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

The principal activity of the company during the year was the design, manufacture, and distribution of architectural aluminium building systems throughout the UK and Ireland.

2023-24 was a challenging year for the company, there were several factors impacting performance.

The Bank of England base rate increased to 5.25% on 3rd August 2023, just before the financial year began. The base rate remained the same until 1st August 2024 where it reduced to 5.00%. This sustained high rate placed significant pressure on homeowners, affecting the residential repairs and maintenance market. As the majority of our revenue is generated from residential sales, this created a period of uncertainty for many homeowners.

In the summer of 2024, the UK held a general election, resulting in a new government. This period prompted a wait-and-see approach from both businesses and consumers as they awaited the election outcome and subsequent budget announcements.

AluK GB Limited (AluK) trading performance is closely aligned with the UK housing market. The Construction Products Association (CPA) estimated a 4% reduction in private housing RMI output. In addition, the CPA reported a -9.0% decline in the private housing market during 2024, which was worse than initial forecasts at the start of the year. This followed a -13.6% decline in 2023 and contrasted sharply with the 10.9% increase recorded in 2022.

The UK economy experienced negative growth in Q1 and Q2 of the financial year, placing the country in a technical recession for the first half of the year.

Market conditions became increasingly challenging throughout 2023–24, with heightened competition and aggressive pricing strategies, alongside rising costs. Many competitors reduced pricing in response to market pressures, which impacted both average sales price and sales volumes, ultimately affecting revenue.

As a result of the above factors, turnover for the 2023–24 financial year was £29.9m — a 25% decrease compared to 2022–23. Cost pressures also proved difficult to manage. The National Living Wage has increased significantly in recent years; energy costs remained volatile; and some material costs were affected by inflation.

The company posted an EBITDA loss of £0.6m for the 2023–24 financial year, driven by the reduction in revenue and increased cost base. Despite these challenges, AluK’s balance sheet remains strong as of August 2024, with a cash balance of £9.7m and total equity of £19.6m.

In previous years there had been poor strategic decisions that led to a low customer confidence which took impact in 2023-34 and impacted the revenue. The directors made the decision to implement a number of changes to senior management in 2023–24. These decisions were taken with the customer firmly in mind, with the objective of enhancing the customer experience and building long-term customer confidence.

The directors used the 2023–2024 financial year to invest in and promote the company’s success, with a focus on long-term growth and future sustainability.

Some of the key initiatives are below:

• Strengthening relationships with customers and supply chain to deliver high quality and high performance aluminium systems.

• A focus on working capital in financial year 2023-24, particularly the inventory levels. Inventory was reduced from £8.4m at August 2023 to £6.5m at August 2024, releasing £1.9m of tied up cash.

• Investment in and implementation of a robust and advanced ERP system, launched in January 2025, with a focus on automation, streamlined processes, and improved efficiency.

• Invested and implemented a new robust and advanced ERP system in January 2025, leading to streamlined processes and efficiencies.

Investment in R&D and new product development has been another key focus for the directors. Two new sliding doors were introduced during the 2023–24 financial year and have been well received by the market. A new Heritage Door, eagerly anticipated by our customers, is scheduled for launch in early 2025. Additional new products are also progressing well through the development cycle.

• Continued investment in the marketing team and marketing activities, including a brand refresh and initiatives aimed at increasing brand awareness.

At the time of writing this strategic report in August 2025, there have been several significant developments both within the industry and at the macroeconomic level.

The Bank of England base rate has decreased to 4.25%, down from 5.00% at the end of the financial year.

The Construction Products Association (CPA) Spring Report, released in April 2025, forecasts a 4.0% increase in private housing output in 2025 and a 7.0% increase in 2026. There is a direct correlation between private housing output and the performance of AluK GB; however, this impact is typically delayed. Growth in new housing activity tends to stimulate movement in the property market and homeowner investment, but given the time lag, AluK GB does not anticipate significant growth in 2025 as a result of the projected 4% increase. Instead, the company expects to benefit more from this growth in 2026.

The CPA Spring Report also forecasts growth in the private housing repairs and maintenance (RMI) sector, with an estimated 2.0% increase in 2025—mostly expected in the latter part of the year—and a further 3.0% increase in 2026. Due to the timing of this growth, AluK expects only a limited positive impact in 2025.

