Caseware UK (AP4) 2022.0.179 2022.0.179 2023-12-312023-12-31false2023-01-01falseThe Company's principal activity is that of the sale of Scandinavian softwood within the UK.910false 01886806 2023-01-01 2023-12-31 01886806 2022-01-01 2022-12-31 01886806 2023-12-31 01886806 2022-12-31 01886806 2022-01-01 01886806 4 2023-01-01 2023-12-31 01886806 4 2022-01-01 2022-12-31 01886806 d:CompanySecretary1 2023-01-01 2023-12-31 01886806 d:Director1 2023-01-01 2023-12-31 01886806 d:Director2 2023-01-01 2023-12-31 01886806 d:Director3 2023-01-01 2023-12-31 01886806 d:Director4 2023-01-01 2023-12-31 01886806 d:RegisteredOffice 2023-01-01 2023-12-31 01886806 e:MotorVehicles 2023-01-01 2023-12-31 01886806 e:MotorVehicles 2023-12-31 01886806 e:MotorVehicles 2022-12-31 01886806 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01886806 e:FurnitureFittings 2023-01-01 2023-12-31 01886806 e:FurnitureFittings 2023-12-31 01886806 e:FurnitureFittings 2022-12-31 01886806 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01886806 e:ComputerEquipment 2023-01-01 2023-12-31 01886806 e:ComputerEquipment 2023-12-31 01886806 e:ComputerEquipment 2022-12-31 01886806 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01886806 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 01886806 e:CurrentFinancialInstruments 2023-12-31 01886806 e:CurrentFinancialInstruments 2022-12-31 01886806 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 01886806 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 01886806 e:UKTax 2023-01-01 2023-12-31 01886806 e:UKTax 2022-01-01 2022-12-31 01886806 e:ShareCapital 2023-12-31 01886806 e:ShareCapital 2022-12-31 01886806 e:ShareCapital 2022-01-01 01886806 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 01886806 e:RetainedEarningsAccumulatedLosses 2023-12-31 01886806 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 01886806 e:RetainedEarningsAccumulatedLosses 2022-12-31 01886806 e:RetainedEarningsAccumulatedLosses 2022-01-01 01886806 d:OrdinaryShareClass1 2023-01-01 2023-12-31 01886806 d:OrdinaryShareClass1 2023-12-31 01886806 d:OrdinaryShareClass1 2022-12-31 01886806 d:FRS102 2023-01-01 2023-12-31 01886806 d:Audited 2023-01-01 2023-12-31 01886806 d:FullAccounts 2023-01-01 2023-12-31 01886806 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 01886806 e:WithinOneYear 2023-12-31 01886806 e:WithinOneYear 2022-12-31 01886806 e:BetweenOneFiveYears 2023-12-31 01886806 e:BetweenOneFiveYears 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 01886806










VIDA WOOD UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
VIDA WOOD UK LIMITED
 
 
COMPANY INFORMATION


Directors
I D Drane 
M J Johansson 
F Andersson 
T K Lowenadler 




Company secretary
E L Sharp



Registered number
01886806



Registered office
Union House
117 High Street

Billericay

CM12 9AH




Independent auditor
MHA

910 The Crescent

Colchester Business Park

Colchester

Essex

CO4 9YQ





 
VIDA WOOD UK LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditor's Report
5 - 7
Statement of Comprehensive Income
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 24


 
VIDA WOOD UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors have pleasure in presenting their report and the financial statements of the company for the year ended 31 December 2023.

Business review
 
Facing the rising cost of living and higher interest rates 2023 was a challenging year. Following a slow start, as the weather improved, building activity proved robust between Spring and Autumn before easing at the end of the year. In an increasingly competitive market, Vida concentrated on providing excellent products and service for Company’s healthy spread of trussed rafter manufacturers, timber frame house manufacturers and merchant customers maintaining market share and even growing in some product areas. Vigilant stock holding and credit control have ensured a healthy position heading into 2024.     
The Government still need to encourage more house building to meet demand as the UK aims for Carbon Zero. Trees capture Carbon during their life cycle and timber frame remains a very fast and sustainable construction method in the UK. 

Principal risks and uncertainties
 
Market risk: The CanFor/Vida Group are committed to supply the UK Company with appropriate volumes of good quality timber from sustainable forestry sources. The CanFor/Vida Group manages currency fluctuations and exposure. Consumption depends on the UK need for housing and building activity. UK inflation has fallen over recent months steadying interest rates creating more affordable mortgage lending rates.    
Legislative and Regulatory Risk: The Directors remain alert to the impact of regulatory and legislative changes on the Company’s operations.
Actions of Competitors: The Directors continue to take appropriate steps to continue to improve the Company’s service and value provided to customers.

