Company registration number 00699015 (England and Wales)
BODEN & DAVIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
BODEN & DAVIES LIMITED
COMPANY INFORMATION
Directors
C. Boden
W. Boden
J. Brown
Secretary
J. Brown
Company number
00699015
Registered office
Boden House
Lower Green Lane
Astley
Manchester
M29 7JF
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Business address
Minshulls Farm
Lower Green Lane
Astley
Manchester
M29 7JZ
Bankers
Yorkshire Bank Plc
Bolton Financial Solutions Centre
3rd Floor, Huntingdon House
Princess Street
Bolton
Lancashire
BL1 1EH
BODEN & DAVIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
BODEN & DAVIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Review of the business

The directors consider the profit achieved on ordinary activities before tax of £1,296k to be satisfactory given the current economic climate. Turnover increased to £23,841k (2023: £21,214k) and the gross margin has risen slightly to 56.07% from 55.11% in the prior year. Both of these financial measures are considered key performance indicators for the company.

 

Distribution costs have increased significantly, reflecting the increase in fuel costs in the year, whilst administrative expenses have decreased slightly in the year.

 

The company's balance sheet shows net worth of £7.3m at the year end (2023: £6,433k) and is considered to represent a healthy state of affairs and the directors consider that the company is well placed to take advantage of business opportunities in the market, both with existing and new customers.

Principal risks and uncertainties

Whilst the company takes a responsible and balanced approach towards risk management it also recognises that risk is an inherent part of doing business and, as with all other businesses, some necessary risks may be beyond its control. The company benefits from a strong market reputation and goodwill, and its strategic objective is to build on this and increase services to both existing and new customers.

 

Liquidity risk

The company aims to mitigate liquidity risk by closely managing cash generation by its operating business and monitoring performance. Capital investment is closely controlled with authorisation at director level.

 

Interest rate risk

The company's exposure to changes in market interest rates relate primarily to the company's overdraft and invoice discounting facilities with a variable interest rate.

 

Foreign currency risk

The company trades primarily in the UK and as such the level of foreign currency risk is quite low.

 

Credit risk

It is the company's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. The company only offers terms to recognised creditworthy third parties. In addition, receivable balances are monitored on an ongoing basis, along with debtor days, and action is taken promptly when payment terms are breached.

 

Price risk

The company aims to pass on any price increases to its customers, where appropriate, to try and reduce its exposure to price risk.

 

On behalf of the board

C. Boden
Director
25 October 2024
BODEN & DAVIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities
The principal activities of the company continued to be those of sawdust contractors and farmers.
Results and dividends

The results for the year are set out on page 8.

An interim ordinary dividend was paid amounting to £142,128. The directors do not recommend payment of a final dividend.

Directors

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

C. Boden
W. Boden
J. Brown
Auditor

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

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

BODEN & DAVIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
On behalf of the board
C. Boden
Director
25 October 2024
BODEN & DAVIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BODEN & DAVIES LIMITED
- 4 -
Opinion

We have audited the financial statements of Boden & Davies Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of income and retained earnings, the balance sheet, 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 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:

BODEN & DAVIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BODEN & DAVIES LIMITED (CONTINUED)
- 5 -
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 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 included within the Directors' Report, 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.

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.

BODEN & DAVIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BODEN & DAVIES LIMITED (CONTINUED)
- 6 -

Irregularities and fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.

 

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment and pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.

Our procedures to respond to risks identified included the following:

 

 

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

 

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 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.

BODEN & DAVIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BODEN & DAVIES LIMITED (CONTINUED)
- 7 -

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Atkinson F.C.A.
Senior Statutory Auditor
For and on behalf of JS. Audit Limited
29 October 2024
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
BODEN & DAVIES LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
23,840,693
21,213,519
Cost of sales
(10,472,366)
(9,520,973)
Gross profit
13,368,327
11,692,546
Distribution costs
(9,526,911)
(7,832,117)
Administrative expenses
(2,206,621)
(2,348,562)
Other operating income
178,433
260,753
Exceptional item
4
-
0
(746,408)
Operating profit
5
1,813,228
1,026,212
Interest payable and similar expenses
8
(517,716)
(331,988)
Profit before taxation
1,295,512
694,224
Tax on profit
9
(307,884)
(498,604)
Profit for the financial year
987,628
195,620
Retained earnings brought forward
6,428,643
6,375,151
Dividends
10
(142,128)
(142,128)
Retained earnings carried forward
7,274,143
6,428,643