While the outlook is more optimistic following a subdued 2024, the recovery is expected to be gradual. As a result, the market is forecast to remain relatively flat through 2025, and cost controls will remain in place to protect the business until a more sustained recovery is evident in 2026.

Despite the continued focus on cost control, AluK is making significant investments in product development and marketing in 2025 to ensure the business is well-positioned to capitalise on improving market conditions in 2026.

Environment

The company is committed to protecting the environment predominately through recycling and responsible waste management; certification to both ISO 14001:2015 Environmental Management and ISO 9001:2015 Quality Management Systems.

UK Greenhouse gas emissions and energy use data for the period 1 September 2022 to 31 August 2024:

1. UK energy use 1st September to 31st August

2. Associated Greenhouse Gas Emissions, Tonnes CO equivalent

3. Intensity Ratio, Emissions per employee

Associated Greenhouse gases have been calculated following the HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government's Conversion Factors for Company Reporting. The company recognises its responsibility to ensure a safe and healthy environment and always endeavours to maintain sound environmental performance through the continued maintenance of our environmental management system, which is integrated into our overall business activities. The company undertakes measures to improve energy efficiency wherever possible and is focused on reducing carbon emissions.

This statement by the directors is in performance of their statutory duties in accordance with Section 172(1) Companies Act 2006. The board of directors of the company consider that we have acted in good faith and have made decisions in the way that we believe would be most likely to promote the success of the company for the benefit of its members, noting the matters set out in Section 172(1)(a)-(f) of the Act. Our plans are intended to have a positive, beneficial impact on the company over the mid to long term and to contribute to its continued success in our delivery of our premium quality products to the global markets that we serve. To facilitate this approach, we have identified each of our key stakeholder groups, evaluated their interests and considered how we have engaged with and responded to each group during the year.

Employees

Our senior management and wider team members are critical to the delivery of our plan. We are fortunate in that we have a proven track record of finding, training and retaining an outstanding workforce. This ensures a continuity of delivery and an inherent understanding by the team of the company’s desire for excellence in all that we do. Our people wish to work for an organisation with a strong commitment to ethical practices and compliance, whilst knowing that their views are recognised and acted upon. We therefore endeavour to be a responsible employer in our approach to the pay and benefits our team members receive, while the health, safety and well-being of our team is a key consideration in how we operate. The company has regular board meetings and communication with employees, together with on-going publication of information reports and bulletins to all staff members. There are regular team meetings and a full and comprehensive appraisal system for all staff members. We have developed over the years group values and policies in respect of workplace conduct to produce a supportive, respectful and friendly working environment. We invest heavily in learning and development to ensure that staff are equipped with the skills they need to do their roles. A rigorous Health, Safety and Environment policy is adopted to promote safe working practices as well as monitoring trends and making changes to procedures in response to those trends.    

Customers                

Customers have more choice now than ever before in terms of both who they purchase goods and services from and how these transactions are carried out. In order to ensure we continue to maintain the premium products that our customers value we continually seek to invest in researching and developing cutting edge product. We also invest in providing our customer facing teams with the training required to ensure they can provide the support that our customers have come to expect from our team, delivering a high quality experience for all customers on a consistent basis. Complaints are closely monitored and remedial actions are taken quickly where appropriate to retain customer goodwill. Our aim is to develop a strong relationship with our customers over the long term and we understand that the support that our staff provide is critical in retaining such relationships.                

Funders and financial institutions                

We are fortunate to enjoy strong, well established links with each of our funding partners and maintain these relationships through regular communications. The provision of reliable, timely management information to each funder further enables these trusted partners to monitor our financial position, and provides comfort of the financial headroom available within the company at any time.

Suppliers                

Engagement with our suppliers is also key to our success, and we seek to develop trusted long term, collaborative partnerships in order to facilitate improved performance. Communications with all suppliers are intended to be prompt, clear and responsive. We communicate with our key strategic suppliers regularly throughout the year and involve our senior management team within these discussions ensuring that any issues or opportunities can be effectively considered in an open forum, while continuing to develop the relationship between us.     

