Company Registration No. 00859710 (England and Wales)
CLIFFORD JONES TIMBER LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
CLIFFORD JONES TIMBER LIMITED
COMPANY INFORMATION
Director
Mr R A Jones
Company number
00859710
Registered office
Brickfield Lane
Ruthin
Denbighshire
Nth Wales
LL15 2TN
Auditor
Mitchell Charlesworth (Audit) Limited
24 Nicholas Street
Chester
CH1 2AU
CLIFFORD JONES TIMBER LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 36
CLIFFORD JONES TIMBER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The director presents the strategic report for the year ended 31 December 2022.

Review of the business

The principal activities of the group remain that of timber felling and the processing of timber products.

Principal risks and uncertainties

The principal risks and uncertainties are the availability of raw material. We are now importing a small amount of timber which will be subject to exchange rate risk. This is managed closely and will not affect the overall business. Interest rates are also a key risk to this business, although these are currently low, any significant increases in the future will adversely affect the group.

Development and performance

The recent investments in the business have given us access to new markets and we are continuing to develop these markets for the future. The board also has a policy of investing in the staff which has continued in 2022.

Key performance indicators

The directors consider turnover and gross profit margin as the key performance indicators when assessing the group’s annual performance.

Turnover has decreased by 11.8% from £8.4m for the year end 31 December 2021 to £7.4m for the year end 31 December 2022.

The gross profit has increased from £51k for the year end 31 December 2021 to £1,237k for the year end 31 December 2022.

On behalf of the board

Mr R A Jones
Director
19 January 2024
CLIFFORD JONES TIMBER LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company and group continued to be that of timber felling and processing of timber products.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr R A Jones
Mrs S E C Jones-Smith
(Resigned 26 May 2023)
Mrs P L Lloyd
(Resigned 9 September 2022)
Auditor

The auditor, Mitchell Charlesworth, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is included in the strategic report on page 1.true

CLIFFORD JONES TIMBER LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R A Jones
Director
19 January 2024
CLIFFORD JONES TIMBER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLIFFORD JONES TIMBER LIMITED
- 4 -

Qualified opinion

We have audited the financial statements of Clifford Jones Timber Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph the financial statements:

Basis for qualified opinion

We were unable to satisfy ourselves of the existence of the inventories for the financial year-ended 31 December 2021, which were included in the balance sheet at £379,843 in that year. Consequently we were unable to determine whether any adjustment to this amount was necessary which affects the opening stock in the year-ended 31 December 2022 and therefore forms part of the cost of sales in these financial statements.

 

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 group and parent 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.

Material uncertainty relating to going concern

We draw attention to note 1.4 in the financial statements, which highlights the fact that there is a net current liability position of £1,833,328. Whilst these conditions indicate that a material uncertainty exists that may cast doubt on the group’s ability to continue as a going concern, note 1.4 provides an explanation of the circumstances surrounding this. Our opinion is not modified in respect of this matter.

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 director is responsible for the other information contained within the annual report. 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. 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.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory balance of £379,843 held at 31 December 2021. We have concluded that where the other information refers to the inventory balance in the prior year or related balances such as cost of sales in the current year, it may be materially misstated for the same reason.

CLIFFORD JONES TIMBER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLIFFORD JONES TIMBER LIMITED
- 5 -

Qualified opinions on other matters prescribed by the Companies Act 2006

We were unable to satisfy ourselves of the existence of the inventories for the financial year-ended 31 December 2021, which were included in the balance sheet at £379,843 in that year. Consequently we were unable to determine whether any adjustment to this amount was necessary which affects the opening stock in the year-ended 31 December 2022 and therefore forms part of the cost of sales in these financial statements. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the inventory balance to be required, the strategic report would also need to be amended.

 

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

 

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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.

 

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

 

 

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:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

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.

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

CLIFFORD JONES TIMBER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLIFFORD JONES TIMBER LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related accounts items.

We assessed the control environment established to mitigate the risks of fraud or non-compliance with laws and regulations.

Audit response to risks identified

As a result of performing the above, we identified revenue recognition and going concern as the key audit matters related to the potential risk of fraud.

