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Registration number: 05570341

Roe Timber Frame Limited

Annual Report and Financial Statements

for the Year Ended 30 April 2024

 

Roe Timber Frame Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 32

 

Roe Timber Frame Limited

Company Information

Directors

D Roe

W P Roe

J G Roe

S Wilmshurst

B Skilton

Company secretary

J G Roe

Registered office

Enterprise Road
Westwood Industrial Estate
Margate
Kent
CT9 4JA

Bankers

Lloyds Bank Plc
1 The Centre
Cecil Square
Margate
Kent
CT9 1JG

Auditors

McBrides Accountants LLP Nexus House
Cray Road
Sidcup
Kent
DA14 5DA

 

Roe Timber Frame Limited

Strategic Report for the Year Ended 30 April 2024

The directors present their strategic report for the year ended 30 April 2024.

Principal activity

The principal activity of the company is that of the design, manufacture and installation of timber products for the construction industry.

Fair review of the business

The directors consider the company has performed satisfactorily, given the ongoing general challenging market conditions within the sector – reporting a profit after tax of £288k.

The business remained focused on core activities and the directors are confident in the strategic direction of the company. The financial results for 2025 are expected to reflect a continued improvement in performance.

Key performance indicators

The directors continued to employ an established KPI system throughout the year to drive performance. Key measures include:-

Turnover
Turnover in the year decreased by 26.2% from £21,113,808 to £15,572,527.

Gross profit
The company’s gross profit as a percentage of turnover has improved from 18.6% to 21.1%.

Cash generated from operations
This reduced during the period from a cash inflow of £862,137 to £822,809. Year end cash increased from £313,484 to £501,204.

 

Roe Timber Frame Limited

Strategic Report for the Year Ended 30 April 2024

Principal risks and uncertainties

The uninterrupted supply of raw materials remains a key business risk and this continues to be effectively managed through careful selection and building close relationships with key suppliers.

Fluctuations in the price of timber/other raw material also continues to be a key risk for the business. This again will continue to be monitored closely.

The directors remain confident that the company is well placed to address the risks and uncertainties that they face and have expectations of enhanced trading performance during 2025 and beyond.

Approved by the Board on 31 January 2025 and signed on its behalf by:


D Roe
Director

 

Roe Timber Frame Limited

Directors' Report for the Year Ended 30 April 2024

The directors present their report and the financial statements for the year ended 30 April 2024.

Directors of the company

The directors who held office during the year were as follows:

D Roe

W P Roe

J G Roe - Company secretary and director

S Wilmshurst

B Skilton

Financial instruments

Objectives and policies

The company’s principal financial instruments include bank loans, invoice discounting facilities and hire purchase arrangements, the main purpose of which is to provide finance for its operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.

Investment of cash surpluses and borrowings are made through banks and institutions which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures, and trade debtors are reviewed on a regular basis with provision made for doubtful debts when necessary.

Price risk, credit risk, liquidity risk and cash flow risk

The company operates a treasury function which is responsible for managing the liquidity, interest and currency risk associated with its activities.

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring it has sufficient liquid resources to meet the operating needs of the business.

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on bank overdrafts and loans.

Future developments

The company has capacity to expand its operations and is well positioned to take advantage of ongoing competitor withdrawals and any market improvement in its associated industry sectors.

Research and development

The company is structured to meet the individual specific requirements of each of its projects - including developing creative and innovative solutions.

 

Roe Timber Frame Limited

Directors' Report for the Year Ended 30 April 2024

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 31 January 2025 and signed on its behalf by:


D Roe
Director

 

Roe Timber Frame Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Roe Timber Frame Limited

Independent Auditor's Report to the Members of Roe Timber Frame Limited

Opinion

We have audited the financial statements of Roe Timber Frame Limited (the 'company') for the year ended 30 April 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 entity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Roe Timber Frame Limited

Independent Auditor's Report to the Members of Roe Timber Frame Limited

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 Directors' 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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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 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.

 

Roe Timber Frame Limited

Independent Auditor's Report to the Members of Roe Timber Frame Limited

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:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed.

Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

Roe Timber Frame Limited

Independent Auditor's Report to the Members of Roe Timber Frame Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.