Local community                

Our plans and strategies further consider the impact of our operations on the community and environment, as well as our wider social responsibilities, and in particular how we comply with environmental legislation and react promptly to local community concerns. Our intention is to behave responsibly and to ensure that the management operate the business in a responsible manner, recognising the high standards of business conduct and good governance expected for a business such as ours. We will also seek to continue to offer high quality employment opportunities for local residents, and currently employ over 145 people across our business. Our plans involve continuing to invest in our facilities, ensuring all sites are well maintained and take advantage of improvements to energy consumption to reduce our environmental footprint. We would hope that this approach will nurture our reputation in the local communities in which we operate.            

The nature of the business environment in which the company operates is inherently risky. Whilst it is not possible to eliminate all such risks and uncertainties, the company has an established risk management and internal control system in place to manage them. The directors and management meet regularly to identify the risks that are considered most likely to have an impact on the business and its strategic priorities. If emerging risks are identified, these are incorporated immediately into the risk management process.

The following sets out the principal risks faced by the company and how they are mitigated:

Market Risk

The Market Risks facing the Company are mainly related to (i) Macro-economic climate (ii) Competition.

i) Macro-economic climate

The UK Economy has been volatile at best, and with the record high levels of inflation and cost of living crisis impacting, the industry in which we operate has not been immune to these factors and has seen a significant slowdown in growth. As a Board and through our established management team, corrective measures are taken and monitored to ensure the business is aligned to the market demand and to enable an environment for the business to run efficiently and profitably.

ii) Competition

The potential for new product development by competitors, increasing price competition and new market entrants are risks that the Company is keenly aware of and continually works on risk mitigation strategies.

The market remains competitive; however, the Company has a successful track record for achieving growth whilst maintaining a strong margin position.

Foreign currency risk

As a result of purchases from suppliers outside the United Kingdom and intercompany borrowings denominated in Euro, the company's profits and losses can be affected by movements in Euro exchange rates. The company does not seek to hedge this exposure.

Commodity price risk

The company's exposure to the price of aluminium is high, therefore selling prices and inventory valuations are monitored regularly to reduce the impact of such risk.

Credit Risk

The company trades as far as possible with only recognised, creditworthy third parties. It is the company's policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. In addition, recoverable balances are monitored on an on-going basis with the result that the company's exposure to bad debts is not significant.

Liquidity Risk

The cash position of the business remains strong, allowing it to take advantage of investment opportunities and maintain strong trading relationships with its customers and suppliers.

On behalf of the board

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

The principal activity of the company during the year continued to be the design and distribution of architectural aluminium building systems.

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

The results for the year are set out on page 12.

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

Going Concern

The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The Company meets its day to day working capital requirements from its cash reserves, asset loan and invoice discounting facilities.The Company also has a £5.3m (2023: £10.4m) receivable balance as at 31 August 2024 due from the immediate parent company Aluk S.A. The directors have received confirmation from Aluk S.A. that repayment of this loan will be made as and when required by the Company. The directors therefore have a reasonable expectation that with the continued support of its bankers in the form of facility levels which it has historically been provided with, combined with the availability for repayment of receivables due from Aluk S.A., that the Company will be able to continue to operate within its current facilities and meet liabilities as they fall due for the foreseeable future.

At 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.

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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• 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.

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.

Information relating to future developments, principal risks and uncertainties and research and development activities of the company is disclosed within the strategic report.

The company report on emissions, energy consumption and energy efficiency activities is also included in the strategic report.

We have audited the financial statements of AluK (GB) Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 August 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the 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.

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.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

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

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

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

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

AluK (GB) Limited ("the Company") is principally involved with the design, manufacture and distribution of architectural aluminium building systems. The company is based in and sells primarily to the UK, with some minor sales to Europe; mainly to the associated subsidiaries of AluK group. The company is a private company limited by shares and is incorporated in England and Wales. The address of the registered office is Newhouse Farm Industrial Estate, Chepstow, Gwent, NP16 6UD.

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.

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. All policies have been applied in a consistent manner to the years presented, unless otherwise stated.

Basis of Preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value in accordance with the accounting policies set out below.

The preparation of financial statements in accordance with FRS 102 requires the use of certain critical accounting estimates. Management is required to exercise judgement with the application of the company's accounting policies. Specific, more complicated areas which involve a greater degree of judgement, or areas where assumptions have a significant impact on the financial statements, are disclosed in the notes to the financial statements.

Foreign currency

(i) Functional and presentational currency

The company's functional and presentation currency is the pound sterling (GBP).

