Company registration number SC084590 (Scotland)
SCOTIA DOUBLE GLAZING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
SCOTIA DOUBLE GLAZING LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
SCOTIA DOUBLE GLAZING LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr G F Smith
Mr M A Smith
Mr M Woods
Mr A Bone
Mr A Campbell
Company number
SC084590
Registered office
Unit 2
Moorfield Park
Kilmarnock
Scotland
KA2 0FJ
Auditor
Dains Audit (Scotland) Limited
169 West George Street
Glasgow
United Kingdom
G2 2LB
SCOTIA DOUBLE GLAZING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 2 -

The directors present the strategic report for the year ended 30 June 2025.

Review of Business and Key Performance Indicators

Throughout the year, the UK construction sector continued to operate against a backdrop of economic constraint and political transition. The UK general election and subsequent change of government at the start of the period initially contributed to policy uncertainty, particularly around planning reform, housing targets and public investment priorities. Elevated interest rates continued to suppress mortgage affordability and developer finance, limiting private new housing demand despite easing inflationary pressures.

For the new housebuilding sector, conditions remained challenging. In Scotland, private new build activity was affected by subdued buyer confidence, slower sales rates, planning delays and rising regulatory and compliance costs. Affordable housing delivery offered relative resilience, supported by Scottish Government programmes, although funding pressures and rephasing constrained output. Across Scotland and the wider UK, persistent skills shortages and cautious investor sentiment continued to weigh on build rates, resulting in uneven recovery across the sector.

Notwithstanding these constraints, revenues from new build sources increased by 7.6% over the year and, in spite of inflationary pressures on production costs, gross profit margins as a whole rose slightly to 25.8% (2024: 24.6%). Beyond the financial year end under review, the new automated welding and cleaning line, which had been ordered in 2024, was installed and commissioned making an immediate impact on quality and output. Relying less on operator accuracy, the technology reduces the potential for errors and, with it, less wastage. Combined, the effect of these should position the Company to accelerate when the market finally returns.

Investment in Scotia’s employees was further enhanced over the year. In addition to its commitment to the Real Living Wage pledge, a significant investment was made to the IT infrastructure across Scotia’s estate. With the support of Scottish Government funding, a programme of improvements was made to wireless connectivity, data capture technology, digital tracking for manufacturing, and offsite reporting. Subsequent consultation with staff confirmed that the enhancements had improved workplace satisfaction by removing key operational pain points, and further developments to fully embrace 5G technology, when it finally reaches the campus, will be rolled out in the next financial year.

Initial opportunities to apply artificial intelligence were identified during the course of the year and some of these have already undergone test and development work to remove the need for repetitive tasks, both in production and in tendering work. This is a long-term process of evolution which will yield significant operational and financial benefits in the fabricating sector as a whole.

The Company’s non-core interests in the supply of architectural windows were finally unwound during the year with the closure of the Alva showroom. The effect of this is to concentrate all operations on the Kilmarnock campus, and the acquisition of additional land (to be concluded in YE2026) will safeguard Scotia’s longer term expansion plans.

SCOTIA DOUBLE GLAZING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -
Principal Risks and Uncertainties

The pipeline of new build contracts awarded by housebuilders remains very strong but, with fewer speculative plots being built, call-offs are becoming more and more dependant on potential buyers committing to deposits and confidence has still to show a return to consistent strength. Sweeping changes to building regulations have contributed to new challenges at the specification stage, and Scotia’s estimating and processing resources have to invest considerable time in improving understanding in the wider market.

Back-end support for new build customers requires increasing investment to protect Scotia’s reputation amongst large housebuilders. Customer care and site visits by engineers cultivate assurance in service levels, but the additional costs of providing these resources to position Scotia apart from its competitors act to attract new entrants to the market who attach less importance to this additional commitment. Whilst revenues from new build contracts are likely to remain strong, there is an imbalance with other parts of the sector and prospects in commercial and social housing continue to be pursued to make better use of Scotia’s resources and reduce risk. Additionally, sales of aluminium products have some way to go to fulfil real potential for the Company.

