Year Ended
Registration number:
Brookridge Timber Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Brookridge Timber Limited
Company Information
Directors |
R D Brooke K Kingdon |
Registered office |
|
Auditors |
|
Bankers |
|
Brookridge Timber Limited
Strategic Report
Year Ended 31 August 2024
The directors present their strategic report for the year ended 31 August 2024.
Principal activity
The principal activity of the group is the purchase, treatment and sale of timber; treatment and supply of timber cladding; and sale of timber buildings.
The principal activity of the company is the purchase, treatment and sale of timber.
Review of the business
The result for the year as set out in these financial statements is broadly in line with the board’s expectations. Although challenging trading conditions persisted throughout the trading year, management successfully executed on a number of planned initiatives to improve operational efficiencies and evaluate the group’s commercial readiness for when more favourable market conditions return. Whilst demand for timber products remained sluggish through the year, other sector opportunities allied to our core business have continued to be assessed.
To this end the board feels the business is now better placed to take advantage of some new opportunities in the coming year, however it remains cautiously optimistic for 2025, certainly until market correction becomes more evident. Pleasingly, and following some modest investment, thegroup’s trade outlets each exceeded expectation with revenue, margin and footfall all improving over the previous year.
Whilst overall revenue for the group reduced year on year by £440k (4.5 %) in line with natural market demand and decreasing timber prices, encouragingly, overall volumes grew suggesting an increase in regional market share. Gross profit margin increased from 21% in 2023 to 23% in 2024. Distribution and administrative expenses have continued to be managed well, with a decrease of £456k (16.1%) on the prior year, even with widespread inflationary pressures.
The board is pleased to report that the bank’s financial covenant for the year ending 31 August 2024 has been met. Consequently, the bank loan balance has been reclassified as a long-term liability, with the exception of amounts due within one year, which remain as current liabilities. This change in presentation has increased the net current assets from £1,280,829 to £3,082,137. Since the year end, the financial covenant has not been met; however, the bank remains very supportive of the group’s position due to the strong balance sheet and a new covenant has been approved with no impact on repayments. The directors are pleased to report closing cash at bank of £1,394,453 (2023 - £1,725,384).
The group's key financial and other performance indicators during the year were as follows:
Unit |
2024 |
2023 |
|
Turnover |
£ |
9,331,081 |
9,781,521 |
Gross profit |
£ |
2,163,623 |
2,009,203 |
Gross profit margin |
% |
23 |
21 |
EBITDA |
£ |
95,848 |
(374,973) |
Net cash flow |
£ |
(330,931) |
(112,236) |
Net current assets |
£ |
3,082,137 |
1,280,829 |
Net assets |
£ |
4,798,191 |
5,036,205 |
Brookridge Timber Limited
Strategic Report
Year Ended 31 August 2024
Principal risks and uncertainties
The management of the companies and group as whole and the execution of their strategy is subject to a number of risks. The board reviews these risks and puts in place policies and plans to mitigate them.
The key business and financial risks are:-
Competition
The business operates in a highly competitive market arena with a large number of businesses of various scale operating in the region. The market is progressively competitive, these dynamics have caused sustained pressure on margins. In an effort to mitigate this risk, the group has endeavoured to compete harder, identify new product development opportunities and value-added services.
Pricing and availability of supplies
With the government’s intention to encourage an increasing use of timber products in the construction of future housing developments, the group is keen to understand how this potential increase in demand and volume could benefit forthcoming revenue and growth opportunities. With this consideration in mind the directors need to ensure they have strong supply chain relationships and sourcing options in place to safeguard product consistency, availability and margin.
In response to this risk the directors, who are also mindful of their environmental responsibilities, will continue assessing the group’s requirements and will continue investing in systems and processes where appropriate.
The inflationary environment, cost of living crisis and general economic uncertainty in the UK and local economy continues to present challenges that the directors monitor constantly and plan accordingly to mitigate the impact of on the business.
Approved by the
......................................... |
Brookridge Timber Limited
Directors' Report
Year Ended 31 August 2024
The directors present their report and the for the year ended 31 August 2024.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The group's activities expose it to a number of financial risks including credit risk, cashflow risk and liquidity risk. The use, and nature, of financial instruments are determined by the directors, in the context of trading terms made available by the group to the customers and by suppliers, and with the use of loans and finance lease funding as requried, with the objective of securing the liquidity and profitability of the group.
