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REGISTERED NUMBER: 05263445 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MAELOR FOREST NURSERIES LIMITED

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


MAELOR FOREST NURSERIES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: M W Harvey
A G Milne
H C G Stevens





REGISTERED OFFICE: Fields Farm
Bronington
Whitchurch
Shropshire
SY13 3HZ





REGISTERED NUMBER: 05263445 (England and Wales)





AUDITORS: D.R.E. & Co. (Audit) Limited
7 Lower Brook Street
Oswestry
Shropshire
SY11 2HG

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The principal activities of Maelor Forest Nurseries Limited ('the Company') was the production of trees and shrubs suitable for forestry, hedging and native woodland planting. The company is part of Maelor Forest Nurseries Holding Limited 'the Group' which now has a second fully established nursery in Scotland, Maelor Scotland Forest Nurseries Ltd.

The demand for trees continued to grow in the year with a strong Q4 performance which has allowed the continued growth for the Group.

The previous years investment into the miniplug production facility was fully commissioned and operational through the year which will lead to increased future automation.

The company's key financial and other performance indicators during the year were as follows:
2023 2022
£'000 £'000

Turnover 7,108 6,876
Profit after tax 484 764
Shareholder's equity 4,975 4,490

Turnover has increased slightly in the period and group turnover is driven by demand from both the Wales and Scotland nurseries. Profit after tax has reduced due to increased costs.

Shareholders equity has increased.


MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The Company considers its main risks to be the impact of weather conditions on growth and distribution of trees together with securing a supply of seasonal labour. The company continues to work closely with local employment agencies to secure a supply of labour requirements and has developed a relationship with a key new supplier.

The company continues to invest towards increased mechanisation to mitigate these risks for the future.

Financial risk management
The Company considers its principal risk to arise through its financial assets and liabilities. The key financial risk is that the proceeds from financial assets are not sufficient to fund the obligations arising from liabilities as they fall due.
The most important components of financial risk are interest rate risk, currency risk, credit risk, liquidity risk, cash flow risk and price risk. Due to the nature of the Company's business and the assets and liabilities contained within the Company's balance sheet, the only financial risks the directors consider relevant to this company are credit risk and liquidity risk.

Credit and Liquidity Risk
The company's exposure to credit and liquidity risk is reduced as it is a 100% subsidiary of the BSW Timber group. The Company does not trade in financial instruments, nor enter into interest rate swaps or forward currency contracts.

Going Concern
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.

ON BEHALF OF THE BOARD:





A G Milne - Director


27 February 2024

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

RESEARCH AND DEVELOPMENT
The company continues its research to strengthen its position of providing a source of improved forest reproductive material and seeks out opportunities to exploit markets in this area.

FUTURE DEVELOPMENTS
The Company will continue to seek opportunities for further mechanisation and improvements to respond to climate driven changes to market demand.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

M W Harvey
A G Milne

Other changes in directors holding office are as follows:

M O'Neill - resigned 18 August 2023
D Howells - resigned 26 May 2023
H C G Stevens - appointed 18 September 2023

DIRECTORS' RESPONSIBILITIES STATEMENT
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A G Milne - Director


27 February 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAELOR FOREST NURSERIES LIMITED

Opinion
We have audited the financial statements of Maelor Forest Nurseries Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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
MAELOR FOREST NURSERIES 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 Directors' Responsibilities Statement set out on page four, 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
MAELOR FOREST NURSERIES 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the client's operating sector;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation;

-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and

-reviewing the client's system notes and internal controls.

To address the risk of fraud through management bias and override of controls, we:

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias;

-investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

-enquiring of management as to actual and potential litigation and claims;

-reviewing correspondence with HMRC.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAELOR FOREST NURSERIES LIMITED

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.




Aled Davies F.C.C.A. (Senior Statutory Auditor)
for and on behalf of D.R.E. & Co. (Audit) Limited
7 Lower Brook Street
Oswestry
Shropshire
SY11 2HG

27 February 2024

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 7,108,465 6,875,839

Cost of sales (3,463,065 ) (3,118,271 )
GROSS PROFIT 3,645,400 3,757,568

Administrative expenses (3,070,575 ) (2,608,347 )
574,825 1,149,221

Other operating income 57,541 27,288
OPERATING PROFIT 5 632,366 1,176,509

Interest receivable and similar income (604 ) 2,172
631,762 1,178,681

Interest payable and similar expenses 6 (52,823 ) (26,759 )
PROFIT BEFORE TAXATION 578,939 1,151,922

