Unique Window Systems Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 05060094 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 April 2018

for

Unique Window Systems Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

7

Balance Sheet

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

S J Patel

A J Patel

J W Raven

D C Rowley

S J Birkin

SECRETARY:

S J Patel

REGISTERED OFFICE:

87 Parker Drive

Leicester

LE4 0JP

REGISTERED NUMBER:

05060094 (England and Wales)

AUDITORS:

Torr Waterfield Limited

Statutory Auditor

Park House

37 Clarence Street

Leicester

Leicestershire

LE1 3RW

The directors present their strategic report for the year ended 30 April 2018.

REVIEW OF BUSINESS

2017/18 has seen the company's turnover increase from £19.6m in 2016/17 to £20.2m, a growth of 3.4%. The

company has benefited from the increased production capacity through the investment in plant and machinery made in

the previous year. This expansion has allowed growth to be achieved.

The directors are satisfied with the results for the year in what continues to be a very challenging and competitive

environment. under the prevailing conditions much credit is due to the management and staff throughout the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider that the company has potential risks similar to those faced by other companies in the sector

namely retaining loyalty of its customers, suppliers or staff. Considerable emphasis is devoted to maintaining service

levels with customers and working closely with suppliers on quality and logistical issues to ensure that a high level of

performance is achieved. The directors continually focus on medium and long term sustainable income generation and

apply resources in developing and sourcing products to seek out additional profitable revenue streams.

Staff are encouraged to contribute fully to the business and are remunerated accordingly to mitigate this risk and

encourage development.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors consider the trading activity, specifically levels of turnover and gross profit as well as the net asset position

of the company, to be the key performance indicators of the business. Turnover and net assets have shown a further

improvement in the current year.

Gross profit has reduced from last year, reflecting the company's increased investment in the recruitment of additional

staff and the training of both new and existing employees.

Performance is measured on a monthly basis through detailed management accounts and reviews of forward order books

and enquiries. The company also has in place a number of key performance indicators, managed through senior level

performance objectives.

Revenue is a key measure, and this measure shows the success of the sales teams in terms of orders secured and business

generated. In addition new areas for growth are explored through opening of new accounts and increasing volumes with

existing customers.

Gross margin and profit percentage are important measures of performance and this is monitored to understand and

control external trends in product pricing, manufacturing efficiency control and sourcing. Fixed overhead cost base is

also monitored to ensure that value for money is achieved and profitability is not eroded unnecessarily.

Debtor and creditor days are monitored and close control is maintained to ensure that customer payments are received in

line with agreed terms and suppliers are paid in line with contractual commitments. Cash flow and working capital is

monitored as part of the monthly reporting and the company strives to be cash positive.

Investment in fixed assets is either financed through surplus working capital or specific asset funding in line with the

overall working capital requirements.

ON BEHALF OF THE BOARD:

A J Patel - Director

20 December 2018

The directors present their report with the financial statements of the company for the year ended 30 April 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and sale of windows and

doors.

DIVIDENDS

Dividends of £87,400 (2017: £87,400) were paid during the year.

FUTURE DEVELOPMENTS

The company continues to increase its production capacity through rental of additional factory capacity and investment

and rental of plant and machinery. This investment will enable further efficiencies to be made into the production

process and enable the company to meet current and anticipated future demand. The directors consider that the

company's market place will remain very competitive for the foreseeable future. The directors believe that with its

quality product and strong management team, the company is well placed to take advantage of every opportunity in the

current year.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2017 to the date of this report.

S J Patel

A J Patel

J W Raven

D C Rowley

Other changes in directors holding office are as follows:

S M S Atwal - resigned 30 September 2017

S J Birkin was appointed as a director after 30 April 2018 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company's financial risk management objective is broadly to seek to make neither profit nor loss on exposure to

currency or interest rate risks. Its policy is to finance working capital through retained earnings and through borrowings

using hire purchase and lease finance on capital expenditure at prevailing market rates.

The company is also exposed to the usual credit risk and cashflow risk associated with selling on credit and manages this

through selling to credit worthy customers and strong credit control procedures.

