Company registration number 00638042 (England and Wales)
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
COMPANY INFORMATION
Directors
A M Bond
J A Bond
Company number
00638042
Registered office
Heatherfield Works
Church Lane
Farington
Nr Preston
PR5 3RD
Auditor
Harrison Latham & Company
97 Tulketh Street
Southport
Merseyside
PR8 1AW
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The directors are satisfied with the results for the year given the challenging environment in which it has operated both during the financial year and post year end.
The underlying operating profit was £826,968 (2023: £1,227,462).
The profit before taxation for the year was £619,299 (2023: £ 1,145,371). The gross profit margin for the year was 37.1% (2023: 44.4%) which was consistent with management expectations.
Average staff numbers during the year were 41 (2023: 37).
Post year end the company continues to work closely with its customers and suppliers to navigate through the economic challenges posed by fluctuating inflation and the associated high interest rates.
Principal risks and uncertainties
The directors consider the key risks and uncertainties to the company achieving its growth targets are as follows
Key performance indicators
Financial key performance indicators used by the directors in assessing the performance of the business during
the year were as follows:
2024
2023
Turnover
£15.5M
£12.3M
Gross profit margin
37.10%
44.40%
Operaing profit
£0.8m
£1.2M
Profit before tax
£0.6M
£1.1M
Shareholder funds
£7.2M
£6.9M
A M Bond
Director
6 March 2025
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of the sale and distribution of timber and shavings.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £150,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A M Bond
J A Bond
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then 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.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
On behalf of the board
A M Bond
Director
6 March 2025
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
- 4 -
Opinion
We have audited the financial statements of Whitfire Shavings and Sawdust Supplies Limited (the 'company') for the year ended 31 March 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 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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:
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:
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 the Companies Act 2006, taxation legislation, and legislation and regulation relevant to the company's Operator License;
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED (CONTINUED)
- 6 -
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
To address the risk of fraud through management bias and override of controls,
indicative of potential bias; and
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.
Other matters which we are required to address
The year ended 31st March 2024 is the first period requiring a statutory audit. The year ended 31st March 2023 did not require an audit and therefore the corresponding figures are unaudited.
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.
Neil Latham
Senior Statutory Auditor
For and on behalf of Harrison Latham & Company
6 March 2025
Chartered Accountants
Statutory Auditor
97 Tulketh Street
Southport
Merseyside
PR8 1AW
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
15,464,794
12,272,879
Cost of sales
(9,721,246)
(6,818,373)
Gross profit
5,743,548
5,454,506
Administrative expenses
(5,135,756)
(4,554,192)
Other operating income
219,176
327,148
826,968
1,227,462
Operating profit
3
826,968
1,227,462
Interest receivable and similar income
6
595
2,609
Interest payable and similar expenses
7
(258,264)
(104,700)
Fair value gains and losses on investment properties
50,000
20,000
Profit before taxation
619,299
1,145,371
Taxation
8
(87,347)
(492,369)
Profit for the financial year
531,952
653,002
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
£
£
Profit for the year
531,952
653,002
Other comprehensive income
-
-
Total comprehensive income for the year
531,952
653,002
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
13,678,754
9,715,344
Investment property
11
550,000
500,000
14,228,754
10,215,344
Current assets
Stocks
12
269,595
138,774
Debtors
13
3,048,090
3,171,918
Cash at bank and in hand
13,671
130,046
3,331,356
3,440,738
Creditors: amounts falling due within one year
14
(6,933,772)
(4,079,760)
Net current liabilities
(3,602,416)
(639,022)
Total assets less current liabilities
10,626,338
9,576,322
Creditors: amounts falling due after more than one year
15
(1,988,943)
(1,408,226)
Provisions for liabilities
Deferred tax liability
18
1,389,636
1,302,289
(1,389,636)
(1,302,289)
Net assets
7,247,759
6,865,807
Capital and reserves
Called up share capital
20
2,000
2,000
Profit and loss reserves
7,245,759
6,863,807
Total equity
7,247,759
6,865,807
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
A M Bond
Director
Company registration number 00638042 (England and Wales)
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
2,000
6,360,805
6,362,805
Year ended 31 March 2023:
Profit and total comprehensive income
-
653,002
653,002
Dividends
9
-
(150,000)
(150,000)
Balance at 31 March 2023
2,000
6,863,807
6,865,807
Year ended 31 March 2024:
Profit and total comprehensive income
-
531,952
531,952
Dividends
9
-
(150,000)
(150,000)
Balance at 31 March 2024
2,000
7,245,759
7,247,759
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,733,258
1,875,532
Interest paid
(258,264)
(104,700)
Income taxes refunded/(paid)
28,140
(85,134)
Net cash inflow from operating activities
2,503,134
1,685,698
Investing activities
Purchase of tangible fixed assets
(4,812,111)
(2,676,537)
Proceeds from disposal of tangible fixed assets
224,500
115,000
Interest received
595
2,609
Net cash used in investing activities
(4,587,016)
(2,558,928)
Financing activities
Repayment of borrowings
(63,120)
(189,764)
Proceeds from new bank loans
904,473
1,382,000
Repayment of bank loans
(79,406)
(118,879)
Payment of finance leases obligations
(763,762)
(650,658)
Dividends paid
(150,000)
(150,000)
Net cash (used in)/generated from financing activities
(151,815)
272,699
Net decrease in cash and cash equivalents
(2,235,697)
(600,531)
Cash and cash equivalents at beginning of year
130,046
730,577
Cash and cash equivalents at end of year
(2,105,651)
130,046
Relating to:
Cash at bank and in hand
13,671
130,046
Bank overdrafts included in creditors payable within one year
(2,119,322)
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
Whitfire Shavings and Sawdust Supplies Limited is a private company limited by shares incorporated in England and Wales. The registered office is Heatherfield Works, Church Lane, Farington, Nr Preston, PR5 3RD.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Plant and equipment
15% reducing balance,10,20 and 25 years straight line
Fixtures and fittings
15% reducing balance basis
Motor vehicles
25% reducing balance basis and 10 years 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.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Investment properties
Investment propertiy, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
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).