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot rates at the date of the transactions. Other foreign currency transactions are translated at a group exchange rate (system rate) which is published by 'AluK S.A Luxembourg/Group at the close of each trading month and updated on the first working day of the subsequent month.

At each period end foreign currency monetary items are translated using the Group closing rate, which is also published at the close of each trading month.

Foreign exchange gains and losses resulting from the settlement of foreign currency transactions, where the spot rate differs from the system rate are recognised in the Profit and Loss account.

Foreign exchange gains and losses relating to borrowings and cash and cash equivalents are presented in the Profit and Loss account.

The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable future. trueIn making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The Company meets its day to day working capital requirements from its cash reserves, asset loan and invoice discounting facilities.The Company also has a £5.3m (2023: £10.4m) receivable balance as at 31 August 2024 due from the immediate parent company Aluk S.A. The directors have received confirmation from Aluk S.A. that repayment of this loan will be made as and when required by the Company. The directors therefore have a reasonable expectation that with the continued support of its bankers in the form of facility levels which it has historically been provided with, combined with the availability for repayment of receivables due from Aluk S.A., that the Company will be able to continue to operate within its current facilities and meet liabilities as they fall due for the foreseeable future.

At 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.

Turnover represents invoiced sales of goods net of estimated customer returns, rebates, other similar allowances and also excluding Value Added Tax. Turnover is measured at the fair value of the consideration received/receivable and recognised when all of the following criteria have been satisfied:

- AluK (GB) Limited ("the Company") has transferred to the buyer the significant risks and rewards of the

ownership of the goods;    

- The Company retains neither continuing managerial involvement usually regarded as ownership, nor

effective control over the goods sold;    

- The amount of turnover can be reliably measured;    

- It is probable that economic benefits associated with the transaction will flow to the company; and    

- The costs incurred or to be incurred in respect of the transaction can be measured reliably.    

In effect, turnover from the sale of goods is recognised when goods are delivered and legal title is passed.

The company manufactures, supplies and sells a range of aluminium building systems (the product) to customers, who are mainly fabricators in both the commercial and residential sectors. Sales of goods are recognised upon delivery to the ultimate customer, at which point the customer acquires the responsibility over the passage and price of sale of the product and there is no unfulfilled obligation that could affect the customer's acceptance of the product. Delivery has occurred when the goods have been shipped to the location specified by the ultimate customer and the risks of obsolescence or loss have been transferred. The customer has accepted the product in accordance with the sales contract, any acceptance provisions have lapsed and the company has impartial evidence that all acceptance criteria has been fulfilled.

Goods sold to customers may be sold with volume rebates and also with the provision for the customer to return faulty goods, provided that the customer notifies the company within 7 working days. Volume rebates are determined based on actual spends on a month and year to date basis. The majority of sales are made on a credit term of 30 days for the end of the month of sale, with a small occurrence of customers with a 60 day credit term agreed by contract. Any element of financing which may be effectively present in a credit term is deemed insignificant and therefore disregarded in the determination of sales revenue.

Development expenditure of products is capitalised by the company where there is expected to be a benefit to future periods and only when the following criteria are met;

- It is technically feasible to complete the research or development with the assumption that the product

will be available for use or sale in the future;    

- The company is intending to use or sell the product being developed;    

- The company has the ability to use or sell the product;    

- It can be demonstrated that the product will generate probable future economic benefits and these will

flow to the company.    

- Sufficient technical, financial and other resources exist to enable completion of the product's

development, so that it may be subsequently marketed and sold.    

- The expenditure that relates wholly and exclusively to the research and development can be reliably

measured.

Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses and amortised over its useful economic life. The assessment of useful economic life ranges from 5 to 10 years. Amortisation is charged to the Income Statement within 'Administrative Expenses' on a straight line basis.

Where factors, such as technological advancement or changes in market price indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. Any other research and development expenditure is recognised as an expense in the period in which it is incurred.

The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.

Tangible assets are stated at cost less accumulated depreciation and impairment losses to arrive at the carrying value in the financial statements. The cost of a tangible asset includes the original purchase price, delivery costs and costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and also any qualifying borrowing costs that are capitalised.

