Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31falsefalse2022-01-01No description of principal activityfalse 00743374 2022-01-01 2022-12-31 00743374 2021-01-01 2021-12-31 00743374 2022-12-31 00743374 2021-12-31 00743374 2021-01-01 00743374 1 2022-01-01 2022-12-31 00743374 1 2021-01-01 2021-12-31 00743374 5 2022-01-01 2022-12-31 00743374 5 2021-01-01 2021-12-31 00743374 d:CompanySecretary1 2022-01-01 2022-12-31 00743374 d:Director2 2022-01-01 2022-12-31 00743374 d:Director3 2022-01-01 2022-12-31 00743374 d:Director4 2022-01-01 2022-12-31 00743374 d:RegisteredOffice 2022-01-01 2022-12-31 00743374 e:MotorVehicles 2022-01-01 2022-12-31 00743374 e:MotorVehicles 2022-12-31 00743374 e:MotorVehicles 2021-12-31 00743374 e:MotorVehicles e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 00743374 e:FurnitureFittings 2022-01-01 2022-12-31 00743374 e:FurnitureFittings 2022-12-31 00743374 e:FurnitureFittings 2021-12-31 00743374 e:FurnitureFittings e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 00743374 e:OfficeEquipment 2022-01-01 2022-12-31 00743374 e:ComputerEquipment 2022-01-01 2022-12-31 00743374 e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 00743374 e:CurrentFinancialInstruments 2022-12-31 00743374 e:CurrentFinancialInstruments 2021-12-31 00743374 e:CurrentFinancialInstruments 1 2022-12-31 00743374 e:CurrentFinancialInstruments 1 2021-12-31 00743374 e:Non-currentFinancialInstruments 2022-12-31 00743374 e:Non-currentFinancialInstruments 2021-12-31 00743374 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 00743374 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 00743374 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 00743374 e:ReportableOperatingSegment1 2021-01-01 2021-12-31 00743374 e:ReportableOperatingSegment2 2022-01-01 2022-12-31 00743374 e:ReportableOperatingSegment2 2021-01-01 2021-12-31 00743374 e:ReportableOperatingSegment7 2022-01-01 2022-12-31 00743374 e:ReportableOperatingSegment7 2021-01-01 2021-12-31 00743374 e:UKTax 2022-01-01 2022-12-31 00743374 e:UKTax 2021-01-01 2021-12-31 00743374 e:ShareCapital 2022-12-31 00743374 e:ShareCapital 2021-12-31 00743374 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 00743374 e:RetainedEarningsAccumulatedLosses 2022-12-31 00743374 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 00743374 e:RetainedEarningsAccumulatedLosses 2021-12-31 00743374 e:RetainedEarningsAccumulatedLosses 2021-01-01 00743374 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 00743374 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-12-31 00743374 d:OrdinaryShareClass1 2022-01-01 2022-12-31 00743374 d:OrdinaryShareClass1 2022-12-31 00743374 d:OrdinaryShareClass1 2021-12-31 00743374 d:FRS102 2022-01-01 2022-12-31 00743374 d:Audited 2022-01-01 2022-12-31 00743374 d:FullAccounts 2022-01-01 2022-12-31 00743374 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 00743374 e:Subsidiary1 2022-01-01 2022-12-31 00743374 e:Subsidiary1 1 2022-01-01 2022-12-31 00743374 e:WithinOneYear 2022-12-31 00743374 e:WithinOneYear 2021-12-31 00743374 e:BetweenOneFiveYears 2022-12-31 00743374 e:BetweenOneFiveYears 2021-12-31 00743374 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 00743374 e:AcceleratedTaxDepreciationDeferredTax 2021-12-31 00743374 6 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 00743374







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2022


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED






































img672f.png                        

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
COMPANY INFORMATION


Directors
Daniel Kraft 
Robert Kraft 
Daniel Moore 




Company secretary
Irwin Mitchell Secretaries Limited



Registered number
00743374



Registered office
C/O Irwin Mitchell Llp Riverside East
2 Millsands

Sheffield

South Yorkshire

S3 8DT




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Magna House

18-32 London Road

Staines-Upon-Thames

TW18 4BP





 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 



CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 23


 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The directors present their strategic report for the year ended 31 December 2022.

Review of Business
 
The company achieved a turnover of £57,024,228 (2021: £51,680,311), resulting in a profit on ordinary activities before taxation of £1,708,318 (2021: £639,508). The results for the year are set out on page 9. Turnover was higher than the previous year mainly due to increases in sales of lumber and recovered fibre. The directors are pleased with the growth in both sales and profit for the fiscal year ended December 31, 2022.  Given the competitive market conditions, the directors consider the development and performance of the company during the year and the state of affairs at the end of the year, to be satisfactory. Adequate finance remains available.
The principal activities of the company in the year under review were that of sale of pulp, paper, board, timber and other commodities, and acting as representative to its parent company. 

Principal risks and uncertainties
 
The main risk to the company is the economic conditions in the company’s markets (credit worthiness of customers and suppliers), freight market integration and structural change. The directors continue to focus on these matters in their strategy for the future. 63% of the company’s sales are exported and there is the risk of exposure to foreign economies. The company had a gain of £28,326 in foreign exchange during 2022 and exchange rates remain volatile affecting its Far East purchasing power and export sales. The Far East received 36% of the company’s sales and some parts could become subject to political uncertainty- although it is hoped that the countries currently importing the company’s goods will remain unaffected.

Financial key performance indicators
 
The Key Performance Indicator primarily used to monitor the operations of the business is gross margin. Gross margin increased to 7.1% in 2022 from 5.2% in 2021. 

Future developments
 
The directors are continuing to implement policies to expand the business of the company by diversifying the trade lanes in which the company is active.   The directors anticipate that the business environment will remain competitive. The Board are of the opinion that risks identified are being well managed and there is confidence in the company’s ability to maintain and build on its position – albeit with cautious growth expectations.

Financial Instruments
The company’s financial risk management objectives and policies primarily relate to cash flow, credit and foreign exchange. 
Cash flow - The directors monitor the cash levels of the company to ensure that there are always cash funds available to meet the day to day working capital requirements of the company. 
Credit risk - The company routinely carries out credit checks on new customers. 
Exchange rate - The company enters into forward hedge and spot contracts to mitigate the risk associated with orders in foreign currencies. 

Page 1

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


This report was approved by the board and signed on its behalf.


Daniel Kraft
Director

Date: 6 November 2023

Page 2

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

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 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,388,002 (2021 - £515,346).

The directors do not recommend payment of a dividend for the year (2021: Nil). 

Directors

The directors who served during the year were:

Daniel Kraft 
Robert Kraft 
Daniel Moore 
Jonathan Heywood (resigned 19 July 2022)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware,   and
the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant    audit information and to establish that the Company's auditors are aware of that information.

Page 3

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





Daniel Kraft
Director

Date: 6 November 2023

Page 4

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 

img02af.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED

Opinion


We have audited the financial statements of I.F.P. Forest and Paper Products (UK) Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 31 December 2022 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED


img48f8.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED (CONTINUED)

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED


img6b32.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED (CONTINUED)

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


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

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. 

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area. 

We assessed the susceptibility of the Companys financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and

°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas;

°Posting of unusual journals and complex transactions;

°Risk of fictitious employees; and

°Risk over the recognition of revenue

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk /Our-Work/Audit/Audit -and-assurance/Standards -and-guidance /Standards-and-guidance -forauditors /Auditors-responsibilities -for-audit/Description -of-auditors -responsibilities -for-audit.aspx.

Page 7

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED


img26f7.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED (CONTINUED)

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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andrew Cook (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Magna House
18-32 London Road
Staines-Upon-Thames
TW18 4BP

6 November 2023
Page 8

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 3 
57,024,228
51,680,311

Cost of sales
  
(52,969,488)
(48,979,709)

Gross profit
  
4,054,740
2,700,602

Administrative expenses
  
(2,354,344)
(2,062,042)

Operating profit
 4 
1,700,396
638,560

Interest receivable and similar income
 7 
7,922
948

Profit before tax
  
1,708,318
639,508

Tax on profit
 8 
(320,316)
(124,162)

Profit after tax
  
1,388,002
515,346

  

  

Retained earnings at the beginning of the year
  
7,397,867
6,882,521

  
7,397,867
6,882,521

Profit for the year
  
1,388,002
515,346

Retained earnings at the end of the year
  
8,785,869
7,397,867
The notes on pages 13 to 23 form part of these financial statements.

Page 9

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
REGISTERED NUMBER:00743374



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

As restated
2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 9 
4,228
16,299

Investments
 10 
1
1

  
4,229
16,300

Current assets
  

Stocks
 11 
2,340,612
781,017

Debtors: amounts falling due after more than one year
 12 
-
116,103

Debtors: amounts falling due within one year
 12 
9,676,863
6,932,742

Cash at bank and in hand
  
6,168,235
7,778,871

  
18,185,710
15,608,733

Creditors: amounts falling due within one year
 13 
(9,403,970)
(8,227,066)

Net current assets
  
 
 
8,781,740
 
 
7,381,667

Total assets less current liabilities
  
8,785,969
7,397,967

  

Net assets
  
8,785,969
7,397,967


Capital and reserves
  

Called up share capital 
 16 
100
100

Profit and loss account
 18 
8,785,869
7,397,867

  
8,785,969
7,397,967


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Daniel Kraft
Director

Date: 6 November 2023

The notes on pages 13 to 23 form part of these financial statements.

Page 10

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

As restated
2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
1,388,002
515,346

Adjustments for:

Depreciation of tangible assets
12,071
15,104

Interest received
(7,922)
(948)

Taxation charge
320,316
124,162

(Increase) in stocks
(1,559,595)
(131,547)

(Increase) in debtors
(2,761,193)
(331,823)

Increase in creditors
1,007,357
2,079,210

(Decrease)/increase in amounts owed to groups
(42,938)
158,474

Corporation tax received/(paid)
25,344
(122,375)

Net cash (used in) / generated from operating activities

(1,618,558)
2,305,603


Cash flows from investing activities

Interest received
7,922
948

Net cash from investing activities

7,922
948


Net (decrease)/increase in cash and cash equivalents
(1,610,636)
2,306,551

Cash and cash equivalents at beginning of year
7,778,871
5,472,320

Cash and cash equivalents at the end of year
6,168,235
7,778,871


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
6,168,235
7,778,871

6,168,235
7,778,871


The notes on pages 13 to 23 form part of these financial statements.

Page 11

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022





At 1 January 2022
Cash flows
Other non-cash changes
At 31 December 2022
£

£

£

£

Cash at bank and in hand

7,778,871

(1,610,636)

-

6,168,235

Derivative financial instruments

35,365

-

276,028

311,393


7,814,236
(1,610,636)
276,028
6,479,628

The notes on pages 13 to 23 form part of these financial statements.

Page 12

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

I.F.P. Forest and Paper Products (UK) Limited (00743374) is a private company limited by shares, and it is incorporated and domiciled in England and Wales. The Company's principal activity during the year was the trade of paper and wood products. The Company's principal place of business is St. Anne's House, Oxford Square, Oxford Street, Newbury, Berkshire, RG14 1JQ. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 following principal accounting policies have been applied:

  
2.2

Exemption from preparing consolidated financial statements

The Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006. 

  
2.3

Revenue recognition

Under most supplier agreements, the Company acts as principal when purchasing products from suppliers and reselling them to customers. Net sales and commissions consist primarily of product sales to customers. The Company is responsible for selling products, ensuring that the shipment reaches customers, and processing sales returns. In addition, the Company takes title to products and bears risk of loss of collection. The Company recognizes revenue from sales when title to products transfers to customers. 
The Company also records commission income from agreements with suppliers for which the Company is acting as an agent. Under agency-based supplier agreements, the Company recognises a percentage share of revenues generated by suppliers when products are shipped to customers. 

 
2.4

Tangible fixed assets

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.

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 basis:

Motor vehicles
-
25%
straight line
Fixtures and fittings
-
10%
straight line
Office equipment
-
20%
straight line
Computer equipment
-
20%
straight line

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 in profit or loss.

Page 13

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.6

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Net realisable value is based on the estimated selling price less any estimated selling costs. 
 
 
2.7

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

Page 14

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.8

Financial instruments

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.

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 Statement of Income and Retained Earnings.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Derivatives are measured using the "mark to market" value of the financial instrument at the reporting date. This technique calculates the present value of the future cash flows relating to the instrument based on the foreign exchange rates prevailing at the reporting date.

 
2.9

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 15

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Turnover

An analysis of turnover by class of business is as follows:


As restated
2022
2021
£
£

Sale of goods
56,798,071
51,391,529

Commission income
201,157
263,782

Intercompany management income
25,000
25,000

57,024,228
51,680,311


Turnover attributable to the UK market was 37% of total sales for the year (2021: 44%) and the turnover attributable to the Far East market was 36% of total sales (2021: 48%) and to the Middle East, Europe, Africa and Central and South America market was 27% (2021: 8%). 
The comparative has been restated to reallocate £450,816 from commission income to sale of goods.


4.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation
12,072
15,103

Exchange differences
(28,326)
99,374

Auditors' remuneration
15,250
12,800

Operating lease payments
64,779
89,779

Page 16

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Employees

Staff costs were as follows:


As restated
2022
2021
£
£



Wages & salaries
2,580,670
1,569,480

Social security costs
365,724
185,509

Cost of defined contribution scheme
34,571
44,654

Intercompany recharge
(992,042)
(216,707)

1,988,923
1,582,936

The intercompany recharge represents amounts which are in respect of remuneration for services provided by I.F.P. Forest and Paper Products (UK) Limited employees to another group entity which are reimbursed to the company by that entity. The prior period has been restated to recognise this recharge. 

The average monthly number of employees, including the directors, during the year was as follows:


2022
2021
No.
No.



Average number of employees
22
24

22
24


6.


Directors' remuneration



The highest paid director received remuneration of £559,487 (2021 -£349,994).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,126 (2021 -£14,252).


7.


Interest receivable

2022
2021
£
£


Other interest receivable
7,922
948

7,922
948

Page 17

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
305,522
132,811


Total current tax
305,522
132,811

Deferred tax


Origination and reversal of timing differences
14,794
(8,649)

Total deferred tax
14,794
(8,649)


Taxation on profit on ordinary activities
320,316
124,162

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2021 -the same as) the standard rate of corporation tax in the UK of 19% (2021 -19%) as set out below:

2022
2021
£
£


Profit on ordinary activities before tax
1,708,318
639,508


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 -19%)
324,580
121,507

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
792
371

Deferred tax not recognised
3,425
2,284

Remeasurement of deferred tax for changes in tax rates
(8,481)
-

Total tax charge for the year
320,316
124,162

Page 18

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

9.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 January 2022
34,995
38,943
73,938


Disposals
-
(2,237)
(2,237)



At 31 December 2022

34,995
36,706
71,701



Depreciation


At 1 January 2022
26,247
31,392
57,639


Charge for the year on owned assets
8,748
3,323
12,071


Disposals
-
(2,237)
(2,237)



At 31 December 2022

34,995
32,478
67,473



Net book value



At 31 December 2022
-
4,228
4,228



At 31 December 2021
8,748
7,551
16,299

Page 19

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

10.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
1



At 31 December 2022
1





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

International Forest Products (UK) Limited
Riverside East, 2 Millsands, Sheffield, South Yorkshire, United Kingdom, S3 8DT
Dormant
Ordinary
100%


11.


Stocks

2022
2021
£
£

Raw materials and consumables
2,340,612
781,017

2,340,612
781,017


Page 20

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Debtors

2022
2021
£
£

Due after more than one year

Other debtors
-
116,103

-
116,103


As restated
2022
2021
£
£

Due within one year

Trade debtors
8,168,783
5,916,700

Other debtors
155,470
701,402

Prepayments and accrued income
1,012,767
236,031

Deferred taxation
28,450
43,244

Financial instruments
311,393
35,365

9,676,863
6,932,742


The prior period has been restated to recognise accrued income of £216,707 in respect of a recharge of employee bonus accruals, see note 13. 


13.


Creditors: Amounts falling due within one year

As restated
2022
2021
£
£

Trade creditors
3,797,822
3,252,144

Amounts owed to group undertakings
1,970,891
2,013,829

Corporation tax
212,485
-

Other taxation and social security
34,173
33,290

Accruals and deferred income
3,388,599
2,927,803

9,403,970
8,227,066


A Class Guarantee facility of £10,000 is in place against amounts due to HM Revenue & Customs. 
The prior period has been restated to recognise an increase in employee bonus accruals of £216,707 for employee services which are recharged to another group entity, see notes 5 and 12. 

Page 21

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Financial instruments

2022
2021
£
£

Financial assets


Financial assets measured at fair value through profit or loss
311,393
35,365




The movement in fair value in respect of financial instruments of £276,028 (2021 - £160,314) has been recognised in administrative expenses.


15.


Deferred taxation




2022


£






At beginning of year
43,244


Utilised in year
(14,794)



At end of year
28,450

The deferred tax asset is made up as follows:

2022
2021
£
£


Timing Differences
28,450
43,244

28,450
43,244

Page 22

 


I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

16.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



100 (2021 -100) Ordinary Shares shares of £1.00 each
100
100

The Company has one class of ordinary shares which carry no right to fixed income. 


17.


Pension Commitments

The Company operates a defined contribution pension scheme covering the directors and employees of the Company. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund for the year and amounted to £34,571 (2021: £44,654). No contributions were outstanding or prepaid at the balance sheet date (2021: Nil).


18.


Reserves

Profit and loss account
This reserve records retained earnings and accumulated losses.


19.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
64,779
64,779

Later than 1 year and not later than 5 years
210,532
16,195

275,311
80,974


20.


Controlling party

The immediate and ultimate parent company is International Forest Products LLC, a company incorporated in the USA.
The ultimate controlling party is considered to be Robert Kraft.

 
Page 23