| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements |
| for the Year Ended 31 December 2024 |
| for |
| Specialist Door Solutions Ltd |
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements |
| for the Year Ended 31 December 2024 |
| for |
| Specialist Door Solutions Ltd |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Contents of the Financial Statements |
| for the Year Ended 31 December 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 7 |
| Statement of Income and Retained Earnings | 10 |
| Statement of Financial Position | 11 |
| Notes to the Financial Statements | 12 |
| Specialist Door Solutions Ltd |
| Company Information |
| for the Year Ended 31 December 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| BUSINESS ADDRESS: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chancery House |
| 30 St Johns Road |
| Woking |
| Surrey |
| GU21 7SA |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Strategic Report |
| for the Year Ended 31 December 2024 |
| The directors present their strategic report for the year ended 31 December 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of the manufacture of specialist doorsets for healthcare, education and pharmaceutical. |
| REVIEW OF BUSINESS |
| The Board aims to present a review of the development and performance of the company during the year under review and its position at the year end. This review is consistent with the size and nature of the group and is written in the context of risks and uncertainties it faces. |
| The directors recognise a reduction in both turnover and profitability during the year. During the year, the business began investing in its future with development of its infrastructure, product range and team expertise. The directors expect that this will lead to improved performance in 2025 and beyond. |
| The directors consider that the key performance indicators are those that communicate the financial performance and strength of the company, primarily turnover, gross profit, EBITDA, net assets and cash. The company experienced a reduction in turnover with overall sales decreasing from £11.8m to £9.9m as a direct result of an underperformance of new sales in the preceding 12 to 18 months; in addition, the company saw a reduction in gross margin from 61.1% to 57.6% although this remained significantly above historical averages. This resulted in the gross profit decreasing from £7.2m to £5.7m in the year. |
| During the year, the company identified a historical manufacturing issue with a small number of doors (less than 1% of manufactured doors) that required some remedial works. All affected clients were contacted and remedial action is underway. A provision of c£765K for this remedial work has been recorded in the year. As a result, the EBITDA for the year reduced from £3.5m to £1.0m. |
| The company's net assets decreased from £4.1m to £2.7m. and cash increased from £865K to £994K. |
| The directors aim to maintain the company's existing management policies which have resulted in the company's period of trading. These policies include the intention to grow sales and maintain control over costs. The directors are confident that the company will continue to trade profitably in the future. The continuing profitability has left the company in a sound financial position at the end of the year and is in line with the company's expectations. They anticipate further growth in 2025 and beyond. |
| KEY PERFORMANCE INDICATORS |
| The directors considers its Key Performance Indicators to be turnover, gross profit, net assets and cash. |
| 2024 | 2023 | 2022 |
| £ | £ | £ |
| Sales | 9,936,268 | 11,818,410 | 11,205,511 |
| Gross profit | 5,722,738 | 7,218,556 | 5,835,812 |
| Gross profit margin | 57.6% | 61.1% | 52.1% |
| EBITDA | 1,006,250 | 3,548,593 | 2,846,560 |
| Net assets | 2,671,909 | 4,067,956 | 2,787,000 |
| Cash | 993,822 | 865,808 | 960,475 |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Strategic Report |
| for the Year Ended 31 December 2024 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The management of the company and the nature of its trading strategy are subject to a number of risks. The company operates a thorough risk assessment and management process which involves a formal review of all the risks identified and introducing processes to monitor and mitigate each risk, where possible. |
| The directors review the principal risks and uncertainties facing the company on a regular basis and ensure systems and policies are continuously updated to reflect any changes, they work in an efficient manner to minimise those risks and help achieve the group's objectives. |
| Cost inflation and supply chain |
| The company continues to have a strong supply chain system, which allows it to negotiate better purchasing terms and work with suppliers to improve supply chain efficiency. However, the company remains exposed to periods of cost inflation and continually assesses any risks identified with the aim of mitigating the threats these may have on the company's operations and profitability. |
| Principal financial instruments |
| The company's principal financial instruments comprise of bank balances, inventories, trade debtors, trade creditors, hire purchase finance and debenture loan notes. The main purpose of these instruments is to provide funds for the company's operations. Their existence exposes the company to a number of financial risks, which have been considered and are managed as follows: |
| Operational risk |