Andrew Warren (Senior Statutory Auditor)
For and on behalf of McBrides Accountants LLP, Statutory Auditor

Nexus House
Cray Road
Sidcup
Kent
DA14 5DA

31 January 2025

 

Roe Timber Frame Limited

Profit and Loss Account for the Year Ended 30 April 2024

Note

2024
£

2023
£

Turnover

3

15,572,527

21,113,808

Cost of sales

 

(12,293,431)

(17,181,843)

Gross profit

 

3,279,096

3,931,965

Administrative expenses

 

(2,892,535)

(3,271,788)

Other operating income

4

-

4,400

Operating profit

5

386,561

664,577

Other interest receivable and similar income

6

12,467

-

Interest payable and similar expenses

7

(186,209)

(229,859)

   

(173,742)

(229,859)

Profit before tax

 

212,819

434,718

Tax on profit

11

75,435

(170,721)

Profit for the financial year

 

288,254

263,997

No Statement of Comprehensive Income has been presented as there is no movement through other comprehensive income for the year

 

Roe Timber Frame Limited

(Registration number: 05570341)
Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

947,821

1,200,122

Current assets

 

Stocks

13

400,528

437,479

Debtors

14

5,379,896

6,563,919

Cash at bank and in hand

 

501,204

313,484

 

6,281,628

7,314,882

Creditors: Amounts falling due within one year

16

(3,804,978)

(4,950,972)

Net current assets

 

2,476,650

2,363,910

Total assets less current liabilities

 

3,424,471

3,564,032

Creditors: Amounts falling due after more than one year

16

(482,392)

(851,610)

Provisions for liabilities

19

(261,856)

(320,453)

Net assets

 

2,680,223

2,391,969

Capital and reserves

 

Called up share capital

1,000

1,000

Retained earnings

2,679,223

2,390,969

Total equity

 

2,680,223

2,391,969

Approved and authorised by the Board on 31 January 2025 and signed on its behalf by:
 



D Roe

Director

 

Roe Timber Frame Limited

Statement of Changes in Equity for the Year Ended 30 April 2024

Share capital
£

Retained earnings
£

Total
£

At 1 May 2023

1,000

2,390,969

2,391,969

Profit for the year

-

288,254

288,254

Total comprehensive income

-

288,254

288,254

At 30 April 2024

1,000

2,679,223

2,680,223

Share capital
£

Retained earnings
£

Total
£

At 1 May 2022

1,000

2,126,972

2,127,972

Profit for the year

-

263,997

263,997

Total comprehensive income

-

263,997

263,997

At 30 April 2023

1,000

2,390,969

2,391,969

 

Roe Timber Frame Limited

Statement of Cash Flows for the Year Ended 30 April 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

288,254

263,997

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

258,974

362,678

(Profit)/loss on disposal of tangible assets

(10,572)

13,731

Finance income

6

(12,467)

-

Finance costs

7

186,209

229,859

Corporation tax

11

(75,435)

170,721

 

634,963

1,040,986

Working capital adjustments

 

Decrease in stocks

13

36,951

748,812

Decrease in trade debtors

14

1,196,880

1,635,968

Decrease in trade creditors

16

(1,045,985)

(2,539,821)

Decrease in provisions

19

-

(23,808)

Cash generated from operations

 

822,809

862,137

Corporation tax paid

11

(5,816)

(15,271)

Net cash flow from operating activities

 

816,993

846,866

Cash flows from investing activities

 

Interest received

6

12,467

-

Acquisitions of tangible assets

(38,000)

(35,816)

Proceeds from sale of tangible assets

 

41,899

315,268

Net cash flows from investing activities

 

16,366

279,452

Cash flows from financing activities

 

Interest paid

7

(186,209)

(229,859)

Proceeds from bank borrowing draw downs

 

(289,998)

(289,999)

Payments to finance lease creditors

 

(169,432)

(454,164)

Net cash flows from financing activities

 

(645,639)

(974,022)

Net increase in cash and cash equivalents

 

187,720

152,296

Cash and cash equivalents at 1 May

 

313,484

161,188

Cash and cash equivalents at 30 April

 

501,204

313,484

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The principal activity of the company is disclosed in the Strategic Report.

The address of its registered office and principal place of business is:
Enterprise Road
Westwood Industrial Estate
Margate
Kent
CT9 4JA

2

Accounting policies

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, Financial Reporting Standard 102 - 'The Financial Reporting standard applicable in the United Kingdom and Republic of Ireland', and with the Companies Act 2006.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Specifically, judgements and estimates are required in determining the useful economic lives of fixed assets, valuing amounts recoverable on contracts and the recoverability of trade debtors.

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
- the amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity;
- and specific criteria have been met for each of the company's activities.