Price risk, credit risk, liquidity risk and cash flow risk
The group's principal financial instruments comprise bank balances, trade creditors and trade debtors.
The group monitors credit risk and considers that its current policy of credit checks and credit terms meets its objectives of managing its exposure.
The directors are satisfied that the economic impacts of the coronavirus pandemic have not materially increased the credit risk exposure of the company or group.
The directors regularly monitor the financial information to ensure that any risks in respect of liquidity are considered on a timely basis.
Future developments
Whilst shipping and haulage uncertainties and costs increase, the group plans to continue strengthening its existing customer relationships and consolidating site production and energy efficiencies, whilst remaining open to customer, supplier and market opportunities as they arise. A new commercial manager has been appointed to ensure any changes identified as being required are implemented promptly.
Brookridge Timber Limited
Directors' Report
Year Ended 31 August 2024
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
......................................... |
Brookridge Timber 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 group and the company and of the profit or loss of the group 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; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Brookridge Timber Limited
Independent Auditor's Report to the Members of Brookridge Timber Limited
Opinion
We have audited the financial statements of Brookridge Timber Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 group's and the parent company's affairs as at 31 August 2024 and of the group's loss 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 group 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 director's 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 group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Brookridge Timber Limited
Independent Auditor's Report to the Members of Brookridge Timber 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 group’s and the parent 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 group or the parent 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:
Brookridge Timber Limited
Independent Auditor's Report to the Members of Brookridge Timber Limited
As part of our audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the company and the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company, such as General Data Protection Regulations (GDPR) and Health & Safety at Work. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as The Companies Act 2006 and relevant tax legislation.
We discussed with management how the compliance with these laws and regulations is monitored and obtained copies of the key policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.
We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to the overstatement of profit, either through overstating revenue, understating expenditure or management bias in accounting estimates. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
Based on this understanding we designed our audit procedures to identify irregularities. Our procedures involved the following:
• Enquiries to management, regarding their knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements;
• Review of board minutes;
• Enquiries to management to understand company’s GDPR policy, as well as the occurrence and outcome of occurrence and outcome of any reportable breaches;
• Review of ICO website for any notifications;
• Review of legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance;
• Reviewed copies of the group’s accreditation under ISO9001;
• Enquiries to management to understand the occurence and outcome of health & safety incidents;
• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
• Testing the recognition of revenue and costs, in particular around the year end date;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
• Reviewing draft tax computations and involving the use of our specialists.
Brookridge Timber Limited
Independent Auditor's Report to the Members of Brookridge Timber Limited
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
......................................
Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
Somerset
TA1 2PX
Brookridge Timber Limited
Consolidated Profit and Loss Account
Year Ended 31 August 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating loss |
( |
( |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
(156,623) |
(171,437) |
||
Loss before tax |
( |
( |
|
Tax on loss |
|
|
|
Loss for the financial year |
( |
( |
Brookridge Timber Limited
Consolidated Balance Sheet
31 August 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Other financial assets |
1,450 |
1,450 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Deferred income |
(77,658) |
(151,979) |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
...................................
R D Brooke
Director
Company Registration Number: 01548757
Brookridge Timber Limited
Balance Sheet
31 August 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
Other financial assets |
1,450 |
1,450 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
37,768 |
37,768 |
|
Capital redemption reserve |
67,280 |
67,280 |
|
Revaluation reserve |
1,435,014 |
1,455,117 |
|
Profit and loss account |
2,990,599 |
2,904,635 |
|
Total equity |
4,530,661 |
4,464,800 |
The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £65,861 (2023 - loss of £898,364).
Approved and authorised by the
...................................
