Registered Number:02229092
ANGLIAN TIMBER LIMITED
UNAUDITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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COMPANY INFORMATION
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R W Fennell (resigned 31 December 2021)
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CONTENTS
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Statement of Comprehensive Income (including Profit and Loss Account)
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Statement of Changes in Equity
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Notes to the Financial Statements
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STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022
The directors are pleased with the performance of the Company for the year, which has been achieved within a challenging marketplace. Gross profit remains strong as can be seen in the key performance indicators below and EBITDA (Earnings before interest, tax, depreciation and amortisation) was £983,671 (2021 - £784,026). The Company has remained in a strong cash position and has a significant level of capital and reserves. The Company remains well positioned by virtue of the range of activities performed, which also helps mitigate its exposure to the risk of a downturn in any one specific area of operations.
Financial key performance indicators
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The directors regularly review the gross profit margin and the net assets position. These are considered the key performance indicators and, overall, have remained strong during the year:
The gross profit margin has remained healthy and was 22.7% during the year (2021 - 22.9%).
The Company's net assets have continued to grow, increasing from £2,415,400 at 28 February 2021 to £3,175,533 at 28 February 2022 due to the profit for the year.
Principal risks and uncertainties
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Some of the principal risks and uncertainties facing the Company relate to the supply of raw materials. The directors remain of the opinion that this will not affect their business for the foreseeable future, as they have built very strong relationships with their suppliers. The directors will continue to monitor the situation, and make adjustments to their business strategy if necessary.
This report was approved by the board on 5 August 2022 and signed on its behalf.
A R Milner-Moore
Director
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DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022
The directors present their report and the financial statements for the year ended 28 February 2022.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgments 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 to 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.
The directors who served during the year and to the date of this report were:
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R W Fennell (resigned 31 December 2021)
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An indemnity policy with respect to all of the directors was in place throughout the year and to the date of this report.
The principal activity of the company during the year was that of softwood distributors and trussed rafter manufacturers.
The profit for the year, after taxation, amounted to £760,133 (2021 - £578,817).
The directors do not recommend the payment of a dividend.
- 2 -
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ANGLIAN TIMBER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on 5 August 2022 and signed on its behalf.
A R Milner-Moore
Director
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CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF ANGLIAN TIMBER LIMITED
FOR THE YEAR ENDED 28 FEBRUARY 2022
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Anglian Timber Limited for the year ended 28 February 2022 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the Board of Directors of Anglian Timber Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Anglian Timber Limited and state those matters that we have agreed to state to the Board of Directors of Anglian Timber Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Anglian Timber Limited and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that Anglian Timber Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Anglian Timber Limited. You consider that Anglian Timber Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of Anglian Timber Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Scrutton Bland LLP
Chartered Accountants
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG
19 August 2022
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STATEMENT OF COMPREHENSIVE INCOME (INCLUDING THE PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Interest receivable and similar income
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Profit for the financial year
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There was no other comprehensive income for 2022 (2021: £NIL).
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The notes on pages 10 to 22 form part of these financial statements.
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ANGLIAN TIMBER LIMITED
REGISTERED NUMBER:02229092
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BALANCE SHEET
AS AT 28 FEBRUARY 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provision for liabilities
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- 6 -
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ANGLIAN TIMBER LIMITED
REGISTERED NUMBER:02229092
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BALANCE SHEET (CONTINUED)
AS AT 28 FEBRUARY 2022
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 August 2022.
The notes on pages 10 to 22 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2022
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The notes on pages 10 to 22 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2021
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Dividends: Equity capital
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The notes on pages 10 to 22 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
Anglian Timber Limited is a company limited by share capital, incorporated in England and Wales, registration number 02229092. The registered office is The Sawmill, Wix, Nr Manningtree, Colchester, Essex, CO11 2RS.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The financial statements are prepared in sterling and are rounded to the nearest £1.
Forecasting indicates that liabilities will continue to be met as they fall due for a period of at least 12 months following the date of accounts approval. The accounts are therefore prepared on a going concern basis.
In forming this opinion the directors confirm their view that the Company will continue to trade.
The following principal accounting policies have been applied:
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
2.Accounting policies (continued)
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 the 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 that 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 profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
Plant and machinery - 10% on cost
Motor vehicles - 25% on cost
Office equipment and furniture - 33.3% on cost
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the statement of comprehensive income.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
2.Accounting policies (continued)
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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet 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.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company only enters into basic financial instrument 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 and investments in ordinary shares.