 

Our procedures to respond to risks identified included the following:

 

·    reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;

 

·    enquiring of management and directors concerning actual and potential litigation and claims;

 

·    performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

 

·    reading minutes of meetings of those charged with governance and reviewing correspondence with relevant authorities where matters identified were significant;

 

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

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

CLIFFORD JONES TIMBER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLIFFORD JONES TIMBER LIMITED
- 7 -

In common with all audits under ISAs (UK) we are required to perform specific procedures to respond to the risk of management override.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CLIFFORD JONES TIMBER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLIFFORD JONES TIMBER LIMITED
- 8 -

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 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.

Robert Hall
For and on behalf of Mitchell Charlesworth (Audit) Limited
19 January 2024
Accountants
Statutory Auditor
24 Nicholas Street
Chester
CH1 2AU
CLIFFORD JONES TIMBER LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
£
£
Turnover
3
7,368,434
8,358,497
Cost of sales
(6,131,805)
(8,307,671)
Gross profit
1,236,629
50,826
Administrative expenses
(2,103,024)
(1,322,696)
Other operating income
224,130
271,477
Operating loss
5
(642,265)
(1,000,393)
Interest receivable and similar income
9
11
14
Interest payable and similar expenses
10
(112,589)
(83,756)
Loss before taxation
(754,843)
(1,084,135)
Tax on loss
11
610,004
203,168
Loss for the financial year
(144,839)
(880,967)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CLIFFORD JONES TIMBER LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,795,719
3,844,540
Current assets
Stocks
16
288,437
379,843
Debtors
17
1,926,513
1,391,273
Cash at bank and in hand
117,230
102,084
2,332,180
1,873,200
Creditors: amounts falling due within one year
18
(4,165,508)
(3,465,532)
Net current liabilities
(1,833,328)
(1,592,332)
Total assets less current liabilities
1,962,391
2,252,208
Creditors: amounts falling due after more than one year
19
(1,273,169)
(1,850,375)
Provisions for liabilities
Provisions
22
432,228
-
0
(432,228)
-
Net assets
256,994
401,833
Capital and reserves
Called up share capital
26
565
565
Revaluation reserve
650,207
650,207
Capital redemption reserve
1,435
1,435
Profit and loss reserves
(395,213)
(250,374)
Total equity
256,994
401,833

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 19 January 2024 and are signed on its behalf by:
19 January 2024
Mr R A Jones
Director
Company registration number 00859710 (England and Wales)
CLIFFORD JONES TIMBER LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 11 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,084,986
3,127,339
Investments
14
761,139
761,139
3,846,125
3,888,478
Current assets
Stocks
16
181,838
253,244
Debtors
17
1,387,973
948,685
Cash at bank and in hand
109,148
79,058
1,678,959
1,280,987
Creditors: amounts falling due within one year
18
(3,385,533)
(2,427,089)
Net current liabilities
(1,706,574)
(1,146,102)
Total assets less current liabilities
2,139,551
2,742,376
Creditors: amounts falling due after more than one year
19
(1,465,389)
(2,126,173)
Provisions for liabilities
Provisions
22
240,063
-
0
(240,063)
-
Net assets
434,099
616,203
Capital and reserves
Called up share capital
26
565
565
Revaluation reserve
351,694
351,694
Capital redemption reserve
1,435
1,435
Profit and loss reserves
80,405
262,509
Total equity
434,099
616,203

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £182,104 (2021 - £93,077 profit).

These abbreviated accounts have been prepared in accordance with the special provisions in section 445(3) of the Companies Act 2006 relating to medium-sized companies.true

