Company registration number 06422607 (England and Wales)
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
COMPANY INFORMATION
Directors
Mr D Paterson
Mr D Paterson
Mr D J Williams
Company number
06422607
Registered office
Seed House Farm
Cumeragh Lane
Whittingham
Preston
PR3 2JB
Auditor
MMBA Accountants Limited
Unit 7, Navigation Business Village
Navigation Way
Preston
Lancashire
PR2 2YP
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company is that of the manufacturing and supply of engineered timber products. The business operates entirely within the UK.

Review of the business

Turnover in respect of engineered timber products reflected strong demand for new build residential housing and with the need to increase housing stock across the country. Along with its robust financial position, that the Company will continue to enjoy a prosperous future in the long term.

 

The company takes its health and safety obligations very seriously. To this end, employees have attended numerous courses during the year to ensure that all staff have received the necessary training to perform their duties correctly.

 

The company continues to invest in new machinery and modernisation of systems, to position itself into a strong position for long term growth.

Principal risks and uncertainties

The company continues to monitor the business by the regular review of key performance indicators.

 

The demand of the services of the company are dependent upon the confidence within the UK housing and building market. This includes factors such as unemployment rates, interest rates and availability of credit, which are outside of the company's control and is therefore difficult to predict. Raw materials are subject to significant cost price movements which is being managed by the directors of the business. Fixed costs are kept to a minimum which will allow the company to take advantage of changes in the market condition.

 

The directors are confident that the company has a very experienced management team, with the ability to react promptly in dealing with the risks and uncertainties.

 

Key performance indicators

2023         2022

Turnover            £15.1m        £15.3m

Gross Margin %            34.62%     32.64%

Operating Profit            £3.4m        £3.9m

 

Other performance indicators

Key non-financial performance indicators of the business such as customer service, staff productivity and wellbeing, health and safety and quality throughout the company are all considered key to the business are all monitored.

Other information and explanations

Strategy

The company's success is dependent upon the proper selection, pricing, and ongoing management of the risks it accepts. It is important to retain a diversified portfolio of risks to achieve maximum profitability in a highly competitive marketplace. The company is focused upon continuing to provide excellent customer service to both its existing and new customers to achieve growth in its core market segments.

 

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

Mr D Paterson
Director
30 September 2024
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is that of the manufacturing and supply of engineered timber products. The business operates entirely within the UK.

Directors

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

Mr D Paterson
Mr D Paterson
Mr D J Williams
Results and dividends

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

Ordinary dividends were paid amounting to £1,451,333 (2022: £1,365,261) The directors do not recommend payment of a further dividend.

Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements to maximize its interest income and minimize its interest charges whilst ensuring that it has sufficient liquid resources to meet its operating needs.

Interest rate risk

The company is not currently exposed to interest rate risk on loans. The company manages debt to reduce its exposure to changes in interest rates

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies which fulfil credit rating criteria approved by the Board.

Market risk

Competitive pressure is a constant risk to the company. The company manages this risk by continuing to provide excellent standards of service to its customers

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Future developments

The company is focused upon providing first class customer service to its existing customers operating within its core markets to ensure that we can be trusted to deliver a high level of customer satisfaction and win repeat business as a result. At the same time, we seek to expand our customer base with other reputable creditworthy businesses.

 

Both medium and long term prospects for timber frame construction continue to be excellent. The demographics of UK population growth and the continuing chronic under-supply of housing stock dictate that the UK must build significantly more new homes than the current rates of production. Furthermore, timber frame off-site construction is increasingly seen by politicians, clients and developers alike as the best build technology to help deliver increased housing output whilst at the same time achieving high levels of quality and energy performance and playing a vital role in helping to deliver the nation's climate change targets as we seek to decarbonise society. Thus, the opportunities for off-site timber frame and other Modern Methods of Construction, are excellent and Wyder is very well placed to take advantage of the anticipated favourable market conditions for the foreseeable future. Consequently, the directors are very optimistic about the company's future prospects