Cost pressures extend to raw material resources and an enormous focus continues on ensuring that supplies of glass consistently meet acceptable targets. Coupled with the technical changes required by the new Future Homes Standard, a dependable glass supply has become more critical to Scotia’s long-term success in the market.

A number of high-profile casualties of cyber attack were reported during the year and the Board is aware of the continuous risk to the IT estate from external threats. A program of upgrades was applied to enhance server and firewall security, gravitating more local document storage to cloud, and applying additional resource to staff awareness and training. The need for absolute security against a cyber breach will require continuous vigilance.

Financial Risk Management

Prudent fiscal management continued during the year with a renewed effort to reduce retentions withheld by new build customers, and restricting these to reasonable levels going forward. The rebanking facility provided in 2019 by HSBC was finally repaid, leaving a balance of HP and the remainder of the Covid loans outstanding.

Ongoing planning for eventual succession has continued and the shareholders made the commitment during the year to gravitate to Employee Ownership of Scotia in YE2026, with the formation of a Trust Company to own the equity of the Group and protect the interests of the employees as ultimate beneficial owners.

On behalf of the board

Mr G F Smith
Director
24 June 2026
SCOTIA DOUBLE GLAZING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 4 -

The directors present their annual report and financial statements for the year ended 30 June 2025.

Principal activities

The principal activity of the Company in the year under review was that of manufacture and installation of windows and doors to both the new build and trade markets.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £500,000 (2024: £500,000). The directors do not recommend payment of a further dividend.

Directors

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

Mr G F Smith
Mr M A Smith
Mr M Woods
Mr A Bone
Mr A Campbell
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Auditor

The auditor, Dains Audit (Scotland) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

SCOTIA DOUBLE GLAZING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 5 -
Statement of directors' responsibilities

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;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr G F Smith
Director
24 June 2026
SCOTIA DOUBLE GLAZING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCOTIA DOUBLE GLAZING LIMITED
- 6 -
Opinion

We have audited the financial statements of Scotia Double Glazing Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 June 2025 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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' r eport 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.

SCOTIA DOUBLE GLAZING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOTIA DOUBLE GLAZING LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

- We identified the laws and regulations applicable to the company through discussions with directors and management and from our knowledge of the regulatory environment relevant to the company.

- We assessed the extent of compliance with laws and regulations through making enquiries of management and inspecting legal correspondence.

- We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.

- To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence.

SCOTIA DOUBLE GLAZING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOTIA DOUBLE GLAZING LIMITED
- 8 -

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.

Andrew McKay
Senior Statutory Auditor
For and on behalf of Dains Audit (Scotland) Limited
Statutory Auditor
169 West George Street
Glasgow
United Kingdom
G2 2LB
24 June 2026
SCOTIA DOUBLE GLAZING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
- 9 -
Continuing
Discontinued
30 June
Continuing
Discontinued
30 June
operations
operations
2025
operations
operations
2024
Notes
£
£
£
£
£
£
Turnover
24,437,903
105,244
24,543,147
22,760,952
1,441,067
24,202,019
Cost of sales
(18,191,574)
(111,538)
(18,303,112)
(17,197,869)
(1,045,182)
(18,243,051)
Gross profit
6,246,329
(6,294)
6,240,035
5,563,083
395,885
5,958,968
Distribution costs
(583,324)
(33,181)
(616,505)
(594,833)
(121,584)
(716,417)
Administrative expenses
(3,577,407)
(219,397)
(3,796,804)
(3,267,346)
(693,236)
(3,960,582)
Other operating income
25,190
-
25,190
24,996
-
24,996
Operating profit
3
2,110,788
(258,872)
1,851,916
1,725,900
(418,935)
1,306,965
Interest receivable and similar income
6
9,294
-
0
9,294
17,723
-
0
17,723
Interest payable and similar expenses
7
(55,918)
-
0
(55,918)
(88,486)
-
0
(88,486)
Profit before taxation
2,064,164
(258,872)
1,805,292
1,655,137
(418,935)
1,236,202
Tax on profit
8
(527,261)
64,718
(462,543)
(431,092)
104,734
(326,358)
Profit for the financial year
1,536,903
(194,154)
1,342,749
1,224,045
(314,201)
909,844

The notes on pages 12 to 25 form part of these financial statements.