Key performance indicators
 
Apart from the measures identified above in the business review, the Directors believe no further inclusion of financial and non-financial key performance indicators is necessary for an understanding of the development or position of the Company's business.

Page 1

 
VIDA WOOD UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Company
 
During the year, the Director's have complied with their duty to act in a way most likely to promote the success of the Company, as per section 172(1) of the Companies Act 2006. In doing so they have had regard to:
 
the likely consequences of any action in the long term;
the interests of the Company's employees;
the need to foster the Company's business relationships with suppliers, customers and others;
the impact of Company's operations on the community and the environment;
the desirability of the Company maintaining a reputation for high standards of business conduct; and
the need to act fairly between members of the Company.


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



................................................
I D Drane
Director
Date: 15 March 2024

Page 2

 
VIDA WOOD UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The Directors present their report and the financial statements for the year ended 31 December 2023.

Directors

The Directors who served during the year were:

I D Drane 
M J Johansson 
F Andersson 
T K Lowenadler 

Results and dividends

The profit for the year, after taxation, amounted to £742,749 (2022 - £1,553,291).

Dividends paid in the year were £NIL (2022 - £NIL)

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;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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.

Streamlined energy and carbon reporting

As the Company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Page 3

 
VIDA WOOD UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

There have been no significant future events which affect the Company.

Engagement with suppliers, customers and others

The Directors have had regard to the need to foster the Company's business relationships with suppliers, customers and others. This regard is considered during the decision making process for the Comapny and has included; engaging with staff to ensure employee satisfaction and wellbeing, and liaising with suppliers and customers to ensure a continued healthy business relationship.

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

Following a rebranding exercise on 15 May 2023 the trading name of the company’s independent auditor changed from MHA MacIntyre Hudson to MHA. 
A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

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





................................................
I D Drane
Director
Date: 15 March 2024

Page 4

 
VIDA WOOD UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VIDA WOOD UK LIMITED
 

Opinion


We have audited the financial statements of Vida Wood UK Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including 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 December 2023 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 Auditor's 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.


Page 5

 
VIDA WOOD UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VIDA WOOD UK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.

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

 
VIDA WOOD UK LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF VIDA WOOD UK LIMITED (CONTINUED)


Auditor's 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 Auditor's 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:

enquiry of management around actual and potential litigation and claims;
performing audit work over the risk of management overide of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
reviewing minutes of meetings of those charged with governance; and
reviewing financial statement disclosures and testing to support documentation to asses compliance with applicable laws and regulations.

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 orrurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditor's Report.


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 Auditor's 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.


Cara Miller ACCA (Senior Statutory Auditor)
for and on behalf of
MHA
Colchester, United Kingdom

Date: 27 March 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (Registered number OC312313)
Page 7

 
VIDA WOOD UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
95,774,101
144,661,016

Cost of sales
  
(92,973,451)
(141,164,828)

Gross profit
  
2,800,650
3,496,188

Administrative expenses
  
(1,648,051)
(1,317,104)

Other operating income
 5 
102,750
75,000

Operating profit
 6 
1,255,349
2,254,084

Interest payable and similar expenses
 10 
(265,860)
(328,547)

Profit before tax
  
989,489
1,925,537

Tax on profit
 11 
(246,740)
(372,246)

Profit for the financial year
  
742,749
1,553,291

All activities derive from continuing operations.

There were no items of other comprehensive income for the year ended 31 December 2023 or for the prior year other than those included in the Statement of Comprehensive Income above.

The notes on pages 11 to 24 form part of these financial statements.