 

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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:

 

 

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 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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr D Paterson
Director
30 September 2024
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WYDER ENGINEERED TIMBER SYSTEMS LIMITED
- 5 -
Opinion

We have audited the financial statements of Wyder Engineered Timber Systems Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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 the financial statements:

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 Auditor's 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 matter

We draw attention to the fact that the financial statements of Wyder Engineered Timber Systems Limited for the year ended 31 December 2023 are being audited for the first time. Accordingly, we do not express any opinion or provide any assurance on the comparative information presented for the prior years, as no audit was conducted on those financial statements.

 

Our opinion is not modified in respect of this matter.

 

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WYDER ENGINEERED TIMBER SYSTEMS LIMITED (CONTINUED)
- 6 -

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 directors are 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.

 

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 our audit:

 

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.

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 directors' report. 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 directors

As explained more fully in the directors' responsibilities statement, 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 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 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.

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WYDER ENGINEERED TIMBER SYSTEMS LIMITED (CONTINUED)
- 7 -
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.

We assessed the extent of compliance with the laws and regulations identified above through:

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

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included:

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.

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WYDER ENGINEERED TIMBER SYSTEMS LIMITED (CONTINUED)
- 8 -

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.

Mr Waqqas Shabir Memon, BSc, FCCA
Senior Statutory Auditor
For and on behalf of MMBA Accountants Limited
30 September 2024
Chartered Certified Accountant &
Statutory Auditor
Unit 7, Navigation Business Village
Navigation Way
Preston
Lancashire
PR2 2YP
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
15,144,336
15,281,208
Cost of sales
(9,901,573)
(10,293,069)
Gross profit
5,242,763
4,988,139
Administrative expenses
(1,108,877)
(1,085,499)
Exceptional item
4
(729,747)
-
0
Operating profit
5
3,404,139
3,902,640
Interest receivable and similar income
8
42,749
947
Interest payable and similar expenses
9
-
0
(2,170)
Profit before taxation
3,446,888
3,901,417
Tax on profit
10
(1,005,940)
(761,536)
Profit for the financial year
2,440,948
3,139,881

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

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
366,368
341,960
Current assets
Stocks
14
638,198
848,640
Debtors
15
2,738,008
2,829,340
Investments
16
55,874
-
0
Cash at bank and in hand
3,846,016
3,355,197
7,278,096
7,033,177
Creditors: amounts falling due within one year
17
(925,390)
(1,658,460)
Net current assets
6,352,706
5,374,717
Total assets less current liabilities
6,719,074
5,716,677
Provisions for liabilities
Deferred tax liability
19
46,733
33,951
(46,733)
(33,951)
Net assets
6,672,341
5,682,726
Capital and reserves
Called up share capital
21
80
80
Profit and loss reserves
6,672,261
5,682,646
Total equity
6,672,341
5,682,726

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

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
Mr D Paterson
Director
Company registration number 06422607 (England and Wales)
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
80
3,908,026
3,908,106
Period ended 31 December 2022:
Profit and total comprehensive income
-
3,139,881
3,139,881
Dividends
11
-
(1,365,261)
(1,365,261)
Balance at 31 December 2022
80
5,682,646
5,682,726
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,440,948
2,440,948
Dividends
11
-
(1,451,333)
(1,451,333)
Balance at 31 December 2023
80
6,672,261
6,672,341
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
3,003,372
5,107,461
Interest paid
-
0
(2,170)
Income taxes paid
(771,952)
(753,077)
Net cash inflow from operating activities
2,231,420
4,352,214
Investing activities
Purchase of tangible fixed assets
(135,602)
(71,939)
Proceeds from disposal of tangible fixed assets
15,000
-
0
Purchase of investments
(55,874)
-
0
Other loans or directors' loans
(153,194)
-
0
Interest received
42,749
947
Net cash used in investing activities
(286,921)
(70,992)
Financing activities
Repayment of borrowings
(2,347)
5,332
Repayment of bank loans
-
0
(275,397)
Payment of finance leases obligations
-
0
(3,981)
Dividends paid
(1,451,333)
(1,365,261)
Net cash used in financing activities
(1,453,680)
(1,639,307)
Net increase in cash and cash equivalents
490,819
2,641,915
Cash and cash equivalents at beginning of year
3,355,197
713,282
Cash and cash equivalents at end of year
3,846,016
3,355,197
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Wyder Engineered Timber Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Seed House Farm, Cumeragh Lane, Whittingham, Preston, PR3 2JB.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

