The principal activity of the company is the manufacture of windows and doors in the United Kingdom and this has remained unchanged.

During the financial year, the Company earned revenue of £81.4m (2023: £74.4m), achieved a gross profit of £7.6m (2023:£4.9m), with a gross margin of 9.3% (2023:6.6%). Profit before tax was £3.5m (2023: £0.6m). Net assets of the company as at 31 December 2024 are £16.7m (2023: £14.1m).

The directors are satisfied with the results achieved in 2024, with an increase in turnover of 9.5% and increases in both gross profit and net profit levels when compared to the prior year. It was another year of robust company performance against a dynamic macroeconomic landscape of uncertainty contributed to by the existence of high inflation, high interest rates, cost of living crisis and political uncertainty. Raw material and energy costs, whilst high, stabilised and a more stable environment for raw material prices is expected in the future but at all times being aware that outside global factors, which the company cannot control, could change that siutuation.

The company is consistently achieving good results proving that the overall business strategy is a success, with an ability to adapt and continue to grow while recognising that macro-economic factors will always have an impact on business outcomes.

The management of the overall business and the execution of the Company’s strategy are subject to a number of risks. A full risk management process is embedded within this Company. Major risks are identified and a series of measures created and adopted to combat the identified risks and minimise any loss to the Company.  

The principal risks and uncertainties are:

(i) Macroeconomic and UK Economic Market Conditions

Overall market confidence and demand is extremely important for the Company. Demand for its windows and doors is driven by the level of activity in the residential building and construction market. Changes to government economic and social policy could have a significant impact on consumer confidence and on the Company’s profits. An overall market decline with existing factors such as a slowdown in economic growth, increased interest rates, continuing inflation and cost of living pressures, would result in a fall in demand for the Company’s products.

Business strategies and operational procedures are in place to detect early signs of market change and to enable the Company to adopt to such circumstances through cost and efficiency savings together with appropriate price adjustments. Specific efforts are made to further expand the customer base and to develop further it’s energy efficient product range.

(ii) Availability and increased cost of materials and labour supplies

Failure to procure raw materials on a timely basis would impact on the Company’s ability to meet its customers demands. An inability to control costs or pass on any increase in costs to its customers, appropriately source the requisite labour and/or renegotiate improved terms with suppliers would result in profit margin reductions and a negative impact on the Company’s cash flows and financial condition.

The Company has a dedicated purchasing department that pro-actively seeks out best prices on input materials. It seeks to enter contracts with key suppliers to ensure that price, quality and service demands are met.  Where possible, materials are sourced from different suppliers to reduce the level of supply risk.

Management is very aware that the success of the Company is dependent on having a highly skilled, diverse and competent labour supply. Management work with the entities which fulfil their labour needs in order to have an inclusive and equitable working environment, allowing workers to be engaged and challenged thereby enabling them to positively impact on the Company’s business.

(iii) Foreign exchange risk

The directors see currency fluctuations due to purchasing requirements as the main exchange risk.

Where possible agreements, purchases and settlements are made in pound sterling to mitigate exchange rate volatility.

(iv) Competitive pressures

Increased competition could reduce demand for the company’s products and thereby have an adverse effect on cash flows.

Competitive risk is managed by building up strong partnerships with its customers and providing them with the highest standard of quality and service from order placement right through to product fitting and thereafter. Management adopts a sustainable approach striving to improve and promote an ever - increasing range of energy efficient products and thereby increasing its customer base.

(v) Regulatory risks including Health & Safety

The Company could be adversely impacted upon by the crystallisation of unexpected corporate or regulatory risks. The Company’s brand could suffer reputational damage as well as the imposition of penalty breaches. These include Health & Safety, Reputational and Environmental risks or other legal, taxation and compliance matters.

Procedures and policies are in place to support compliance with all relevant regulations. Such include regular training and communication on policy compliance and monitoring procedures to ensure adherence with requirements. Health & Safety matters and incidents are fully documented, audits are carried out and assistance from outside consultants is sought when required. The Company maintains a strong safety culture to avoid accidents to its workers, surrounding personnel and members of the public.

(vi) Information security and cyber risk

A breach of IT security (externally or internally) could result in an inability to operate systems and processes effectively (e.g. viruses) or the release of inappropriate information (e.g. hackers).  Breaches could lead to damage to the Company’s reputation, potential loss of customers and revenue and may also expose the Company to liability and regulatory scrutiny.

