Company registration number 06844342 (England and Wales)
COOMBES FORESTRY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
COOMBES FORESTRY LIMITED
COMPANY INFORMATION
Directors
Mr J Coombes
Mr S Coombes
Company number
06844342
Registered office
Unit 6 New Buildings Farm
Winchester Road
Petersfield
Hampshire
United Kingdom
GU32 3PB
Auditor
Azets Audit Services
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
COOMBES FORESTRY LIMITED
CONTENTS
Page
Strategic report
2 - 7
Directors' report
1
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 30
COOMBES FORESTRY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present their Annual Report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activities of the Company continued to be that of comprehensive forestry, arboricultural and vegetation management, civil engineering, practical environmental support, and specialist road rail plant hire services.
Results and dividends
The results for the year are set out on page 12.
No ordinary dividends were paid. 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:
Mr J Coombes
Mr S Coombes
Financial instruments
The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.
Auditor
Azets Audit Services were appointed as auditor to the Company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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. It has done so in respect of future developments.
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 J Coombes
Director
18 November 2024
COOMBES FORESTRY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present the Strategic Report for the year ended 31 March 2024.
The company has delivered strong results on a reduced turnover arising from a challenging market.
The reduction in turnover was anticipated, due to the completion of three years of non-recurring HS2 project work in October 2022, which significantly benefited the financial results of the three previous reporting periods, but which was substantially delivered via our supply chain. Excluding HS2 activity, the business has grown significantly over the previous four years in terms of the underlying cyclical contract base, infrastructure and people.
Whilst total turnover contracted by £10.0m from £32.9m for the 14 months ended 31 March 2023 to £22.9m for the year ended 31 March 2024, turnover excluding the HS2 activity reduced by £0.5m (2%) on a 12-month comparative basis.
This non HS2 turnover decline arose due to lower rail arboriculture and civils turnover. This occurred due to budget constraints attributable to the five-year railway control period (CP6) ending in March 2024. This reduction was partly offset by turnover growth within our On Track Plant, Ecology and Fencing divisions.
Gross profit reduced by £1.6m from £10.5m to £8.9m because of the reduction in turnover, but this was mitigated by an increase in gross margin from 32% to 39%.
Administrative expenses reduced by £0.6m from £6.7m to £6.1m, but increased from 20% to 26% of turnover, with cost savings arising from the turnover reduction being limited by continued investment in non-operative staff and systems to support future growth.
Increases in interest rates enabled a better return on our cash reserves.
The overall net profit before tax reduced from £3.8m to £3.0m, whilst the margin increased from 12% to 13%.
Our balance sheet remains strong, with £9.7m of cash reserves at year end and £8.2m closing balance in net funds.
Rail Services Divisions
Overview
As above, rail turnover turnover experienced a significant reduction due to the completion of HS2 project work.
Turnover was also negatively impacted by the five yearly government rail funding cycle. Our principal rail clients (Network Rail, Tier 1 Contractors and the Train Operating Companies) were in the last year of Control Period 6, which ended on 31 March 2024.
Funding available in the final year of CP6 was constrained, affecting all suppliers in the rail sector. This was due to various unbudgeted factors including: additional spend relating to Covid-19, inflation, reduced passenger numbers and government efficiency requirements.
Despite the challenging environment, we have maintained market share and continued momentum in establishing Coombes as a multi-divisional rail services provider. The continued investment in our newer divisions led to both standalone and complimentary turnover opportunities.
We tendered for two particularly significant contracts with Network Rail during the year and were successful in both.
In April 2024 we were delighted to secure a 10 year (5+5yrs) Minor Works framework contract with Network Rail Southern for Control Periods 7&8, focussed primarily on the Wessex route with wider opportunities expected for the whole region. This contract is expected to form an economic foundation for the whole business and provides significant opportunity for turnover growth across all rail divisions.