The nature of its financial instruments means that they are not subject to significant price risk or liquidity risk and,

accordingly, the directors do not consider any risks attaching to the use of financial instruments to be material to an

ongoing assessment of its financial position or profit.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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 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 company'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 company's

auditors are aware of that information.

ON BEHALF OF THE BOARD:

A J Patel - Director

20 December 2018

Opinion

We have audited the financial statements of Unique Window Systems Ltd (the 'company') for the year ended

30 April 2018 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement

and Notes to the 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 company's affairs as at 30 April 2018 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 Auditors' 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 there is a material misstatement in the financial

statements or a material misstatement of the other information. 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.

Opinion 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the 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, 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 Statement of Directors' Responsibilities set out on pages three and 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 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.

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.

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.

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.

Peter Morris (Senior Statutory Auditor)

for and on behalf of Torr Waterfield Limited

Statutory Auditor

Park House

37 Clarence Street

Leicester

Leicestershire

LE1 3RW

20 December 2018

TURNOVER

20,292,208

19,619,107

Cost of sales

(15,244,299

)

(13,576,975

)

GROSS PROFIT

5,047,909

6,042,132

Distribution costs

(494,128

)

(343,595

)

Administrative expenses

(3,346,302

)

(3,412,672

)

1,207,479

2,285,865

Other operating income

150,292

-

OPERATING PROFIT

4

1,357,771

2,285,865

Interest receivable and similar income

4

2

1,357,775

2,285,867

Interest payable and similar expenses

5

(94,883

)

(91,554

)

PROFIT BEFORE TAXATION

1,262,892

2,194,313

Tax on profit

6

(149,729

)

(433,944

)

PROFIT FOR THE FINANCIAL YEAR

1,113,163

1,760,369

Retained earnings at beginning of year

4,153,792

2,480,823

Dividends

7

(87,400

)

(87,400

)

RETAINED EARNINGS AT END OF YEAR

5,179,555

4,153,792

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

3,909,969

4,139,045

Investments

10

28,653

-

3,938,622

4,139,045

CURRENT ASSETS

Stocks

11

1,493,423

1,208,992

Debtors

12

5,291,160

4,605,629

Cash at bank and in hand

1,585,174

1,466,491

8,369,757

7,281,112

CREDITORS

Amounts falling due within one year

13

4,655,567

4,719,831

NET CURRENT ASSETS

3,714,190

2,561,281

TOTAL ASSETS LESS CURRENT LIABILITIES

7,652,812

6,700,326

CREDITORS

Amounts falling due after more than one year

14

(2,306,336

)

(2,372,485

)

PROVISIONS FOR LIABILITIES

18

(165,921

)

(173,049

)

NET ASSETS

5,180,555

4,154,792

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Retained earnings

5,179,555

4,153,792

SHAREHOLDERS' FUNDS

5,180,555

4,154,792

The financial statements were approved and authorised for issue by the Board of Directors on 20 December 2018 and were signed on its behalf by:

S J Patel - Director

Cash flows from operating activities

Cash generated from operations

1

1,706,833

1,061,884

Interest paid

(35,746

)

(20,400

)

Interest element of hire purchase payments paid

(59,137

)

(71,154

)

Tax paid

(414,981

)

(314,243

)

Net cash from operating activities

1,196,969

656,087

Cash flows from investing activities

Purchase of tangible fixed assets

(155,915

)

(784,342

)

Purchase of fixed asset investments

(28,653

)

-

Sale of tangible fixed assets

105,701

237,416

Interest received

4

2

Net cash from investing activities

(78,863

)

(546,924

)

Cash flows from financing activities

New loans in year

-

81,775

Loan repayments in year

(126,445

)

(126,200

)

Capital repayments in year

(787,203

)

(343,412

)

Amount introduced by directors

1,625

-

Equity dividends paid

(87,400

)

(87,400

)

Net cash from financing activities

(999,423

)

(475,237

)

Increase/(decrease) in cash and cash equivalents

118,683

(366,074

)

Cash and cash equivalents at beginning of year

2

1,466,491

1,832,565

Cash and cash equivalents at end of year

2

1,585,174

1,466,491

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.4.18

30.4.17

£

£

Profit before taxation

1,262,892

2,194,313

Depreciation charges

614,603

484,725

Loss/(profit) on disposal of fixed assets

52,863

(37,986

)