SCOTIA DOUBLE GLAZING LIMITED
BALANCE SHEET
AS AT
30 JUNE 2025
30 June 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,777,791
1,962,119
Current assets
Stocks
12
909,632
938,350
Debtors
13
7,923,710
6,585,875
Cash at bank and in hand
1,183,056
1,140,698
10,016,398
8,664,923
Creditors: amounts falling due within one year
14
(5,430,276)
(4,730,738)
Net current assets
4,586,122
3,934,185
Total assets less current liabilities
6,363,913
5,896,304
Creditors: amounts falling due after more than one year
15
(182,186)
(457,629)
Provisions for liabilities
Provisions
18
28,166
97,265
Deferred tax liability
19
329,672
360,270
(357,838)
(457,535)
Net assets
5,823,889
4,981,140
Capital and reserves
Called up share capital
22
6,000
6,000
Profit and loss reserves
5,817,889
4,975,140
Total equity
5,823,889
4,981,140

The notes on pages 12 to 25 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 23 June 2026 and are signed on its behalf by:
Mr A Bone
Director
Company Registration No. SC084590
SCOTIA DOUBLE GLAZING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2023
6,000
4,565,296
4,571,296
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
909,844
909,844
Dividends
10
-
(500,000)
(500,000)
Balance at 30 June 2024
6,000
4,975,140
4,981,140
Year ended 30 June 2025:
Profit and total comprehensive income for the year
-
1,342,749
1,342,749
Dividends
10
-
(500,000)
(500,000)
Balance at 30 June 2025
6,000
5,817,889
5,823,889

The notes on pages 12 to 25 form part of these financial statements.

SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 12 -
1
Accounting policies
Company information

Scotia Double Glazing Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit 2, Moorfield Park, Kilmarnock, Scotland, KA2 0FJ. The company's registration number is SC084590.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of GMSS Holdings (2) Limited. These consolidated financial statements are available from its registered office, Unit 2 Moorfield North Industrial Park, Kilmarnock, Scotland, KA2 0FJ.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

The turnover shown in the Statement of Comprehensive Income represents the value of all goods sold during the year exclusive of Value Added Tax. Sales are recognised at the point at which the Company has fulfilled its contractual obligations and the risks and rewards attaching to the product have been transferred to the customer.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Over the term of the lease
Plant and equipment
10% straight line
Office equipment
10% to 33% straight line
Motor vehicles
10% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.5
Stocks

Stocks are valued at the lower of cost and net realisable value. Cost consists of purchase invoice costs. Work in progress is valued based on the costs incurred plus an attributable value of profit to reflect the stage of completion. Cost consists of direct materials, labour and attributable overheads. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

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 the profit and loss account, 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.

SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through the profit and loss account 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 the profit and loss account.

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 the profit and loss account.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts 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. A m ounts 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.

Other financial liabilities

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 s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in the profit and loss account 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 the profit and loss account. Debt instruments may be designated as being measured at fair value th r ough the profit and loss account 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.

SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.8
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in the profit and loss account in the period in which it arises.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 16 -
1.10
Retirement benefits

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions to the Company's defined contribution scheme are charged to the Statement of Comprehensive Income in the year in which they become payable.

1.11
Leases

Assets held under hire purchase contracts or finance lease agreements are capitalised and disclosed under tangible fixed assets at their fair value, and are depreciated in accordance with the above depreciation policies.