Amounts recoverable on contracts

Long-term and short-term contracts have been included in the company's balance sheet at the amount by which recorded turnover is in excess of payments on account and retentions, and classified as "amounts recoverable on contracts", and disclosed separately within debtors. At the balance sheet date, each individual contract was assessed and reflected in the profit and loss account by recognising revenue in a manner appropriate to the stage of completion of the contract.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15% Reducing balance

Office equipment

33% Straight line

Leasehold improvements

30% Reducing balance

Motor vehicles

25% Reducing balance

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets are classified as financial assets at fair value through profit or loss, loans and debtors, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial assets at initial recognition.

Financial liabilities are classified as financial liabilities at fair value through profit and loss, loans and borrowings, trade and other creditors, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial liabilities at initial recognition.

 Recognition and measurement
All financial instruments are recognised initially at fair value plus transaction costs. Thereafter financial instruments are stated at amortised cost using the effective interest rate method (less impairment where appropriate) unless the effect of discounting would be immaterial in which case they are stated at cost (less impairment where appropriate). The exception to this are those financial instruments where it is a requirement to continue recording them at fair value through profit and loss.
 

Impairment
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the asset have been affected.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade and other debtors

Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the contract.

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Stocks

Stocks of raw materials are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the last invoice price, based on the fast moving of conversion of stock, essentially on a just in time basis.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade and other creditors

Trade and other creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method, except where the effect of discounting would be immaterial. In such cases creditors are stated at transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale and installation of goods

15,572,527

21,113,808

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

15,572,527

21,113,808

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

-

4,400

5

Operating profit

Arrived at after charging/(crediting)

2024
 £

2023
 £

Depreciation expense

258,974

362,678

Operating lease expense - property

133,601

110,246

(Profit)/loss on disposal of property, plant and equipment

(10,572)

13,731

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

12,467

-

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

7

Interest payable and similar expenses

2024
 £

2023
 £

Interest on bank overdrafts and borrowings

71,556

73,233

Hire purchase interest

20,770

30,239

Invoice discounting interest

93,883

126,387

186,209

229,859

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

3,349,704

4,148,203

Social security costs

331,577

414,774

Pension costs, defined contribution scheme

74,000

95,036

3,755,281

4,658,013

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production/Design

69

106

Accounts/Administrative

28

41

Management

5

5

102

152

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

145,016

143,674

Contributions paid to money purchase schemes

4,050

4,000

149,066

147,674

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

2

2

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

13,650

12,650


 

11

Taxation

Tax charged/(credited) in the profit and loss account

2024
 £

2023
 £

Current taxation

UK corporation tax adjustment to prior periods

(16,838)

-

Deferred taxation

Arising from origination and reversal of timing differences

(58,597)

170,721

Tax (receipt)/expense in the profit and loss account

(75,435)

170,721

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

212,819

434,718

Corporation tax at standard rate

53,205

108,680

Effect of expense not deductible in determining taxable profit (tax loss)

3,690

5,280

Effect of tax losses

(118,539)

(256,235)

Deferred tax (credit)/expense

(58,597)

170,721

Decrease in UK and foreign current tax from unrecognised temporary difference from a prior period

(16,838)

-

Tax increase from effect of capital allowances and depreciation

63,075

79,250

Tax decrease from other short-term timing differences

(1,431)

-

Tax increase from changes in tax provisions due to legislation

-

63,025

Total tax (credit)/charge

(75,435)

170,721

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

-

236,955

Unused tax losses

157,142

-

157,142

236,955

2023

Asset
£

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

-

300,031

Unused tax losses

161,620

-

161,620

300,031

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

12

Tangible assets

Leasehold improvements
£

Plant & machinery
 £

Motor vehicles
 £

Office equipment
 £

Total
£

Cost or valuation

At 1 May 2023

66,890

2,334,263

963,187

145,856

3,510,196

Additions

-

-

38,000

-

38,000

Disposals

-

-

(261,529)

-

(261,529)

At 30 April 2024

66,890

2,334,263

739,658

145,856

3,286,667

Depreciation

At 1 May 2023

28,012

1,432,395

747,663

102,004

2,310,074

Charge for the year

13,378

167,939

53,939

23,718

258,974

Eliminated on disposal

-

-

(230,202)

-

(230,202)

At 30 April 2024

41,390

1,600,334

571,400

125,722

2,338,846

Carrying amount

At 30 April 2024

25,500

733,929

168,258

20,134

947,821

At 30 April 2023

38,878

901,868

215,524

43,852

1,200,122

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2024
£

2023
£

Motor vehicles

183,981

206,124

Plant and machinery

492,032

603,026

 

676,013

809,150

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

13

Stocks

2024
£

2023
£

Raw materials and consumables

400,528

437,479

14

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

928,054

1,143,417

Amounts due from related parties

24

1,209,836

1,635,936

Other debtors

 

645,469

978,621

Prepayments

 

113,714

229,315

Amounts recoverable on contracts

 

2,469,966

2,576,630

Corporation tax asset

11

12,857

-

   

5,379,896

6,563,919

Less Non Current Portion

-

(638,307)

Non-current trade debtors consists of balances in respect of sales retentions due after one year of £Nil (2023: 638,307).

