REGISTERED NUMBER: SC195939 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 April 2023 |
for |
Glencairn Crystal Studio Limited |
REGISTERED NUMBER: SC195939 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 April 2023 |
for |
Glencairn Crystal Studio Limited |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 April 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
Glencairn Crystal Studio Limited |
Company Information |
for the Year Ended 30 April 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
29 Brandon Street |
Hamilton |
ML3 6DA |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Group Strategic Report |
for the Year Ended 30 April 2023 |
The directors present their strategic report of the company and the group for the year ended 30 April 2023. |
REVIEW OF BUSINESS |
The directors are satisfied with the results achieved by the group during the year. |
The group's key performance indicators are turnover, gross profit and net profit. |
Based on a year to year comparison of the results of the group: |
- Turnover increased to £17,841,358 from £14,513,167 last year, |
- Gross profit increased to £8,462,283 (47%) from £7,371,589 (51%), and |
- Net profit increased to £4,794,035 (27%) from £4,487,162 (31%). |
Overall, the group has experienced an increase in turnover and profitability which the directors attribute to sustained performance throughout 2022/23. |
The directors consider the group to be in a healthy financial position at the year end. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's operations expose it to a variety of financial risks that include performance risk, operational risk, credit risk and liquidity risk. The directors recognise their overall responsibility for the group's systems and internal control. The controls are designed to manage as opposed to completely eliminate risk. |
The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by regularly reviewing and monitoring individual contract balances and ensuring adequate funding is in place for any given contract. |
Performance risk is minimised through accurately budgeting and costing individual projects at the outset and then monitoring the performance on these projects through to completion. The performance of the group and the individual companies within the group is monitored through quarterly management accounts which are reviewed at regular board meetings. |
Operational risk is minimised through having robust health and safety and quality assurance policies and procedures in place as well as the development of a positive health and safety culture throughout the group. |
Credit risk is minimised by requiring the appropriate credit checks on potential customers, working with reputable customers, agreeing regular payment terms on larger contracts and having strict credit controls. The amount of exposure to any individual customer is also assessed and controlled. |
Liquidity risk is minimised through managing the cash generated by operations and the retention of a healthy level of group reserves and funds in the bank. |
FINANCIAL INSTRUMENTS |
The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are all conducted in multiple currencies. |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Group Strategic Report |
for the Year Ended 30 April 2023 |
GOING CONCERN |
The directors have assessed the group as having sufficient resources to meet the expected ongoing costs of the business for a period of at least 12 months from the date of signing the financial statements. As a result they have continued to adopt the going concern basis when preparing the financial statements. |
ON BEHALF OF THE BOARD: |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Report of the Directors |
for the Year Ended 30 April 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the manufacture and distribution of crystal and glassware. |
DIVIDENDS |
An interim dividend of £5,154 per share was paid on 30 April 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 30 April 2023 will be £ 2,350,000 . |
RESEARCH AND DEVELOPMENT |
The group is constantly increasing its knowledge and capability for the design, development and manufacture of complex crystal decanters. |
FUTURE DEVELOPMENTS |
The directors are confident that the group will continue to grow and trade profitably. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Report of the Directors |
for the Year Ended 30 April 2023 |
AUDITORS |
The auditors, Sharles Audit Limited, have indicated their willingness to be reappointed for another term and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Glencairn Crystal Studio Limited |
Opinion |
We have audited the financial statements of Glencairn Crystal Studio Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 30 April 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Glencairn Crystal Studio Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Glencairn Crystal Studio Limited |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- | obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the group operates in and how the group is complying with the legal and regulatory framework; |
- | inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; |
- | discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating advice received from internal/external tax advisors. |
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these law and regulations and inspected correspondence with regulatory authorities. |
The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates applied in the year end accounts. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Glencairn Crystal Studio Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
29 Brandon Street |
Hamilton |
ML3 6DA |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Consolidated |
Income Statement |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 17,841,358 | 14,513,167 |
Cost of sales | 9,379,075 | 7,141,578 |
GROSS PROFIT | 8,462,283 | 7,371,589 |
Administrative expenses | 3,953,459 | 3,268,426 |
4,508,824 | 4,103,163 |
Other operating income | 237,537 | 371,545 |
OPERATING PROFIT | 6 | 4,746,361 | 4,474,708 |
Interest receivable and similar income | 14,188 | 15,152 |
4,760,549 | 4,489,860 |
Gain/loss on revaluation of investments | 34,792 | - |
4,795,341 | 4,489,860 |
Interest payable and similar expenses | 7 | 1,306 | 2,698 |
PROFIT BEFORE TAXATION | 4,794,035 | 4,487,162 |
Tax on profit | 8 | 866,619 | 766,101 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,927,416 | 3,721,061 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,927,416 | 3,721,061 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,927,416 |
3,721,061 |
Total comprehensive income attributable to: |
Owners of the parent | 3,927,416 | 3,721,061 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Consolidated Balance Sheet |
30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 108,611 | 118,485 |
Tangible assets | 12 | 2,004,889 | 2,031,500 |
Investments | 13 | 76,911 | 16 |
2,190,411 | 2,150,001 |
CURRENT ASSETS |
Stocks | 14 | 3,373,813 | 2,265,288 |
Debtors | 15 | 2,375,835 | 2,045,476 |
Investments | 16 | 988,553 | - |
Cash at bank and in hand | 3,186,036 | 4,843,609 |
9,924,237 | 9,154,373 |
CREDITORS |
Amounts falling due within one year | 17 | 4,322,596 | 5,110,233 |
NET CURRENT ASSETS | 5,601,641 | 4,044,140 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,792,052 |
6,194,141 |
CREDITORS |
Amounts falling due after more than one year |
18 |
- |
(21,690 |
) |
PROVISIONS FOR LIABILITIES | 22 | (192,453 | ) | (150,268 | ) |
NET ASSETS | 7,599,599 | 6,022,183 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 456 | 456 |
Capital redemption reserve | 24 | 144 | 144 |
Retained earnings | 24 | 7,598,999 | 6,021,583 |
SHAREHOLDERS' FUNDS | 7,599,599 | 6,022,183 |
The financial statements were approved by the Board of Directors and authorised for issue on 12 October 2023 and were signed on its behalf by: |
S A Davidson - Director |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Company Balance Sheet |
30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Investments | 16 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
18 |
( |
) |
PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Capital redemption reserve | 24 |
Retained earnings | 24 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 3,936,527 | 3,729,789 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 April 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2021 | 456 | 4,650,522 | 144 | 4,651,122 |
Changes in equity |
Dividends | - | (2,350,000 | ) | - | (2,350,000 | ) |
Total comprehensive income | - | 3,721,061 | - | 3,721,061 |
Balance at 30 April 2022 | 456 | 6,021,583 | 144 | 6,022,183 |
Changes in equity |
Dividends | - | (2,350,000 | ) | - | (2,350,000 | ) |
Total comprehensive income | - | 3,927,416 | - | 3,927,416 |
Balance at 30 April 2023 | 456 | 7,598,999 | 144 | 7,599,599 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Company Statement of Changes in Equity |
for the Year Ended 30 April 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Consolidated Cash Flow Statement |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,409,623 | 4,444,770 |
Interest paid | (1,306 | ) | (2,698 | ) |
Tax paid | (772,887 | ) | (699,360 | ) |
Net cash from operating activities | 2,635,430 | 3,742,712 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (236,861 | ) | (562,755 | ) |
Purchase of fixed asset investments | (76,895 | ) | - |
Purchase of current asset investments | (953,760 | ) | - |
Interest received | 14,188 | 15,152 |
Net cash from investing activities | (1,253,328 | ) | (547,603 | ) |
Cash flows from financing activities |
Loan repayments in year | (85,566 | ) | (64,033 | ) |
Amount introduced by directors | - | 616,680 |
Amount withdrawn by directors | (604,109 | ) | - |