The company has considerable cash reserves in place and the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. Management have reviewed forecasts and have reasonable expectation that company has adequate resources to continue for the foreseeable future.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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. All the revenue streams are generated inside the UK.

 

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.

1.4
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:

Leasehold improvements
10% straight line
Plant and machinery
15% straight line
Fixtures, fittings & equipment
20% straight line
Computer equipment
20% straight line
Motor vehicles
25% straight line

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 credited or charged to profit or loss.

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

At each reporting period end date, the company 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.

1.6
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.

1.7
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.

1.8
Financial instruments
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.

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 company 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.

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 company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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.

1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

1.12
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.

1.13
Retirement benefits

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

1.14
Leases

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 leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Kit
9,285,947
9,134,767
Manufactured
5,854,797
6,146,441
Miscellaneous income
3,592
-
15,144,336
15,281,208
2023
2022
£
£
Other revenue
Interest income
42,749
947

There is no other comprehensive income during the year (2022: Nil) and that the income is derived from continuing operation

4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item -  New building expenditure
729,747
-

Under FRS 102, an exceptional item refers to a material item of income or expense that arises from events or transactions that are distinct from the normal activities of the business and is significant in size or nature. The expectational item in the accounts relates to a material one off cost in the business for building expenditure which was classed as a sunk cost in the business.

 

This cost was incurred for a Land site that is not owned by Wyder Engineered Timber Systems Limited.

5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,500
-
0
Depreciation of owned tangible fixed assets
99,965
110,106
Profit on disposal of tangible fixed assets
(3,771)
-
Operating lease charges
19,817
18,779
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
6
Employees

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

2023
2022
Number
Number
Manufacturing
32
32
Administration
8
8
Directors
2
2
Total
42
42

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,193,457
1,113,983
Social security costs
111,358
100,291
Pension costs
62,047
58,039
1,366,862
1,272,313

There are a total of three directors. However, only those directors who are remunerated are included in this note.

7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
6,240
6,240
Company pension contributions to defined contribution schemes
40,000
40,000
46,240
46,240

Directors are considered to be the key management personnel.

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
40,991
893
Other interest income
1,758
54
Total income
42,749
947
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Interest receivable and similar income
(Continued)
- 19 -
2023
2022
Investment income includes the following:
£
£
Bank interest receivable
40,991
893
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
2,170
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
993,158
743,452
Deferred tax
Origination and reversal of timing differences
12,782
18,084
Total tax charge
1,005,940
761,536

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

2023
2022
£
£
Profit before taxation
3,446,888
3,901,417
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
810,708
741,269
Tax effect of expenses that are not deductible in determining taxable profit
190,545
993
Tax effect of income not taxable in determining taxable profit
(679)
(3,686)
Adjustments in respect of prior years
-
0
33,355
Effect of change in corporation tax rate
487
9,319
Depreciation on assets not qualifying for tax allowances
-
0
18,520
Under/(over) provided in prior years
-
0
(8,690)
Deferred tax adjustments in respect of prior years
4,879
(29,544)
Taxation charge for the year
1,005,940
761,536
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 20 -

Taxation charge from 1 April 2023 is 25% prior to this the taxation charge was 19%.

