maintain significant headroom in working capital facilities and as a result the directors do not consider the group to have a significant cashflow risk.

GJB DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
Development and performance

Despite the significant challenges in the market and with supply chain cost inflation the company remained profitable. We continue to have a mindset of continuous improvement and are constantly seeking improvements in our processes, products and equipment.

 

During the financial year further CAPEX investments of £385k were made in our Essex factories by the company and its parent GJB Holdings Ltd and this investment programme has continued into the current financial year. We are also pleased to announce that in the financial year we launched our proprietary software tool “EasyConnect” which enables our customers to have immediate access to product images and pricing from a tablet which significantly adds to their ability to provide rapid and well-presented quotes to potential customers.

 

The fundamentals of the business are good and we are delighted to welcome new members to our growing business and would like to express our gratitude to all of the team who make our business the success that it is.

Key performance indicators

The directors consider that the key financial indicators of the company’s business are:

 

Turnover: - £19.9m which shows a small increase on the prior year, despite the economic environment and significant reductions in volumes experienced by our competitors. We are grateful to both our longstanding and new customers for their continued support.

 

Gross margin: - 26.8% (2023: 27.1%). We are pleased to have maintained our gross margin the financial year despite strong competition. We continue to work with both our customers and suppliers to balance the pressures from supply chain cost inflation with the need for our customers to remain competitive in a difficult market.

 

Debtor days: - 38.9 (2023: 48.2). We are pleased to report a significant reduction in debtor days we are grateful to our customers for their continued support and loyalty and for their adherence to our credit terms. We continue to manage our credit exposure to our customers particularly in the light of the current economic circumstances. We have a large number of customers across the various market segments, and we monitor our debtor days very closely.

 

Creditor days: - 56.1 (2023: 61.0). We have long term supply agreements with our major suppliers which include the provision of trade credit facilities. We are grateful to our supply chain for their continued support.

 

Stock days: - 29.1 (2023: 31.5). We are pleased to continue to work on the efficiency of our stockholding whilst always seeking to preserve lead times for our customers.

Research and development activities

We continually strive to improve the quality of our products and the efficiency of our manufacturing processes. During the financial year we engaged in several R&D projects relating to the manufacture of our windows and doors, the introduction of a new Aluminium system, the upgrading of our MRP software and the development and launch of our EasyConnect offering.

Future developments and events since the year end

Since the year end we have continued to pursue the various improvement projects underway in the year to October 2024. We recognise the reality of the market challenges arising from the level of consumer confidence and continue to work closely with our customers and suppliers to maintain trading volumes. We continue to invest in our product range and our service delivery and are pleased to continue to welcome new customers.

On behalf of the board

C Sharpe
Director
3 July 2025
GJB DEVELOPMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

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

Principal activities

The principal activity of the company continued to be that of the manufacture and distribution of premium PVC and aluminium windows and doors.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a 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:

R Frost
(Resigned 27 February 2025)
S Gardiner
S McLaughlin
C Sharpe
R Waller
Auditor

The auditor, Mercer & Hole LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

Medium-sized companies exemption

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

On behalf of the board
C Sharpe
Director
3 July 2025
GJB DEVELOPMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -

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

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

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GJB DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GJB DEVELOPMENTS LIMITED
- 6 -
Opinion

We have audited the financial statements of GJB Developments Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

GJB DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GJB DEVELOPMENTS LIMITED (CONTINUED)
- 7 -
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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006 and tax legislation.

 

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team include:

 

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

GJB DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GJB DEVELOPMENTS LIMITED (CONTINUED)
- 8 -

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Andrew Lawes MA MSc FCA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP, Statutory Auditor
Chartered Accountants
The Pinnacle
170 Midsummer Boulevard
Milton Keynes
Buckinghamshire
MK9 1BP
4 July 2025
GJB DEVELOPMENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
19,915,081
19,849,002
Cost of sales
(14,580,440)
(14,463,453)
Gross profit
5,334,641
5,385,549
Administrative expenses
(3,934,414)
(4,287,014)
Operating profit
4
1,400,227
1,098,535
Interest payable and similar expenses
7
(116,579)
(154,745)
Profit before taxation
1,283,648
943,790
Tax on profit
8
(327,087)
(216,167)
Profit for the financial year
956,561
727,623