In April 2024 we won two six year (3+3 yrs) Ecology Framework Service (ESF) contracts with Network Rail for Biodiversity Management and Ecological Protection Services, establishing Coombes as a principal ecology services contractor.
COOMBES FORESTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Arboriculture and Fencing
Whilst turnover declined, our Arboriculture and Fencing departments had a solid year given the challenging rail market and the end of our HS2 works. We maximised the limited turnover opportunities available. Key customer relationships were maintained and enhanced.
Network Rail remains our primary client but pleasingly we have won increasing business with Tier 1 rail contractors and house builders.
We continued to expand our presence in the eastern and central regions of the country and have formed a team to specifically target and deliver for these regions.
The outlook is strong. As above, the Minor Works framework contract win in the Wessex region is very positive. Turnover under this contract is expected to grow throughout FY25 before levelling off.
Civils
The challenging rail market particularly affected our civils division, with several larger orders cancelled due to funding availability.
The team was however able to develop promising client relationships and opportunities, most notably with works delivered for HS1 (High Speed Rail), TFL (Transport For London) and the SRE (Southern Renewals Enterprise).
The Minor Works framework contract will be a key route to market for our civils division.
We have continued to invest in people and infrastructure that will support the increased workload that is anticipated.
On Track Plant (“OTP”)
OTP turnover increased in the year, primarily via opportunities with Tier 1 rail contractors, alleviating the lower activity arising from our arboriculture and civils divisions.
We expanded the breadth and value of OTP services by offering packaged solutions including operatives and project management; and by expanding our range of plant attachments to create better base unit utilisation.
The outlook is positive with a wide portfolio of external clients and expected growth in internal arboriculture and civils activity arising from the Minor Works framework contract.
Ecology
Ecology turnover increased in the year. The division provides significant support to all Coombes’ trading divisions and has direct relationships with Tier 1 rail contractors.
We have focused on delivering both consultancy and project services, these compliment each other and represent a high value service for our clients.
We expect Ecology to be a significant area of growth for the business with changes to BNG legal requirements creating further demand.
As above, the ESF (Ecology Services Frameworks) framework contract win in April 2024 establishes Coombes as a principal ecology services contractor. It will provide opportunity for significant turnover growth during the initial 3-year term and potentially beyond.
COOMBES FORESTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Forestry Services Division
Our Forestry division experienced a steady year, with turnover broadly flat. We have maintained market share and key client relationships.
The traditional timber harvesting and marketing activity programme has remained consistent with markets and resource in a settled period. The developing markets within non-traditional products, graded firewood and energy from wood biomass continue to support the activities.
We have been actively tendering for renewal and new business, with success.
In October 2023 we were awarded a large (50ha) dry heathland and wetland restoration project in the North Wessex Downs. Coombes is principal contractor, and the works will occur between Autumn 2024 and Spring 2026.
In September 2024, we were awarded a five-year direct production harvesting contract with the Crown Estate (replacing the previous annual contract).
At the time of this report, we are in the 5th and final year (ends March 2025) of our Forestry England South District direct production harvesting contract. We will seek to expand upon the territories currently worked.
It will be key for the Forestry division to continue growing into the tree safety/plant health and alternative products markets whilst maintaining business with our private and public sector clients.
The UK forestry sector is evolving but we anticipate that change will be slow. Forestry England, FISA and the HSE look to other sectors, such as construction, for guidance and industry best practice.
We continue to invest in our people, plant and processes to ensure that Coombes achieves the delivery and compliance needs of this evolving sector.
COOMBES FORESTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Business Outlook
The market continues to be challenging as orders for the new railway control period (CP7) have been slow to materialise. However, this is similar to our experience at the beginning of CP6, and is expected to be temporary. Railways require regular maintenance. Periods of low maintenance increase future work requirements. Our recent contract wins and strong balance sheet mitigate the risk of any prolonged downturn.
At the time of this report we are seeing an increase in orders received and tendering activity across all divisions.
