REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
FOR |
WHITMORE'S TIMBER CO. LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
FOR |
WHITMORE'S TIMBER CO. LIMITED |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Income Statement | 12 |
Other Comprehensive Income | 13 |
Balance Sheet | 14 |
Statement of Changes in Equity | 15 |
Cash Flow Statement | 16 |
Notes to the Cash Flow Statement | 17 |
Notes to the Financial Statements | 18 |
WHITMORE'S TIMBER CO. LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JULY 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2023 |
The directors present their strategic report for the year ended 31 July 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the supply of hardwood and softwood, including machined components. |
Whitmore's Timber, a leading timber merchant operating across two sites in the UK, has navigated significant developments and challenges in the fiscal year ending July 2023. Despite operating in a dynamic market, the company has maintained its focus on delivering high-quality timber products nationwide. This strategic report aims to provide an overview of Whitmore's Timber's performance, key initiatives, challenges faced, and future strategies for sustained growth and success. |
REVIEW OF BUSINESS |
In the fiscal year ending July 2023, Whitmore's Timber has experienced a notable shift in performance dynamics, characterised by turnover reverting to pre-COVID levels amidst easing demand for timber products. This adjustment in market demand has been influenced by various factors, including changing consumer behaviour, economic fluctuations, geopolitical issues, and evolving industry trends. As a consequence of the decreased demand, the company has encountered increased competition in the marketplace, exerting downward pressure on gross profit margins. |
Turnover Dynamics |
Following a period of heightened demand driven by construction projects and home improvement trends during the COVID-19 pandemic, Whitmore's Timber has observed a return to pre-pandemic turnover levels. The normalisation of demand reflects shifts in market dynamics as economic activities resume and consumer preferences evolve. |
Impact on Gross Profit Margins |
The easing demand for timber products has led to heightened competition within the marketplace, resulting in margin compression for Whitmore's Timber. Lower demand coupled with increased competition has necessitated pricing adjustments and promotional activities to maintain market share, consequently impacting gross profit margins. The company continues to navigate this challenging environment by implementing cost optimisation measures and exploring value-added opportunities to mitigate margin pressures and sustain profitability. |
Operational Highlights |
Product Diversification: The company has diversified its product portfolio to cater to evolving customer demands and market trends. Introducing environmentally sustainable timber options has been a key focus. Whitmore's Timber proudly holds both Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) chain of custody certifications. This means that the company's timber products can be traced back to responsibly managed forests, ensuring that they meet the highest standards of environmental, social, and economic sustainability. By offering FSC and PEFC certified timber, Whitmore's Timber provides customers with the assurance that their purchases support responsible forestry practices and contribute to forest conservation efforts. |
Investment in Technology |
Recognising the importance of technological advancement in enhancing operational efficiency, Whitmore's Timber has allocated capital expenditure towards hardware equipment aimed at improving productivity. The company has conducted thorough reviews of maintenance and service contracts as part of cost-cutting activities, ensuring optimal utilisation of resources. Additionally, Whitmore's Timber is in the midst of developing and upgrading its internal systems, leveraging technology to increase productivity and automate processes. By streamlining operations and enhancing efficiency, these technology investments are expected to yield higher gross margin profits, positioning the company for sustained growth and competitiveness in the market. |
Employee Promotion and Engagement |
Whitmore's Timber aims to foster a culture of internal promotion, providing employees with opportunities for career advancement and professional growth. Additionally, the company offers a varied employee benefit programme designed to increase engagement and retention. By prioritising employee well-being and career development, Whitmore's Timber aims to cultivate a motivated and loyal workforce, driving organisational success and excellence. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Fluctuations in Timber Prices and Market Demand |
Whitmore's Timber faces challenges associated with fluctuations in timber prices and market demand, influenced by factors such as economic conditions, consumer preferences, and industry dynamics. To mitigate the impact of these fluctuations, the company employs proactive strategies such as strategic inventory management, flexible pricing mechanisms, and agile production planning. By closely monitoring market trends and customer demand patterns, Whitmore's Timber adapts its operations and product offerings accordingly, optimising revenue generation and minimising exposure to market volatility. |
