Company Registration No. 01866287 (England and Wales)
WOOD INTERNATIONAL AGENCY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
LB GROUP
19th Floor
1 Westfield Avenue
London
E20 1HZ
WOOD INTERNATIONAL AGENCY LIMITED
COMPANY INFORMATION
Directors
Mr A Lamont
Mr M Lamont
Mrs V Lamont
Mrs C Lamont
Mr W Lindenberg
Mr N Harrison
(Appointed 9 October 2023)
Mr P Gutteridge
(Appointed 9 October 2023)
Mr G Miller
(Appointed 9 October 2023)
Mr S Ross
(Appointed 9 October 2023)
Secretary
Mrs V Lamont
Company number
01866287
Registered office
Wood House, 16 King Edward Road
Brentwood
Essex
CM14 4HL
Auditor
LB Group Limited (Stratford)
19th Floor
1 Westfield Avenue
London
E20 1HZ
WOOD INTERNATIONAL AGENCY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 27
WOOD INTERNATIONAL AGENCY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
Turnover has increased by £1,176,935 from £69,555,597 in 2023 to £70,732,532 in 2024, a 1.7% increase.
Gross profit has increased by £693,988 from £3,929,028 in 2023 to £4,623,016 in 2024, a 17.7% increase. Gross profit margin has increased from 5.65% in 2023 to 6.5%.
Operating profit has increased by £796,180 from £1,821,153 in 2023 to £2,617,333, a 43.7% increase.
Profit after tax for 2024 was £1,559,746 compared to profit after tax of £1,149,369 in 2023.
The net assets of the company at the year-end were £9,741,259 compared to £9,827,348 in 2023, a decrease of £86,089.
Principal risks and uncertainties
Margin Erosion
The global economic situation could result in rising cost prices of timber that could lead to the erosion of profits in the short to medium term,
By closely monitoring the market and being in close contact with suppliers and customers the company expects to be able to mitigate this risk through good quality data when making purchase and sale choices.
Timber Supply
The company is reliant on being able to obtain supply from timber mills to enable them to to have the stock to sell. If mills supply other competitors then the timber supply could be impacted.
The company has long standing relationships and agreements with timber mills in varied geographic areas. These relationships and varied supply mitigate the risk.
Competition in our Market
The company operates in a competitive market. Whilst quality may vary competitors will all be able to deliver the same product.
By ensuring the product purchased from suppliers is top quality and relationships with customers are maintained this risk will be adequately ,mitigated.
Key performance indicators
WOOD INTERNATIONAL AGENCY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Statement by the directors relating to their statutory duties under s172(1) Companies Act 2006
During the year the directors consider, both individually and collectively, that, in the decisions taken during the financial year, they have satisfied the requirements of s172(1) of the Companies Act 2006 in acting in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its' members as a whole and in doing so having regard to the stakeholders and matters outlined in s172(1).
Long term plan
The Board considers the interest of a range of stakeholders impacted by our business and recognises that valuable stakeholder engagement underpins our ability to achieve our purpose and strategic aim. Key stakeholder relationships are regularly reviewed, including how we engage with them and whether any improvements can be made. The relevance of each stakeholder group will depend on the particular mater requiring Board decision.
The key strategic decisions for the Board during the year relate to long term growth and the development of new products and offerings.
Employees
The company's strategy is to attract, retain, develop and promote the best people through communication, inclusion, management and leadership, rewards and remuneration, training and development, teamwork, working conditions, values and behaviour.
Customer care
The company understands that engagement, through listening, understanding and responding to customers and prospective customers, is critical to long term success. The directors regularly engage with customers through user group meetings and customer satisfaction surveys.
Suppliers and other stakeholders
The company's success and reputation is intrinsically linked to its relationship with its partners and suppliers. The directors seek to maintain and develop strong, open collaborative and positive relationship with our advisers, suppliers and subcontractors.
Shareholders and other stakeholders
As a privately owned business with a small group of shareholders, the board are keen to understand and meet the objectives of the shareholders and reflecting these where possible when developing the company's long-term plan.
The directors maintain regular and open relationship and group updates with other stakeholders such as banks and funders, insurers, auditors, HMRC and government.
