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

During the financial year the Company earned revenue of £14.9m (2023:£14.6m), achieved a gross profit of £2.6m (2023:£.2.1m), with a gross margin of 17.3% (2023:14.6%). Profit before tax was £2.0m (2023:£1.6m). Net assets of the company as at 31 December 2024 are £6.6m (2023: £5.1m).

The directors are satisfied with the results achieved in 2024 with an increase of 1.8% in turnover and increases in both gross and net profit levels when compared to 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. The company is consistently achieving good results proving that the overall business strategy is a success with an ability to adopt and to continue to grow whilst 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 windows and doors which the Company fits and services, is driven by the level of activity in the residential building and construction market for both new builds and retrofits. Replacement of windows and doors within the residential sector would appear to be strongly correlated to the level of household disposable incomes. 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 services.

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.

(ii) Availability and increased cost of labour supplies

Attracting and retaining a high quality workforce who are key to the success of the business.

The company invests in training and development of its contracted personnel so that outstanding service levels are offered to its customers by highly skilled individuals. 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 services and thereby have an adverse effect on cash flows.

Competitive risk is managed by building up strong partnerships with those with whom business is done and providing them with the highest standard of quality and service of fitting including after care service.  

(iv) 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.

To assist in the measurement and development of the business key performance indicators are reviewed by management on a regular basis. Key indicators used by management include turnover and profit margin

The Company is committed to continuous improvement of its environmental performance and to the overall sustainability of its operations.

The Company will continue to engage in the fitting and servicing of top quality energy efficient windows and doors as it has done in the past. It aims to continually improve its operations with sustainability at the core of all decisions and to stay ahead of its competitors as a company offering a first class service.

There have been no significant events affecting the company since the year end.

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 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.

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.

The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Impairment

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets  have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate  of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

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.

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

Included within prepayments is the sum of £Nil (2023: £69,660) in respect of related parties.

A sum of £700,000 included within amounts owed to related parties in the prior year financial statements has been reclassified and grouped within amounts owed by related parties. For the prior year, this has resulted in a decrease of £700,000 in both the amounts owed by related parties from £8,310,929 to £7,610,929 and the amounts owed to related parties from £3,972,963 to £3,272,963. This regrouping facilitates presentation of such amounts on the same basis as that for the current year.

Accruals are based on underlying contracts.

Included with accruals is a sum of £nil (2023: £103,121) payable to related parties.

As outlined in Note 11 a regrouping of an amount owed to related parties of £700,000 in the prior year against amounts owed from related parties has resulted in a decrease of £700,000 in the amount owing to related parties. This has resulted in a restatement of the amounts owed to related parties to £3,272,963 from £3,972,963 in the prior year. This regrouping facilitates presentation of such amounts on the same basis as that for the current year.

The company does not have any financial assets or liabilities measured at fair value through profit and loss at the reporting date (2023: £0).

Transactions and balances with related parties:

Transactions during the year

- Sales: £14,837,334 (2023: £14,575,217);

- Purchases: £10,576,064 (2023:£11,284,256);

Balances as at balance sheet date

- Debtors: £10,549,991 (2023: £8,310,930);

- Creditors: £4,350,583 (2023: £3,272,964);