| Operational risk is the risk of a direct or indirect loss resulting from the inadequacies or failures of processes or controls due to technology, staff, organisation or external factors. To monitor and control operational risk, the company maintains a system of comprehensive policies and a control framework which is designed to provide a sound and well-controlled operational environment. |
| Liquidity risk |
| Liquidity risk is the risk that the company will have insufficient resources to meet its financial liabilities as they fall due. The company's strategy to managing liquidity risk is to ensure that the group has sufficient funds to meet all its potential liabilities as they fall due. |
| Interest rate risk |
| Interest rate risk is the risk that the financial performance of the group will be adversely affected by adverse fluctuations on interest rates being charged to the company on its financial instruments. The interest rate risk is managed by using fixed low interest rates on its borrowing. This is deemed sufficient to mitigate this risk. |
| Credit risk |
| The company has a significant and diverse customer base, ranging from large contractors to individual operations. The company works closely with a credit risk insurer whenever possible. This, combined with undertaking stringent credit checks, raising proforma invoices where considered appropriate and the implementation of further safeguards, where necessary, minimises credit risk. |
| Currency risk |
| Currency risk is the risk that the financial performance of the company will be adversely affected by adverse fluctuations in foreign currencies used by the company. The company has minimal exposure to foreign currency risk. |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Strategic Report |
| for the Year Ended 31 December 2024 |
| GOING CONCERN |
| The company's business activities, together with the factors likely to affect its future development, performance and position are set out above. After making enquiries, the directors believe the company has sufficient resources to continue in operational existence for the foreseeable future. |
| The directors have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis. |
| ON BEHALF OF THE BOARD: |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Report of the Directors |
| for the Year Ended 31 December 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
| DIVIDENDS |
| Interim dividends of £1,941,600 (2023: £1,834,691) were paid in the year. The directors recommend that no final dividend be paid. |
| RESEARCH AND DEVELOPMENT |
| The company is engaged in ongoing research and development aimed at improving and developing the next generation of fire door systems for hospitals and clinical environments. |
| DIRECTORS |
| Other changes in directors holding office are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| 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. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Report of the Directors |
| for the Year Ended 31 December 2024 |
| AUDITORS |
| The auditors, WP Audit Services LLP, have indicated their willingness to continue in office. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Specialist Door Solutions Ltd |
| Opinion |
| We have audited the financial statements of Specialist Door Solutions Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position and Notes to the Financial Statements, including a summary of 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: |
| - | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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 the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Specialist Door Solutions Ltd |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
| Auditors' 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 a Report of the Auditors 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: |
| We obtained an understanding of the legal and regulatory framework that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context include the Companies Act and tax legislation. In addition we considered the provisions of other laws and regulations that do not have an effect on the financial statements but compliance with which may be fundamental to the company's ability to incur or to avoid a material penalty, including the company's operating licences and environmental regulations. |
| Our procedures in response to the risks identified included reviewing the financial statements disclosures and testing supporting documentation to assess compliance with the provisions of relevant laws and regulations considered to have a direct effect in the financial statements, enquiring of management concerning actual or potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, reading minutes of meetings of those charged with governance, reviewing correspondence with relevant regulatory authorities and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
| We also communicated relevant identified laws and regulations and potential audit risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Specialist Door Solutions Ltd |
| 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 a Report of the Auditors 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. |
| for and on behalf of |
| Chancery House |
| 30 St Johns Road |
| Woking |
| Surrey |
| GU21 7SA |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Statement of Income and |
| Retained Earnings |
| for the Year Ended 31 December 2024 |
| 31/12/24 | 31/12/23 |
| Notes | £ | £ |
| TURNOVER | 4 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| 666,782 | 3,203,650 |