The company's plans, strategic and policies have been considered by the directors to ensure the the company maintains the highest standards of business conduct.
Mr A Lamont
Director
20 December 2024
WOOD INTERNATIONAL AGENCY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company during the year was that of a timber agent.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,646,035. The directors do not recommend payment of a further 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 A Lamont
Mr M Lamont
Mrs V Lamont
Mrs C Lamont
Mr W Lindenberg
Mr N Harrison
(Appointed 9 October 2023)
Mr P Gutteridge
(Appointed 9 October 2023)
Mr G Miller
(Appointed 9 October 2023)
Mr S Ross
(Appointed 9 October 2023)
Financial instruments
The company's financial instruments at the balance sheet comprise invoice discounting facilities, cash and liquid resources. The main purpose of these financial instruments are to provide finance for the company's operations. The company has various other financial instruments such as trade debtors and trade creditors, that arise directly from its operations.
The main risks arising from the company's financial instruments are interest rate risk and liquidity risk.
Liquidity risk
The company's objective is to maintain a balance between continuity of funding and the flexible use of funding by way of invoice discounting arrangement, directors loans and similar arrangements. Short term flexibility is achieved by overdraft facilities.
Interest rate risk
The company has a policy to manage any exposure to interest rate fluctuations so as to finance its operations through retained profits and borrowings.
Financial assets
The company has no financial assets other than stock, short-term debtors and cash at bank.
Borrowing facilities
The company has committed borrowing facilities.
Future developments
The company is to continue to build upon the success of it's products to date and to strive for even greater customer satisfaction.
WOOD INTERNATIONAL AGENCY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Auditor
The auditor, LB Group Limited (Stratford), is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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.
On behalf of the board
Mr A Lamont
Director
20 December 2024
WOOD INTERNATIONAL AGENCY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
WOOD INTERNATIONAL AGENCY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WOOD INTERNATIONAL AGENCY LIMITED
- 6 -
Opinion
We have audited the financial statements of Wood International Agency Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, 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 30 April 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.
based on the work undertaken in the course of the audit, the strategic report (if any) and directors' report is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.
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.
WOOD INTERNATIONAL AGENCY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WOOD INTERNATIONAL AGENCY LIMITED
- 7 -
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:
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.
WOOD INTERNATIONAL AGENCY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WOOD INTERNATIONAL AGENCY LIMITED
- 8 -
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.
Irregularities, including 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.
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the timber agent sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and reviewing for evidence of correspondence with legal advisors.
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 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.
WOOD INTERNATIONAL AGENCY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WOOD INTERNATIONAL AGENCY LIMITED
- 9 -
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.
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.
Mark Middleton
Senior Statutory Auditor
For and on behalf of LB Group Limited (Stratford)
20 December 2024
Chartered Accountants
Statutory Auditor
19th Floor
1 Westfield Avenue
London
E20 1HZ
WOOD INTERNATIONAL AGENCY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
70,732,532
69,555,597
Cost of sales
(66,109,516)
(65,626,569)
Gross profit
4,623,016
3,929,028
Administrative expenses
(2,017,683)
(2,119,875)
Other operating income
12,000
12,000
Operating profit
4
2,617,333
1,821,153
Interest receivable and similar income
8
368
Interest payable and similar expenses
9
(506,084)
(346,339)
Profit before taxation
2,111,617
1,474,814
Tax on profit
10
(551,871)
(325,445)
Profit for the financial year
1,559,746
1,149,369
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WOOD INTERNATIONAL AGENCY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
£
£
Profit for the year
1,559,746
1,149,369
Other comprehensive income
-
-
Total comprehensive income for the year
1,559,746
1,149,369
WOOD INTERNATIONAL AGENCY LIMITED
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
138,948
49,354
Current assets
Stocks
14
4,455,804
3,737,456
Debtors
15
21,798,895
17,232,578
Cash at bank and in hand
381,015
572,373
26,635,714
21,542,407
Creditors: amounts falling due within one year
16
(17,033,403)
(11,764,413)
Net current assets
9,602,311
9,777,994
Net assets
9,741,259
9,827,348
Capital and reserves
Called up share capital
19
4,000
3,800
Profit and loss reserves
9,737,259
9,823,548
Total equity
9,741,259
9,827,348
The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
Mr A Lamont
Director
Company Registration No. 01866287
WOOD INTERNATIONAL AGENCY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
3,800
9,247,775
9,251,575
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
1,149,369
1,149,369
Dividends
11
-
(573,596)
(573,596)
Balance at 30 April 2023
3,800
9,823,548
9,827,348
Year ended 30 April 2024:
Profit and total comprehensive income for the year
-
1,559,746
1,559,746
Issue of share capital
19
200
-
200
Dividends
11
-
(1,646,035)
(1,646,035)
Balance at 30 April 2024
4,000
9,737,259
9,741,259
WOOD INTERNATIONAL AGENCY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
750,745
2,235,371
Interest paid
(506,084)
(346,339)
Income taxes paid
(414,092)
(880,205)
Net cash (outflow)/inflow from operating activities