Finance costs

94,883

91,554

Finance income

(4

)

(2

)

2,025,237

2,732,604

Increase in stocks

(284,431

)

(332,898

)

Increase in trade and other debtors

(777,084

)

(1,818,082

)

Increase in trade and other creditors

743,111

480,260

Cash generated from operations

1,706,833

1,061,884

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 2018

30.4.18

1.5.17

£

£

Cash and cash equivalents

1,585,174

1,466,491

Year ended 30 April 2017

30.4.17

1.5.16

£

£

Cash and cash equivalents

1,466,491

1,832,565

1.	STATUTORY INFORMATION

Unique Window Systems Ltd is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

In preparing these financial statements the directors have exercised their judgement to determine whether leases

entered into by the company either as a lessor or 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.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will,

by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk

of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are

addressed below:

i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives

and residual values of assets. The useful economic lives and residual values are reviewed annually. They are

amended when necessary to reflect current accounting estimates, based on technological advancement, future

investments, economic utilisation and the physical condition of the assets.

ii) Trade debtors

At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the

carrying amount of the debtor is reduced to its recoverable amount. The impairment loss is recognised in the

income statement.

iii) Stocks

In determining stock provisions, future demand and selling price is evaluated and appropriate provisions are

made to reflect the risk of obsolescence and impairment in carrying value. The provisioning policy is in place to

ensure that the carrying value of stock recognised in the financial statements is the lower of cost and estimated

selling price less costs to complete and sell, in accordance with the stated accounting policy.

Turnover

Turnover is measured at fair value of the consideration received or receivable and represents the amount

receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company

and Valued Added Tax.

The company recognises turnover when the following criteria have been met:

i) Sale of goods

Revenue from the sale of goods is recognised when :

(a) the significant risks and rewards of ownership have been transferred to the buyer;

(b) the company retains no ongoing involvement or control over the goods;

(c) the revenue can be reliably measured;

(d) it is probable that the company will receive the consideration due under the transaction; and

(e) the costs incurred in respect of the transaction can be reliably measured.

ii) Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in

accordance with the stage of completion of the contract when all of the following conditions are satisfied:

(a) the amount of revenue can be reliably measured;

(b) it is probable that the company will receive the consideration due under the contract;

(c) the stage of completion of the contract at the end of the reporting period can be measured reliably; and

(d) the costs incurred and the costs to complete the contract can be reliably measured.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

10% - 20% on cost

Motor vehicles

-

25% on cost

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any

accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the

asset to the location and condition necessary for it to be capable of operating in a manner intended by

management.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item

when the cost is incurred, if the replacement part is expected to provide incremental future benefits to the

company, The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the

profit or loss during the period in which they are incurred.

Government grants

Grants are accounted for under the accruals model. Grants relating to expenditure on tangible fixed assets are

credited to the Statement of comprehensive income at the same rate as the depreciation on the assets to which the

grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the

related expenditure.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to

complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and

finished goods include labour and attributable overheads.

As each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced

to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or

loss.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to

related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for

objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised

in the profit and loss account.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

30.4.18

30.4.17

£

£

Wages and salaries

3,491,162

3,112,503

Social security costs

299,602

242,468

Other pension costs

35,351

297,083

3,826,115

3,652,054

The average number of employees during the year was as follows:

30.4.18

30.4.17

Administration and directors

42

37

Sales and distribution

15

13

Production

121

101

178

151

30.4.18

30.4.17

£

£

Directors' remuneration

235,108

142,833

Directors' pension contributions to money purchase schemes

4,894

4,897

Compensation to director for loss of office

30,000

-

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

3

Information regarding the highest paid director for the year ended 30 April 2018 is as follows:

30.4.18

£

Emoluments etc

84,010

Pension contributions to money purchase schemes

391

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.4.18

30.4.17

£

£

Hire of plant and machinery

632,473

378,893

Other operating leases

117,250

125,866

Depreciation - owned assets

167,401

184,284

Depreciation - assets on hire purchase contracts

447,200

300,440

Loss/(profit) on disposal of fixed assets

52,863

(37,986

)

Auditors remuneration

11,520

16,163