Future instalments payable under such agreements, net of finance charges, are included within creditors. Rentals payable are apportioned between the capital element, which reduces the outstanding obligation included within creditors, and the finance element, which is charged to the profit and loss accoun t on a straight line basis.

Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

1.12
Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit and loss account.

1.14

Onerous lease

A provision for onerous lease contracts is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the lease contract. Before a provision is established, the company recognises any impairment loss on the assets associated with that lease contract.

SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. In preparing the financial statements the directors have made the following judgements:

- Determine whether leases entered into by the Company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

- Determine whether there are indicators of impairment of the Company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

- Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.

- Determine whether contract revenue and contract costs have been estimated and recognised according to the concepts of prudence and realisation of profits.

- Determine whether any stock provision is required via a review of the stock holding for obsolete, damaged and slow moving stock.

3
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(24,996)
(24,996)
Fees payable to the company's auditor for the audit of the company's financial statements
24,000
20,400
Depreciation of owned tangible fixed assets
200,106
214,803
Depreciation of tangible fixed assets held under finance leases
177,668
171,015
Operating lease charges
220,776
364,762

Included within government grants is the release of the deferred government grant of £24,996 (2024: £24,996).

4
Employees

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

2025
2024
Management and administration
63
65
Production, installation and sales
179
180
Total
242
245
SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
4
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
5,904,981
5,474,652
Social security costs
732,499
650,562
Pension costs
247,170
269,752
6,884,650
6,394,966
5
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
460,092
397,192
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
111,800
101,400
6
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
9,294
17,723
7
Interest payable and similar expenses
2025
2024
£
£
Bank overdraft interest
12,141
15,227
Loan interest
22,287
49,942
Interest on finance leases and hire purchase contracts
21,490
23,317
55,918
88,486
SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 19 -
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
494,796
383,723
Adjustments in respect of prior periods
(1,655)
(11,982)
Total current tax
493,141
371,741
Deferred tax
Origination and reversal of timing differences
(30,598)
(45,383)
Total tax charge
462,543
326,358

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

2025
2024
£
£
Profit before taxation
1,805,292
1,236,202
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
451,323
309,051
Tax effect of expenses that are not deductible in determining taxable profit
7,779
15,569
Group relief
-
0
(45)
Fixed asset differences
5,096
13,765
Underprovision in prior period
(1,655)
(11,982)
Taxation charge for the year
462,543
326,358
9
Discontinued operations

During the prior year, the company decided to discontinue its Architectural division as part of the company's broader strategy to streamline operations and focus on its core business. As a result, the Architectural division has been classified separately as a discontinued operation in the financial statements in the current and prior year. The revenues and costs in the current year are associated with the final winding up of these operations.

10
Dividends
2025
2024
£
£
Final paid
500,000
500,000
SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 20 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2024
1,410,082
2,587,320
431,403
106,600
4,535,405
Additions
-
0
117,236
26,030
70,292
213,558
Disposals
-
0
(25,165)
-
0
(13,287)
(38,452)
At 30 June 2025
1,410,082
2,679,391
457,433
163,605
4,710,511
Depreciation and impairment
At 1 July 2024
722,084
1,387,076
413,136
50,990
2,573,286
Depreciation charged in the year
135,346
194,686
15,438
32,304
377,774
Eliminated in respect of disposals
-
0
(5,453)
-
0
(12,887)
(18,340)
At 30 June 2025
857,430
1,576,309
428,574
70,407
2,932,720
Carrying amount
At 30 June 2025
552,652
1,103,082
28,859
93,198
1,777,791
At 30 June 2024
687,998
1,200,244
18,267
55,610
1,962,119