(i) Depreciation and residual values

Depreciation is determined using the straight-line method, in order to allocate the cost to the residual values over their useful economic lives, as stated below:

Assets' residual values and useful economic lives are regularly reviewed and adjusted, if appropriate at the end of each reporting period. The effect of any changes are accounted for prospectively.

At each balance sheet date, the company reviews the carrying amount of its tangible assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(ii) Subsequent additions and major components

Any subsequent costs, including major inspections are included in the asset's carrying value or alternatively recognised as a separate asset as appropriate, provided the asset meets the relevant criteria of economic benefits and reliable cost measurement.

The carrying value of any replaced component of an asset is immediately derecognised. Major components are treated as separable where they have distinct patterns of consumption of economic benefits and are depreciated separately over the asset's useful life.

Any repairs, maintenance and insignificant inspection costs relating to tangible assets are expensed in the Income Statement as incurred.

(iii) Assets under construction

Assets in the course of construction are stated at cost only and are not depreciated until they are brought to a condition when they are available for their intended use by the business. This includes the testing and commissioning phases for major plant and equipment.

(vi) Derecognition

All tangible assets are derecognised upon disposal, retirement or when no future economic benefits are expected. The difference between net disposal proceeds and the carrying value of the asset is recognised in the Income Statement immediately following disposal in 'Administrative expenses.'

Subsequent measurement of investment properties is at fair value (which can be measured reliably without undue cost or effort), measured at each reporting date. Any changes in fair value are recognised in the Income Statement.

Deferred tax is recognised on any fair value changes at the rate that would apply to the sale of the investment property, unless the property has a limited useful life and is held as part of a business model to consume all of the economic benefits associated with it.

Although the Companies Act would normally require the systematic annual depreciation of fixed assets, the directors believe that the policy of not providing depreciation is necessary in order for the financial statements (being the Company's financial position, financial performance and cash flows) to give a true and fair view, since the current value of investment properties, and changes to that current value, are of prime importance rather than calculation of systematic annual depreciation. Depreciation is only one of the many factors reflected in the annual valuation, and the amount which might have been included cannot be separately identified or quantified.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. When is stocks sold, the carrying value is recognised as an expense in the period in which the related revenue is recognised.

Cost is determined on the standard cost method and includes the purchase price, taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition. The cost of manufactured goods and work in progress includes design costs, raw materials and other direct costs relating to production. Direct labour and other overhead costs are charged to the Income Statement as incurred.

At the end of the reporting period, stock is assessed for impairment. If items of stock are impaired then the identified stock is reduced to its recoverable value and an impairment charge is recognised in the Profit and Loss account. A stock provision which tracks a value for obsolete and slow moving items is updated to capture the associated impairment risk. Where a reversal of an impairment is recognised, then the charge is reversed, up to the original impairment loss and the resultant credit is included in the Profit and Loss account.

Cash and cash equivalents comprise cash at bank and in hand, demand deposits held at call with banks, other short-term highly liquid investments; with original maturities of three months or less and also bank overdrafts. Bank overdrafts are included in the Balance Sheet within 'borrowings' or 'current liabilities'.

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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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

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

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.

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.

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, 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Income tax expense represents the sum of current tax payable and deferred tax recognised within the reporting period. Tax is recognised in the Profit and Loss account, except to the extent that it relates to items recognised either directly in equity, or in other comprehensive income where it is recognised respectively. Current or deferred taxation assets and liabilities are not discounted.

Current tax is the amount of income tax payable in respect of the taxable profit for the current or prior year or years. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

The management regularly reviews positions taken in tax returns regarding situations where applicable tax regulation may be subjective. Management establishes provisions where appropriate on the basis of estimated amounts which are payable to tax authorities in due course.

Deferred tax is recognised on timing differences between the taxable profits and other comprehensive income as stated in the financial statements. These timing differences arise because of items of income or expense that are taxable or deductible in other years from those in which they are recognised in the financial statements and some items that are never deductible.

Deferred tax is recognised on all timing differences at the reporting date with only very certain exceptions which are disclosed by note. Unrelieved tax losses and assets will only be recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is also established using the tax rates and laws that have been enacted or substantively enacted by the period end and that are projected to apply to the reversal of timing differences, based on tax rates and laws enacted at the balance sheet date.

(i) Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of economic benefits will be required to settle the obligation; and the amount of the obligation can be reliably estimated.