Health and Safety
Coombes continues to prioritise health and safety. This applies not only to our staff but also to our subcontractors, suppliers, customers and the public. We have an experienced internal health and safety department and track a variety of indicators to monitor and assess our performance, which is closely and regularly reviewed by the directors.
Environment
Coombes is committed to minimising the impact its operations have on the environment. We focus on reducing emissions, increasing bio-diversity and reducing landfill waste, supported by our in-house ecology experts.
Member of the 5% Club
Coombes is committed to tackling economic inequality and does this by creating rewarding and engaging employment opportunities, and by providing all staff with opportunities for training, upskilling and career development.
In June 2023 Coombes signed up to the 5% Club Charter, pledging to work towards having a minimum of 5% of employees in ‘Earn and Learn’ positions by 2028.
In furtherance of this commitment, two apprenticeship roles were created in the year. We will continue to identify new opportunities for apprenticeships, skills development and training that address youth unemployment and skills shortages within the sectors that we work in.
COOMBES FORESTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Principle risks and uncertainties
Economic and political conditions
Changing economic and political conditions can affect our business in different ways, which may be difficult to predict.
Coombes’ rail services are publicly funded, so performance and outlook are significantly influenced by UK government infrastructure policy.
Coombes’ forestry services clients represent both the public and private sector. Forestry services are significantly influenced by UK government energy and environmental policy.
A worsening economic environment would generally negatively impact public sector funding and private sector demand and impact our supply chain.
Spikes in labour rates and energy costs would reduce our profitability under certain contracts in the short term.
We mitigate these risks by pricing our work appropriately, ensuring suitable price indexation mechanisms exist in longer term contracts, and maintaining operational flexibility via our supply chain.
IT Systems
The group relies on its IT systems across the divisions. Any significant disruption or failure caused by external factors, viruses or internal error could cause service interruption, information misappropriation or corruption. In turn this could lead to revenue reduction or increased costs.
All business areas are seeing increasingly sophisticated cyber security attacks. Coombe’s systems are increasingly using mobile applications and the internet which increases the risk of unauthorised access to our data.
A failure to comply with the General Data Protection Regulation rules could result in penalties which would have an adverse impact on Coombes.
We continuously strengthen and review our IT capability and protection and are vigilant regarding data attacks.
Contract business
Upwards of 80% of Coombes’ business is in the rail sector and is concentrated amongst a small number of clients and framework contracts.
We are dependent on our ability to renew and secure new contracts as the existing ones expire. A failure to secure new contracts would result in reduced turnover and profitability.
A failure to meet customer expectations or comply with increasingly onerous contractual requirements, could result in contract termination, penalties and/or litigation, which could result in direct financial losses and the loss of current and future business.
We mitigate the risk of contract loss via strong customer relationships, excellent delivery, ensuring an appropriate balance of risk in our contracts, robust compliance functions, and tendering expertise.
COOMBES FORESTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Compliance and Health and Safety
Coombes’ activities are subject to substantial regulation and legislation. Failure to comply could lead to direct losses and the loss of current and future business.
We mitigate these risks by operating industry leading quality, environmental, and healthy & safety management systems, accredited to ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 (ISOQAR 2024 – no.10620). These certifications demonstrate our dedication to continuous improvement and adherence to internationally recognized standards in delivering excellence, sustainability, and a safe working environment.
Key Performance Indicators
The directors consider the following indicators will provide sufficient information to assess the company’s performance:
Mr J Coombes
Director
18 November 2024
COOMBES FORESTRY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
COOMBES FORESTRY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COOMBES FORESTRY LIMITED
- 9 -
Opinion
We have audited the financial statements of Coombes Forestry Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the directors' Report have been prepared in accordance with applicable legal requirements.
COOMBES FORESTRY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COOMBES FORESTRY LIMITED
- 10 -
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 and the director's Report.
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 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, 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.
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.