Equity dividends paid | (2,350,000 | ) | (2,350,000 | ) |
Net cash from financing activities | (3,039,675 | ) | (1,797,353 | ) |
(Decrease)/increase in cash and cash equivalents | (1,657,573 | ) | 1,397,756 |
Cash and cash equivalents at beginning of year |
2 |
4,843,609 |
3,445,853 |
Cash and cash equivalents at end of year | 2 | 3,186,036 | 4,843,609 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 April 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 4,794,035 | 4,487,162 |
Depreciation charges | 273,345 | 242,571 |
Unrealised gain on investments | (34,792 | ) | - |
Finance costs | 1,306 | 2,698 |
Finance income | (14,188 | ) | (15,152 | ) |
5,019,706 | 4,717,279 |
Increase in stocks | (1,108,525 | ) | (449,040 | ) |
(Increase)/decrease in trade and other debtors | (330,359 | ) | 104,450 |
(Decrease)/increase in trade and other creditors | (171,199 | ) | 72,081 |
Cash generated from operations | 3,409,623 | 4,444,770 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 3,186,036 | 4,843,609 |
Year ended 30 April 2022 |
30.4.22 | 1.5.21 |
£ | £ |
Cash and cash equivalents | 4,843,609 | 3,445,853 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 April 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.22 | Cash flow | At 30.4.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,843,609 | (1,657,573 | ) | 3,186,036 |
4,843,609 | (1,657,573 | ) | 3,186,036 |
Liquid resources |
Current asset investments | - | 988,553 | 988,553 |
- | 988,553 | 988,553 |
Debt |
Debts falling due within 1 year | (63,876 | ) | 63,876 | - |
Debts falling due after 1 year | (21,690 | ) | 21,690 | - |
(85,566 | ) | 85,566 | - |
Total | 4,758,043 | (583,454 | ) | 4,174,589 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 April 2023 |
1. | STATUTORY INFORMATION |
Glencairn Crystal Studio Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis. |
Basis of consolidation |
The consolidated group financial statements consist of the financial statements of the parent company and all the subsidiary companies which it controls either directly or indirectly. |
Intercompany transactions and balances between group companies are eliminated on consolidation. |
The financial statements of all subsidiary companies are prepared to the same reporting date as the parent company. All subsidiary companies have been consolidated. |
The cost of a business combination is the fair value at the acquisition date, of the assets given, equity instruments issued and liabilities incurred or assumed, plus directly attributable costs. |
The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. |
Significant judgements and estimates |
In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Changes in accounting policies |
There were no changes in accounting policies arising during the current year. |
Turnover and revenue recognition |
Turnover is derived from the manufacture and distribution of crystal and glassware by the group. |
Turnover is measured at the fair value of the manufacture and distribution of crystal and glassware, net of discounts and excluding value added tax, and is recognised at the point that the group obtains the right to consideration. |
Goodwill |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
3. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets held for the group's own use are stated at cost less accumulated depreciation and accumulated impairment loss. |
At each balance sheet date, the group reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Expenditure of £500 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets below this threshold is charged directly to the income statement in the period it is incurred. |
Government grants |
Grants considered to be revenue in nature are credited to the profit and loss account in the period to which they relate. Grants of a capital nature are reflected as deferred income in the balance sheet and released to the profit and loss account over the estimated useful life of the assets to which they relate. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to the income statement as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amounts of stocks recognised as an expense in the period in which the reversal occurs. |
Work in progress |
Work in progress is stated at the lower of cost and net realisable value. Costs comprise direct material and labour costs, plus attributable overheads based on a normal level of activity. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
3. | ACCOUNTING POLICIES - continued |
Basic financial instruments |
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102, in full, to all of its financial instruments. |
Recognition and measurement of financial instruments: |
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. |
Classification of financial instruments: |
Financial instruments are classified as liabilities and equity instruments 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. |