(169,431)
1,008,827
Investing activities
Purchase of tangible fixed assets
(119,825)
(15,048)
Proceeds from disposal of tangible fixed assets
16,084
Interest received
368
Net cash used in investing activities
(103,373)
(15,048)
Financing activities
Proceeds from issue of shares
200
Repayment of bank loans
1,776,530
774,030
Dividends paid
(1,646,035)
(573,596)
Net cash generated from financing activities
130,695
200,434
Net (decrease)/increase in cash and cash equivalents
(142,109)
1,194,212
Cash and cash equivalents at beginning of year
288,208
(906,004)
Cash and cash equivalents at end of year
146,099
288,208
Relating to:
Cash at bank and in hand
381,015
572,373
Bank overdrafts included in creditors payable within one year
(234,916)
(284,165)
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information
Wood International Agency Limited is a private company limited by shares incorporated in England and Wales. The registered office is Wood House, 16 King Edward Road, Brentwood, Essex, CM14 4HL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors foresee the going concern of the business for 12 months from the approval of the financial statement based on the growth and strong performance of the company. Thus, the truedirectors 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 is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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 the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets - goodwill
Acquired goodwill was written off in equal annul instalments over its useful economic life.
1.5
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:
Fixtures, fittings & equipment
20% straight line
Motor vehicles
20% 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.
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.6
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.
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.
1.7
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.
1.8
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.
1.9
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.
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
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.
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.
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
1.15
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Inventory impairment
The company makes an estimate of the recoverable value of the cost of inventory.
When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of inventory items and future demands for its products.
Bad debt provisioning
In order to monitor potential credit losses, we perform ongoing credit evaluations of our customer's' financial condition. An allowance for doubtful accounts is maintained for potential credit losses based upon management's assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed periodically to assess the adequacy of the allowance.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Timber Wholesale
70,732,532
69,555,597
2024
2023
£
£
Other significant revenue
Interest income
368
-
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
70,732,532
69,555,597
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(76,283)
271,553
Depreciation of owned tangible fixed assets
28,790
26,807
Profit on disposal of tangible fixed assets
(14,642)
-
Operating lease charges
57,000
34,159
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,600
16,000
For other services
All other non-audit services
1,950
2,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administrative
17
12
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
813,075
645,905
Social security costs
36,921
18,580
Pension costs
413,459
434,696
1,263,455
1,099,181
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
327,445
165,200
Company contributions to a pension scheme
419,238
279,962
746,683
445,162
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2023: 5).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
£
Remuneration for qualifying services
58,333
Company pension contributions to defined contribution schemes
5,650
Key management personnel is regards as comprising the board of directors and the total remuneration of key management personnel is disclosed above.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
368
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
368
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
506,084
346,339
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
551,871
328,405
Adjustments in respect of prior periods
(2,960)
Total current tax
551,871
325,445
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
2,111,617
1,474,814
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
527,904
287,589
Tax effect of expenses that are not deductible in determining taxable profit
54,104
43,204
Effect of change in corporation tax rate
(2,026)
Permanent capital allowances in excess of depreciation
(30,137)
(3,322)
Taxation charge for the year
551,871
325,445
11
Dividends
2024
2023
£
£
Final paid
1,646,035
573,596
12
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
267,317
Amortisation and impairment
At 1 May 2023 and 30 April 2024
267,317
Carrying amount
At 30 April 2024
At 30 April 2023
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
13
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 May 2023
204,810
36,500
241,310
Additions
20,336
99,489
119,825
Disposals
(149,840)
(36,500)
(186,340)
At 30 April 2024
75,306
99,489
174,795
Depreciation and impairment
At 1 May 2023
156,470
35,486
191,955
Depreciation charged in the year
18,218
10,572
28,790
Eliminated in respect of disposals
(149,413)
(35,485)
(184,898)
At 30 April 2024
25,275
10,573
35,847
Carrying amount
At 30 April 2024
50,031
88,916
138,948
At 30 April 2023
48,340
1,014
49,354
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
4,455,804
3,737,456
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
18,275,445
15,639,207
Other debtors
579,112
182,720
Prepayments and accrued income
2,944,338
1,410,651
21,798,895
17,232,578
Included in other debtors is balance of £429,833 (2023: £182,270) due from related party companies. Amounts owed by related party companies are interest free and repayable on demand.
