Company registration number 01498182 (England and Wales)
BROWNHILLS GLASS COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
BROWNHILLS GLASS COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr M Harrison
Mr M Bate
Company number
01498182
Registered office
Beecham Close
Aldridge
Walsall
West Midlands
WS9 8UZ
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
BROWNHILLS GLASS COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 25
BROWNHILLS GLASS COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 November 2024.
The business continues to be engaged in the activities of flat glass merchanting and bespoke architectural glass processing.
Review of the business
During FY24, the glass market contracted, with declines in output, reduced trade activity, and continued pressure from energy costs, import conditions, and subdued demand. This led to increased competition across the sector, with some competitors lowering prices to secure or retain business. Brownhills Glass ("BGC") maintained a consistent pricing approach, reflecting confidence in the quality of its products and services. While this stance impacted headline revenue when compared to forecasts and prior year performance, gross margins remained robust.
A key strategic development during the year was the continued expansion of BGC’s product range, with particular emphasis on toughened laminated glass. This initiative has been well received by customers and has contributed positively to the business's long-term positioning.
The longer-term strategy of the business remains consistent; BGC will prioritise reducing processing lead-times while upholding high standards of quality and service. In a fragmented market with numerous regional competitors, the directors believe that strong performance in these areas is key to securing repeat business, building customer loyalty, and moving commercial conversations away from price alone.
BGC continued to expand its logistics capabilities, enabling access to a wider geographical market. The South and Southwest remain areas of particular strategic focus, and the recent acquisition of a site in the South by the group has strengthened this position further. This development has created new opportunities for BGC in the form of greater geographical reach and emerging operational synergies, which are expected to support future growth.
The business has remained resilient through a difficult trading period, continuing to face cost pressures across several fronts. This included rising supplier prices and increases to employment-related costs, most notably changes to National Insurance contributions. While these challenges have affected the wider industry, BGC has managed its cost base carefully and maintained a strong operational performance.
Investments made in prior years—particularly in automation and energy conservation—have helped mitigate some of the inflationary pressure through improved unit rates and reduced consumption. These actions have proven increasingly important in maintaining operational efficiency and cost competitiveness.
Principal risks and uncertainties
The directors remain integrally involved in the day-to-day operations of the business and maintain close oversight of both strategic and operational risks.
In previous years, the principal risk facing the business related to the reliable supply of glass. However, as noted in FY23, this risk has reduced significantly, with all major manufacturers continuing to supply the UK market without material restriction.
In FY24, the primary risk has shifted to the demand side. The business has seen increased volatility in customer ordering patterns, particularly within the glass merchanting sector, where fluctuations in the order book and pricing pressure have been more pronounced. This reflects broader market conditions, including softer construction activity and heightened competition.
To navigate this more uncertain demand environment, the business has remained focused on delivering consistent quality, excellent customer service, and maintaining strong relationships with key customers. These efforts have helped preserve core volumes and reinforce customer loyalty. The business has also continued to invest in internal efficiencies and automation to support cost control and responsiveness to changes in market demand.
BROWNHILLS GLASS COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
Key performance indicators
The directors consider turnover and EBITDA as key financial indicators and manage the business with these metrics at the forefront of decision making.
Turnover of £8.04m had an unfavorable variance against FY23 (£8.95m), The mix of work was more encouraging with added value glass processing accounting for 55% of the sales mix an increase of 5% over FY23.
EBITDA was £780k and when adding back exceptional 3rd party costs £794k. This compares to £590k in FY23 and is reflective of the additional margin generated by the changing sales mix.
Mr M Harrison
Director
20 August 2025
BROWNHILLS GLASS COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Principal activities
The principal activity of the company continued to be that of flat glass merchanting and bespoke architectural glass processing.
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:
Mr M Harrison
Mr M Bate
Financial instruments
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Research and development
The company continues to invest in research and development activities to maintain its competitive advantage and respond to evolving customer needs.