CLIFFORD JONES TIMBER LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022
31 December 2022
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 19 January 2024 and are signed on its behalf by:
19 January 2024
Mr R A Jones
Director
Company registration number 00859710 (England and Wales)
CLIFFORD JONES TIMBER LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2021
565
650,207
1,435
648,593
1,300,800
Year ended 31 December 2021:
Loss and total comprehensive income
-
-
-
(880,967)
(880,967)
Dividends
12
-
-
-
(18,000)
(18,000)
Balance at 31 December 2021
565
650,207
1,435
(250,374)
401,833
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
-
(144,839)
(144,839)
Balance at 31 December 2022
565
650,207
1,435
(395,213)
256,994
CLIFFORD JONES TIMBER LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2021
565
351,694
1,435
187,433
541,127
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
93,076
93,076
Dividends
12
-
-
-
(18,000)
(18,000)
Balance at 31 December 2021
565
351,694
1,435
262,509
616,203
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
(182,104)
(182,104)
Balance at 31 December 2022
565
351,694
1,435
80,405
434,099
CLIFFORD JONES TIMBER LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
628,123
23,448
Interest paid
(112,589)
(83,756)
Income taxes refunded
21,779
47,822
Net cash inflow/(outflow) from operating activities
537,313
(12,486)
Investing activities
Purchase of tangible fixed assets
(165,037)
(136,344)
Proceeds from disposal of tangible fixed assets
-
155,000
Interest received
11
14
Net cash (used in)/generated from investing activities
(165,026)
18,670
Financing activities
Repayment of bank loans
(133,911)
(64,084)
Payment of finance leases obligations
(44,291)
(44,614)
Dividends paid to equity shareholders
-
0
(18,000)
Net cash used in financing activities
(178,202)
(126,698)
Net increase/(decrease) in cash and cash equivalents
194,085
(120,514)
Cash and cash equivalents at beginning of year
(821,192)
(700,678)
Cash and cash equivalents at end of year
(627,107)
(821,192)
Relating to:
Cash at bank and in hand
117,230
102,084
Bank overdrafts included in creditors payable within one year
(744,337)
(923,276)
CLIFFORD JONES TIMBER LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
613,506
(681,137)
Interest paid
(111,361)
(83,756)
Income taxes refunded
21,779
47,822
Net cash inflow/(outflow) from operating activities
523,924
(717,071)
Investing activities
Purchase of tangible fixed assets
(139,210)
(111,202)
Proceeds from disposal of tangible fixed assets
-
0
155,000
Interest received
11
14
Dividends received
-
0
500,000
Net cash (used in)/generated from investing activities
(139,199)
543,812
Financing activities
Repayment of borrowings
(83,578)
275,798
Repayment of bank loans
(133,911)
(64,084)
Payment of finance leases obligations
(44,291)
(44,614)
Dividends paid to equity shareholders
-
(18,000)
Net cash (used in)/generated from financing activities
(261,780)
149,100
Net increase/(decrease) in cash and cash equivalents
122,945
(24,159)
Cash and cash equivalents at beginning of year
(550,936)
(526,777)
Cash and cash equivalents at end of year
(427,991)
(550,936)
Relating to:
Cash at bank and in hand
109,148
79,058
Bank overdrafts included in creditors payable within one year
(537,139)
(629,994)
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
1
Accounting policies
Company information

Clifford Jones Timber Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Brickfield Lane, Ruthin, Denbighshire, Nth Wales, LL15 2TN.

 

The group consists of Clifford Jones Timber Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of Clifford Jones Timber Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
1.4
Going concern

At the time of approving the financial statements, despite the group net current liability position of £1,833,828, the director has a reasonable expectation that the group has adequate resources and support to continue in operational existence for the foreseeable future. This is in part due to the cash injection provided by the director (see note 27) and confirmation that the loan won't be called upon within 12 months of the balance sheet approval date.

Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% straight line
Plant and machinery
10-33% reducing balance
Fixtures, fittings & equipment
10% straight line
Motor vehicles
25% reducing balance

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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

Basic financial assets, which include 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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducting all of its liabilities.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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 classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 23 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2022
2021
£
£
Turnover analysed by class of business
Sales
7,368,434
8,358,497
2022
2021
£
£
Other revenue
Interest income
11
14
Grants received
18,936
97,367
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
4
Exceptional item
2022
2021
£
£
Expenditure
Exceptional items
356,267
-
356,267
-

In the financial year, the company was subject to a fire at both sites of operations. The result of these fires significantly influenced production and the assets affected were scrapped. In addition, the result of the fires saw a complete overhaul of the management team, leading to redundancy terms being agreed. To that extent, all costs relating to getting the company back up and running as a result of these issues have been included within exceptional costs.