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
2,785,476
1,058,195
Trade creditors
3,454,616
2,542,833
Corporation tax
293,898
156,119
Other taxation and social security
21,798
343,407
Other creditors
9,778,024
7,205,343
Accruals and deferred income
699,591
458,516
17,033,403
11,764,413
Included in other creditors is balance of £Nil (2023: £3,089) due to related party company. Amounts owed to related party company are interest free and repayable on demand.
17
Loans and overdrafts
2024
2023
£
£
Bank loans
2,550,560
774,030
Bank overdrafts
234,916
284,165
2,785,476
1,058,195
Payable within one year
2,785,476
1,058,195
The loans are secured against the assets of the related party WIFE Holdings Limited, and guaranteed by Wood International (Far East) Limited.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,766
15,458
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.
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
Ordinary E of 1p each
360,000
360,000
3,600
3,600
Ordinary B of £1 each
100
100
100
100
Ordinary D of £1 each
100
-
100
-
Ordinary F of £1 each
100
-
100
-
360,400
360,200
4,000
3,800
The Ordinary shares hold no restrictions on the distribution of dividends and the repayment of capital.
The Ordinary B shares carry no rights to vote and shares carry the right to receive a dividend.
The Ordinary E shares carry no rights to vote and will only be entitled to receive a payment of 1p per share.
The Ordinary D shares carry no rights to vote and will only be entitled to receive a payment of £1 per share.
The Ordinary F shares carry no rights to vote and will only be entitled to receive a payment of £1 per share.
20
Financial commitments, guarantees and contingent liabilities
The company is granted a banking facility which is held on a joint and several basis with Wood International (Far East) Limited and W.I.F.E. Holdings Limited. There is a cross guarantee between the company and the above entities for the banking facility.
21
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
87,627
51,626
Between two and five years
227,280
65,823
314,907
117,449
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
22
Related party transactions
Mr M Lamont is also a director of Wood International (Far East) Limited. During the year, the company received management charges from Wood International (Far East) Limited of £12,000 (2023: £12,000).
The balance owed to Wood International (Far East) Limited at the balance sheet date was £Nil (2023: £3,089).
The directors of the company are also partners in Wood International Consultancy. The balance due from Wood International Consultancy at the balance sheet date was £60,000 (2023: £93,695 ).
The directors of the company are also partners in Far East Consultancy. The balance due from Far East Consultancy at the balance sheet date was £Nil (2023: £4,478).
The directors of the company are also directors in Amisla Limited. The balance due from Amisla Limited at the balance sheet date was £369,833 (2023: £83,717).
23
Ultimate controlling party
The ultimate controlling party throughout the year was Mr A Lamont by virtue of his majority holding in the ordinary share capital of the company.
24
Post Balance Sheet Events
After the year end the company received a claim for damages from a freight supplier relating to freight activities in the financial year. The company has made a counter claim against the freight supplier.