Tax on profit 7 (94,639 ) (388,329 )
PROFIT FOR THE FINANCIAL YEAR 484,300 763,593

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £   

PROFIT FOR THE YEAR 484,300 763,593


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

484,300

763,593

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

BALANCE SHEET
31 DECEMBER 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 3,575,081 4,078,560

CURRENT ASSETS
Stocks 9 1,905,773 1,878,123
Debtors 10 676,890 1,350,206
Cash at bank and in hand 827,807 937,048
3,410,470 4,165,377
CREDITORS
Amounts falling due within one year 11 1,466,261 3,082,979
NET CURRENT ASSETS 1,944,209 1,082,398
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,519,290

5,160,958

PROVISIONS FOR LIABILITIES 13 544,578 670,546
NET ASSETS 4,974,712 4,490,412

CAPITAL AND RESERVES
Called up share capital 14 100 100
Capital redemption reserve 15 20 20
Retained earnings 15 4,974,592 4,490,292
SHAREHOLDERS' FUNDS 4,974,712 4,490,412

The financial statements were approved by the Board of Directors and authorised for issue on 27 February 2024 and were signed on its behalf by:





A G Milne - Director


MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

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

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 100 3,726,699 20 3,726,819

Changes in equity
Total comprehensive income - 763,593 - 763,593
Balance at 31 December 2022 100 4,490,292 20 4,490,412

Changes in equity
Total comprehensive income - 484,300 - 484,300
Balance at 31 December 2023 100 4,974,592 20 4,974,712

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Maelor Forest Nurseries Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

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

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

The accounts are for the individual entity only.

These financial statements are presented in (£) sterling, rounded to the nearest £1.

Going concern
The financial statements have been prepared under the going concern basis on the expectation that the company shall continue to operate for the foreseeable future and due to the continued support of the directors and those involved.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, economic utilisation and the physical condition of the assets. See note 8 for the carrying amount of fixed assets, and note 3 for the useful economic lives for each class of assets.

When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of trees once they have been graded. See note 9 for the net carrying amount of stock.

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 10 for the net carrying amount of the debtors.

Turnover
Turnover represents net invoiced sales of goods, excluding value added tax. Income is recorded once seeds, plants etc. have been despatched. Income from growing contracts is not recognised in the profit and loss account until stocks have been delivered to the customer and all liability removed. The advance receipts reduce the balance sheet value of stocks.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life or, if held under a finance lease, over the lease term, whichever is the shorter.

Tenants improvements 10% to 33.34% on cost
Plant and machinery 5% to 60% on cost
Computer equipment 20% to 34% on cost
Motor vehicles 25% to 50% on cost
Laboratory equipment 20% to 50% on cost
Assets under construction not provided for

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

The value of tree plantations and expected trees to be harvested is provided based on up to date knowledge of the expected harvest.

Under the terms of some selling contracts the company is paid part of the cost of trees in advance. These monies received have been deducted from gross stock figure in order to reflect the net cost to the company of stock at each period end.

Financial instruments
Basic financial instruments are recognised at amortised cost.


MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. 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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Deferred government grants
Deferred government grants in respect of capital expenditure are treated as deferred income and are credited to the profit and loss account over the estimated useful life of the assets to which they relate.

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 1,516,777 1,609,226
Social security costs 199,775 210,751
Other pension costs 93,445 52,736
1,809,997 1,872,713

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31.12.23 31.12.22

Administration 6 6
Sales and distribution 11 11
Production 51 56
68 73

Included in the above figures are employees that are remunerated through the payroll of Maelor Forest Nurseries Limited, but are recharged to another company within the group. In the current year, 20 employees were recharged (2022: 19).

Key management personnel remuneration, including employer's national insurance and pension contributions totalled £175,634 (2022: £128,642).

31.12.23 31.12.22
£    £   
Directors' remuneration 132,064 195,934
Directors' pension contributions to money purchase schemes 47,586 9,728

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes - 2

5. OPERATING PROFIT

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

31.12.23 31.12.22
£    £   
Hire of plant and machinery 71,278 67,485
Other operating leases 340,892 119,442
Depreciation - owned assets 822,199 589,871
Depreciation - assets on hire purchase contracts or finance leases - 14,923
Profit on disposal of fixed assets (2,400 ) (44,275 )
Auditors' remuneration 10,542 11,078
Foreign exchange differences 2,683 6,193

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Other interest paid 52,823 18,287
Hire purchase - 8,472
52,823 26,759

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 281,615 (28,387 )
(Over) / under provision from prior years (61,008 ) 7,901
Total current tax 220,607 (20,486 )

