Company Registration No. 02881879 (England and Wales)
THE METAL WINDOW COMPANY LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
PAGES FOR FILING WITH REGISTRAR
THE METAL WINDOW COMPANY LIMITED
CONTENTS
Page
Directors' report
1 - 2
Balance sheet
3 - 4
Notes to the financial statements
5 - 9
THE METAL WINDOW COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2020
- 1 -
Principal activities
The principal activity of the company during the year was that of the design, manufacture and marketing of metal roof windows and rooflights.
Directors
During the year under review there have been significant changes to the Leadership Team of the business with Mrs V King resigning and Mr S J Webber being appointed as Manager Director of the business (previously operations director). Mr S D Pitcher was therefore appointed Operations Director along with Mr N J Cockayne’s formal appointment as Sales and Marketing Director following his appointment during 2019.
Since the balance sheet date the company has further expanded its leadership team with the appointment of a Finance Director in order to strengthen the Leadership Team to provide a firm basis for driving the business forward to meet its challenging strategic plans for the future.
Results
As a result of the global pandemic, and as experienced by many businesses, the sales of The Metal Window Company Ltd have been adversely affected during the final months of the financial period under review. Despite this the company has managed to increase gross profit margins and reduce overheads in order to minimise impact on the profitability of the business.
Despite these challenges and ongoing uncertainty of the COVID-19 pandemic the directors are confident in the outlook of the business going forward. Management information to the date of review indicates sales and profitability levels being beyond budget levels with further improvements in gross profit margins and operational restructuring of overheads leading to expectations of an improvement in results from year ended 31 May 2020 to 31 May 2021.
During the year, the Leadership team has continued to invest in capital equipment with a major focus on supporting production facilities. The company cash flow continued to perform well despite this level of investment and the impact of the pandemic.
The company’s main exposure continues to be to the construction sector, a sector which continues to be significantly impacted by the uncertainty regarding the UKs exit from the EU. However the Company does not have any material exposure to financial risks as it does not hold and has not issued any complex financial instruments, and continues to apply its conservative basis to sales, with credit accounts only provided when underwritten by credit insurers, thereby minimising the risk of bad debts.
The Directors and Leadership team are looking forward to the coming year and are confident regarding the future of the business and its ability to meet the challenging strategic targets set, in order to grow the business in terms of both revenues and profitability levels. These targets are considered achievable given the engagement levels of the employees who, by being co-owners through The Rooflight Trust, feel their actions and the values-led culture of the business can contribute to the ongoing success of The Metal Window Company Ltd.
The Directors are grateful to the ongoing commitment of the Leadership team, Managers and all co-owners
.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs V King
(Resigned 22 April 2020)
Mr S J Webber
Mr S D Pitcher
(Appointed 22 April 2020)
Mr N J Cockayne
(Appointed 22 April 2020)
Mr P Daniel
(Appointed 10 December 2020)
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
THE METAL WINDOW COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 2 -
On behalf of the board
Mr S J Webber
Director
6 January 2021
THE METAL WINDOW COMPANY LIMITED
BALANCE SHEET
- 3 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,166,783
934,088
Current assets
Stocks
1,046,505
935,729
Debtors
4
781,583
873,654
Cash at bank and in hand
1,025,957
1,555,345
2,854,045
3,364,728
Creditors: amounts falling due within one year
5
(1,094,785)
(988,600)
Net current assets
1,759,260
2,376,128
Total assets less current liabilities
2,926,043
3,310,216
Creditors: amounts falling due after more than one year
6
(149,503)
(132,209)
Provisions for liabilities
(523,468)
(512,081)
Net assets
2,253,072
2,665,926
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
2,252,072
2,664,926
Total equity
2,253,072
2,665,926
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 May 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
THE METAL WINDOW COMPANY LIMITED
BALANCE SHEET (CONTINUED)
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 6 January 2021 and are signed on its behalf by:
Mr S J Webber
Director
Company Registration No. 02881879
THE METAL WINDOW COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
- 5 -
1
Accounting policies
Company information
The Metal Window Company Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
264 Banbury Road, Oxford, OX2 7DY.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 on the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The entity has taken advantage of the following disclosure exemptions:
The requirements of
FRS 102
Section 6.1A to present a statement of change in equity or a statement of income and
retained earnings.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
25% Straight line
Plant and machinery
12.5% - 20% reducing balance
Fixtures, fittings & equipment
15-25% reducing balance
Computer equipment
20% - 33% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
THE METAL WINDOW COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 6 -
1.5
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.6
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.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
THE METAL WINDOW COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 7 -
1.9
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.10
Provisions for warrant
y costs
are recognised when the
c
ompany has a legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.
Warranty p
rovisions are
not
discounted
.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
68
70
THE METAL WINDOW COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 8 -
3
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 June 2019
34,223
904,398
308,529
574,178
32,808
1,854,136
Additions
365,812
6,916
52,933
425,661
Disposals
(2,250)
(22,500)
(232,099)
(32,808)
(289,657)
At 31 May 2020
34,223
1,267,960
292,945
395,012
1,990,140
Depreciation and impairment
At 1 June 2019
25,668
249,550
216,977
405,265
22,588
920,048
Depreciation charged in the year
8,555
91,786
14,162
50,629
2,385
167,517
Eliminated in respect of disposals
(1,882)
(15,972)
(221,381)
(24,973)
(264,208)
At 31 May 2020
34,223
339,454
215,167
234,513
823,357
Carrying amount
At 31 May 2020
928,506
77,778
160,499
1,166,783
At 31 May 2019
8,555
654,848
91,552
168,913
10,220
934,088
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
347,061
442,921
Other debtors
434,522
430,733
781,583
873,654
5
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
91,418
266,828
Taxation and social security
191,624
193,760
Customer deposits
476,914
227,019
Other creditors
334,829
300,993
1,094,785
988,600
THE METAL WINDOW COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 9 -
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
149,503
132,209
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
265,666
496,997
8
Parent company
The company is controlled by
Rooflight Trustees Limited which in turn is controlled by
the Rooflight Employee Ownership Trust.