Where there are a number of obligations of a similar nature, the prospect that an outflow will be required is determined by considering the class of obligations as a whole. A provision is still recognised even if the likelihood of an outflow with respect to any one particular item in the same class of obligations may only be slight.

Restructuring provisions are only recognised in a situation where the company has a prescribed plan for restructuring and has raised a valid anticipation in the parties affected, by either commencement of implementation or the announcement of the plan's main features. Upon announcement to the affected parties, the company has a legal or constructive obligation to carry out the restructuring.

Provision is not made for future operating losses. Provisions are measured at the present value of the expenditures anticipated to be required to settle the obligation using a pre-tax rate reflecting current market conditions regarding the time value of money and the specific risks relating to the obligation. Any increase in the provision as a result of the passage of time is recognised as a finance cost.

(ii) Contingencies

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when:

(i) It is not probable that there will be an outflow of resources or that the amounts cannot be reliably

measured at the report date; or    

(ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events

not wholly within the company's control.     

Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resource is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of future economic benefits is probable.

The Company provides a wide range of benefits to employees which includes: paid holidays, defined contribution pension plans, access to private healthcare, an annual company-wide bonus scheme and other contribution schemes such as child-care vouchers.

(i) Short term employee benefits

Short-term employee benefits are recognised as an expense in the Profit and Loss account for the period in which the service is received.

(ii) Defined contribution pension plans

The Company operates a defined contribution pension plan for all employees, which is applied under the guidelines of the government's auto enrolment scheme. A defined contribution plan is a pension plan where the company pays only fixed contributions to a third party pension provider. Upon payment of these contributions, the company has no further obligations of payment and the contributions are only recognised as an expense when they are due. Any unpaid contributions that are due for payment are accrued in the Balance Sheet. The total assets of the pension plan are held separately by the third party provider in independently controlled funds.

(iii) Annual bonus plan

The annual bonus scheme for employees is recognised in the Income Statement when the company has a constructive or legal obligation to make payments, which are based on the past events of the company's annual performance. At the year end, an estimate of the company's bonus scheme liability is made by establishing those current employees legally entitled to receive a bonus by contract, and the company's forecasted financial landing position for the year. The bonus payments are made at the end of the first quarter of the subsequent financial year through the payroll system, to all eligible employees.

(i) Operating leased assets

Leases that do not meet the criteria relevant to the definition of a finance lease are classified as operating leases. They do not transfer the risks and rewards of ownership and control is not implied. All payments under operating leases are charged to the Profit and Loss account on a straight-line basis over the full term of the lease.

(ii) Lease incentives

Incentives received to enter into an operating lease agreement are credited to the Profit and Loss account, to reduce the overall lease expense, on a straight-line basis over the total period of the lease.

Impairment of non-financial assets

At each balance sheet date, any non-financial assets which are not carried at fair value are assessed to determine whether an indicator exists that the asset itself (or its cash generating unit) is subject to impairment. If such an indication exists then the recoverable amount of the asset is compared to the carrying value of the asset.

The recoverable amount of the asset or the asset's cash generating unit is established as the higher of the fair value less costs to sell and the asset's value in use. Value in use may be defined as the present value of the future cash flows before interest and tax that are attainable as a result of the asset's (or asset's cash generating unit) sustained use. These cash flows are discounted using a pre-tax discount rate representative of the markets' current 'risk-free' rate and the intrinsic risks relating to the asset.

In such situations where the recoverable amount of the asset or its cash generating unit is estimated to be lower than the carrying value, then the carrying value is reduced to its recoverable amount. An impairment loss is then recognised in the Profit and Loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Any impairment loss in excess of this is recognised in the Profit and Loss account.

In the event that an impairment loss is subsequently reversed, then the carrying value of the asset or its cash generating unit is increased to the new revised estimate of its recoverable amount, but only to the extent that the revised carrying amount is not in excess of the carrying amount that would have been established (net of depreciation and amortisation) had no impairment loss been recognised in prior periods. Reversals of impairment losses are also recognised in the Profit and Loss account.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Distribution to equity shareholders

Dividends and other distributions to the company's shareholder are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the Statement of Changes in Equity.

Related party transactions

The company discloses all transactions with related parties which are not wholly owned members within the same group. Conversely, the company does not disclose transactions with members of the same group that are wholly owned.

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.