Geopolitical Conflicts Affecting Availability of Certain Specie |
Geopolitical conflicts around the world have led to disruptions in the availability of certain timber species, impacting supply chains and inventory management for Whitmore's Timber. To address this challenge, the company maintains a varied stock holding, encompassing a diverse range of timber species. This diversified inventory allows Whitmore's Timber to offer alternative species for those that are unavailable or temporarily delayed due to geopolitical conflicts or other external factors. By leveraging its extensive network of suppliers and adopting a flexible sourcing strategy, the company ensures continuity of supply and meets customer needs even in the face of geopolitical uncertainties. |
Regulatory Compliance with UK Timber Regulations and FSC/PEFC Chain of Custody Audits |
Whitmore's Timber operates in a regulatory environment governed by UK timber regulations and standards set forth by Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) chain of custody audits. Compliance with these regulations and standards requires diligent monitoring of sourcing practices, documentation management, and adherence to environmental and social responsibility criteria. To ensure regulatory compliance, Whitmore's Timber implements robust internal controls, conducts regular audits, and maintains up-to-date certifications. By staying abreast of regulatory changes and proactively addressing compliance requirements, the company mitigates legal risks and upholds its commitment to sustainable forestry practices. |
Proactive Supply Chain Management |
Whitmore's Timber proactively manages its supply chain to anticipate and mitigate potential disruptions caused by geopolitical conflicts, natural disasters, or other unforeseen events. This includes maintaining strong relationships with suppliers, implementing risk assessment protocols, and exploring alternative sourcing options. By diversifying its supplier base and establishing contingency plans, the company enhances resilience and minimises the impact of external disruptions on its operations and customer service levels. |
Customer Communication and Transparency |
Transparent communication with customers is integral to Whitmore's Timber's mitigation strategy for challenges related to timber availability, market fluctuations, and regulatory compliance. The company proactively communicates with customers about potential delays, alternative product options, and supply chain disruptions, fostering trust and loyalty. By providing timely updates and personalised support, Whitmore's Timber strengthens customer relationships and mitigates the negative impact of external uncertainties on customer satisfaction and retention. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2023 |
FINANCIAL RISK MANAGEMENT |
Cash Liquidity and Fixed Rate Loan |
Whitmore's Timber has strategically addressed the risks associated with central bank rate rises by securing a fixed-rate loan from Lambertide Investments Limited. This proactive measure mitigates the increasing costs of using invoice financing facilities, ensuring stable cash liquidity and protecting against fluctuations in interest rates. By locking in a fixed rate, the company enhances financial predictability and safeguards its operational cash flow, enabling it to navigate uncertainties in the macroeconomic environment effectively. |
Credit Protection Insurance |
Recognising the inherent risks of trade debtors, Whitmore's Timber has proactively safeguarded its financial position by holding credit protection insurance for all trade debts. This insurance coverage provides an added layer of security against potential defaults or delinquencies by customers, ensuring that the company is protected against losses resulting from non-payment of invoices. By leveraging credit protection insurance, Whitmore's Timber mitigates credit risk exposure and enhances its ability to maintain healthy cash flow and financial stability. |
Enhanced Credit Control Processes |
Over the last 24 months, Whitmore's Timber has undertaken a comprehensive review and enhancement of its credit control processes. This strategic initiative aims to strengthen credit risk management practices, optimise receivables management, and minimise exposure to bad debts. The revised credit control processes incorporate stringent credit assessment criteria, proactive monitoring of customer payment behaviours, and timely intervention measures to address potential credit risks. As a result of these efforts, Whitmore's Timber has witnessed a notable decrease in the provisions for bad debt at year end and a reduction in average debtor days, reflecting improved creditworthiness of customers and enhanced collection efficiency. |
Foreign Currency FX Management |
With suppliers based around the world and using a variety of currency trading pairs, Whitmore's Timber has recognised the need to manage foreign currency exchange (FX) risks effectively. The company has forged new relationships with financial service companies to address this challenge. These relationships have enabled Whitmore's Timber to hold competitive short-term contracts, reducing its exposure to volatile currency rates. By proactively managing FX risks, the company mitigates potential adverse impacts on procurement costs and ensures stability in its global supply chain operations. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2023 |