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

GJB DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
302,147
411,269
Current assets
Stocks
10
1,163,536
1,248,256
Debtors
11
9,943,803
8,237,624
Cash at bank and in hand
161,604
28,024
11,268,943
9,513,904
Creditors: amounts falling due within one year
12
(6,341,469)
(5,543,788)
Net current assets
4,927,474
3,970,116
Total assets less current liabilities
5,229,621
4,381,385
Creditors: amounts falling due after more than one year
13
(50,000)
(147,661)
Provisions for liabilities
Deferred tax liability
15
62,817
73,481
(62,817)
(73,481)
Net assets
5,116,804
4,160,243
Capital and reserves
Called up share capital
17
50,000
50,000
Share premium account
1,345
1,345
Profit and loss reserves
5,065,459
4,108,898
Total equity
5,116,804
4,160,243

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

The financial statements were approved by the board of directors and authorised for issue on 3 July 2025 and are signed on its behalf by:
C Sharpe
Director
Company registration number 02488234 (England and Wales)
GJB DEVELOPMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 November 2022
50,000
1,345
3,381,275
3,432,620
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
727,623
727,623
Balance at 31 October 2023
50,000
1,345
4,108,898
4,160,243
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
956,561
956,561
Balance at 31 October 2024
50,000
1,345
5,065,459
5,116,804
GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information

GJB Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 21 Totman Crescent, Rayleigh, Essex, SS6 7UY.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of GJB Holdings Limited. These consolidated financial statements are available from its registered office, 21 Totman Crescent, Rayleigh, Essex, SS6 7UY.

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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

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

GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Plant and equipment
15% straight line
Fixtures and fittings
15% straight line
Motor vehicles
15% straight line

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

1.6
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

 

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

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

1.7
Stocks

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

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

1.8
Cash and cash equivalents

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

GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.9
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.10
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.

1.11
Taxation

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

Current tax

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

Deferred tax

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

 

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.

GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

1.14
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.

1.15
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.

GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
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.

Debtor provision

Debtor provision on old and bad debt is designed to ensure that debtors are only held to the extent that they are recoverable.

Stock provision

Stock provision on slow moving and obsolete stock is assessed with reference to selling price, historical sales pattern and post year end trading performance.

3
Turnover

There is only one material class of turnover, that being the supply of bespoke windows and doors.

 

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
19,634,268
19,583,905
Australia
280,813
265,097
19,915,081
19,849,002
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,200
13,440
Depreciation of owned tangible fixed assets
95,654
82,033
Depreciation of tangible fixed assets held under finance leases
3,210
15,602
Loss on disposal of tangible fixed assets
4,133
-
Operating lease charges
285,705
253,360
5
Employees

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

2024
2023
Number
Number
Directors
5
5
Support staff
27
29
Direct staff
99
96
Total
131
130
GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,817,080
3,923,886
Social security costs
348,536
342,019
Pension costs
95,198
86,574
4,260,814
4,352,479
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
117,459
120,306
Company pension contributions to defined contribution schemes
10,517
6,050
127,976
126,356

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
112,570
151,088
Interest on finance leases and hire purchase contracts
2,664
3,585
Other interest
1,345
72
116,579
154,745
8
Taxation
2024
2023
£
£
Current tax
Group tax relief
337,751
235,478
Deferred tax
Origination and reversal of timing differences
(10,664)
(19,311)
Total tax charge
327,087
216,167
GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
8
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,283,648
943,790
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
320,912
212,521
Tax effect of expenses that are not deductible in determining taxable profit
1,996
5,761
Effect of change in corporation tax rate
-
0
(1,917)
Other non-reversing timing differences
4,179
(198)
Taxation charge for the year
327,087
216,167
9
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2023
641,503
53,794
16,806
712,103
Additions
-
0
876
-
0
876
Disposals
-
0
-
0
(16,806)
(16,806)
At 31 October 2024
641,503
54,670
-
0
696,173
Depreciation and impairment
At 1 November 2023
282,927
14,756
3,151
300,834
Depreciation charged in the year
88,153
8,190
2,521
98,864
Eliminated in respect of disposals
-
0
-
0
(5,672)
(5,672)
At 31 October 2024
371,080
22,946
-
0
394,026
Carrying amount
At 31 October 2024
270,423
31,724
-
0
302,147
At 31 October 2023
358,576
39,038
13,655
411,269

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
£
£
Plant and equipment
14,980
70,855
GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
9
Tangible fixed assets
(Continued)
- 20 -

Under the group financing agreement, as detailed further in note 12, the tangible fixed assets of the company have been pledged to secure group borrowings.