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.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.
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.
Directors loans and loans from close family members
The company has treated all loans from directors who are shareholders and loans from close family members of directors as basic financial liabilities and are initially recorded at transaction price.
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.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, 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 receipts 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
595
2,609
Grants received
209,155
318,889
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(209,155)
(318,889)
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
Depreciation of owned tangible fixed assets
649,113
520,545
Depreciation of tangible fixed assets held under finance leases
188,441
271,411
Loss/(profit) on disposal of tangible fixed assets
120,183
(49,200)
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
41
37
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,082,728
1,652,808
Social security costs
225,993
191,523
Pension costs
90,752
84,849
2,399,473
1,929,180
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
105,630
107,030
Company pension contributions to defined contribution schemes
42,000
42,000
147,630
149,030
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Directors' remuneration
(Continued)
- 18 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1
Other interest income
594
2,609
Total income
595
2,609
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
180,638
45,451
Other interest on financial liabilities
11,393
16,749
192,031
62,200
Other finance costs:
Interest on finance leases and hire purchase contracts
66,233
42,500
258,264
104,700
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
56,994
Adjustments in respect of prior periods
(82,526)
Total current tax
(25,532)
Deferred tax
Origination and reversal of timing differences
87,347
517,901
Total tax charge
87,347
492,369
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 19 -
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
619,299
1,145,371
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
154,825
217,620
Tax effect of expenses that are not deductible in determining taxable profit
2,762
852
Gains not taxable
(3,226)
(3,800)
Unutilised tax losses carried forward
(14,485)
Depreciation on assets not qualifying for tax allowances
7,986
5,823
Under/(over) provided in prior years
(82,526)
Deferred tax adjustments in respect of prior years
(75,000)
Increase in deferred tax due to corporation tax rate change
368,885
Taxation charge for the year
87,347
492,369
9
Dividends
2024
2023
£
£
Interim paid
150,000
150,000
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
2,405,446
7,924,254
8,746
3,965,101
14,303,547
Additions
963,595
3,666,251
515,801
5,145,647
Disposals
(837,754)
(476,850)
(1,314,604)
At 31 March 2024
3,369,041
10,752,751
8,746
4,004,052
18,134,590
Depreciation and impairment
At 1 April 2023
176,463
2,542,190
6,866
1,862,684
4,588,203
Depreciation charged in the year
46,904
419,515
282
370,853
837,554
Eliminated in respect of disposals
(624,471)
(345,450)
(969,921)
At 31 March 2024
223,367
2,337,234
7,148
1,888,087
4,455,836
Carrying amount
At 31 March 2024
3,145,674
8,415,517
1,598
2,115,965
13,678,754
At 31 March 2023
2,228,983
5,382,064
1,880
2,102,417
9,715,344
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
379,787
1,663,425
Motor vehicles
1,091,067
1,213,107
1,470,854
2,876,532
Freehold land and buildings with a carrying amount of £3,145,674 (2023 -£2,228,983) have been pledged to secure borrowings of the company.
Land and buildings includes £998,838 (2023-£35,243) in respect of assets under construction on which no depreciation has been charged.
Plant and machinery includes £3,627,257 (2023-£364,032) in respect of assets under construction on which no depreciation has been charged.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
11
Investment property
2024
£
Fair value
At 1 April 2023
500,000
Net gains or losses through fair value adjustments
50,000
At 31 March 2024
550,000
Investment property comprises £550,000. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31st March 2024 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
492,090
492,090
Accumulated depreciation
-
-
Carrying amount
492,090
492,090
Investment properties with a carrying amount of £550,000 (2023 - £500,000) have been pledged to secure borrowings of the company.