FUTURE STRATEGIES |
Market Expansion |
Whitmore's Timber is committed to capitalising on emerging market opportunities by expanding its presence in key geographical regions and exploring new customer segments. This includes targeted marketing campaigns, enhanced digital capabilities, and strategic partnerships to drive sales growth and market penetration. |
Innovation and Product Development |
Continuous innovation in product design, manufacturing processes, and sustainable solutions will remain a cornerstone of Whitmore's Timber's strategy. The company plans to invest in research and development initiatives to introduce innovative products that meet evolving customer needs and preferences. |
Site Optimisation and Consolidation |
In line with its strategic vision, Whitmore's Timber will invest in enhancing the capabilities of its Claybrooke Magna site to increase machining capabilities. This investment aims to streamline production processes, improve efficiency, and meet growing customer demand for machined products. Concurrently, the company has completed the shutdown of operations in Winsford (as of December 2023), transitioning to a single-site approach. This strategic consolidation reduces lead times for machined products, optimises resource utilisation, and enhances company profitability by reducing overheads and excessive administration associated with managing multiple sites. |
In-House System Upgrades |
Whitmore's Timber recognises the importance of leveraging technology to drive operational efficiency and streamline administrative processes. The company's in-house system is undergoing further upgrades and development to reduce administrative workload and enhance productivity. These upgrades are expected to be completed by the end of the company's 2024 financial year. By investing in technology enhancements, Whitmore's Timber aims to empower its workforce, improve decision-making capabilities, and deliver superior customer service. |
Rebranding and Digital Transformation |
Whitmore's Timber is embarking on a rebranding initiative aimed at modernising its image while upholding its traditional values. This includes the launch of a new website, featuring an updated design and user-friendly interface to enhance the online customer experience. Additionally, the company will introduce a new online shop and payment portal, offering customers convenient access to its products and streamlined transaction processes. Alongside digital transformation efforts, Whitmore's Timber will update letterhead designs and gradually transition towards a new modern brand identity, reflecting its commitment to innovation and customer-centricity while preserving its longstanding heritage and values. |
ON BEHALF OF THE BOARD: |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2023 |
The directors present their report with the financial statements of the company for the year ended 31 July 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 July 2023. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen to set out information in respect of financial instruments and future developments in its strategic 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. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2023 |
AUDITORS |
The auditors, Harold Sharp Limited, 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 |
WHITMORE'S TIMBER CO. LIMITED |
Opinion |
We have audited the financial statements of Whitmore's Timber Co. Limited (the 'company') for the year ended 31 July 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 July 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 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 |
WHITMORE'S TIMBER CO. 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 six, 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 |
WHITMORE'S TIMBER CO. 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: |
As part of our planning process: |
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. |
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law. |
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the bad debt provision and stock provisions. |
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation. |
- Testing key revenue lines, in particular cut-off, for evidence of management bias. |
- Performing a physical verification of key assets , including stock. |
- Obtaining third-party confirmation of material bank balances. |
- Documenting and verifying all significant related party balances and transactions. |
- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
WHITMORE'S TIMBER CO. LIMITED |
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 and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
3,190,568 | 3,252,555 |
OPERATING (LOSS)/PROFIT | 5 | ( | ) |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( | ) |
Tax on (loss)/profit | 7 | ( | ) |
PROFIT FOR THE FINANCIAL YEAR |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
BALANCE SHEET |
31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 | 694,250 | 694,250 |
Share premium | 20 | 19,874 | 19,874 |
Capital redemption reserve | 20 | 285,750 | 285,750 |
Retained earnings | 20 | 996,547 | 979,343 |
SHAREHOLDERS' FUNDS | 1,996,421 | 1,979,217 |
The financial statements were approved by the Board of Directors and authorised for issue on |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JULY 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 August 2021 | 694,250 | 640,191 | 19,874 | 285,750 | 1,640,065 |
Changes in equity |
Dividends | - | (31,040 | ) | - | - | (31,040 | ) |
Total comprehensive income | - | 370,192 | - | - | 370,192 |
Balance at 31 July 2022 | 694,250 | 979,343 | 19,874 | 285,750 | 1,979,217 |
Changes in equity |
Total comprehensive income | - | 17,204 | - | - | 17,204 |
Balance at 31 July 2023 | 694,250 | 996,547 | 19,874 | 285,750 | 1,996,421 |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( | ) |
Interest paid | ( | ) | ( | ) |
Tax paid | ( | ) |
Net cash from operating activities | ( | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( | ) | ( | ) |
Sale of tangible fixed assets |
Net cash from investing activities | ( | ) |
Cash flows from financing activities |
New loans in year |
Equity dividends paid | ( | ) |
Net cash from financing activities | ( | ) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | 63,740 |
Cash and cash equivalents at end of year | 2 | 530,559 | 292,224 |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JULY 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | ( | ) |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( | ) |
Finance costs | 8,288 | 21,672 |
(7,048 | ) | 564,358 |
Decrease/(increase) in stocks | ( | ) |
Decrease in trade and other debtors |
Decrease 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 July 2023 |
31/7/23 | 1/8/22 |
£ | £ |
Cash and cash equivalents | 530,559 | 292,224 |
Year ended 31 July 2022 |
31/7/22 | 1/8/21 |
£ | £ |
Cash and cash equivalents | 292,224 | 63,740 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/8/22 | Cash flow | At 31/7/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 292,224 | 238,335 | 530,559 |
292,224 | 530,559 |
Total | 292,224 | 238,335 | 530,559 |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
1. | STATUTORY INFORMATION |
Whitmore's Timber Co Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 02359578 and registered office is 5 Brooklands Place, Brooklands Road, Sale, Cheshire, M33 3SD. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements represent the results of the individual entity and the functional and presentation currency is £ sterling. |
Preparation of consolidated financial statements |
The company has taken advantage of the exemption from preparing group accounts conferred by Section 402 of the Companies Act 2006, as its subsidiary is a dormant company. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
In preparing these financial statements the directors have made judgements and estimates: |
In determining the recoverability of debtors and stocks. The company establishes a provision for debtors that are estimated to be irrecoverable and for stocks which are not expected to realise at least cost. When addressing the recoverability the directors consider factors such as the ageing of items, past experience and current information regarding the asset. |
Turnover |
Turnover represents net invoiced sales of goods, excluding value added tax. Turnover is recognised when the goods are despatched to the customers. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Short leasehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
At each balance sheet date, the company reviews the carrying amounts of its assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets, which include trade debtors, other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised. |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities, including trade creditors, other creditors, amounts owed to related undertakings, and invoice discounting facility that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
2. | ACCOUNTING POLICIES - continued |
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 |
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. |
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. |
Invoice discounting |
The company has an invoice discounting agreement that enables it to receive advances against its sales invoices. The company discloses both the debtors and creditors relating to this agreement separately within its balance sheet. |
Hire purchase and 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. |
Going concern |
The directors are in the process of restructuring the business and having considered the twelve month forecasts from the date of the financial statements anticipate a small profit, with a return to full profits once the restructuring has been implemented. The directors are confident that sufficient working capital funding will be available to enable the company to continue to trade and meet its liabilities as they fall due for at least the next twelve months from the date of approval of the financial statements. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31July 2023. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
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 geographical market is given below: |
2023 | 2022 |
£ | £ |
UK | 10,722,447 | 12,487,412 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 20 | 20 |
Management | 3 | 3 |