Other debtors include £123,302 (2023: £517,132 Cr) due from Aldermore Bank Plc in respect of an invoice discounting arrangement. Security comprises a fixed and floating charge over the property and undertaking of the company.

15

Cash and cash equivalents

2024
£

2023
£

Cash on hand

1,796

420

Cash at bank

499,408

313,064

501,204

313,484

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

16

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

17

435,604

525,816

Trade creditors

 

1,914,265

2,028,637

Social security and other taxes

 

75,061

95,757

Other creditors

 

529,283

1,209,953

Accruals and deferred income

 

850,765

1,081,012

Corporation tax

 

-

9,797

 

3,804,978

4,950,972

Due after one year

 

Loans and borrowings

17

482,392

851,610

17

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

265,836

555,834

Hire purchase contracts

216,556

295,776

482,392

851,610

Current loans and borrowings

2024
£

2023
£

Bank borrowings

290,000

290,000

Hire purchase contracts

145,604

235,816

435,604

525,816

Bank borrowings is a CBILS loan facility with Aldermore Bank Plc. The loan facility is £1,450,000 which bears interest at 5% over base rate. The repayment terms are monthly repayments of £24,167 over 60 months.

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

18

Obligations under leases and hire purchase contracts

Hire purchase contracts
The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

145,602

235,816

Later than one year and not later than five years

216,556

295,776

362,158

531,592

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

77,438

113,072

Later than one year and not later than five years

95,582

256,301

173,020

369,373

19

Deferred tax and other provisions

Deferred tax
£

Remedial costs
£

Total
£

At 1 May 2023

138,411

182,042

320,453

Additional provisions

(58,597)

-

(58,597)

At 30 April 2024

79,814

182,042

261,856

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £74,000 (2023 - £95,036).

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

21

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

       

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
The holders of Ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All Ordinary shares rank equally with regard to the company's residual assets.

22

Contingent liabilities

Lloyds Bank Plc has a right of set off with the parent company and other related entities. The parent company had loans with the bank of £997,095 at the year end (2023: £1,038,011).

23

Analysis of changes in net debt

At 1 May 2023
£

Financing cash flows
£

At 30 April 2024
£

Long term borrowings

(851,610)

369,218

(482,392)

Short term borrowings

(525,816)

90,212

(435,604)

Cash

313,064

188,140

501,204

(1,064,362)

647,570

(416,792)

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

24

Related party transactions

Transactions with directors

2024

At 1 May 2023
£

Advances to director
£

Repayments by director
£

Other payments made to company by director
£

At 30 April 2024
£

B Skilton

31,430

40,824

(2,501)

-

69,753

2023

At 1 May 2022
£

Advances to director
£

Repayments by director
£

At 30 April 2023
£

D Roe

15,720

7,500

(23,220)

-

J G Roe

28,354

7,500

(35,854)

-

W P Roe

51,941

7,500

(59,441)

-

B Skilton

1,209

65,460

(35,239)

31,430

The directors loans are unsecured, interest free and repayable on demand.

Summary of transactions with other related parties

The company has taken advantage of the exemption in FRS 102 33.1A "Related Party Disclosures" from disclosing transactions with other members of the group.

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Income and receivables from related parties

2024

Other related parties
£

Amounts receivable from related party

98,199

2023

Other related parties
£

Sale of goods

8,883

Amounts receivable from related party

120,752

Expenditure with and payables to related parties

2024

Other related parties
£

Purchase of goods

300

Rendering of services

430,451

430,751

Amounts payable to related party

47,524

2023

Other related parties
£

Purchase of goods

65,035

Rendering of services

259,031

324,066

Amounts payable to related party

46,834

 

Roe Timber Frame Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Loans to related parties

2024

Other related parties
£

Total
£

At start of period

(353,831)

(353,831)

Advanced

(10,795)

(10,795)

Repaid

275,299

275,299

At end of period

(89,327)

(89,327)

2023

Other related parties
£

Total
£

At start of period

274,768

274,768

Advanced

(536,526)

(536,526)

Repaid

(92,073)

(92,073)

At end of period

(353,831)

(353,831)

25

Control

The parent company is Roe Timber Frame Holdings Limited, incorporated in England & Wales. In the opinion of the directors there is no ultimate controlling party.