COOMBES FORESTRY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COOMBES FORESTRY LIMITED
- 11 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Mr Richard Hutchinson
Senior Statutory Auditor
For and on behalf of Azets Audit Services
18 November 2024
Chartered Accountants
Statutory Auditor
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
COOMBES FORESTRY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Year
Period
ended
ended
31 March
31 March
2024
2023
as restated
Notes
£
£
Turnover
3, 11
22,926,962
32,906,460
Cost of sales
(14,075,587)
(22,440,609)
Gross profit
8,851,375
10,465,851
Distribution costs
(6,513)
(10,171)
Administrative expenses
(6,068,454)
(6,727,549)
Other operating income
47,291
60,063
Operating profit
4
2,823,699
3,788,194
Interest receivable and similar income
7
303,884
53,283
Interest payable and similar expenses
8
(89,868)
(20,459)
Profit before taxation
3,037,715
3,821,018
Tax on profit
9
(750,765)
(680,136)
Profit for the financial year
2,286,950
3,140,882
The profit and loss account has been prepared on the basis that all operations are continuing operations.
COOMBES FORESTRY LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 13 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,919,086
4,789,258
Current assets
Stocks
14
62,341
36,695
Debtors
15
5,638,060
5,012,483
Cash at bank and in hand
9,708,201
10,222,814
15,408,602
15,271,992
Creditors: amounts falling due within one year
16
(4,432,275)
(6,325,456)
Net current assets
10,976,327
8,946,536
Total assets less current liabilities
14,895,413
13,735,794
Creditors: amounts falling due after more than one year
17
(597,461)
(1,492,804)
Provisions for liabilities
Deferred tax liability
19
583,984
815,972
(583,984)
(815,972)
Net assets
13,713,968
11,427,018
Capital and reserves
Called up share capital
22
10,100
10,100
Share premium account
2,050
2,050
Profit and loss reserves
13,701,818
11,414,868
Total equity
13,713,968
11,427,018
The financial statements were approved by the board of directors and authorised for issue on 18 November 2024 and are signed on its behalf by:
Mr S Coombes
Director
Company Registration No. 06844342
COOMBES FORESTRY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 February 2022
10,100
2,050
13,546,186
13,558,336
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
-
3,140,882
3,140,882
Dividends
10
-
-
(5,272,200)
(5,272,200)
Balance at 31 March 2023
10,100
2,050
11,414,868
11,427,018
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
2,286,950
2,286,950
Balance at 31 March 2024
10,100
2,050
13,701,818
13,713,968
COOMBES FORESTRY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,478,531
6,273,334
Interest paid
(89,868)
(20,459)
Income taxes paid
(1,001,949)
(1,131,573)
Net cash inflow from operating activities
1,386,714
5,121,302
Investing activities
Purchase of tangible fixed assets
(1,105,051)
(612,868)
Proceeds from disposal of tangible fixed assets
310,579
286,550
Repayment of loans
(97)
Interest received
303,884
53,283
Net cash used in investing activities
(490,685)
(273,035)
Financing activities
Payment of finance leases obligations
(1,410,642)
(834,572)
Dividends paid
(5,272,200)
Net cash used in financing activities
(1,410,642)
(6,106,772)
Net decrease in cash and cash equivalents
(514,613)
(1,258,505)
Cash and cash equivalents at beginning of year
10,222,814
11,481,319
Cash and cash equivalents at end of year
9,708,201
10,222,814
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information
Coombes Forestry Limited is a private company, limited by shares, domiciled and incorporated in England and Wales (registered number: 06844342). The registered office address is Unit 6 New Buildings Farm, Winchester Road, Petersfield, Hampshire, United Kingdom, GU32 3PB.
1.1
Reporting period
The prior year reporting period was for a period of 14 months, having been extended for business reasons. The current reporting period is for 12 months. The comparative amounts in the financial statements and notes are therefore not entirely comparable.