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

BODEN & DAVIES LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
15,267,971
10,811,496
Current assets
Stocks
12
1,492,712
1,098,436
Debtors
13
5,614,864
5,804,804
Cash at bank and in hand
804,314
1,718,202
7,911,890
8,621,442
Creditors: amounts falling due within one year
14
(8,786,586)
(8,127,405)
Net current (liabilities)/assets
(874,696)
494,037
Total assets less current liabilities
14,393,275
11,305,533
Creditors: amounts falling due after more than one year
15
(5,829,736)
(3,895,378)
Provisions for liabilities
Deferred tax liability
18
1,285,046
977,162
(1,285,046)
(977,162)
Net assets
7,278,493
6,432,993
Capital and reserves
Called up share capital
20
1,000
1,000
Revaluation reserve
21
3,350
3,350
Profit and loss reserves
21
7,274,143
6,428,643
Total equity
7,278,493
6,432,993
The financial statements were approved by the board of directors and authorised for issue on 25 October 2024 and are signed on its behalf by:
C. Boden
Director
Company Registration No. 00699015
BODEN & DAVIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
3,896,476
3,775,327
Interest paid
(517,716)
(331,988)
Net cash inflow from operating activities
3,378,760
3,443,339
Investing activities
Purchase of tangible fixed assets
(1,203,705)
(114,688)
Proceeds on disposal of tangible fixed assets
626,996
401,402
Net cash (used in)/generated from investing activities
(576,709)
286,714
Financing activities
Repayment of borrowings
(10,743)
(19,488)
Repayment of bank loans
(209,554)
(200,053)
Payment of finance leases obligations
(2,719,508)
(2,619,731)
Dividends paid
(142,128)
(142,128)
Net cash used in financing activities
(3,081,933)
(2,981,400)
Net (decrease)/increase in cash and cash equivalents
(279,882)
748,653
Cash and cash equivalents at beginning of year
(477,893)
(1,226,546)
Cash and cash equivalents at end of year
(757,775)
(477,893)
Relating to:
Cash at bank and in hand
804,314
1,718,202
Bank overdrafts included in creditors payable within one year
(1,562,089)
(2,196,095)
BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
1
Accounting policies
Company information

Boden & Davies Limited is a private company limited by shares incorporated in England and Wales. The registered office is Boden House, Lower Green Lane, Astley, Manchester, M29 7JF.

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 on the historical cost convention modified to include certain biological assets at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, 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.

1.3
Turnover

Turnover represents amounts receivable for sawdust related goods despatched and farming goods and services delivered prior to the balance sheet date net of VAT and trade discounts.

1.4
Tangible fixed assets

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

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold land and buildings
2% per annum, straight line basis
Long leasehold land and buildings
2% per annum, straight line basis
Plant and machinery
20 - 25% per annum, reducing balance basis
Fixtures, fittings & equipment
25% per annum, reducing balance basis
Motor vehicles
20 - 25% per annum, reducing balance basis

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.

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.

BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -

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

 

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

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. Biological assets relate to animal livestock owned by the company and are stated at fair value. Fair values of biological assets are arrived at by the directors following a review of recent transaction prices within the market place applied to the livestock held at the balance sheet date.

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 at bank and in hand

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

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

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets are classified into specified categories The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

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
Taxation

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

BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
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.

Deferred tax

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

 

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

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

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

 

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

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

BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The critical estimates made by the directors in preparing these financial statements relate to the assessment of the useful economic lives of the company's tangible fixed assets when determining the appropriate depreciation policies as disclosed in Note 1.4 and the fair value of biological assets disclosed in Note 1.6 and included in Note 12.

 

3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Sawdust contractor
23,437,115
20,850,228
Farming
403,578
363,291
23,840,693
21,213,519
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
23,840,693
21,213,519
4
Exceptional item
2024
2023
£
£
Loan provision
-
746,408
5
Operating profit
2024
2023
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
8,950
8,400
Depreciation of owned tangible fixed assets
1,477,230
1,006,036
Depreciation of tangible fixed assets held under finance leases
1,005,367
1,005,367
Profit on disposal of tangible fixed assets
(431,949)
(121,675)
Rental income
(177,173)
(224,833)
BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
6
Employees

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

2024
2023
Number
Number
Directors
3
3
Administrative
14
14
Yard
24
26
Mechanics
6
7
Drivers
59
48
Farm
3
3
109
101

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,195,698
3,508,886
Social security costs
406,377
353,649
Pension costs
59,046
50,889
4,661,121
3,913,424
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
45,799
42,967
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
35,486
44,987
Interest on invoice finance arrangements
139,072
84,214
174,558
129,201
Other finance costs:
Interest on finance leases and hire purchase contracts
343,158
202,787
517,716
331,988
BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
307,884
498,604

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:

2024
2023
£
£
Profit before taxation
1,295,512
694,224
Expected tax charge based on the standard rate of corporation tax in the UK of 24.00% (2023: 19.00%)
310,923
131,903
Tax effect of expenses that are not deductible in determining taxable profit
2,340
132,518
Effect of change in corporation tax rate
-
0
253,576
Permanent capital allowances in excess of depreciation
(42,440)
(86,015)
Depreciation on ineligible assets
37,061
66,622
Tax expense for the year
307,884
498,604

An increase in the UK corporation tax rate from 19% to 25% (which applied from 1 April 2023) was announced in the Chancellor’s Budget of 3 March 2021. Deferred tax has been calculated at this rate.