| Other operating income | 5 |
| OPERATING PROFIT | 7 |
| Interest receivable and similar income |
| 754,300 | 3,315,123 |
| Interest payable and similar expenses | 8 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 9 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| Retained earnings at beginning of year |
| Dividends | 10 | ( |
) | ( |
) |
| RETAINED EARNINGS AT END OF YEAR |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Statement of Financial Position |
| 31 December 2024 |
| 31/12/24 | 31/12/23 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 11 |
| CURRENT ASSETS |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 14 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 19 |
| Retained earnings | 20 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements |
| for the Year Ended 31 December 2024 |
| 1. | STATUTORY INFORMATION |
| Specialist Door Solutions Ltd is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | STATEMENT OF COMPLIANCE |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Going concern |
| After reviewing the company's cash position, forecasts and projections for a period of 12 months from the accounts signing date, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its consolidated financial statements. |
| Financial Reporting Standard 102 - reduced disclosure exemptions |
| The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
| • | the requirements of Section 7 Statement of Cash Flows; |
| • | the requirement of paragraph 33.7. |
| Revenue |
| Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Tangible fixed assets |
| Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at the following rates:- |
| Long leasehold - straight line over 50 years |
| Improvements to property - 10% on cost |
| Plant and machinery - 10% and 25% on cost |
| Motor vehicles - 33% on reducing balance |
| Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life. |
| Impairment of fixed assets |
| Fixed assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable or as otherwise required by relevant accounting standards. |
| Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of net realisable value and value-in-use, are recognised as impairments. Impairment losses are recognised in the profit and loss account. |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
| At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| Foreign currencies |
| Transactions in currencies other than the functional currency (foreign currencies) are initially recorded at the exchange rate prevailing on the date of the transaction. |
| Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined. |
| All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income. |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Financial instruments |
| The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102, in full, to all of its financial instruments. |
| Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument, and are offset only when the company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. |
| Financial assets |
| Debtors |
| Debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. |
| Where an arrangement with a debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument. |
| A provision for impairment of debtors is established when there is evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event accruing after the impairment loss was recognised, are recognised immediately in profit or loss. |
| Financial liabilities and equity |
| Creditors |
| Creditors which are payable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. |
| Borrowings |
| Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges. |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Derecognition of financial assets and liabilities |
| A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, 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. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires. |
| Dividends |
| Dividends are recognised as liabilities once they are no longer at the discretion of the company. |
| Critical accounting judgements and areas of judgement |
| Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
| Critical accounting estimates and assumptions |
| The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. |
| Valuation of inventories |
| Inventories are stated at the lower of cost and net realisable value. Estimates are made in respect of determining the net realisable value of inventories and so the amount of impairment losses. The directors have assessed the net realisable value of the company's inventories having regard to the age of the stock, the number of individual items held and the level of recent sales of stock lines. However the assessment of net realisable value is inherently subjective as it is made on the basis on previous sale activity which may in future not prove to be accurate. |
| Valuation of warranty provisions |
| The company has an obligation to recognise a warranty provision when it has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefit in settlement, and the amount of the obligation can be estimated reliably. |
| The company sells goods with a warranty which covers customers for the costs of repairs where the goods do not meet certified standards. An estimate has been made for the cost of making such repairs and so the amount of any provisions, by contacting customers to identify any repair works required and the cost of doing so based on previous works carried out. |