5
Operating loss
2022
2021
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses
16,941
-
Government grants
(18,936)
(97,367)
Depreciation of owned tangible fixed assets
213,858
230,703
(Profit)/loss on disposal of tangible fixed assets
-
319
Operating lease charges
78,480
62,803
6
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,800
14,700
Audit of the financial statements of the company's subsidiaries
9,200
6,000
25,000
20,700
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Directors
3
3
3
3
Administration
13
13
12
12
Production
55
54
39
37
Total
71
70
54
52

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
1,791,252
1,895,208
1,390,209
1,505,010
Social security costs
120,760
138,855
91,872
106,408
Pension costs
55,144
44,448
43,957
36,844
1,967,156
2,078,511
1,526,038
1,648,262
8
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
126,309
147,190
Company pension contributions to defined contribution schemes
10,542
13,902
136,851
161,092
9
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
11
4
Other interest income
-
10
Total income
11
14
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Interest receivable and similar income
(Continued)
- 26 -
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
11
4
10
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
78,468
55,431
Interest on invoice finance arrangements
34,121
26,144
112,589
81,575
Other finance costs:
Other interest
-
2,181
Total finance costs
112,589
83,756
11
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(53,690)
-
0
Adjustments in respect of prior periods
(82,310)
-
0
Total current tax
(136,000)
-
0
Deferred tax
Origination and reversal of timing differences
(128,525)
(203,168)
Adjustment in respect of prior periods
(345,479)
-
0
Total deferred tax
(474,004)
(203,168)
Total tax credit
(610,004)
(203,168)
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
11
Taxation
(Continued)
- 27 -

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Loss before taxation
(754,843)
(1,084,135)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(143,420)
(205,986)
Tax effect of expenses that are not deductible in determining taxable profit
14,015
916
Adjustments in respect of prior years
(82,310)
-
0
Depreciation on assets not qualifying for tax allowances
8,010
10,472
Deferred tax adjustments in respect of prior years
(345,479)
-
0
Deferred tax not recognised
-
0
48,237
Enhanced allowances
(46,591)
(50,961)
Adjustment to reflect effective tax rate
(14,229)
(5,846)
Taxation credit
(610,004)
(203,168)
12
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Final paid
-
18,000
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
13
Tangible fixed assets
Group
Freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
2,500,063
6,371,219
34,534
101,394
9,007,210
Additions
45,273
111,464
-
0
8,300
165,037
At 31 December 2022
2,545,336
6,482,683
34,534
109,694
9,172,247
Depreciation and impairment
At 1 January 2022
257,819
4,791,288
31,829
81,734
5,162,670
Depreciation charged in the year
42,925
163,923
595
6,415
213,858
At 31 December 2022
300,744
4,955,211
32,424
88,149
5,376,528
Carrying amount
At 31 December 2022
2,244,592
1,527,472
2,110
21,545
3,795,719
At 31 December 2021
2,242,244
1,579,931
2,705
19,660
3,844,540
Company
Freehold buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2022
1,640,940
4,594,383
101,394
6,336,717
Additions
45,033
85,877
8,300
139,210
At 31 December 2022
1,685,973
4,680,260
109,694
6,475,927
Depreciation and impairment
At 1 January 2022
32,819
3,094,825
81,734
3,209,378
Depreciation charged in the year
33,719
141,429
6,415
181,563
At 31 December 2022
66,538
3,236,254
88,149
3,390,941
Carrying amount
At 31 December 2022
1,619,435
1,444,006
21,545
3,084,986
At 31 December 2021
1,608,121
1,499,558
19,660
3,127,339
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 29 -
14
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
761,139
761,139
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022 and 31 December 2022
761,139
Carrying amount
At 31 December 2022
761,139
At 31 December 2021
761,139
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Clifford Jones Timber (Ireland) Ltd
Unit 7C, Ardcavan Business Park, Wexford, Ireland
Ordinary EUR 1
100.00
Hunter Wilson Limited
Rigg, Gretna, Dumfrieshire, Scotland, DG16 5JL
Ordinary £1
100.00

Clifford Jones (Ireland) Limited is a dormant company that has never traded. The company was voluntarily struck-off on 6 March 2023, meaning that no consolidation was performed in relation to this company.

16
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Raw materials and consumables
226,503
143,033
181,838
98,368
Finished goods and goods for resale
61,934
236,810
-
0
154,876
288,437
379,843
181,838
253,244
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 30 -
17
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,020,980
1,206,949
773,090
801,848
Corporation tax recoverable
114,221
-
0
114,221
-
0
Other debtors
174,232
94,139
174,232
94,139
Prepayments and accrued income
137,275
84,384
126,673
52,698
1,446,708
1,385,472
1,188,216
948,685
Deferred tax asset (note 23)
470,457
-
0
199,757
-
0
1,917,165
1,385,472
1,387,973
948,685
Amounts falling due after more than one year:
Deferred tax asset (note 23)
9,348
5,801
-
0
-
0
Total debtors
1,926,513
1,391,273
1,387,973
948,685

Trade debtors for the group amounting to £1,020,980 (2021: £1,206,949) and company £773,090 (2021: £801,848) have been invoice discounted with Royal Bank of Scotland.

 

18
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
20
878,249
923,276
671,051
629,994
Obligations under finance leases
21
8,537
-
0
8,537
-
0
Trade creditors
1,841,343
1,544,920
1,351,810
837,280
Other taxation and social security
417,591
182,248
372,790
167,596
Other creditors
711,582
760,651
709,815
746,282
Accruals and deferred income
308,206
54,437
271,530
45,937
4,165,508
3,465,532
3,385,533
2,427,089

Included within creditors is £744,337 (2021: £923,276) and company £537,139 (2021: £629,994) in relation to discount invoice factoring with the Royal Bank of Scotland which is secured against the assets of the group.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 31 -
19
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
20
1,238,093
1,505,916
1,238,093
1,505,916
Obligations under finance leases
21
-
0
52,828
-
0
52,828
Other borrowings
20
-
0
-
0
192,220
275,798
Trade creditors
-
0
200,613
-
0
200,613
Government grants
24
35,076
91,018
35,076
91,018
1,273,169
1,850,375
1,465,389
2,126,173
20
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
1,372,005
1,505,916
1,372,005
1,505,916
Bank overdrafts
744,337
923,276
537,139
629,994
Loans from group undertakings
-
0
-
0
192,220
275,798
2,116,342
2,429,192
2,101,364
2,411,708
Payable within one year
878,249
923,276
671,051
629,994
Payable after one year
1,238,093
1,505,916
1,430,313
1,781,714

The long-term loans are secured by fixed charges over the assets of the company.

21
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
8,537
30,828
8,537
30,828
In two to five years
-
0
22,000
-
0
22,000
8,537
52,828
8,537
52,828

Finance lease obligations are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as shown above.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
22
Provisions for liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
Exceptional items
432,228
-
240,063
-
Movements on provisions:
Exceptional items
Group
£
Additional provisions in the year
432,228
Company
£
Additional provisions in the year
240,063

Provisions were added in relation to the anticipated expenditure for the repairs to the damage caused by the onsite fires. This includes all receipts for the insurance reclaim and any accompanying legal and professional fees associated with the repairs.

23
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2022
2021
Group
£
£
ACAs
(9,188)
-
Tax losses
479,527
-
Revaluations
9,348
5,801
Share based payments
118
-
479,805
5,801
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
23
Deferred taxation
(Continued)
- 33 -
Assets
Assets
2022
2021
Company
£
£
Tax losses
199,757
-
Group
Company
2022
2022
Movements in the year:
£
£
Asset at 1 January 2022
(5,801)
-
Credit to profit or loss
(474,004)
(199,757)
Asset at 31 December 2022
(479,805)
(199,757)
24
Government grants
Group
Company
2022
2021
2022
2021
£
£
£
£
Arising from government grants
35,076
91,018
35,076
91,018
25
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
55,144
44,448

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
565
565
565
565
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 34 -
27
Events after the reporting date

An agreement is being made to convert the Clifford Jones Timber Limited directors' loan liabilities into preference shares with the agreement of those that the money was owed to. For the moment, an agreement has been put in place stating that the director will not call on any loans until the 31 January 2025. In addition the related party creditor from Alan Jones has also been converted into preference shares. Therefore, the total of these amounts will be reallocated from debt to equity once this agreement is signed.

