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Registration number: 03704051

Hutchings Timber Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 October 2023

(filleted for filing purposes)

 

Hutchings Timber Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Hutchings Timber Limited

Company Information

Directors

JR Hutchings

C Hutchings

Company secretary

JR Hutchings

Registered office

79 Albert Road
Deal
Kent
CT14 9JQ

 

Hutchings Timber Limited

(Registration number: 03704051)
Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

6

502,176

429,424

Investment property

7

321,478

321,478

Investments

8

2,520,120

25

 

3,343,774

750,927

Current assets

 

Stocks

9

662,304

688,018

Debtors

10

86,683

103,589

Investments

11

1,200

1,200

Cash at bank and in hand

 

1,532,322

4,036,175

 

2,282,509

4,828,982

Creditors: Amounts falling due within one year

12

(384,337)

(321,561)

Net current assets

 

1,898,172

4,507,421

Total assets less current liabilities

 

5,241,946

5,258,348

Provisions for liabilities

(105,148)

(82,860)

Net assets

 

5,136,798

5,175,488

Capital and reserves

 

Called up share capital

13

100,002

100,002

Other reserves

31,467

31,467

Retained earnings

5,005,329

5,044,019

Shareholders' funds

 

5,136,798

5,175,488

 

Hutchings Timber Limited

(Registration number: 03704051)
Balance Sheet as at 31 October 2023

For the financial year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 10 April 2024 and signed on its behalf by:
 

.........................................
JR Hutchings
Company secretary and director

.........................................
C Hutchings
Director

 

Hutchings Timber Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
79 Albert Road
Deal
Kent
CT14 9JQ
England

These financial statements were authorised for issue by the Board on 10 April 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

 

Hutchings Timber Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Buildings

Over 25 years

Plant and machinery

15% straight line basis

Motor vehicles

15% straight line basis

Office equipment

25% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

over 10 years

 

Hutchings Timber Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Hutchings Timber Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 20 (2022 - 22).

4

Profit before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

155,525

149,822

5

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 November 2022

150,000

150,000

At 31 October 2023

150,000

150,000

Amortisation

At 1 November 2022

150,000

150,000

At 31 October 2023

150,000

150,000

Carrying amount

At 31 October 2023

-

-

 

Hutchings Timber Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

6

Tangible assets

Long leasehold land and buildings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Other tangible assets
 £

Total
£

Cost or valuation

At 1 November 2022

410,074

1,110,604

49,733

192,059

182,294

1,944,764

Additions

147,809

83,360

594

-

-

231,763

Disposals

-

(23,375)

(7,999)

(34,610)

(53,200)

(119,184)

At 31 October 2023

557,883

1,170,589

42,328

157,449

129,094

2,057,343

Depreciation

At 1 November 2022

312,087

894,830

37,319

124,242

146,862

1,515,340

Charge for the year

22,313

104,647

4,253

12,664

11,646

155,523

Eliminated on disposal

-

(23,365)

(7,990)

(31,146)

(53,195)

(115,696)

At 31 October 2023

334,400

976,112

33,582

105,760

105,313

1,555,167

Carrying amount

At 31 October 2023

223,483

194,477

8,746

51,689

23,781

502,176

At 31 October 2022

97,987

215,774

12,414

67,817

35,432

429,424

Included within the net book value of land and buildings above is £Nil (2022 - £Nil) in respect of freehold land and buildings and £223,483 (2022 - £97,986) in respect of long leasehold land and buildings.
 

 

Hutchings Timber Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

The leasehold buildings were revalued at market value in October 1999 by Caxtons, a firm of Chartered Surveys. On 1 May 1999 plant and machinery was included at the residual value in the books of R J Hutching's timber business, at the date of transfer. The net book value of revalued leasehold land and building is £5,200 (2022 £15,600).

7

Investment properties

2023
£

At 1 November

321,478

At 31 October

321,478

The investment properties were valued on 31 October 2023 by the director to give a fair value. The basis of this valuation was the open market. The investment properties have a current value of £321,478 (2022 £321,478) and a carrying amount at historical cost of £321,478 (2022 £321,478).

There has been no valuation of investment property by an independent valuer.

8

Investments

2023
£

2022
£

Investments in subsidiaries

2,520,120

25

Subsidiaries

£

Cost or valuation

At 1 November 2022

25

Additions

2,520,095

At 31 October 2023

2,520,120

Provision

Carrying amount

At 31 October 2023

2,520,120

At 31 October 2022

25

9

Stocks

2023
£

2022
£

Other inventories

662,304

688,018

 

Hutchings Timber Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

10

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

82,820

82,000

Amounts owed by related parties

-

6,027

Prepayments

 

3,813

15,562

Other debtors

 

50

-

   

86,683

103,589

11

Current asset investments

2023
£

2022
£

Other investments

1,200

1,200

12

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

234,296

212,248

Other related parties

-

6,710

Taxation and social security

 

76,682

61,545

Other creditors

 

73,359

41,058

 

384,337

321,561

13

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

100,000

100,000

100,000

100,000

Ordinary A Share of £1 each

1

1

1

1

Ordinary B Share of £1 each

1

1

1

1

 

100,002

100,002

100,002

100,002