Trade, group and other debtors: |
Trade, group and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. |
Where the arrangement with a debtor constitutes a financing transaction, the debtor is initially measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument and subsequently measured at amortised cost, using the effective interest method. The effective interest rate is the market rate used to determine initial measurement adjusted to amortise directly attributable transaction costs. |
A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss. |
Cash and cash equivalents: |
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
Trade creditors, group and other creditors: |
Trade, group and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled. |
Where the arrangement with a creditor constitutes a financing transaction, the creditor is initially measured at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised cost, being transaction price less any amounts settled and the cumulative amortisation (using the effective interest method) of any difference between the amount at initial recognition and the maturity amount. The effective interest rate is the rate that discounts estimated future cash payments to the carrying amount of the financial liability. |
Derecognition of financial assets and liabilities: |
A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some (but not substantially all) 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. |
A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires. |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research activities is recognised in profit or loss as incurred. |
Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the company intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses. |
Foreign currencies |
Transactions in currencies, other than the functional currency of the group, are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the profit and loss account. Non-monetary items are measured at historic cost in a foreign currency are not retranslated. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the group to the fund in respect of the year. |
Investments |
Fixed asset investments are stated at cost less any provision required to reflect a permanent diminution in value. |
Current asset investments in listed investments are stated at their fair value. Any changes in fair value are recognised in the income statement. |
Provisions |
Provisions are recognised when the group has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefit swill be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
4. | TURNOVER |
A geographical split of turnover has not been provided as in the opinion of the directors the disclosure of this information would be seriously prejudicial to the interests of the group. |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,847,282 | 1,590,596 |
Social security costs | 171,451 | 141,388 |
Other pension costs | 53,437 | 41,956 |
2,072,170 | 1,773,940 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 7 | 7 |
Staff | 58 | 54 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 33,000 | 35,539 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 263,472 | 232,698 |
Goodwill amortisation | 9,874 | 9,874 |
Auditors' remuneration | 6,000 | 6,000 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 1,306 | 2,698 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 824,434 | 719,828 |
Deferred tax | 42,185 | 46,273 |
Tax on profit | 866,619 | 766,101 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 2,350,000 | 2,350,000 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 May 2022 |
and 30 April 2023 | 197,477 |
AMORTISATION |
At 1 May 2022 | 78,992 |
Amortisation for year | 9,874 |
At 30 April 2023 | 88,866 |
NET BOOK VALUE |
At 30 April 2023 | 108,611 |
At 30 April 2022 | 118,485 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 May 2022 | 1,568,038 | 428,829 | 938,465 |
Additions | 4,122 | 70,725 | 125,351 |
At 30 April 2023 | 1,572,160 | 499,554 | 1,063,816 |
DEPRECIATION |
At 1 May 2022 | 141,529 | 325,306 | 457,349 |
Charge for year | 31,443 | 49,977 | 164,359 |
At 30 April 2023 | 172,972 | 375,283 | 621,708 |
NET BOOK VALUE |
At 30 April 2023 | 1,399,188 | 124,271 | 442,108 |
At 30 April 2022 | 1,426,509 | 103,523 | 481,116 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2022 | 10,750 | 126,448 | 3,072,530 |
Additions | - | 36,663 | 236,861 |
At 30 April 2023 | 10,750 | 163,111 | 3,309,391 |
DEPRECIATION |
At 1 May 2022 | 10,750 | 106,096 | 1,041,030 |
Charge for year | - | 17,693 | 263,472 |
At 30 April 2023 | 10,750 | 123,789 | 1,304,502 |
NET BOOK VALUE |
At 30 April 2023 | - | 39,322 | 2,004,889 |
At 30 April 2022 | - | 20,352 | 2,031,500 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 May 2022 |
Additions |
At 30 April 2023 |
DEPRECIATION |
At 1 May 2022 |