1.2
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. These financial statements are for this individual entity only.
The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The financial statements relate to Coombes Forestry Limited as an individual entity.
1.3
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.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
20% Straight line
1.7
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 land and buildings
25% straight line
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
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.
1.8
Impairment of fixed assets
At each reporting period end date, the Company reviews the carrying amounts of its tangible and intangible 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.
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
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 Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
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.
1.12
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.
1.13
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.
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.
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight-line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the 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.
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
The directors use their experience to review and estimate useful economic lives and residual values of all assets, taking into account both standards of maintenance and technical obsolescence. Depreciation policies as noted within the accounting policies are based upon these estimates. Accumulated depreciation carried forward at 31 March 2024 is £7.09m.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Services provided
22,926,962
32,906,460
2024
2023
£
£
Other revenue
Interest income
303,884
53,283
Grants received
47,166
59,520
The company's turnover derives from services provided to its client base.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(47,166)
(59,520)
Fees payable to the company's auditor for the audit of the company's financial statements
22,500
21,000
Depreciation of owned tangible fixed assets
714,040
975,131
Depreciation of tangible fixed assets held under finance leases
1,194,326
1,070,905
Profit on disposal of tangible fixed assets
(243,722)
(155,851)
Operating lease charges
159,798
163,089
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
75
62
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 23 -
Their aggregate remuneration comprised:
2024
2023
as restated
£
£
Wages and salaries
4,150,856
4,040,415
Social security costs
420,906
534,939
Pension costs
103,788
76,742
4,675,550
4,652,096
Employee costs for 2023 have been reanalysed between wages and salaries and social security costs, with an increase of £100,366 to wages and salaries and a corresponding decrease in social security costs.
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
428,365
310,097
Company pension contributions to defined contribution schemes
4,476
3,082
432,841
313,179
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
226,603
201,723
Company pension contributions to defined contribution schemes
2,238
1,541
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
282,935
51,440
Other interest income
20,949
1,843
Total income
303,884
53,283
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Interest receivable and similar income
(Continued)
- 24 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
282,935
51,440
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
4,384
Other finance costs:
Interest on finance leases and hire purchase contracts
89,868
16,075
89,868
20,459
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
925,846
338,118
Adjustments in respect of prior periods
56,907
(47,041)
Total current tax
982,753
291,077
Deferred tax
Origination and reversal of timing differences
(231,988)
389,059
Total tax charge
750,765
680,136
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)
- 25 -
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
3,037,715
3,821,018
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
759,429
725,993
Tax effect of expenses that are not deductible in determining taxable profit
15,512
10,381
Depreciation on assets not qualifying for tax allowances
(6,083)
424
Research and development tax credit
(47,392)
Under/(over) provided in prior years
56,907
(47,041)
Deferred tax adjustments in respect of prior years
(75,000)
119,746
Super deduction
(146,610)
Effect of change in tax rates
64,635
Taxation charge for the year
750,765
680,136
10
Dividends
2024
2023
£
£
Final paid
5,272,200
11
Prior period adjustment
The directors have reviewed the allocation of wages and salaries between cost of sales and administration expenses.
This has resulted in a prior year adjustment as follows:-
Wages and salaries increase to cost of sales of £1,498,669
Social security costs increase to cost of sales of £176,879
Pension Costs increase to cost of sales of £45,858
There is a corresponding decrease in administration costs.