| The assessment of the warranty provision is however inherently subjective as it is based on responses received by customers, an assessment of the likelihood of rectification works and the cost of doing so based on previous works carried out that may in the future not prove to be accurate. |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| In the year to 31 December 2024 less than 1% (2023: less than 3%) of the group's turnover was to markets outside the United Kingdom. |
| 5. | OTHER OPERATING INCOME |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Rents received |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 6. | EMPLOYEES AND DIRECTORS |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 31/12/24 | 31/12/23 |
| Office | 38 | 35 |
| Production | 21 | 29 |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Directors' remuneration |
| 7. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Profit on disposal of fixed assets | ( |
) |
| Auditors' remuneration |
| Operating lease rentals |
| Research and development |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Hire purchase |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Prior year under / (over) provision | 89,218 | (240,180 | ) |
| Total current tax |
| Deferred tax | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 25% (2023 - 23.50%). |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Adjustments to tax charge in respect of previous periods | ( |
) |
| Group relief | (39,520 | ) | (50,680 | ) |
| Other tax adjustments | (22,138 | ) | 39,597 |
| Patent box | (71,040 | ) | (345,954 | ) |
| Total tax charge | 198,256 | 180,314 |
| 10. | DIVIDENDS |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Ordinary shares of 1 each |
| Interim |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 11. | TANGIBLE FIXED ASSETS |
| Improvements |
| Long | to | Plant and | Motor |
| leasehold | property | machinery | vehicles | Totals |
| £ | £ | £ | £ | £ |
| Cost |
| At 1 January 2024 |
| Additions |
| At 31 December 2024 |
| Depreciation |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| Net book value |
| At 31 December 2024 |
| At 31 December 2023 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Improvements |
| to | Plant and | Motor |
| property | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| Cost |
| At 1 January 2024 |
| and 31 December 2024 |
| Depreciation |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| Net book value |
| At 31 December 2024 |
| At 31 December 2023 |
| 12. | STOCKS |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Stocks |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Tax |
| Prepayments and accrued income |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Hire purchase contracts (see note 16) |
| Trade creditors |
| Amounts owed to group undertakings |
| Tax |
| Social security and other taxes |
| VAT | 217,479 | 281,680 |
| Other creditors and accruals |
| Directors' current accounts | 379,716 | 18,870 |
| Accruals and deferred income |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Hire purchase contracts (see note 16) |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 16. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Gross obligations repayable: |
| Within one year |
| Between one and five years |
| Finance charges repayable: |
| Within one year |
| Between one and five years |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable operating | leases |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Within one year |
| Between one and five years |
| 17. | SECURED DEBTS |
| Obligations under finance leases and hire purchase contracts are secured by related assets. |
| The company has a bank overdraft facility of £500,000 which is secured on the company's leasehold property. The overdraft facility was not being used at the balance sheet date. |
| 18. | PROVISIONS FOR LIABILITIES |
| 31/12/24 | 31/12/23 |
| £ | £ |
| Deferred tax | 96,686 | 137,648 |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2024 |
| Credit to Statement of Comprehensive Income during year | ( |
) |
| Balance at 31 December 2024 |
| Specialist Door Solutions Ltd (Registered number: 04187742) |
| Notes to the Financial Statements - continued |
| for the Year Ended 31 December 2024 |
| 18. | PROVISIONS FOR LIABILITIES - continued |
| Deferred tax has arisen due to accelerated capital allowances. The timing of the reversal of the provision is uncertain due to the offset of excess depreciation of existing assets and accelerated capital allowances being claimed on future purchases. |
| 19. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31/12/24 | 31/12/23 |
| value: | £ | £ |
| Ordinary | 1 | 999 | 999 |
| The company's shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company. |
| 20. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 January 2024 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 December 2024 |
| Reserves of the company represent the following: |
| Retained earnings |
| The cumulative profit and loss net of distributions to owners. |
| 21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| Included in creditors is an amount of £301,739 (2023: £9,817) due to Mr D Blake and an amount of £379,716 (2023: £9,053) due to Mr R James. The loans are interest free. |
| 22. | CONTROL |
| The company's ultimate and immediate parent company is SDS Protection (Holdings) Limited, a company registered in England. The Registered office is Chancery House, 30 St Johns Road, Woking, Surrey GU21 7SA and the principal place of business is Unit 1 Trading Estate, Old Station Road, Bordon GU35 9HH. |