10
Stocks
2024
2023
£
£
Raw materials and consumables
735,813
802,168
Work in progress
28,607
55,976
Finished goods
399,116
390,112
1,163,536
1,248,256
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,124,985
2,622,938
Amounts owed by group undertakings
7,630,528
5,399,698
Other debtors
5,000
-
0
Prepayments and accrued income
183,290
214,988
9,943,803
8,237,624
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
14
5,694
24,216
Trade creditors
2,177,996
2,398,470
Amounts owed to group undertakings
2,439,578
1,170,710
Corporation tax
2,842
2,842
Other taxation and social security
187,800
558,143
Other creditors
1,357,846
1,319,380
Accruals and deferred income
169,713
70,027
6,341,469
5,543,788
GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
12
Creditors: amounts falling due within one year
(Continued)
- 21 -

Included within other creditors is an amount of £1,307,846 (2023: £1,312,771) in respect of amounts owed in relation to an invoice discounting facility. These balances are secured against the company's trade debtors, although wider security is provided as part of a group financing agreement as below.

 

The company is party to a group financing agreement provided to the parent company, GJB Holdings Limited, and its subsidiaries. This facility includes the invoice discounting facility noted above, in addition to other loan facilities. Under the collective agreement, the lender has a first ranking composite guarantee and debenture, secured via fixed and floating charges, over the assets of the group as a whole.

 

Many suppliers of raw materials include a reservation of title clause such that amounts owed to those suppliers and included in trade creditors are secured against the raw material stock held by the company. The maximum value of trade creditors which could be secured in this way is £735,813 (2023: £802,168) as per note 10.

13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
14
-
0
8,211
Other creditors
50,000
139,450
50,000
147,661
14
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
6,201
27,188
In two to five years
-
0
8,719
6,201
35,907
Less: future finance charges
(507)
(3,480)
5,694
32,427

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.

Finance lease obligations are secured directly against the fixed assets to which they relate. The net carrying value of assets under which finance lease payments are payable at the year end is disclosed in note 9.

GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
15
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
62,618
82,181
Short term timing differences
199
(8,700)
62,817
73,481
2024
Movements in the year:
£
Liability at 1 November 2023
73,481
Credit to profit or loss
(10,664)
Liability at 31 October 2024
62,817

The deferred tax asset relating to short term timing differences is expected to reverse within 12 months. The deferred tax liability relating to accelerated capital allowances is expected to reverse within 48 months.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
95,198
86,574

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.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
50,000
50,000
50,000
50,000
GJB DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
18
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
239,380
182,730
Between two and five years
523,431
261,155
In over five years
266,866
-
0
1,029,677
443,885
19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Key management personnel
100,000
139,450

Loans from key management personnel represent formal loan notes from a current and former director to the company, accrue interest at a commercial equivalent lending rate, and are shown within both other creditors due within one year and after more than one year in accordance with the repayment terms.

Balances with non-wholly owned group undertakings relate to intergroup balances with no formal terms. The amounts are included within total amounts owed either by or to group undertakings, as applicable, and are disclosed within the debtors and creditors due within one year notes respectively.

Other information

The company has taken advantage of the exemption made available under FRS 102, para 33.1A to not disclose details of transactions and balances between entities that are wholly owned by the group of which this company is a member.

20
Ultimate controlling party

The company is a subsidiary of GJB Holdings Limited, which is incorporated in England and Wales and has a registered office of 21 Totman Crescent, Rayleigh, Essex, SS6 7UY. Copies of its group financial statements are available from the registered office.

The ultimate parent company is CC117 Limited, which is incorporated in England and Wales and also has a registered office of 21 Totman Crescent, Rayleigh, Essex, SS6 7UY. The consolidated results of the GJB Holdings Limited group of which the company belongs, as above, are consolidated into group financial statements prepared by CC117 Limited, copies of which are available from the registered office.

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