Debtors (financial assets) are recorded at the transaction price.
Creditors (financial liabilities) are recorded at the transaction price.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Preparation of the financial statements requires management to make judgments, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on experiences and other factors that are considered to be relevant. Actual results may differ from these estimates. The main estimations included within the accounts are stock and debtor provisions and depreciation on assets.
All turnover during the year was derived from the Company's principal activity which was that of softwood distributors and trussed rafter manufacturers. All turnover arose in the UK.
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Government grants receivable
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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The operating profit is stated after charging/(charging):
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Depreciation of tangible fixed assets
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Profit on disposal of tangible fixed assets
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution pension scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 3 directors (2021 - 3) in respect of defined contribution pension schemes.
In addition, directors' remuneration for A R Milner-Moore and C R Milner-Moore is paid by the ultimate parent company, Castlewood Holdings Limited, amounting to £286,115 (2021 - £60,410).
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UK Corporation tax on profit for the year
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
9.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
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Expenses not deductible for tax purposes
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Other assets not qualifying for capital allowance purposes
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Movement in pension fund leading to an decrease in tax
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Group relief received for nil consideration
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Total tax charge for the year
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Factors that may affect future tax charges
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The Finance Act 2021 announced an increase of the main rate of UK corporation tax rate from 19% to
25% from 1 April 2023. This was enacted in June 2021. Accordingly, deferred tax assets and liabilities are
stated at 25%.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Office equipment and furniture
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Charge for the year on owned assets
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Raw materials and consumables
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- 17 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Amounts owed by ultimate parent undertaking
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Government grants receivable
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to ultimate parent undertaking
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Other taxation and social security
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Accruals and deferred income
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Financial assets measured at fair value through profit or loss
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Financial liabilities measured at amortised cost
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Financial assets which are debt instruments measured at amortised cost comprise trade debtors, other debtors, accrued income and balances with group undertakings.
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Financial liabilities measured at amortised cost comprise trade creditors, other creditors, accruals and balances with group undertakings.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Charged to profit or loss
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The provision for deferred taxation comprises:
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Accelerated capital allowances
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Allotted, called up and fully paid
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100 Ordinary shares of £1.00 each
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The pension cost charge represents contributions payable by the Company and amounted to £67,494 (2021 - £36,639). Contributions totalling £2,889 (2021 - £3,066) were payable to the fund at the balance sheet date and are included in other creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Commitments under operating leases
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At 28 February 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Total plant and machinery
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The operating lease charge to profit and loss for the year totalled £254,407 (2021 - £260,238).
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- 21 -
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
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Related party transactions
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Anglian Timber Limited is a wholly owned subsidiary of Castlewood Holdings Limited.
Boxley Timber & Fencing Supplies Limited is a joint venture company of Castlewood Holdings Limited.
The Castlewood Holdings Limited Retirement Benefits Scheme is a pension scheme of which some of the directors and shareholders of Castlewood Holdings Limited are the beneficiaries.
The Chris Milner-Moore 2011 Family Settlement is a shareholder of Castlewood Holdings Limited.
Lumberjacks Limited is ultimately owned by the shareholders of Castlewood Holdings Limited.
Transactions with the above related parties during the year were:
Boxley Timber & Fencing Supplies Limited
During the year the Company made sales to Boxley Timber & Fencing Supplies Limited of £179,831 (2021 - £262,264) and purchases of £170 (2020 - £246). At 28 February 2022 the Company was owed a net amount of £17,539 (2021 - £12,088) by Boxley Timber & Fencing Supplies Limited.
Lumberjacks Limited
During the year the Company made sales to Lumberjacks Limited of £642,296 (2021 - £611,698) and purchases of £138,055 (2021 - £73,924). At 28 February 2022 the Company was owed a net amount of £34,770 (2021 - £78,191) by Lumberjacks Limited.
Castlewood Holdings Limited
In accordance with the exemptions permitted by FRS 102, transactions with the ultimate parent Company are not disclosed. At 28 February 2022 the Company was owed £4,200 by Castlewood Holdings Limited (2021 - owed £2,010 to Castlewood Holdings Limited).
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Ultimate parent undertaking and controlling party
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The ultimate parent Company is Castlewood Holdings Limited, a Company incorporated in England and WalesK.
The Milner-Moore family is the ultimate controlling party.
- 22 -
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