R D Brooke
Director
Company Registration Number: 01548757
Brookridge Timber Limited
Consolidated Statement of Changes in Equity
Year Ended 31 August 2024
Share capital |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total equity |
|
At 1 September 2023 |
|
|
|
|
|
Loss for the year |
- |
- |
- |
( |
( |
Transfers |
- |
- |
(20,103) |
20,103 |
- |
At 31 August 2024 |
|
|
|
|
|
Share capital |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total equity |
|
At 1 September 2022 |
|
|
|
|
|
Loss for the year |
- |
- |
- |
( |
( |
Transfers |
- |
- |
(38,496) |
38,496 |
- |
At 31 August 2023 |
37,768 |
67,280 |
1,455,117 |
3,476,040 |
5,036,205 |
Brookridge Timber Limited
Statement of Changes in Equity
Year Ended 31 August 2024
Share capital |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 September 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Transfers |
- |
- |
(20,103) |
20,103 |
- |
At 31 August 2024 |
|
|
|
|
|
Share capital |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 September 2022 |
|
|
|
|
|
Loss for the year |
- |
- |
- |
( |
( |
Transfers |
- |
- |
(38,496) |
38,496 |
- |
At 31 August 2023 |
37,768 |
67,280 |
1,455,117 |
2,904,635 |
4,464,800 |
Brookridge Timber Limited
Consolidated Statement of Cash Flows
Year Ended 31 August 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Loss from disposals of investments |
- |
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Tax expense |
( |
( |
|
|
( |
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
(Decrease)/increase in deferred income |
( |
|
|
Cash generated from operations |
|
|
|
Taxes received |
|
- |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Net receipts/(payments) to finance lease creditors |
( |
( |
|
Dividends on preference shares |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 September |
1,725,384 |
1,837,620 |
|
Cash and cash equivalents at 31 August |
1,394,453 |
1,725,384 |
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
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.
Statement of compliance
The company's financial statements have been prepared in accordance with FRS 102 - the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. There are no material departures from FRS 102.
Basis of preparation
These financial statements have been prepared using the historical cost convention, as modified by the revaluation of land and buildings, and except as disclosed in the accounting policies certain items are shown at fair value.
The functional currency of the group is considered to be pounds sterling because this is the currency of the primary economic environment in which the group operates, and the financial statements are presented to the nearest round pound.
Summary of disclosure exemptions
The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its individual financial statements. Exemptions have been taken in relation to financial instruments, presentation of a cash flow statement and remuneration of key management personnel. Equivalent information is presented in relation to these group accounts.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 August 2024.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Subsidiary undertakings are included using the acquisition method of accounting. Under this method the group profit and loss account includes the results of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition. Goodwill on consolidation is capitalised and written off over ten years from the year of acquisition.
Going concern
Key judgements and 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 historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods in the revision affects both current and future periods.
The key estimates that have a significant effect on the amounts recognised in the financial statements are as follows:
Investment property: the fair value of the investment property is derived from the current market prices for comparable real estate using observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. The carrying amount is £352,450 (2023 - £352,450).
Carrying value of tangible fixed assets (excluding land and buildings): tangible fixed assets are carried at cost, less accumulated depreciation and any subsequent accumulated impairment loss. This requires an estimation in the depreciation rates used as well as assessment of the ongoing economic contribution of the assets of the group as to whether an indicator of impairment has occurred. The carrying amount is £898,949 (2023 - £1,077,553).
Valuation of land and buildings: freehold and long leasehold land and buildings are carried at fair value based on the valuation carried out by a professional independent valuer or by the directors. The valuations used observable market prices adjusted as necessary for any difference in the nature, location or condition of the specific asset. The carrying amount is £3,445,845 (2023 - £3,496,479).
Turnover
Turnover represents amounts chargeable, net of value added tax, in respect of the sale of timber products and timber buildings. Revenue is recognised on the despatch of goods to the customer. In respect of building services, revenue is recognised on the completion of the build or delivery of goods (if supply only), except in the case of larger projects where revenue is recognised in instalment by reference to the stage of completion of the project.
Deferred income
Deferred income represents deposits taken in advance for projects where the revenue has not been recognised at the year end.
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Foreign currency transactions and balances
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 group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible assets
Tangible assets, except for land and buildings, are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Land and buildings held and used in the group's own activities are stated in the balance sheet at their revalued amounts. The revalued amounts equate to fair value at the date of revaluation, less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so that the carrying amounts do not materially differ from the fair value at the balance sheet date.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
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 |
Freehold buildings |
2.5% straight line |
Long leasehold buildings |
2.5% straight line |
Furniture, fittings and equipment |
10% to 33.3% straight line |
Plant and equipment |
7.5% straight line |
Motor vehicles |
20% to 25% straight line |
Investment property
Goodwill
Goodwill arising on consolidation is capitalised, classified as an asset on the Balance Sheet and amortised over its estimated useful life up to a maximum of ten years. This length of time is presumed to be the maximum useful life of purchased goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10 years straight line |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Stock
Stock is valued at the lower of cost and expected selling price less costs to complete and sell, after due regard for obsolete and slow moving items.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group 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.