11
Dividends
2023
2022
£
£
Final paid
1,451,333
1,365,261
12
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
592,320
375,263
75,468
29,217
77,169
1,149,437
Additions
-
0
39,040
-
0
-
0
96,562
135,602
Disposals
-
0
-
0
-
0
-
0
(19,250)
(19,250)
At 31 December 2023
592,320
414,303
75,468
29,217
154,481
1,265,789
Depreciation and impairment
At 1 January 2023
413,956
261,159
74,339
23,634
34,389
807,477
Depreciation charged in the year
47,904
30,695
564
2,081
18,721
99,965
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(8,021)
(8,021)
At 31 December 2023
461,860
291,854
74,903
25,715
45,089
899,421
Carrying amount
At 31 December 2023
130,460
122,449
565
3,502
109,392
366,368
At 31 December 2022
178,364
114,104
1,129
5,583
42,780
341,960
13
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Short term investments held at costs
55,874
-
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
14
Stocks
2023
2022
£
£
Work in progress
81,795
409,656
Finished goods and goods for resale
556,403
438,984
638,198
848,640
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,187,232
1,266,873
Amounts owed by connected parties
1,055,809
548,273
Other debtors
300,728
774,886
Prepayments and accrued income
194,239
239,308
2,738,008
2,829,340

Included within other debtors is an overdrawn director's loan account with a balance of £153,194 (2022: £Nil).

16
Current asset investments
2023
2022
£
£
Short term investments
55,874
-
0
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
18
5,929
8,276
Trade creditors
238,197
745,133
Corporation tax
581,104
359,898
Other taxation and social security
52,415
456,962
Other creditors
7,000
4,600
Accruals and deferred income
40,745
83,591
925,390
1,658,460
WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Loans and overdrafts
2023
2022
£
£
Other loans
5,929
8,276
Payable within one year
5,929
8,276
19
Deferred taxation

Deferred tax assets and liabilities are offset where the 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:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
46,733
33,951
2023
Movements in the year:
£
Liability at 1 January 2023
33,951
Charge to profit or loss
12,782
Liability at 31 December 2023
46,733

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,047
58,039

The company operates a defined contribution pension scheme for all qualifying employees.

 

At the year end date unpaid contributions totalled £5,929 (2022: £8,276).

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary A of £1 each
52
52
52
52
ordinary B of £1 each
7
7
7
7
ordinary C of £1 each
20
20
20
20
ordinary D of £1 each
1
1
1
1
80
80
80
80

The company has A,B,C,D class of ordinary shares these shares do carry the same voting rights.

22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
10,513
44,479
23
Related party transactions

At the balance sheet date, an amount of £1,056,009 (2022: £548,272) is due from related entities. This includes amounts due from Wyder Investments Limited of £65,891 (2022: £Nil) and Wyder Investment Properties Limited of £989,918 (2022: £Nil). No interest is charged on the amounts outstanding.

24
Directors' transactions

Dividends totalling £110,574 (2022 - £108,635) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
loan account
2.00
-
151,436
1,776
153,212
-
151,436
1,776
153,212
25
Ultimate controlling party

The ultimate controlling party in Wyder Engineered Timber Systems Limited is David Paterson

WYDER ENGINEERED TIMBER SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
26
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,440,948
3,139,881
Adjustments for:
Taxation charged
1,005,940
761,536
Finance costs
-
0
2,170
Investment income
(42,749)
(947)
Gain on disposal of tangible fixed assets
(3,771)
-
Depreciation and impairment of tangible fixed assets
99,965
110,106
Movements in working capital:
Decrease in stocks
210,442
96,169
Decrease in debtors
244,526
890,437
(Decrease)/increase in creditors
(951,929)
108,109
Cash generated from operations
3,003,372
5,107,461
27
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,355,197
490,819
3,846,016
Borrowings excluding overdrafts
(8,276)
2,347
(5,929)
3,346,921
493,166
3,840,087
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