Deferred tax (125,968 ) 408,815
Tax on profit 94,639 388,329

Reconciliation of total tax 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:

31.12.23 31.12.22
£    £   
Profit before tax 578,939 1,151,922
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

136,166

218,865

Effects of:
Expenses not deductible for tax purposes 7,339 (4,381 )
Capital allowances in excess of depreciation - (388,936 )
Depreciation in excess of capital allowances 138,110 -
Adjustments to tax charge in respect of previous periods (61,008 ) 7,901
Deferred tax (125,968 ) 408,815
Group relief - 167,794
R&D tax credit - (21,729 )

Total tax charge 94,639 388,329

The entity is within the scope of the OECD Pillar Two model rules. Pillar Two legislation was enacted in the United Kingdom, the jurisdiction in which the entity is incorporated and will come into effect from 1 January 2025. Since the Pillar Two legislation was not effective at the reporting date, the company has no related current tax exposure. The company applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to FRS102 Section 29 issued in July 2023.

The company belongs to the scope of consolidation of the ultimate parent company, Binder Beteiligungsverwaltung GmbH, Fügen, which exceeds the relevant revenue thresholds in accordance with the OECD Pillar Two model rules. Binder Beteiligungsverwaltung GmbH is currently evaluating the possible future effects of the Pillar Two model rules on its UK subsidiaries, including the company. Based on the current state of knowledge, no significant additional tax burden is expected as a result of the Pillar Two model rules.

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TANGIBLE FIXED ASSETS
Tenant Plant and Laboratory
improvements machinery equipment
£    £    £   
COST
At 1 January 2023 1,354,857 5,246,863 75,695
Additions 12,566 229,430 -
Disposals - (18,525 ) -
At 31 December 2023 1,367,423 5,457,768 75,695
DEPRECIATION
At 1 January 2023 360,010 2,254,953 55,682
Charge for year 200,270 569,058 12,303
Eliminated on disposal - (18,525 ) -
At 31 December 2023 560,280 2,805,486 67,985
NET BOOK VALUE
At 31 December 2023 807,143 2,652,282 7,710
At 31 December 2022 994,847 2,991,910 20,013

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 112,044 88,559 6,878,018
Additions - 76,724 318,720
Disposals - - (18,525 )
At 31 December 2023 112,044 165,283 7,178,213
DEPRECIATION
At 1 January 2023 67,520 61,293 2,799,458
Charge for year 23,216 17,352 822,199
Eliminated on disposal - - (18,525 )
At 31 December 2023 90,736 78,645 3,603,132
NET BOOK VALUE
At 31 December 2023 21,308 86,638 3,575,081
At 31 December 2022 44,524 27,266 4,078,560


9. STOCKS
31.12.23 31.12.22
£    £   
Raw materials 1,542,018 1,434,535
Finished goods 363,755 443,588
1,905,773 1,878,123

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 305,872 722,449
Amounts owed by group
undertaking 350,081 348,629
Tax - 270,244
Other debtors and prepayments 20,937 8,884
676,890 1,350,206

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade creditors 222,998 179,414
Tax 238,306 -
Social security and other taxes 228,779 135,198
Other creditors 37,560 22,570
Amounts owed to group
undertakings 641,589 2,413,267
Accruals and deferred income 97,029 332,530
1,466,261 3,082,979

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.23 31.12.22
£    £   
Within one year 337,248 114,848
Between one and five years 1,333,207 340,055
In more than five years 552,067 -
2,222,522 454,903

13. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 544,578 670,546

Deferred
tax
£   
Balance at 1 January 2023 670,546
Provided during year (125,968 )
Balance at 31 December 2023 544,578

MAELOR FOREST NURSERIES LIMITED (REGISTERED NUMBER: 05263445)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
1,000 Ordinary 10p £0.10 100 100

15. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 January 2023 4,490,292 20 4,490,312
Profit for the year 484,300 484,300
At 31 December 2023 4,974,592 20 4,974,612

16. IMMEDIATE PARENT COMPANY

The immediate parent company is Maelor Forest Nurseries Holdings Limited by virtue of their 100% shareholding in the company.

17. CAPITAL COMMITMENTS
31.12.23 31.12.22
£    £   
Contracted but not provided for in the
financial statements 18,720 47,955

18. ULTIMATE CONTROLLING PARTY

The ultimate parent undertaking is Binder Beteiligungsverwaltung GmbH, which is the parent undertaking of the largest group to consolidate these financial statements. The consolidated financial statements of Binder Beteiligungsverwaltung GmbH are available from 6263 Fügen, Tirol, Austria respectively.