At the time of signing, the directors are of the view that, the level and probability of payment of damages, if any, is not quantifiable. Similarly at this point the level and probability of payment of damages to the company is also not quantifiable.
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,559,746
1,149,369
Adjustments for:
Taxation charged
551,871
325,445
Finance costs
506,084
346,339
Investment income
(368)
Gain on disposal of tangible fixed assets
(14,642)
-
Depreciation and impairment of tangible fixed assets
28,790
26,807
Movements in working capital:
Increase in stocks
(718,348)
(180,739)
(Increase)/decrease in debtors
(4,566,318)
6,646,662
Increase/(decrease) in creditors
3,403,930
(6,078,512)
Cash generated from operations
750,745
2,235,371
WOOD INTERNATIONAL AGENCY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
26
Analysis of changes in net debt
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
572,373
(191,358)
381,015
Bank overdrafts
(284,165)
49,249
(234,916)
288,208
(142,109)
146,099
Borrowings excluding overdrafts
(774,030)
(1,776,530)
(2,550,560)
(485,822)
(1,918,639)
(2,404,461)
2024-04-302023-05-01falseCCH SoftwareCCH Accounts Production 2024.200Mr A LamontMr M LamontMrs C LamontMr W LindenbergMr N HarrisonMr P GutteridgeMr G MillerMr S RossMr S RossMrs V Lamontfalsefalse2024-12-20018662872023-05-012024-04-3001866287bus:Director12023-05-012024-04-3001866287bus:Director22023-05-012024-04-3001866287bus:CompanySecretaryDirector12023-05-012024-04-3001866287bus:Director32023-05-012024-04-3001866287bus:Director42023-05-012024-04-3001866287bus:Director52023-05-012024-04-3001866287bus:Director62023-05-012024-04-3001866287bus:Director72023-05-012024-04-3001866287bus:Director82023-05-012024-04-3001866287bus:CompanySecretary12023-05-012024-04-3001866287bus:Director92023-05-012024-04-3001866287bus:RegisteredOffice2023-05-012024-04-30018662872024-04-30018662872022-05-012023-04-3001866287core:RetainedEarningsAccumulatedLosses2022-05-012023-04-3001866287core:RetainedEarningsAccumulatedLosses2023-05-012024-04-30018662872023-04-3001866287core:FurnitureFittings2024-04-3001866287core:FurnitureFittings2023-04-3001866287core:MotorVehicles2023-04-3001866287core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-3001866287core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3001866287core:CurrentFinancialInstruments2024-04-3001866287core:CurrentFinancialInstruments2023-04-3001866287core:ShareCapital2024-04-3001866287core:ShareCapital2023-04-3001866287core:RetainedEarningsAccumulatedLosses2024-04-3001866287core:RetainedEarningsAccumulatedLosses2023-04-3001866287core:ShareCapital2022-04-3001866287core:RetainedEarningsAccumulatedLosses2022-04-3001866287core:ShareCapitalOrdinaryShares2024-04-3001866287core:ShareCapitalOrdinaryShares2023-04-3001866287core:ShareCapital2023-05-012024-04-300186628712023-05-012024-04-300186628712022-05-012023-04-30018662872023-04-30018662872022-04-3001866287core:WithinOneYear2024-04-3001866287core:WithinOneYear2023-04-3001866287core:Goodwill2023-05-012024-04-3001866287core:FurnitureFittings2023-05-012024-04-3001866287core:MotorVehicles2023-05-012024-04-3001866287core:UKTax2023-05-012024-04-3001866287core:UKTax2022-05-012023-04-3001866287core:Goodwill2023-04-3001866287core:Goodwill2024-04-3001866287core:Goodwill2023-04-3001866287core:FurnitureFittings2023-04-3001866287core:MotorVehicles2023-04-3001866287core:MotorVehicles2024-04-3001866287core:BetweenTwoFiveYears2024-04-3001866287core:BetweenTwoFiveYears2023-04-3001866287bus:PrivateLimitedCompanyLtd2023-05-012024-04-3001866287bus:FRS1022023-05-012024-04-3001866287bus:Audited2023-05-012024-04-3001866287bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP