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Registration number: 04797001

The Southern Timber Co Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 October 2023

 

The Southern Timber Co Ltd

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

The Southern Timber Co Ltd

(Registration number: 04797001)
Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

2,392,327

2,434,640

Current assets

 

Stocks

6

976,310

1,133,545

Debtors

7

2,564,668

2,251,080

Cash at bank and in hand

 

-

52,921

 

3,540,978

3,437,546

Creditors: Amounts falling due within one year

8

(1,922,872)

(1,973,788)

Net current assets

 

1,618,106

1,463,758

Total assets less current liabilities

 

4,010,433

3,898,398

Creditors: Amounts falling due after more than one year

8

(848,653)

(810,206)

Provisions for liabilities

(183,971)

(177,232)

Net assets

 

2,977,809

2,910,960

Capital and reserves

 

Called up share capital

10

10

Revaluation reserve

902,227

902,227

Retained earnings

2,075,572

2,008,723

Shareholders' funds

 

2,977,809

2,910,960

 

The Southern Timber Co Ltd

(Registration number: 04797001)
Balance Sheet as at 31 October 2023

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

Directors' responsibilities:

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

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

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

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

Approved and authorised by the Board on 26 July 2024 and signed on its behalf by:
 

M D Tewson
Director

   
     
 

The Southern Timber Co Ltd

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

1

General information

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

The address of its registered office is:
Crokers Park
Edgelands Cross
Ipplepen
Newton Abbot
Devon
TQ12 5UG

These financial statements were authorised for issue by the Board on 26 July 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

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

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

Going concern

The directors have reviewed anticipated income and associated costs for the next twelve months and following this review consider that the company has adequate resources in place to continue trading for the next twelve months. The accounts have therefore been prepared on the going concern basis.
 

Revenue recognition

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

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

 

The Southern Timber Co Ltd

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

Tax

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

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

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

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

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

Tangible assets

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

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

Depreciation

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

Asset class

Depreciation method and rate

Freehold land and buildings

Straight line over 50 years or 15% reducing balance

Fixtures, fittings and equipment

20% reducing balance

Motor vehicles

20% reducing balance

Office equipment

25% reducing balance

Goodwill

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

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

Straight line over 10 years

 

The Southern Timber Co Ltd

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

Cash and cash equivalents

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

Debtors

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

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

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

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

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

The Southern Timber Co Ltd

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

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

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

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 38 (2022 - 42).

 

The Southern Timber Co Ltd

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

4

Intangible assets

Goodwill
 £

Total
£

Cost

At 1 November 2022

65,600

65,600

At 31 October 2023

65,600

65,600

Amortisation

At 1 November 2022

65,600

65,600

At 31 October 2023

65,600

65,600

Carrying amount

At 31 October 2023

-

-

At 31 October 2022

-

-

5

Tangible assets

Land and Buildings
£

Furniture, fittings and equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 November 2022

2,445,905

832,933

766,714

4,045,552

Additions

-

76,344

186,802

263,146

Disposals

(113,331)

(4,950)

(111,500)

(229,781)

At 31 October 2023

2,332,574

904,327

842,016

4,078,917

Depreciation

At 1 November 2022

710,504

503,111

397,298

1,610,913

Charge for the year

44,967

84,427

96,067

225,461

Eliminated on disposal

(89,028)

(3,847)

(56,909)

(149,784)

At 31 October 2023

666,443

583,691

436,456

1,686,590

Carrying amount

At 31 October 2023

1,666,131

320,636

405,560

2,392,327

At 31 October 2022

1,735,403

329,822

369,415

2,434,640

Included within the net book value of land and buildings above is £1,666,131 (2022 - £1,735,403) in respect of freehold land and buildings.

 

The Southern Timber Co Ltd

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

6

Stocks

2023
£

2022
£

Other inventories

976,310

1,133,545

7

Debtors

2023
£

2022
£

Trade debtors

608,904

484,545

Other debtors

1,877,523

1,589,173

Prepayments

78,241

162,621

Accrued income

-

14,741

2,564,668

2,251,080

8

Creditors

Due within one year

Note

2023
£

2022
£

 

Loans and borrowings

9

558,089

116,899

Trade creditors

 

1,045,145

1,304,457

Amounts due to related parties

10

25,463

-

Social security and other taxes

 

76,205

45,590

Other creditors

 

103,604

340,857

Accruals

 

37,567

57,310

Corporation tax liability

76,799

108,675

 

1,922,872

1,973,788

Due after one year

 

Loans and borrowings

9

848,653

810,206

Creditors due within one year include bank loans and net obligations under finance lease and hire purchase contracts which are secured of £558,089 (2022 - £116,899).

Creditors due after one year include bank loans and net obligations under finance lease and hire purchase contracts which are secured of £848,653 (2022 - £810,206).

 

The Southern Timber Co Ltd

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

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

661,663

698,804

Hire purchase contracts

186,990

111,402

848,653

810,206

2023
£

2022
£

Current loans and borrowings

Bank borrowings

41,647

43,364

Bank overdrafts

454,074

-

Hire purchase contracts

62,368

73,535

558,089

116,899

 

The Southern Timber Co Ltd

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

10

Related party transactions

Transactions with directors

2023

At 1 November 2022
£

Advances to director
£

Repayments by director
£

At 31 October 2023
£

M D Tewson

Director's Loan Account

11,564

-

(11,564)

-

         
       

N J Harris

Director's Loan Account

14,081

7,196

(21,277)

-

         
       

 

2022

At 1 November 2021
£

Advances to director
£

Repayments by director
£

At 31 October 2022
£

M D Tewson

Director's Loan Account

(684)

31,248

(19,000)

11,564

         
       

N J Harris

Director's Loan Account

14,085

6,996

(7,000)

14,081