Page 8

 
VIDA WOOD UK LIMITED
REGISTERED NUMBER: 01886806

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible assets
 12 
92,969
47,598

Current assets
  

Stocks
 13 
11,204,893
16,395,322

Debtors: amounts falling due within one year
 14 
12,003,053
16,235,571

Cash at bank and in hand
 15 
259
3,388

  
23,208,205
32,634,281

Creditors: amounts falling due within one year
 16 
(11,816,029)
(21,939,483)

Net current assets
  
 
 
11,392,176
 
 
10,694,798

  

Net assets
  
11,485,145
10,742,396


Capital and reserves
  

Called up share capital 
 17 
1,000
1,000

Profit and loss account
 18 
11,484,145
10,741,396

  
11,485,145
10,742,396


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




................................................
I D Drane
Director
Date: 15 March 2024

The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
VIDA WOOD UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1,000
9,188,105
9,189,105


Comprehensive income

Profit for the year
-
1,553,291
1,553,291



At 1 January 2023
1,000
10,741,396
10,742,396


Comprehensive income

Profit for the year
-
742,749
742,749


At 31 December 2023
1,000
11,484,145
11,485,145


The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Vida Wood UK Limited is a private company limited by shares incorporated in England and Wales. The Company registration number is 01886806. The address of the registered office is given in the Company information pages of these financial statements.
The Company's principal activity is that of the sale of Scandinavian softwood within the UK. 

2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements have been prepared on a going concern basis, under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The financial statements are rounded to the nearest pound sterling.
The following principal accounting policies have been applied:

  
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
 
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Vida Wood AB as at 31 December 2023 and these financial statements may be obtained from Swedish Companies Registration Office.

 
2.3

Going concern

The Directors consider that the Company has sufficient liquid resources, parent support and access to future resources to enable the Company to cover its costs and pay its liabilities for the next 12 months from the date of approval of these financial statements.
Consequently, the Directors have concluded that there are no material uncertainties that may cast significant doubt about the Company's ability to continue as a going concern for the next 12 months from the date of approval of these financial statements. Accordingly the going concern basis has been adopted in preparing the financial statements.

Page 11

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is pound sterling.

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.

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Operating leases: the Company as lessee

Operating leases are those leases where the Company has use of an asset but where the significant risks and rewards of ownership remain with the lessor and the lease term is not expected to be a significant portion of the useful life of the asset.
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the profit or loss in the same period as the related expenditure.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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
-
20%
straight line
Computer equipment
-
33%
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 14

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.17

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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans
and other accounts receivable and payable, are initially measured at present value of the future cash
flows and subsequently at amortised cost using the effective interest method. Debt instruments that
are payable or receivable within one year, typically trade debtors and creditors, are measured, initially
and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid
or received. However, if the arrangements of a short-term instrument constitute a financing
transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an
out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially
at the present value of future cash flows discounted at a market rate of interest for a similar debt
instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the
case of a small company, or a public benefit entity concessionary loan.
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 profit and loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference
between an asset's carrying amount and the present value of estimated cash flows discounted at the
asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate
for measuring any impairment loss is the current effective interest rate determined under the
contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the
difference between an asset's carrying amount and best estimate of the recoverable amount, which is
an approximation of the amount that the Company would receive for the asset if it were to be sold at
the balance sheet date.

  
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 16

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The Company makes estimates and assumptions concerning future performance. The resulting accounting estimates will, by definition, seldom equal the actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are set out below:
3.1 Revenue recognition
Turnover is recognised to the extent that is probable that the economic benefits will flow to the Company     and the Turnover can be reliably measured. This is when the Company has transferred the significant risks and rewards of ownership to the buyer. Although this is not considered to be a critical accounting policy.
3.2 Inventories
The valuation of inventories is critical to the production of the financial statements. Judgment is required in determining wether there is any provision against slow-moving or obsolete items. This involves evaluating the likelihood of further sale of particular stock items.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the business.
All turnover arose within the United Kingdom. 


5.


Other operating income

2023
2022
£
£

Sundry income
102,750
75,000

102,750
75,000


Page 17

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

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

2023
2022
£
£

Depreciation of tangible fixed assets
30,674
30,593

Operating lease rentals
60,123
53,433

Research and development
-
500

Profit on disposal of tangible fixed assets
(13,791)
(10,102)

Defined contribution pension cost - Directors
15,000
47,360

Defined contribution pension cost - Staff
13,253
12,814


7.


Auditor's remuneration

2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
17,800
16,500


Fees payable to the Company's auditor in respect of:


Other services relating to taxation
1,900
1,240

All other services
4,150
4,150

6,050
5,390


Page 18

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
392,815
557,201

Social security costs
52,259
77,661

Pension costs
28,253
60,174

473,327
695,036


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


        2023
        2022
            No.
            No.







Employees
9
10

The above number does not include those Directors who do not receive remuneration from the Company.