12
Stocks
2024
2023
£
£
Raw materials and consumables
235,038
121,924
Finished goods and goods for resale
34,557
16,850
269,595
138,774
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,913,572
2,962,266
Corporation tax recoverable
28,140
Prepayments and accrued income
134,518
181,512
3,048,090
3,171,918
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
2,700,385
651,471
Amounts owed to credit institutions
16
68,973
63,120
Obligations under finance leases and hire purchase contracts
17
430,164
614,605
Trade creditors
3,230,983
2,367,652
Taxation and social security
120,606
138,929
Other creditors
266,699
229,445
Accruals and deferred income
115,962
14,538
6,933,772
4,079,760
The bank loans are secured by a debenture comprising fixed and floating charges over all the assets and undertakings of the company including all present and future freehold and leasehold property, book and other debts, chattels , goodwill and uncalled capital, both present and future. Together with First Legal Mortgages over the freehold properties of the company known as the Premises in Green Lane, Dene Croft and Bradleigh.
The obligations under finance leases are secured on the assets concerned.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
16
1,510,539
615,064
Obligations under finance leases and hire purchase contracts
17
454,021
699,806
Amounts owed to credit institutions
16
24,383
93,356
1,988,943
1,408,226
The bank loans are secured by a debenture comprising fixed and floating charges over all the assets and undertakings of the company including all present and future freehold and leasehold property, book and other debts, chattels , goodwill and uncalled capital, both present and future. Together with First Legal Mortgages over the freehold properties of the company known as the Premises in Green Lane, Dene Croft and Bradleigh.
The obligations under finance leases are secured on the assets concerned.
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,476,521
-
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
2,091,602
1,266,535
Bank overdrafts
2,119,322
Loans other credit institutions
93,356
156,476
4,304,280
1,423,011
Payable within one year
2,769,358
714,591
Payable after one year
1,534,922
708,420
The bank loans and overdraft are secured by a debenture comprising fixed and floating charges over all the assets and undertakings of the company including all present and future freehold and leasehold property, book and other debts, chattels , goodwill and uncalled capital, both present and future. Together with First Legal Mortgages over the freehold properties of the company known as the Premises in Green Lane, Dene Croft and Bradleigh.
17
Finance lease obligations and hire purchase contracts
2024
2023
Future minimum lease payments due under finance leases and hire purchase contracts:
£
£
Within one year
430,164
614,605
In two to five years
454,021
699,806
884,185
1,314,411
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,505,500
1,302,289
Tax losses
(125,138)
-
Revaluations
9,274
-
1,389,636
1,302,289
2024
Movements in the year:
£
Liability at 1 April 2023
1,302,289
Charge to profit or loss
87,347
Liability at 31 March 2024
1,389,636
The deferred tax asset set out above is expected to reverse within 24 months and relates to the utilisation of tax losses against future expected profits.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
90,752
84,849
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.
At the balance sheet date £4,811 (2023 £1,490) was outstanding for pension commitments.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000
2,000
2,000
2,000
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
21
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of property, plant and equipment
692,830
4,600,000
22
Operating lease commitments
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
128,760
128,760
Between two and five years
49,800
178,560
178,560
307,320
23
Related party transactions
At the balance sheet date the company owed £266,699 (2023 £229,445) to directors and their close family members on which no interest is charged.
During the year the company had the following transactions with A1 Biomass Limited, a company beneficially owned by A M Bond a director:
Goods and services sold on normal trading terms, the value of the transactions amounted to £357,869 (2023 £56,230) and the balance owed at the end of the year was £nil (2023 £12,869).
Goods and services purchased on normal trading terms, the value of the transactions amounted to £9,873 (2023-£10,743) and the balance owed at the end of the year was £nil (2023 £11,381).
24
Directors' transactions
Dividends totalling £120,000 (2023 - £120,000) were paid in the year in respect of shares held by the company's directors.
25
Ultimate controlling party
The directors are considered to be the ultimate controlling party by virtue of their ability to act in concert in respect of the operational and financial policies of the company.
WHITFIRE SHAVINGS AND SAWDUST SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
531,952
653,002
Adjustments for:
Taxation charged
87,347
492,369
Finance costs
258,264
104,700
Investment income
(595)
(2,609)
Loss/(gain) on disposal of tangible fixed assets
120,183
(49,200)
Fair value gain on investment properties
(50,000)
(20,000)
Depreciation and impairment of tangible fixed assets
837,554
791,957
Movements in working capital:
(Increase)/decrease in stocks
(130,821)
33,174
Decrease/(increase) in debtors
95,688
(1,271,951)
Increase in creditors
983,686
1,144,090
Cash generated from operations
2,733,258
1,875,532
27
Analysis of changes in net debt
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
130,046
(116,375)
-
13,671
Bank overdrafts
(2,119,322)
-
(2,119,322)
130,046
(2,235,697)
-
(2,105,651)
Borrowings excluding overdrafts
(1,423,011)
(761,947)
-
(2,184,958)
Obligations under finance leases
(1,314,411)
763,762
(333,536)
(884,185)
(2,607,376)
(2,233,882)
(333,536)
(5,174,794)
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