Future developments
Details of the future developments can be found in the "Conclusion and strategic outlook" section of the Strategic Report on page 3 of this annual report.
Auditor
The auditor, BK Plus Audit Limited, 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.
BROWNHILLS GLASS COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 4 -
On behalf of the board
Mr M Harrison
Director
20 August 2025
BROWNHILLS GLASS COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
BROWNHILLS GLASS COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BROWNHILLS GLASS COMPANY LIMITED
- 6 -
Opinion
We have audited the financial statements of Brownhills Glass Company Limited (the 'company') for the year ended 30 November 2024 which comprise the profit and loss account, 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:
give a true and fair view of the state of the company's affairs as at 30 November 2024 and of its loss 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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BROWNHILLS GLASS COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BROWNHILLS GLASS COMPANY 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:
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 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.
In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance, if available;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.
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.
BROWNHILLS GLASS COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BROWNHILLS GLASS COMPANY LIMITED (CONTINUED)
- 8 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Keval Dattani ACA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
20 August 2025
BROWNHILLS GLASS COMPANY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
8,036,437
8,952,522
Cost of sales
(4,557,817)
(5,508,208)
Gross profit
3,478,620
3,444,314
Administrative expenses
(3,038,931)
(3,230,842)
Operating profit
4
439,689
213,472
Interest payable and similar expenses
7
(646,424)
(508,604)
Loss before taxation
(206,735)
(295,132)
Tax on loss
8
47,077
Loss for the financial year
(159,658)
(295,132)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BROWNHILLS GLASS COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 10 -
2024
2023
£
£
Loss for the year
(159,658)
(295,132)
Other comprehensive income
-
-
Total comprehensive income for the year
(159,658)
(295,132)
BROWNHILLS GLASS COMPANY LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
7,242
Tangible assets
11
1,788,302
1,757,200
1,795,544
1,757,200
Current assets
Stocks
12
373,648
475,707
Debtors
13
19,600,467
17,036,693
Cash at bank and in hand
414,356
5,633
20,388,471
17,518,033
Creditors: amounts falling due within one year
14
(2,302,729)
(2,232,092)
Net current assets
18,085,742
15,285,941
Total assets less current liabilities
19,881,286
17,043,141
Creditors: amounts falling due after more than one year
15
(14,724,641)
(11,715,419)
Provisions for liabilities
Deferred tax liability
18
286,911
298,330
(286,911)
(298,330)
Net assets
4,869,734
5,029,392
Capital and reserves
Called up share capital
20
104
104
Share premium account
39,996
39,996
Profit and loss reserves
4,829,634
4,989,292
Total equity
4,869,734
5,029,392
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 20 August 2025 and are signed on its behalf by:
Mr M Harrison
Director
Company registration number 01498182 (England and Wales)
BROWNHILLS GLASS COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2022
104
39,996
5,759,424
5,799,524
Year ended 30 November 2023:
Loss and total comprehensive income
-
-
(295,132)
(295,132)
Dividends
9
-
-
(475,000)
(475,000)
Balance at 30 November 2023
104
39,996
4,989,292
5,029,392
Year ended 30 November 2024:
Loss and total comprehensive income
-
-
(159,658)
(159,658)
Balance at 30 November 2024
104
39,996
4,829,634
4,869,734
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 13 -
1
Accounting policies
Company information
Brownhills Glass Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Beecham Close, Aldridge, Walsall, West Midlands, WS9 8UZ.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of United Glass Group Ltd. These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
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
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
20% straight line
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% reducing balance
Fixtures and fittings
15% reducing balance
Motor vehicles
25% reducing balance
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 and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
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.
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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
As lessee
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.
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible Assets
The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives of all assets are determined at the time the asset is acquired and reviewed at lease annually for appropriateness by the directors.
Debtor recoverability
Management estimates the recoverable amount of trade receivables based on historical collection patterns, customer credit risk, and current market conditions.Provision is made for balances where recovery is uncertain.