Ongoing investment is taking place in cyber risk detection and prevention tools. Comprehensive application and system controls have been developed and are continuously being upgraded, including password and safe-use policies, internet usage monitoring and anti-malware usage, cyber awareness/IT security campaign active for all personnel, security of servers and comprehensive back- up systems.

(vii) Sustainability

Management is very conscious that without framing decisions in terms of financial, environmental, social and human effects then there is a risk that the resilience and long-term value of the Company could be undermined and result in a lack of greater prosperity being achieved.

Sustainability is one of the principal risks in the Company’s risk management strategy. All aspects of the Company's operations are considered with the aim to minimize the impact on the environment. Operations are tailored to minimize the use of energy and water, use materials that are environmentally friendly, use recycled materials where possible, minimize waste and continually reduce emissions. Sustainability is considered in the selection of the materials that go into the Company's products.

First class customer service, competitive pricing and an ongoing commitment to product quality and innovation will continue to be central to the company's strategy of continued sustainable growth. The directors take a long-term view when making decisions. The Company continues to invest in the business through people, marketing and technology to explore new operating models and ways of working to ensure long-term success.

The directors are very aware and conscious of the fact that for the company to achieve its strategy and to continue to grow and be successful, it is imperative that a good and fair working relationship exists between the company and all those with whom it enters into business with, namely customers, suppliers, subcontractors and company personnel, Government Regulators, industry bodies, and communities. It is company policy that active engagement takes place with relevant parties when principal decisions are being made, which are material not only to the company and its operations, but also all parties with whom it deals with. At all times the company, in its decision-making processes, encourages dialogue and feedback from all relevant and impacted parties. This is to minimise friction and to alleviate any concerns that individual parties may have. Engagement occurs at all levels of operations, from operative level on the factory floor to construction site, to senior management and director level.

Engaging with stakeholders

Our key stakeholders and the ways in which we engage with them, are as follows:

Engaging with customers:

The Company keeps the customer to the forefront at all times actively engaging with them to identify their needs and to ensure that the quality of our products and our customer service, meet the high standards that they expect.

Understanding ever changing market tastes and requirements is essential for the long-term success of the business as it enables the company to set and adapt its strategy.  Maintaining positive relationships with customers is essential for the business. The company actively encourages feedback and takes active steps to remedy any instances of customer dissatisfaction. The company’s customer care plan places the customers’ needs at the centre of the business.

Business relationships:

Management remain committed to being fair and transparent in their dealings with whoever they do business with, including all suppliers, sub-contractors and those entities fulfilling their labour needs. Robust, well established relationships with these parties are essential to secure quality of materials, continuity of supply and to enable the company to meet its planned working schedules and targets.

Centralised purchasing personnel secure deals with suppliers as they are in regular contact and have long standing relationships with them. This relationship was and continues to be essential in dealing with any potential supply chain challenges. Safegurding the welfare of all company personnel is of paramount importance with the continued development of Health & Safety Standards both inside and outside the manufacturing facility.

Government regulators and industry bodies:

The company is a leading manufacturer of energy efficient windows and doors and it aims to align itself with Government policy to continue to supply ever more energy efficient products while reducing its carbon emissions.  Engagement is ongoing with Governmental Departments and regulatory bodies as the company strives to achieve the highest level of compliance with regulations applicable to its operations and processes, such as Health and Safety and environmental issues.

The company engages with construction industry associations which promote energy efficient sustainable builds and high energy standards - such as Passivhaus Standard. The company maintains a skilled and adequately resourced Health and Safety Department.

Environment:

To enable the company to ensure the long- term sustainability of its business, it must manage and mitigate the impact of its operations on the environment. The company actively monitors the levels of any waste produced by our operations with an emphasis on recycling and also greenhouse gas emissions of our operations.

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities with foreign currency transactions arising due to purchase requirements. Where possible agreements are made in pound sterling. The company has in place a risk management programme that seeks to limit the adverse effects these risks can have on its financial performance. The company manages its cash and finance requirements in order to minimise interest expense whilst ensuring that it has sufficient liquid resources to meet the operating needs of the business.

The Company's principal financial assets are cash at bank, trade debtors and amounts owed by both fellow group companies and related parties. The directors constantly monitor and assess cash flow and consider that the Company is in a strong position in terms of its ability to manage cash flow and liquidity risk.

This has been referred to in the Section 172 (1) statement included within the Strategic Report.