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

2025
2024
£
£
Plant and equipment
771,763
917,127
Motor vehicles
93,198
55,610
864,961
972,737
12
Stocks
2025
2024
£
£
Raw materials and consumables
650,686
660,411
Work in progress and finished goods
258,946
277,939
909,632
938,350
SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 21 -
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,773,035
3,433,551
Gross amounts owed by contract customers
1,167,790
1,421,946
Amounts owed by group undertakings
1,535,632
1,528,895
Other debtors
158,249
143,565
Prepayments and accrued income
1,289,004
57,918
7,923,710
6,585,875
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans
16
140,000
160,925
Obligations under finance leases
17
152,651
178,015
Other borrowings
16
18,206
18,206
Trade creditors
2,805,238
2,413,202
Amounts owed to group undertakings
102,698
102,698
Corporation tax
497,990
192,334
Other taxation and social security
176,029
169,704
Government grants
20
25,000
25,000
Other creditors
3,037
-
0
Accruals and deferred income
1,509,427
1,470,654
5,430,276
4,730,738
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
16
50,000
190,000
Obligations under finance leases
17
68,143
160,384
Other borrowings
16
1,517
19,723
Government grants
20
62,526
87,522
182,186
457,629
SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 22 -
16
Loans and overdrafts
2025
2024
£
£
Bank loans
190,000
350,925
Other loans
19,723
37,929
209,723
388,854
Payable within one year
158,206
179,131
Payable after one year
51,517
209,723

Amounts payable after more than one year relating to the Company's loans are repayable in monthly instalments. Interest is payable on the loans at a rate of between 3.5% - 6%.

The Company's bank loan is secured by a floating charge over all of the assets of the Company.

One of the Company's other loans is secured by a floating charge over all of the assets of the Company.

17
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
152,651
178,016
In two to five years
50,375
131,329
In over five years
17,768
29,054
220,794
338,399

Hire purchase or finance lease liabilities are secured over the assets to which they relate.

18
Provisions for liabilities
2025
2024
£
£
Onerous leases
28,166
97,265
Movements on provisions:
Onerous leases
£
At 1 July 2024
97,265
Utilisation of provision
(69,099)
At 30 June 2025
28,166
SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
18
Provisions for liabilities
(Continued)
- 23 -

During the prior year certain properties that the company once traded from have ceased trading resulting in losses which are expected to continue until the end of the lease period. The directors reviewed the future operating cashflows from each property and made a provision for the future obligations under the lease contract until the lease expires. These costs are included within discontinued operations.

19
Deferred taxation

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

2025
2024
Balances:
£
£
Accelerated capital allowances
329,672
360,270
2025
Movements in the year:
£
Liability at 1 July 2024
360,270
Credit to profit or loss
(30,598)
Liability at 30 June 2025
329,672
20
Government grants
2025
2024
£
£
Arising from government grants
87,526
112,522
Deferred income is included in the financial statements as follows:
Current liabilities
25,000
25,000
Non-current liabilities
62,526
87,522
87,526
112,522
21
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
247,170
269,752

The C ompany 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.

SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 24 -
22
Share capital
2025
2024
2025
2024
Number
Number
£
£
Ordinary share capital
Issued and fully paid
Ordinary shares of £1
6,000
6,000
6,000
6,000
23
Operating lease commitments
Lessee

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:

2025
2024
£
£
Within one year
334,653
376,875
Between two and five years
883,656
1,255,380
1,218,309
1,632,255
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
£
£
Acquisition of tangible fixed assets
-
1,175,000

The £1,175,000 disclosed as a capital commitment in the previous year is included within prepayments at 30 June 2025 as the line did not get delivered and commissioned until post year-end.

25
Related party transactions

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

No other transactions were undertaken such as are required to be disclosed under Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

26
Ultimate parent company

The Company's immediate parent company is Ayrshire Aluminium Co. Limited and the ultimate parent company is GMSS Holdings (2) Limited.

SCOTIA DOUBLE GLAZING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 25 -
27
Ultimate controlling party

During the year, the Company was under the control of the shareholders in the ultimate parent company GMSS Holdings (2) Limited. No individual shareholder has a controlling interest.

Subsequent to the year-end, the shareholding in the ultimate parent company was sold to an Employee Ownership Trust (EOT). As a consequence there is no ultimate controlling party.

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