IRIS Accounts Production v23.3.1.45 02148767 Board of Directors 1.6.22 31.5.23 31.5.23 timber merchants. true false true true false false true false 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REGISTERED NUMBER: 02148767 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023

FOR

SOUTH LONDON TIMBER COMPANY LIMITED

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 May 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


SOUTH LONDON TIMBER COMPANY LIMITED

COMPANY INFORMATION
for the Year Ended 31 May 2023







DIRECTORS: E James
Mrs T James
H Major





SECRETARY: Mrs T James





REGISTERED OFFICE: 8 Lonsdale Gardens
Tunbridge Wells
Kent
TN1 1NU





REGISTERED NUMBER: 02148767 (England and Wales)





AUDITORS: Waight & Company Ltd
Statutory Auditors
8 Lonsdale Gardens
Tunbridge Wells
Kent
TN1 1NU

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

STRATEGIC REPORT
for the Year Ended 31 May 2023

The directors present their strategic report for the year ended 31 May 2023.

REVIEW OF BUSINESS
The Company is a trading company and the principal activity continues to be that of timber sales in the United Kingdom.

We are proud that in September 2022, after being a private family business since 1987, South London Timber Company Limited transferred into an Employee Ownership Trust giving every qualifying employee a stake in the success of the business via this indirect ownership model, following on the heels of well-know enterprises including Arup Group and John Lewis & Partners. Shares in the group are held in trust for the benefit of the employee owners, and a framework is established whereby the new owners share in the success of the business by means of a distribution to them, on an annual basis via an Employee Ownership bonus scheme, of a proportion of any profits made.
Employee ownership is a successful ownership model which produces fundamentally better governance together with a culture of engagement and empowerment, which enables employee owners to have a voice and a stake in the wealth they create.

Since last year, the war in Ukraine has made products harder to source in Europe and consequently there has been more demand for products from countries outside of Europe.
To combat the issues of shipping times in 2022 caused by the above, the company increased the level of stock being held. With the cost of products at an all time high, the stock held at the end of May 2022 was significantly higher than normal at £3.96m. Over the course of the 2023 financial year the cost of timber decreased dramatically. In order to remain competitive at the start of this year the company had to reduce sales prices in line with the market, having a significant impact on the margins being made on the stock held at the start of the year.

The Company turnover in the financial year was £15.5m (2022 - £18.1m) with a gross profit margin of 10.98% (2022 - 21.19%).
The Company's stock levels have reduced this year to £2.87m (2022 - £3.96m).

A contribution to the Employee Ownership Trust of £1.0m was paid during the year (2022 - dividend £130k).

PRINCIPAL RISKS AND UNCERTAINTIES
The primary risk is the effect of the exchange rates on the value of the pound, which saw record lows in September 2022. This has increased costs of purchasing overseas and places significant pressure on sales margins.

The war in Ukraine will have an impact on purchasing from Europe, further increasing lead times and costs. It will also put pressure on the demand from the United States which could see shipping from South America becoming difficult and costly.

ON BEHALF OF THE BOARD:





E James - Director


8 January 2024

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

REPORT OF THE DIRECTORS
for the Year Ended 31 May 2023

The directors present their report with the financial statements of the company for the year ended 31 May 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 May 2023.

FUTURE DEVELOPMENTS
The fluctuation in product prices has made 2023 a difficult year to maintain margins and remain competitive. Prices appear to have stabilised after the year end and early indications show margins improving.
With the ongoing disputes in Ukraine impacting European sales, there is a higher demand for timber from the United States. This will continue to put pressure on shipping times and prices.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report.

E James
Mrs T James
H Major

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

REPORT OF THE DIRECTORS
for the Year Ended 31 May 2023


AUDITORS
The auditors, Waight & Company Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





E James - Director


8 January 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTH LONDON TIMBER COMPANY LIMITED

Opinion
We have audited the financial statements of South London Timber Company Limited (the 'company') for the year ended 31 May 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 31 May 2023 and of its loss 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
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 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTH LONDON TIMBER COMPANY LIMITED


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 page three, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTH LONDON TIMBER COMPANY LIMITED


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).

- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation.

- We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

- With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

- We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 Waight (Senior Statutory Auditor)
for and on behalf of Waight & Company Ltd
Statutory Auditors
8 Lonsdale Gardens
Tunbridge Wells
Kent
TN1 1NU

9 January 2024

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

INCOME STATEMENT
for the Year Ended 31 May 2023

31.5.23 31.5.22
as restated
Notes £    £    £    £   

TURNOVER 3 15,565,075 18,070,137

Cost of sales 13,861,346 14,240,450
GROSS PROFIT 1,703,729 3,829,687

Distribution costs 792,894 928,752
Administrative expenses 1,201,832 1,266,946
1,994,726 2,195,698
OPERATING (LOSS)/PROFIT 5 (290,997 ) 1,633,989

Interest receivable and similar income 4,843 425
(286,154 ) 1,634,414

Interest payable and similar expenses 6 1,758 1,316
(LOSS)/PROFIT BEFORE TAXATION (287,912 ) 1,633,098

Tax on (loss)/profit 7 (65,888 ) 316,461
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(222,024

)

1,316,637

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

OTHER COMPREHENSIVE INCOME
for the Year Ended 31 May 2023

31.5.23 31.5.22
as restated
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (222,024 ) 1,316,637


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(222,024

)

1,316,637
Note
Prior year adjustment 9 (202,916 )
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

(424,940

)

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

BALANCE SHEET
31 May 2023

31.5.23 31.5.22
as restated
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 162,019 170,205
Investments 11 - -
162,019 170,205

CURRENT ASSETS
Stocks 12 2,867,620 3,955,361
Debtors 13 3,275,826 4,148,967
Cash at bank 316,275 2,318,749
6,459,721 10,423,077
CREDITORS
Amounts falling due within one year 14 2,974,884 5,404,975
NET CURRENT ASSETS 3,484,837 5,018,102
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,646,856

5,188,307

CREDITORS
Amounts falling due after more than one
year

15

(40,322

)

(79,447

)

PROVISIONS FOR LIABILITIES 18 (18,661 ) (19,442 )
NET ASSETS 3,587,873 5,089,418

CAPITAL AND RESERVES
Called up share capital 19 91 91
Capital redemption reserve 10 10
Retained earnings 3,587,772 5,089,317
3,587,873 5,089,418

The financial statements were approved by the Board of Directors and authorised for issue on 8 January 2024 and were signed on its behalf by:





E James - Director


SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 May 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 June 2021 91 3,902,772 10 3,902,873

Changes in equity
Dividends - (130,092 ) - (130,092 )
Total comprehensive income - 1,519,553 - 1,519,553
Balance at 31 May 2022 91 5,292,233 10 5,292,334
Prior year adjustment - (202,916 ) - (202,916 )
As restated 91 5,089,317 10 5,089,418

Changes in equity
Total comprehensive income - (222,024 ) - (222,024 )
Contributions to Employee
Ownership Trust - (1,000,090 ) - (1,000,090 )
Costs of formation of Employee
Ownership Trust - (279,431 ) - (279,431 )
Balance at 31 May 2023 91 3,587,772 10 3,587,873

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

CASH FLOW STATEMENT
for the Year Ended 31 May 2023

31.5.23 31.5.22
as restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (300,036 ) 1,011,971
Interest element of hire purchase payments
paid

(1,758

)

(1,316

)
Tax paid (372,087 ) (189,232 )
Net cash from operating activities (673,881 ) 821,423

Cash flows from investing activities
Purchase of tangible fixed assets (42,963 ) (72,211 )
Interest received 4,843 425
Net cash from investing activities (38,120 ) (71,786 )

Cash flows from financing activities
Capital repayments in year (10,952 ) 38,908
Employee Ownership Trust payments (1,279,521 ) -
Equity dividends paid - (130,092 )
Net cash from financing activities (1,290,473 ) (91,184 )

(Decrease)/increase in cash and cash equivalents (2,002,474 ) 658,453
Cash and cash equivalents at beginning of
year

2

2,318,749

1,660,296

Cash and cash equivalents at end of year 2 316,275 2,318,749

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE CASH FLOW STATEMENT
for the Year Ended 31 May 2023

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.5.23 31.5.22
as restated
£    £   
(Loss)/profit before taxation (287,912 ) 1,633,098
Depreciation charges 51,149 46,017
Finance costs 1,758 1,316
Finance income (4,843 ) (425 )
(239,848 ) 1,680,006
Decrease/(increase) in stocks 1,087,741 (1,835,942 )
Decrease/(increase) in trade and other debtors 985,954 (912,881 )
(Decrease)/increase in trade and other creditors (2,133,883 ) 2,080,788
Cash generated from operations (300,036 ) 1,011,971

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 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 316,275 2,318,749
Year ended 31 May 2022
31.5.22 1.6.21
as restated
£    £   
Cash and cash equivalents 2,318,749 1,660,296


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.22 Cash flow At 31.5.23
£    £    £   
Net cash
Cash at bank 2,318,749 (2,002,474 ) 316,275
2,318,749 (2,002,474 ) 316,275
Debt
Finance leases (90,399 ) 10,952 (79,447 )
(90,399 ) 10,952 (79,447 )
Total 2,228,350 (1,991,522 ) 236,828

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 May 2023

1. STATUTORY INFORMATION

South London Timber Company Limited 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.

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.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.
Plant and machinery - 10% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - 20% on cost
Computer equipment - 20% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Monetary 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.balance sheet

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

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.

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.

Leasing commitments
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

3. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.5.23 31.5.22
as restated
£    £   
Timber sales 15,565,075 18,070,137
15,565,075 18,070,137

An analysis of turnover by geographical market is given below:

31.5.23 31.5.22
as restated
£    £   
United Kingdom 15,565,075 18,070,137
15,565,075 18,070,137

4. EMPLOYEES AND DIRECTORS
31.5.23 31.5.22
as restated
£    £   
Wages and salaries 497,172 589,899
Social security costs 54,861 51,735
Other pension costs 8,204 13,200
560,237 654,834

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31.5.23 31.5.22
as restated

Office and administration 4 5
Sales and marketing 12 12
16 17

31.5.23 31.5.22
as restated
£    £   
Directors' remuneration 128,844 128,169
Directors' pension contributions to money purchase schemes 4,401 7,425

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

Money purchase schemes 3 3

5. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging:

31.5.23 31.5.22
as restated
£    £   
Depreciation - owned assets 15,761 10,629
Depreciation - assets on hire purchase contracts 35,388 35,388
Audit 5,400 5,400
Taxation compliance services 3,000 3,000
Other non- audit services 13,900 13,900
Operating lease rentals-plant & machinery 33,762 62,702
Operating lease rentals-other 165,616 170,430

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.5.23 31.5.22
as restated
£    £   
Hire purchase 1,758 1,316

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2023

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
31.5.23 31.5.22
as restated
£    £   
Current tax:
UK corporation tax (65,107 ) 324,381

Deferred tax (781 ) (7,920 )
Tax on (loss)/profit (65,888 ) 316,461

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.5.23 31.5.22
as restated
£    £   
(Loss)/profit before tax (287,912 ) 1,633,098
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

(54,703

)

310,289

Effects of:
Expenses not deductible for tax purposes 4,359 6,172
marginal relief

Interest and charges 108 -

Additional tax credit due to increase in standard rate (15,652 ) -
Total tax (credit)/charge (65,888 ) 316,461

8. DIVIDENDS
31.5.23 31.5.22
as restated
£    £   
shares of each
Interim - 73,279
shares of each
Interim - 56,813
- 130,092

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2023

9. PRIOR YEAR ADJUSTMENT

Cost of sales relating to the year ended 31 May 2022 were incorrectly included in the year ended 31 May 2023. The 31 May 2022 financial statements have been restated to correct this error. The effect of the increased cost of sales, along with the concomitant reduction in corporation tax on those financial statements is summarised below:


Effect
on 2022
£
(Increase) in Cost of sales(250,514)
Decrease in Corporation tax payable47,598
(Decrease) in profit(202,916)





10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 June 2022 112,382 58,580 176,940 55,973 403,875
Additions - - 42,963 - 42,963
At 31 May 2023 112,382 58,580 219,903 55,973 446,838
DEPRECIATION
At 1 June 2022 99,856 31,980 45,861 55,973 233,670
Charge for year 3,368 3,800 43,981 - 51,149
At 31 May 2023 103,224 35,780 89,842 55,973 284,819
NET BOOK VALUE
At 31 May 2023 9,158 22,800 130,061 - 162,019
At 31 May 2022 12,526 26,600 131,079 - 170,205