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Prior period adjustment
(Continued)
- 26 -
Reconciliation of changes in profit for the previous financial period
2023
£
Total adjustments
-
Profit as previously reported
3,140,882
Profit as adjusted
3,140,882
12
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
370,000
12,856
382,856
Amortisation and impairment
At 1 April 2023 and 31 March 2024
370,000
12,856
382,856
Carrying amount
At 31 March 2024
At 31 March 2023
13
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
2,400
8,947,822
82,771
76,114
1,442,719
10,551,826
Additions
30,055
498,159
36,579
49,620
490,638
1,105,051
Disposals
(450,550)
(9,709)
(189,278)
(649,537)
At 31 March 2024
32,455
8,995,431
119,350
116,025
1,744,079
11,007,340
Depreciation and impairment
At 1 April 2023
2,152
4,876,249
60,496
34,755
788,916
5,762,568
Depreciation charged in the year
5,257
1,526,933
17,711
19,177
339,288
1,908,366
Eliminated in respect of disposals
(443,430)
(3,722)
(135,528)
(582,680)
At 31 March 2024
7,409
5,959,752
78,207
50,210
992,676
7,088,254
Carrying amount
At 31 March 2024
25,046
3,035,679
41,143
65,815
751,403
3,919,086
At 31 March 2023
248
4,071,573
22,275
41,359
653,803
4,789,258
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Tangible fixed assets
(Continued)
- 27 -
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 equipment
2,093,059
3,231,674
Motor vehicles
55,713
111,425
2,148,772
3,343,099
14
Stocks
2024
2023
£
£
Raw materials and consumables
62,341
36,695
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,514,116
1,471,932
Corporation tax recoverable
219,021
199,825
Other debtors
1,729,762
1,058,602
Prepayments and accrued income
2,175,161
2,282,124
5,638,060
5,012,483
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18
927,116
1,442,415
Trade creditors
1,071,527
2,120,132
Taxation and social security
756,601
440,801
Other creditors
82,856
18,842
Accruals and deferred income
1,594,175
2,303,266
4,432,275
6,325,456
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
597,461
1,492,804
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Creditors: amounts falling due after more than one year
(Continued)
- 28 -
All obligations under hire purchase or finance lease arrangements are secured against the assets to which they relate.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
973,678
1,539,789
In two to five years
609,920
1,561,050
1,583,598
3,100,839
Less: future finance charges
(59,021)
(165,620)
1,524,577
2,935,219
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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 3 year 10 month. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the Company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
719,293
817,440
Retirement benefit obligations
(3,408)
(1,468)
Expense timing differences
(131,901)
-
583,984
815,972
2024
Movements in the year:
£
Liability at 1 April 2023
815,972
Credit to profit or loss
(231,988)
Liability at 31 March 2024
583,984
The deferred tax liability set out above relating to accelerated capital allowances is expected to reverse within 4 to 5 years.
The deferred tax liability in respect of expense timing differences and retirement pension obligations is expected to reverse within 1 year.
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
20
Government grants
The company received a government grant in November 2018 to purchase a piece of plant. The grant is being deferred over five years on a straight line basis in line with the depreciation rate for the asset.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
103,788
76,742
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.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
10,100
10,100
10,100
10,100
23
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:
2024
2023
£
£
Within one year
149,728
54,819
Between two and five years
321,016
222,886
In over five years
470,744
277,705
24
Related party transactions
Transactions with related parties
During the year the company made loans totalling £668,892 (2023: £1,036,048) to three companies under common control of the company's directors and shareholders.
No interest is charged on the loan.
At the period end the amount owed to the company was £1,704,940 (2023: £1,036,048).
COOMBES FORESTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,286,950
3,140,882
Adjustments for:
Taxation charged
750,765
680,136
Finance costs
89,868
20,459
Investment income
(303,884)
(53,283)
Gain on disposal of tangible fixed assets
(243,722)
(155,851)
Depreciation and impairment of tangible fixed assets
1,908,366
2,046,036
Movements in working capital:
Increase in stocks
(25,646)
(31,695)
(Increase)/decrease in debtors
(606,284)
829,074
Decrease in creditors
(1,377,882)
(202,424)
Cash generated from operations
2,478,531
6,273,334
26
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
10,222,814
(514,613)
9,708,201
Obligations under finance leases
(2,935,219)
1,410,642
(1,524,577)
7,287,595
896,029
8,183,624
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