Deferred tax
Deferred tax assets and liabilities are recognised based on temporary differences and tax loss carryforwards. Management estimates future taxable profits and timing of reversals to assess the recoverability of deferred tax assets. These estimates involve judgment, particularly given industry cyclicality and capital investment timing.
3
Turnover
The whole of the turnover is attributable to sales of goods.
All turnover arose within United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
8
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
13,250
Depreciation of owned tangible fixed assets
322,019
272,134
Loss on disposal of tangible fixed assets
19,019
4,811
Amortisation of intangible assets
1,811
-
Operating lease charges
495,269
478,089
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
2
2
Administration
17
22
Production
35
33
Total
54
57
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,695,437
1,807,342
Social security costs
172,306
178,483
Pension costs
62,822
52,535
1,930,565
2,038,360
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
98,333
110,500
Company pension contributions to defined contribution schemes
16,301
9,567
114,634
120,067
7
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
57,834
56,166
Other interest on financial liabilities
561,591
442,151
Interest on finance leases and hire purchase contracts
19,599
7,082
Other interest
7,400
3,205
646,424
508,604
8
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(35,658)
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
8
Taxation
2024
2023
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(11,419)
Total tax credit
(47,077)
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(206,735)
(295,132)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.00%)
(51,684)
(67,880)
Tax effect of expenses that are not deductible in determining taxable profit
80,758
Gains not taxable
4,754
Tax effect of utilisation of tax losses not previously recognised
(48,893)
Unutilised tax losses carried forward
67,880
Group relief
116,318
Permanent capital allowances in excess of depreciation
(101,252)
Under/(over) provided in prior years
(35,658)
Deferred tax
(11,420)
Taxation credit for the year
(47,077)
-
Adjustment in respect of prior period for corporation tax relates to a R&D claim which is not previosly recognised.
9
Dividends
2024
2023
£
£
Interim paid
475,000
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
10
Intangible fixed assets
Software
£
Cost
At 1 December 2023
Additions
9,053
At 30 November 2024
9,053
Amortisation and impairment
At 1 December 2023
Amortisation charged for the year
1,811
At 30 November 2024
1,811
Carrying amount
At 30 November 2024
7,242
At 30 November 2023
More information on impairment movements in the year is given in note .
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 December 2023
4,222,551
351,878
267,371
4,841,800
Additions
15,983
21,266
344,461
381,710
Disposals
(118,750)
(149,969)
(268,719)
At 30 November 2024
4,119,784
373,144
461,863
4,954,791
Depreciation and impairment
At 1 December 2023
2,653,159
182,181
249,260
3,084,600
Depreciation charged in the year
232,360
28,543
61,116
322,019
Eliminated in respect of disposals
(91,727)
(148,403)
(240,130)
At 30 November 2024
2,793,792
210,724
161,973
3,166,489
Carrying amount
At 30 November 2024
1,325,992
162,420
299,890
1,788,302
At 30 November 2023
1,569,392
169,697
18,111
1,757,200
The net book value of assets held under finance leases or hire purchase contracts, included above is £412,530 (2023 - £222,420)
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 22 -
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
373,648
475,707
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,276,723
1,266,378
Corporation tax recoverable
80
Amounts owed by group undertakings
18,126,938
15,549,663
Other debtors
73,000
73,000
Prepayments and accrued income
123,806
147,572
19,600,467
17,036,693
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
119,534
58,452
Other borrowings
16
168,585
140,526
Trade creditors
736,912
615,608
Taxation and social security
226,145
230,010
Other creditors
823,345
929,621
Accruals and deferred income
228,208
257,875
2,302,729
2,232,092
The invoice discounting creditor is secured by a fixed and floating charge over the assets of the Company.
Other loans totalling £133,239 (2023 - £93,895) are secured by a fixed and floating charge over the assets of the Company and related undertakings.