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.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimate, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See the notes for the carrying amount of the tangible fixed assets, and above for the useful economic lives for each class of assets.

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See the notes for the net carrying amount of the debtors and associated impairment provision.

As the company designs, manufactures and sells architectural aluminium building systems these are sensitive to changes in building safety and efficiency regulations as well as changing trends and customer demands. It is therefore essential that the company makes a consideration of the recoverable value of inventory held and the associated provision that is required. When calculating the inventory provision, management will consider the turnover of relevant product lines and also their ultimate obsolescence to the market. The condition of inventory and the recoverable scrap value will also be considered, as well as the condition and saleability of inventory held for long periods or returned from customers. See the notes for the net carrying value of the inventory and its associated provision.

For the purpose of the cash flow statement, liquid resources are defined as current asset investments and short term deposits.

The turnover and profit before taxation are attributable to the one principal activity of the company.

Included in operating lease charges is £1,782,691 (2023: £1,765,024) for land and buildings.

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

Their aggregate remuneration comprised:

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

During the year the managing director changed, compensation for loss of office relates to the director who resigned during the year.

Key management personnel

Key management personnel includes the directors as recorded on the "Company Information" page, and local senior management. The compensation recognised in the Income Statement for key management employee services is £717,330 (2023: £748,417). Employee services is defined as basic salary, employers' national insurance contributions, bonus entitlements and holiday pay entitlements.

Total amounts paid into money purchase pension schemes on behalf of key management personnel, including directors as recorded on the "Company Information" page were £33,983 (2023: £42,671).

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

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

Stocks are stated after provisions for impairment of £620,925 (2023: £416,107). There is no material difference between the replacement cost of stock and its carrying amount.

For details of the debenture charge that results in the company's stock being pledged as collateral see note 23.

Trade debtors include balances against which draw down has been made under an invoice discounting facility. For further detail see note 16.

Trade debtors are stated after provisions for impairment of £5,809 (2023: £113,651).

Amounts due from group undertakings are due from the immediate parent company Aluk S.A, are unsecured, have no fixed date of repayment and attract an interest rate of 0.80% + 3 month Euribor.

Included in other creditors is a balance of £3,676,238 (2023: £5,431,041) in relation to an invoice discounting facility. This balance is secured by fixed and floating charges over the assets of the company.

Asset loan liabilities were secured against the assets to which they related and the asset loan providers had registered a legal charge over the relevant assets financed.

Asset loans, which were wholly settled in the year, were interest bearing and repayable in equal monthly instalments with terms expiring within 5 years from the balance sheet date.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

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.

During the year the ordinary share capital was converted into A ordinary shares, and the company issued 1,145,780 B ordinary shares of £0.01 each for a consideration of £150,000, resulting in a share premium of £138,542.

A fixed and floating charge debenture dated 13 September 2016 has been placed upon ALUK (GB) Limited by HSBC Bank Plc against the secured debts held in fellow subsidiary Vimmo UK Limited. The total value of debts secured by this debenture at the year end was £10,150,000 (2023: £10,750,000)

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:

Included within the total aggregate lease commitments is £2,502,587 (2023: £4,077,452) relating to leases for land and buildings.

Aluk S.A. "Group " (smallest group of which the company is a member) and Valfidus S.A. "Group" (largest group of which the company is a member)

The company has taken advantage of exemption under Section 33 of FRS 102 to not to disclose related party transactions with wholly owned subsidiaries within the group.

Vimmo UK Limited

During the year the company paid rent of £1,590,000 (2023: £1,590,000) to Vimmo UK Limited. As at 31 August 2023 there was an amount payable included in creditors due within one year to Vimmo UK Limited of £318,000 (2023: £318,000).

During the year the company recharged to Vimmo UK Limited costs incurred of £3,600 (2023: £11,926) and as at 31 August 2023 a debtor balance of £nil (2023: £1,020) is owed to the company by Vimmo UK Limited. Vimmo UK Limited is a wholly owned subsidiary of Vimmo Lux SA, a company owned by Hilco SCA.

Key management personnel

See note 8 for disclosure of the remuneration of the directors and key management personnel.

The company's immediate parent undertaking is Aluk S.A. a company incorporated in Luxembourg.

The companies ultimate parent undertaking is Hilco SCA, a company incorporated in Luxembourg.