REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
SOUTH LONDON TIMBER COMPANY LIMITED |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditors |
8 Lonsdale Gardens |
Tunbridge Wells |
Kent |
TN1 1NU |
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 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
1,994,726 | 2,195,698 |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income |
(286,154 | ) | 1,634,414 |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
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 | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Note |
Prior year adjustment | 9 | ( |
) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
( |
) |
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 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Capital redemption reserve |
Retained earnings | 5,089,317 |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | 1,519,553 |
Balance at 31 May 2022 | 5,292,334 |
Prior year adjustment | - | ( |
) | - | ( |
) |
As restated |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
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 |
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 | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) |
Employee Ownership Trust payments | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 | ( |
) |
Depreciation charges |
Finance costs | 1,758 | 1,316 |
Finance income | (4,843 | ) | (425 | ) |
(239,848 | ) | 1,680,006 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
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 | ( |
) | 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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.5.23 | 31.5.22 |
as restated |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
31.5.23 | 31.5.22 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
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 |
31.5.23 | 31.5.22 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
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 |
Depreciation - assets on hire purchase contracts |
Audit |
Taxation compliance services |
Other non- audit services |
Operating lease rentals-plant & machinery |
Operating lease rentals-other |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.23 | 31.5.22 |
as restated |
£ | £ |
Hire purchase |
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 | ( |
) |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
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 | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
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 |
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 payable | 47,598 |
(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 |
Additions |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
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 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
11. | FIXED ASSET INVESTMENTS |
Listed |
investments |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 |
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 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.5.23 | 31.5.22 |
as restated |
£ | £ |
Trade debtors |
Tax |
Prepayments and accrued income |
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) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 164,191 | 347,082 |
Accruals & deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.5.23 | 31.5.22 |
as restated |
£ | £ |
Hire purchase contracts (see note 16) |
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 |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
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 |
Between one and five years |
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 |
Credit to Income Statement during year | ( |
) |
Balance at 31 May 2023 |
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 |
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. |