Obligations under finance lease' and hire purchase contracts are secured over the assets to which they relate.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
261,723
114,880
Other borrowings
16
14,462,918
11,600,539
14,724,641
11,715,419
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
15
Creditors: amounts falling due after more than one year
(Continued)
- 23 -
The other loan is secured by a fixed and floating charge over the assets of the Company and related undertakings.
Obligations under finance lease' and hire purchase contracts are secured over the assets to which they relate.
16
Loans and overdrafts
2024
2023
£
£
Other loans
14,631,503
11,741,065
Payable within one year
168,585
140,526
Payable after one year
14,462,918
11,600,539
Other loans of £14,596,157 (2023 - £11,647,170) are repayable in instalments over 23 years. Interest is payable at 11.4% per annum.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
119,534
58,452
In two to five years
261,723
114,880
381,257
173,332
Obligations under hire purchase contracts and finance leases are secured on the underlying assets. Hire purchase contracts are on 48 months terms.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
286,911
376,576
Tax losses
-
(78,246)
286,911
298,330
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
18
Deferred taxation
(Continued)
- 24 -
2024
Movements in the year:
£
Liability at 1 December 2023
298,330
Credit to profit or loss
(11,419)
Liability at 30 November 2024
286,911
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,822
52,535
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
104
104
104
104
21
Financial commitments, guarantees and contingent liabilities
A group VAT registration is in force. The company is therefore jointly and severally liable for the amount of VAT owed by United Glass Group Ltd. At the balance sheet date this amounted to £602 (2023: £4,386)
Lloyds Bank plc hold a letter of set off between the company, parent company and fellow subsidiaries, Brownhills Investments Property Limited, Peterlee Glass Company Limited, Tufwell Glass Limited, Peterleetwo Limited and London Architectural Ltd. The company is therefore jointly and severally liable for the amount owed by United Glass Group Ltd, Brownhills Investments Property Limited, Peterlee Glass Company Limited, Tufwell Glass Limited, Peterleetwo Limited and London Architectural Ltd. The total balances guaranteed at 30 November 2024 amounted to £3,228,416 (2023: £2,275,166)
Since March 2023, Lombard North Central PLC hold a guarantee and indemnity between the company and fellow subsidiaries Brownhills Investments Property Limited, Peterlee Glass Company Limited, Tufwell Glass Limited and London Architectural Ltd. The company is therefore jointly severely liable for the amount owed by Brownhills Investments Property Limited, Peterlee Glass Company Limited, Tufwell Glass Limited, Peterleetwo Limited and London Architectural Ltd to Lombard North Central PLC. The total balances guaranteed at 30 November 2024 amounted to £206,429 (2023: £183,563)
22
Operating lease commitments
As lessee
The total amount recognised as an expense in the profit and loss account in respect of operating leases was £495,269 (2024: £478,089)
BROWNHILLS GLASS COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
22
Operating lease commitments
(Continued)
- 25 -
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 1 year
390,813
395,839
Years 2-5
1,224,102
1,167,614
After 5 years
53,750
268,750
1,668,665
1,832,203
23
Related party transactions
Other loans of £14,596,157(2023- £11,694,434) referred to in earlier note is owed to Duke Capital Ltd.
Other information
The Company has taken advantage of the exemption in Section 33.1A of Financial Reporting Standard 102 from the requirement to disclose transactions with wholly owned members of the group.
The company has taken advantage of the exemption under Financial Reporting Standard 102 Section 1.12 Reduced Disclosures For Subsidiaries from disclosing key management compensation in total.
24
Ultimate controlling party
The company is a wholly owned subsidiary undertaking of United Glass Group Ltd, which is also the ultimate parent company. The registered address of the parent company is Beecham Close, Aldridge, Walsall, West Midlands, WS9 8UZ.
United Glass Group Ltd prepares group financial statements and copies can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
At the balance sheet date, the ultimate controlling party is Duke Capital Limited by virtue of their shareholding in United Glass Group Ltd.
BROWNHILLS GLASS COMPANY LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 30 NOVEMBER 2024
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