Methodology used for SECR calculations and disclosures:

SECR methodology as specified in "Environmental Reporting Guidelines: including Streamlined Energy and Carbon Reporting and carbon reporting guidance' used in conjunction with the latest UK Government GHG Conversion Factors for Company Reporting.

The calculations have been approved by a PASS1215 compliant body.

                                     2024          2024             2023        2023

                                     Energy        Emissions        Energy      Emissions                                                        

                                     kWh           tCO2e          kWh         tCO2e

Scope 1

Emissions from combustion of gas       885,245       162             1,011,145      185

Emissions from other fuels            1,179,395       263             1,222,018      272

Scope 2        

Emissions from purchased electricity    5,350,429     1,108             4,754,050     984

Scope 3      

Other indirect Emissions                              870                           750

Total Emissions                      7,415,069     2,403             6,987,213    2,191

                                       2024              2023

Total Emissions:                        2,403 tCO2e       2,191 tCO2e

Total Turnover (£m)                     79                72

Intensity ratio (tCO2e/£m turnover)        30.41             30.43

Management are committed to responsible carbon management and will practice energy efficiency throughout its organisation, wherever its cost effective. Management recognise that climate change is one of the most serious environmental challenges currently threatening the global community and that the Company has a role to play in reducing greenhouse gas emissions.

In the case of each director in office at the date the Directors' Report is approved:

- so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and

- they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

As part of our audit plan we identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. Among the laws and regulations we considered in this context were the Companies Act 2006, HMRC Tax Legislation and Health and Safety. We assessed the requireed compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the company for fraud. The laws and regulations considered in this context would include, General Data Protection Regulation (GDPR), and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of management and inspection of regulatory and legal correspondence, if any. Our audit procedures to respond to risks  include  enquiries of management, sample testing, reviewing accounting estimates, reviewing minutes of management meetings.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Basic financial assets, including trade and other debtors are initially recognised at the transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest rate method.

At each balance sheet date financial assets, including trade and other debtors, measured at amortised cost are assessed for objective evidence of impairment. 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 the profit and loss account. Therefore, where the directors conclude that amounts in respect of trade and other debtors are not recoverable, a bad debt provision is recognised.

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other group and related party debtors and creditors.

The Company does not have any financial assets or liabilities measured at fair value through profit and loss at the current year end or prior year end.

Directors are not remunerated through the company (2023:£nil). Directors are remunerated by related companies as part of their group wide executive role.  

The UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25%. There has been no change to corporation tax rates for the financial year ended 31 December 2024. For the financial year ended 31 December 2024 the weighted average tax rate is 25% (31 December 2023 weighted average tax rate was 23.52%). Future year profits of the Company will be taxed at the higher rate.

All amounts shown under debtors fall due for payment within one year.

Amounts owed by group undertakings and related parties are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

Included within prepayments are amounts in respect of related parties of £Nil (2023:£17,991).

An unlimited guarantee is in place from Allied Irish Banks plc for the liabilities of the company.

Bank overdraft facilities are secured by way of fixed and floating charge over all the property or undertakings of this Company, by way of a Composite Debenture, dated 17 February 2021, as between Allied Irish Banks P.L.C. and this company together with fellow group companies.

Amounts due to group undertakings and related parties are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

Accruals are based on underlying contracts.

Included within accruals are amounts in respect of group companies £Nil (2023: £210,000) and related parties of £Nil (2023: £689,318).

There is a single class of ordinary shares. The holders of ordinary shares are entitled to one vote per share at meetings of the company.

Called up share capital represents the nominal value of the shares that have been issued and during the period no further shares were issued.

Transactions and balances with group companies

Transactions during the year:

- Sales: £79,588,422 (2023: £72,560,133);

- Purchases/expenses: £3,549,930 (2023: £3,637,003)

Balances as at balance sheet date:

- Debtors: £58,300,706 (2023: £59,670,201);

- Creditors: £233,672 (2023: £1,162,523);

Transactions and balances with related parties

Transactions during the year:

- Sales: £1,687,632 (2023: £1,748,007);

- Purchases/expenses: £46,050,485 (2023: £40,743,143)

Balances as at balance sheet date:

- Debtors: £2,120,528 (2023: £1,645,492);

- Creditors: £36,400,363 (2023: £31,676,841);

- Finance amounts due to related parties: £15,746,500 (2023: £19,186,500)

The address of Aglish One is 33-37 Athol Street, Douglas, Isle of Man IM1 1LB.

The ultimate controlling party of the Company is considered to be the directors of Aglish One, namely Mort Buckley and Alan Ring.