Charge for year |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2022 |
Additions |
At 30 April 2023 |
DEPRECIATION |
At 1 May 2022 |
Charge for year |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
13. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 May 2022 | 16 |
Additions | 76,895 |
At 30 April 2023 | 76,911 |
NET BOOK VALUE |
At 30 April 2023 | 76,911 |
At 30 April 2022 | 16 |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 May 2022 | 197,693 |
Additions | 76,895 |
At 30 April 2023 | 274,588 |
NET BOOK VALUE |
At 30 April 2023 | 274,588 |
At 30 April 2022 | 197,693 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
14. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 3,245,330 | 2,036,699 |
Work-in-progress | 128,483 | 228,589 |
3,373,813 | 2,265,288 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,941,843 | 1,623,822 |
Other debtors | 349,984 | 349,984 |
Prepayments and accrued income | 84,008 | 71,670 |
2,375,835 | 2,045,476 |
16. | CURRENT ASSET INVESTMENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Listed investments | 988,553 | - | 988,553 | - |
Market value of listed investments at 30 April 2023 held by the group and the company - £ (988,553) . |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | - | 63,876 |
Trade creditors | 868,680 | 1,018,328 |
Amounts owed to group undertakings | - | - |
Tax | 463,037 | 411,490 |
Social security and other taxes | 37,556 | 42,981 |
VAT | 292,148 | 229,726 | 282,616 | 226,382 |
Other creditors | 260,913 | 342,250 |
Directors' loan accounts | 2,264,774 | 2,868,883 | 2,264,774 | 2,868,883 |
Accrued expenses | 135,488 | 132,699 |
4,322,596 | 5,110,233 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 19) | - | 21,690 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 63,876 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | - | 21,690 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 57,989 | 64,840 |
Between one and five years | 140,433 | 198,422 |
198,422 | 263,262 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
20. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
21. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | - | 85,566 |
The bank overdraft is secured by a bond and floating charge over the whole of the company's assets. |
The bank loan is secured over industrial units at Langlands Avenue, Kelvin South Business Park, East Kilbride. |
22. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Deferred tax | 197,327 | 155,142 | 197,327 | 155,142 |
Unutilised tax losses | (4,874 | ) | (4,874 | ) | - | - |
192,453 | 150,268 | 197,327 | 155,142 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2022 | 150,268 |
Provided during year | 42,185 |
Balance at 30 April 2023 | 192,453 |
Company |
Deferred |
tax |
£ |
Balance at 1 May 2022 |
Provided during year |
Balance at 30 April 2023 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 456 | 456 |
24. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2022 | 6,021,583 | 144 | 6,021,727 |
Profit for the year | 3,927,416 | 3,927,416 |
Dividends | (2,350,000 | ) | (2,350,000 | ) |
At 30 April 2023 | 7,598,999 | 144 | 7,599,143 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2022 | 5,938,726 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 April 2023 | 7,525,253 |
Glencairn Crystal Studio Limited (Registered number: SC195939) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2023 |
25. | RELATED PARTY DISCLOSURES |
R Davidson, S A Davidson and P J Davidson |
Directors |
During the year, the group repaid £604,109 to the directors (2022 - the directors advanced £616,680 to the group). At the year end, the balance due to the directors was £2,264,774 (2022 - £2,868,883). |
No interest was charged on this loan during this year or the previous year. |
Dividends of £2,350,000 (2022 - £2,350,000) were paid to the directors during the year. |
The Glencairn Glass Company Limited |
A company in which R Davidson is a shareholder |
During the year, the group charged The Glencairn Glass Company Ltd a management fee of £221,500 (2022 - £300,000). The group repaid £80,737 to The Glencairn Glass Company Ltd (2022 the group advanced £4,952 to The Glencairn Glass Company Ltd). At the year end, the balance due to The Glencairn Glass Company Limited was £242,958 (2022 - £323,696) |
No interest was charged on this loan during this year or the previous year. |
Glencairn Scotch Whisky Company Limited |
A company in which R Davidson is a shareholder |
During the year, the group repaid £600 (2022 - £600) to Glencairn Scotch Whisky Company Limited. At the year end, the balance due to Glencairn Scotch Whisky Company Limited was £17,954 (2022 - £18,554) |
No interest was charged on this loan during this year or the previous year. |
26. | ULTIMATE CONTROLLING PARTY |
The group is controlled by the group directors and shareholders. There is no individual with overall control of the group. |