 

10
Dividends
2024
2023
£
£
Interim paid
142,128
142,128
BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
11
Tangible fixed assets
Freehold land and buildings
Long leasehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 February 2023
876,942
2,550,670
13,536,565
196,177
10,559,851
27,720,205
Additions
32,867
416,407
3,605,107
-
0
3,079,738
7,134,119
Disposals
-
0
-
0
(910,698)
-
0
(184,628)
(1,095,326)
At 31 January 2024
909,809
2,967,077
16,230,974
196,177
13,454,961
33,758,998
Depreciation and impairment
At 1 February 2023
247,110
644,674
9,924,319
105,049
5,987,557
16,908,709
Depreciation charged in the year
18,080
54,589
1,090,809
22,781
1,296,338
2,482,597
Eliminated in respect of disposals
-
0
-
0
(722,052)
-
0
(178,227)
(900,279)
At 31 January 2024
265,190
699,263
10,293,076
127,830
7,105,668
18,491,027
Carrying amount
At 31 January 2024
644,619
2,267,814
5,937,898
68,347
6,349,293
15,267,971
At 31 January 2023
629,832
1,905,996
3,612,246
91,128
4,572,294
10,811,496

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
4,890,408
2,745,927
Motor vehicles
5,807,692
4,060,879
10,698,100
6,806,806
12
Stocks
2024
2023
£
£
Raw materials and consumables
385,547
227,082
Biological assets
825,465
789,026
Finished goods and goods for resale
281,700
82,328
1,492,712
1,098,436
BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,468,065
4,322,119
Other debtors
648,933
1,107,739
Prepayments and accrued income
497,866
374,946
5,614,864
5,804,804
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
1,846,785
2,405,649
Obligations under finance leases
17
2,898,129
1,917,020
Trade creditors
3,042,035
2,771,291
Taxation and social security
614,126
689,290
Other creditors
45,600
50,331
Accruals and deferred income
339,911
293,824
8,786,586
8,127,405
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Loans
16
575,149
870,588
Obligations under finance leases
17
5,254,587
3,024,790
5,829,736
3,895,378
16
Loans and overdrafts
2024
2023
£
£
Bank loans
572,161
781,715
Bank overdrafts
1,562,089
2,196,095
Other loans
287,684
298,427
2,421,934
3,276,237
Payable within one year
1,846,785
2,405,649
Payable after one year
575,149
870,588

The bank loans and overdrafts are secured by a charge over certain assets of the company, including the company's book debts.

BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
2,898,129
1,917,020
In two to five years
5,254,587
3,024,790
8,152,716
4,941,810

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Net obligations under hire purchase contracts are secured on the assets to which they relate.

18
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
2024
2023
Balances:
£
£
Accelerated capital allowances
1,679,566
1,405,383
Tax losses
(394,520)
(428,221)
1,285,046
977,162
2024
Movements in the year:
£
Liability at 1 February 2023
977,162
Charge to profit or loss
307,884
Liability at 31 January 2024
1,285,046

The deferred tax liability set out above is expected to reverse within 4 years and relates mainly to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,046
50,889

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
19
Retirement benefit schemes
(Continued)
- 21 -

At the balance sheet date the company had outstanding contributions of £13,174 (2023: £10,514) due to the pension scheme.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
10,000
10,000
1,000
1,000

The rights attaching to the different classes of shares are detailed in the company's articles of association.

21
Profit and loss reserves

Profit and loss reserves represent cumulative profits and losses net of distributions to shareholders.

22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
510,837
1,168,426
23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
48,002
46,777

At the balance sheet date the balance due from companies connected via common directors was £297,518 (2023: £332,274).

24
Directors' transactions

Dividends totalling £94,752 (2023: £94,752) were paid in the year in respect of shares held by the company's directors.

 

At the balance sheet date the amount owed to the directors was £204,347 (2023: £212,446).

BODEN & DAVIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
987,628
195,620
Adjustments for:
Taxation charged
307,884
498,604
Finance costs
517,716
331,988
Gain on disposal of tangible fixed assets
(431,949)
(121,675)
Depreciation and impairment of tangible fixed assets
2,482,597
2,011,403
Movements in working capital:
(Increase)/decrease in stocks
(394,276)
620,701
Decrease/(increase) in debtors
189,940
(932,034)
Increase in creditors
236,936
1,170,720
Cash generated from operations
3,896,476
3,775,327
26
Analysis of changes in net debt
1 February 2023
Cash flows
New finance leases
31 January 2024
£
£
£
£
Cash at bank and in hand
1,718,202
(913,888)
-
804,314
Bank overdrafts
(2,196,095)
634,006
-
(1,562,089)
(477,893)
(279,882)
-
0
(757,775)
Borrowings excluding overdrafts
(1,080,142)
220,297
-
(859,845)
Obligations under finance leases
(4,941,810)
2,719,508
(5,930,414)
(8,152,716)
(6,499,845)
2,659,923
(5,930,414)
(9,770,336)
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