Production | 25 | 22 |
Sales | 11 | 12 |
The prior year average employee figures have been restated. |
2023 | 2022 |
£ | £ |
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 |
Information regarding the highest paid director for the year ended 31 July 2023 is as follows: |
2023 |
£ |
Emoluments etc |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( | ) |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Discounting interest |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year adjustments - corporation tax | (86,799 | ) | - |
Total current 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: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | ( | ) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of | ( | ) |
Effects of: |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( | ) |
Adjustments to tax charge in respect of previous periods | ( | ) |
capital allowances |
Non allowable expenses | 407 | 93 |
Deferred tax movement | (1,307 | ) | 57,065 |
Losses carried forward | 13,026 | - |
Total tax (credit)/charge | (88,106 | ) | 112,978 |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final |
9. | TANGIBLE FIXED ASSETS |
Short | Fixtures |
leasehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 August 2022 |
Additions |
Disposals | ( | ) | ( | ) |
At 31 July 2023 |
DEPRECIATION |
At 1 August 2022 |
Charge for year |
Eliminated on disposal | ( | ) | ( | ) |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
10. | FIXED ASSET INVESTMENTS |
The company owns the entire share capital of Marine Timber Services Limited, a dormant company with assets with a carrying value of £nil, which is incorporated in Great Britain and registered in England and Wales. The registered office is 5 Brooklands Place, Brooklands Road, Sale, Cheshire, M33 3SD. |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Finished goods |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Deferred tax asset |
Prepayments and accrued income |
Trade debtors are security for the invoice discounting facility as explained in note 16. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
Invoice discounting facility | - | 1,378,666 |
Other creditors | 1,103 | 4,832 |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Amounts owed to related undertakings |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Invoice discounting facility | - | 1,378,666 |
Amounts owed to related party | 1,000,000 | - |
Invoice discounting facilities are secured by a debenture dated 28 April 2010, which includes fixed and floating charges over the company's assets, in favour of HSBC UK. |
The invoice discounting facility as at the 31 July 2023 year end is an asset and as a result has been recorded in cash and cash equivalents. |
The amounts owed to related parties are secured by a debenture dated 26 May 2023, which includes fixed and floating charges over the company's assets, in favour of Lambertide Investments Limited. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
17. | FINANCIAL INSTRUMENTS |
At 31 July 2023, the carrying amount of the financial assets measured at amortised cost amounted to £2,022,288 (2022: £2,279,864). |
The carrying amount of financial liabilities measured at amortised cost at the reporting date is £2,488,193 (2022: £2,704,197). |
18. | DEFERRED TAX |
£ |
Balance at 1 August 2022 | ( | ) |
Provided during year | ( | ) |
Balance at 31 July 2023 | ( | ) |
The provision for deferred tax comprises the difference between depreciation and capital allowances of fixed assets for £2,183 (2022: £876). |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 369,250 | 369,250 |
Convertible "A" ordinary | £1 | 325,000 | 325,000 |
694,250 | 694,250 |
The convertible "A" ordinary shares may be converted to ordinary shares at any time at the shareholders' option by agreement of 75% or more of the class. |
20. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 August 2022 | 979,343 | 19,874 | 285,750 | 1,284,967 |
Profit for the year | 17,204 | 17,204 |
At 31 July 2023 | 996,547 | 19,874 | 285,750 | 1,302,171 |
21. | PENSION COMMITMENTS |
The company operates a defined contribution scheme for the benefit of the employees. Contributions amounting to £413 (2022: £4,455) were payable by the company at 31 July 2023 and are included in creditors. |
WHITMORE'S TIMBER CO. LIMITED (REGISTERED NUMBER: 02359578) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
22. | RELATED PARTY DISCLOSURES |
During the year, the company purchased goods and services totalling £160,487 (2022: £252,011) from Smee Holdings Limited, and sold goods and services to Smee Holdings Limited during the year of £31,884 (2022: £40,955). |
The amount due from Smee Holdings Limited at the year end is £2,056 (2022: £13,037), and is included within other debtors. |
During the year, the company received a loan of £1,000,000 from Lambertide Investments Limited. |
23. | POST BALANCE SHEET EVENTS |
In December 2023, the company transferred its operations in Winsford to Lutterworth. The transfer has not resulted in any material adjustments to the carrying value of any of the assets held at the balance sheet date. However, this has been taken into account when disclosing the operating lease agreements falling due after the year end. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Chris Smee by virtue of his shareholding in the company. |