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
145,000
297,248

Company contributions to defined contribution pension schemes
15,000
47,360

160,000
344,608


During the year retirement benefits were accruing to 1 director (2022 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £145,000 (2022 - £304,689).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £15,000 (2022 - £14,170).

The value of the Company's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £NIL (2022 - £NIL).

Page 19

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
265,860
328,547

265,860
328,547


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
246,740
372,246


Taxation on profit on ordinary activities
246,740
372,246


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
989,489
1,925,537


Profit on ordinary activities multiplied by standard rate of corporation tax in
the UK of 25% (2022 - 19%)
232,530
365,852

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
14,210
6,394

Total tax charge for the year
246,740
372,246


Factors that may affect future tax charges

An increase in the UK corporation tax rate from 19% to 25% was substantively enacted in June 2021 and will take effect from 1 April 2023 for profits over £250,000. For profits under £50,000 the tax rate will remain the same at 19% and for profits between these figures it will be subject to 25% but reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.

Page 20

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2023
77,365
55,424
36,137
168,926


Additions
69,444
-
12,330
81,774


Disposals
(52,265)
-
-
(52,265)



At 31 December 2023

94,544
55,424
48,467
198,435



Depreciation


At 1 January 2023
42,858
45,147
33,323
121,328


Charge for the year on owned assets
21,797
5,141
3,736
30,674


Disposals
(46,536)
-
-
(46,536)



At 31 December 2023

18,119
50,288
37,059
105,466



Net book value



At 31 December 2023
76,425
5,136
11,408
92,969



At 31 December 2022
34,507
10,277
2,814
47,598


13.


Stocks

2023
2022
£
£

Finished goods and goods for resale
11,204,893
16,395,322

11,204,893
16,395,322






 

Page 21

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Debtors: Amounts falling due within one year

2023
2022
£
£


Trade debtors
11,506,874
15,477,440

Other debtors
882
773

Prepayments and accrued income
23,553
38,874

Tax recoverable
471,744
718,484

12,003,053
16,235,571



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
259
3,388

Less: bank overdrafts
(684,262)
(7,301,757)

(684,003)
(7,298,369)



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
684,262
7,301,757

Trade creditors
468,464
543,915

Amounts owed to group undertakings
7,179,278
10,567,591

Other taxation and social security
1,269,678
1,684,458

Other creditors
3,212
2,459

Accruals and deferred income
2,211,135
1,839,303

11,816,029
21,939,483


The following liabilities were secured:




Details of security provided:

The bank balances are guaranteed by the parent company.

Page 22

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000 (2022 - 1,000) Ordinary shares of £1.00 each
1,000
1,000



18.


Reserves

Profit and loss account

The profit and loss account represents the accumulation of retained profits, net of dividends, which are in the form of distributable reserves.


19.


Pension commitments

The Company operates a defined contribution pension scheme. 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 and amounted to £28,253 (2022 - £60,174). Contributions totalling £3,212 (2022 - £2,459) were payable to the fund at the Balance Sheet date.


20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
30,544
30,544

Later than 1 year and not later than 5 years
50,227
111,342

80,771
141,886

Page 23

 
VIDA WOOD UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Related party transactions

The Company acquired the majority of stock from its parent company, Vida AB, and other group companies. During the year ended 31 December 2023, the Company made purchases of £80,327,386 (£2022 - £128,954,483) from Vida AB, Vida Wood AB and Vida Energi and sales of £150,027 (2022 - £64,111) to Vida Wood AB.
At 31 December 2023, the Company owed £7,179,278 (2022 - £10,575,943) to Vida Wood AB and Vida AB. At 31 December 2023, the Company were also owed £9,594 (2022 - £8,352) from Vida Wood AB.
Dividends of £NIL (2022 - £NIL) were paid by the Company during the year of which £NIL (2022 - £NIL) was paid to Vida AB and £NIL (2022 - £NIL) to a Director.
The Company has taken the reduced exemption disclosure in Section 33.7 in FRS102 from the requirement to disclose Key Management Personnel remuneration.


22.


Controlling party

The immediate holding company is Vida Wood AB, a company incorporated in Sweden. The registered office address is Box 100, 342 21 Alvesta, Alvesta kommun, Kronobergs lan. This is the smallest group for which consolidated accounts that are drawn up. Copies of its Group accounts, which includes the Company, are available from the Swedish Companies Registration Office.
The ultimate holding company is Canfor Corporation, a company incorporated in Canada. Its accounts are publicly available. This is the largest group for which consolidated accounts that are drawn up. 

 
Page 24