 

In addition an agreement is now in place between Clifford Jones Timber Limited and Hunter Wilson Ltd, that no loans will be recalled between the companies until 31 January 2025.

 

28
Related party transactions

Timbserve Limited is a company registered in England and Wales of which Mr A W Jones and Mrs S Jones (parents of director Mr R A Jones) are joint shareholders. During the year Timbserve Limited ceased to trade and as a result the balance of £65,901 (2021 - £65,901) owed by the Group to Timbserve Limited was wrote off to sundry income, having previously been included in trade creditors. Timbserve made £Nil (2021 - £18,705) sales to the group during this period

 

During a prior year Mr A W Jones (who is the father of director Mr R A Jones) paid £180,000 towards a tangible asset under hire purchase. The total amount of £190,000 (2021: £190,000) is included as an other creditor at year end.

 

Clifford Jones Timber Limited has a Limited Guarantee agreement with National Westminster Bank PLC as a Guarantor for Hunter Wilson Limited. As part of the terms, Clifford Jones Timber Limited must pay all obligations, interests and expenses due to the bank on behalf of Hunter Wilson Limited if they are unable to pay, up to the limit of £22,579. This is a continuing security and one months notice must be given to discontinue the guarantee.

29
Directors' transactions

Dividends totalling £0 (2021 - £18,000) were paid in the year in respect of shares held by the company's directors.

A cash injection of £100,000 was provided to the company by Mr R A Jones during the year. The total balance is outstanding at year end is and is included in other creditors.

CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 35 -
30
Cash generated from group operations
2022
2021
£
£
Loss for the year after tax
(144,839)
(880,967)
Adjustments for:
Taxation credited
(610,004)
(203,168)
Finance costs
112,589
83,756
Investment income
(11)
(14)
(Gain)/loss on disposal of tangible fixed assets
-
319
Depreciation and impairment of tangible fixed assets
213,858
230,703
Increase in provisions
432,228
-
Movements in working capital:
Decrease in stocks
91,406
760,359
Decrease in debtors
52,985
183,806
Increase/(decrease) in creditors
535,853
(84,471)
Decrease in deferred income
(55,942)
(66,875)
Cash generated from operations
628,123
23,448
31
Cash generated from/(absorbed by) operations - company
2022
2021
£
£
(Loss)/profit for the year after tax
(182,104)
93,076
Adjustments for:
Taxation credited
(335,757)
(198,064)
Finance costs
111,361
83,756
Investment income
(11)
(500,014)
(Gain)/loss on disposal of tangible fixed assets
-
319
Depreciation and impairment of tangible fixed assets
181,563
186,757
Increase in provisions
240,063
-
Movements in working capital:
Decrease in stocks
71,406
418,680
(Increase)/decrease in debtors
(125,310)
280,143
Increase/(decrease) in creditors
708,237
(978,915)
Decrease in deferred income
(55,942)
(66,875)
Cash generated from/(absorbed by) operations
613,506
(681,137)
CLIFFORD JONES TIMBER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 36 -
32
Analysis of changes in net debt - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
102,084
15,146
117,230
Bank overdrafts
(923,276)
178,939
(744,337)
(821,192)
194,085
(627,107)
Borrowings excluding overdrafts
(1,505,916)
133,911
(1,372,005)
Obligations under finance leases
(52,828)
44,291
(8,537)
(2,379,936)
372,287
(2,007,649)
33
Analysis of changes in net debt - company
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
79,058
30,090
109,148
Bank overdrafts
(629,994)
92,855
(537,139)
(550,936)
122,945
(427,991)
Borrowings excluding overdrafts
(1,781,714)
217,489
(1,564,225)
Obligations under finance leases
(52,828)
44,291
(8,537)
(2,385,478)
384,725
(2,000,753)
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