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2023

10. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 June 2022
and 31 May 2023 176,940
DEPRECIATION
At 1 June 2022 45,861
Charge for year 35,388
At 31 May 2023 81,249
NET BOOK VALUE
At 31 May 2023 95,691
At 31 May 2022 131,079

11. FIXED ASSET INVESTMENTS
Listed
investments
£   
COST
At 1 June 2022
and 31 May 2023 1,500
PROVISIONS
At 1 June 2022
and 31 May 2023 1,500
NET BOOK VALUE
At 31 May 2023 -
At 31 May 2022 -

12. STOCKS
31.5.23 31.5.22
as restated
£    £   
Stocks 2,867,620 3,955,361

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.23 31.5.22
as restated
£    £   
Trade debtors 3,115,691 4,119,795
Tax 112,813 -
Prepayments and accrued income 47,322 29,172
3,275,826 4,148,967

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.23 31.5.22
as restated
£    £   
Hire purchase contracts (see note 16) 39,125 10,952
Trade creditors 2,693,032 4,543,507
Tax - 324,381
Social security and other taxes 10,253 13,195
VAT 164,191 347,082
Accruals & deferred income 68,283 165,858
2,974,884 5,404,975

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.5.23 31.5.22
as restated
£    £   
Hire purchase contracts (see note 16) 40,322 79,447

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.5.23 31.5.22
as restated
£    £   
Gross obligations repayable:
Within one year 45,333 12,710
Between one and five years 47,047 92,380
92,380 105,090

Finance charges repayable:
Within one year 6,208 1,758
Between one and five years 6,725 12,933
12,933 14,691

Net obligations repayable:
Within one year 39,125 10,952
Between one and five years 40,322 79,447
79,447 90,399

SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2023

16. LEASING AGREEMENTS - continued

Non-cancellable operating leases
31.5.23 31.5.22
as restated
£    £   
Within one year 219,436 207,935
Between one and five years 115,595 274,200
335,031 482,135

Included in the leasing agreements is the commitment for a 5 year rental, commencing in October 2019.

17. SECURED DEBTS

The bank holds a debenture over the assets of the company.

18. PROVISIONS FOR LIABILITIES
31.5.23 31.5.22
as restated
£    £   
Deferred tax 18,661 19,442

Deferred
tax
£   
Balance at 1 June 2022 19,442
Credit to Income Statement during year (781 )
Balance at 31 May 2023 18,661

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.5.23 31.5.22
Value: as restated
£ £
NIL Ordinary 'A' Shares £1 - 89
(31.5.22 - 89)
NIL Ordinary 'C' Shares £1 - 1
(31.5.22 - 1)
NIL Ordinary 'D' Shares 1p - 1
(31.5.22 - 100)
9,100 Ordinary 1p 91 -
(31.5.22 - NIL)
91 91


SOUTH LONDON TIMBER COMPANY LIMITED (REGISTERED NUMBER: 02148767)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2023

20. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
31.5.23 31.5.22
as restated
£    £   
Dividends to directors - 130,092

21. ULTIMATE CONTROLLING PARTY

As of 29 September 2022, South London Timber Company Limited became employee owned. The ultimate controlling party is SL Timber Trustee Limited.

22. EMPLOYEE OWNERSHIP TRUST

On 29 September 2022, South London Timber Company limited, became employee owned. The move to employee ownership was designed to secure the future of the business, continue the legacy of our founder, Edward James, who started the business in 1987 and reward the people who have the made the business the success it is today - its employees. In many ways, the move to employee ownership was the next obvious step.

Albeit the ethos of employee ownership will naturally evolve over time, employee involvement and participation is intrinsic to the success of the Company and in that regard the board has put in place a set of proactive measures to:

- Encourage all employees to assume responsibility for maximising their contribution to the Company in their capacity as employee owners having regard to the interests of the future, as well as the present, employees of the Company
- Communicate appropriate information to the employee owners concerning the major policies and actions of the Company
- Promote employee ownership both internally and externally

The Company is an equal opportunity employer and fully accepts its obligations under all relevant legislation. All employees are encouraged to work towards additional certifications and competencies reflective of their role in the organisation. Appropriate training is arranged for disabled persons, including alternative work for employees who become disabled.