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. The treatment of finance leases is as set out in the accounting policy for financial instruments detailed below.
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.
Redeemable preference shares are classified as financial liabilities.
Defined contribution pension obligation
The company operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme. The assets of the scheme are held separately to those of the company.
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Short term intercompany debtors and creditors;
• Finance leases;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Basic financial assets comprise short term trade and other debtors, short term intercompany debtors and cash and bank balances. Basic financial liabilities comprise short term trade and other creditors, short term intercompany creditors, finance leases and bank loans.
Except for bank loans and finance leases, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans and finance leases are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Revenue |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
The analysis of the group's turnover for the year by class of business is as follows:
2024 |
2023 |
|
Timber products |
|
|
The analysis of the group's Turnover for the year by market is as follows:
2024 |
2023 |
|
UK |
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Rental income |
|
|
Operating loss |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange gains |
( |
( |
Profit on disposal of property, plant and equipment |
( |
( |
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
Sales |
|
|
Distribution |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
241,788 |
434,825 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Auditor's remuneration |
2024 |
2023 |
|
Audit of these financial statements |
11,600 |
7,500 |
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Dividends on preference shares |
|
|
Interest on obligations under hire purchase contracts |
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax adjustment to prior periods |
- |
( |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax receipt in the income statement |
( |
( |
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 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
The differences are reconciled below:
2024 |
2023 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Expenses not deductible for tax purposes |
|
|
Deferred tax expense/(credit) relating to changes in tax rates |
|
( |
Deferred tax (credit)/expense from unrecognised temporary difference from a prior period |
( |
|
Adjustments in respect of prior periods |
- |
( |
Tax increase due to permanent fixed asset differences |
|
|
Tax decrease from other short-term timing differences |
( |
( |
Total tax credit |
( |
( |
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Short term timing differences |
|
- |
Capital gains |
- |
|
Lossed and other deductions |
|
- |
|
|
2023 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Short term timing differences |
|
- |
Capital gains |
- |
|
Lossed and other deductions |
|
- |
|
|
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Company
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Short term timing differences |
|
- |
Capital gains |
- |
|
Losses and other deductions |
|
- |
|
|
2023 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Short term timing differences |
|
- |
Capital gains |
- |
|
Losses and other deductions |
|
- |
|
|
Intangible assets |
Group and company
Goodwill |
Total |
|
Cost or valuation |
||
At 1 September 2023 |
|
|
At 31 August 2024 |
|
|
Amortisation |
||
At 1 September 2023 |
|
|
Amortisation charge |
|
|
At 31 August 2024 |
|
|
Carrying amount |
||
At 31 August 2024 |
|
|
At 31 August 2023 |
|
|
Amortisation of intangible assets is included within Administrative expenses in the profit and loss account.
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant and equipment |
Total |
|
Cost or valuation |
|||||
At 1 September 2023 |
|
|
|
|
|
Additions |
|
|
|
- |
|
Disposals |
- |
- |
( |
( |
( |
At 31 August 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 September 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
At 31 August 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 31 August 2024 |
|
|
|
- |
|
At 31 August 2023 |
|
|
|
|
|
Included within the net book value of land and buildings above is £3,066,670 (2023 - £3,114,028) in respect of freehold land and buildings and £379,175 (2023 - £382,451) in respect of long leasehold land and buildings.
Revaluation
The fair value of the company's Land and Buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
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 |
|
Plant and equipment |
177,453 |
261,790 |
Motor vehicles |
195,514 |
242,823 |
372,967 |
504,613 |
Company
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant and equipment |
Total |
|
Cost or valuation |
|||||
At 1 September 2023 |
|
|
|
|
|
Additions |
|
|
|
- |
|
Disposals |
- |
- |
( |
( |
( |
At 31 August 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 September 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
At 31 August 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 31 August 2024 |
|
|
|
- |
|
At 31 August 2023 |
|
|
|
|
|
Included within the net book value of land and buildings above is £3,066,670 (2023 - £3,114,028) in respect of freehold land and buildings and £379,175 (2023 - £382,451) in respect of long leasehold land and buildings.
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Revaluation
The fair value of the company's Land and Buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
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 |
|
Plant and equipment |
177,453 |
261,790 |
Motor vehicles |
195,514 |
242,823 |
372,967 |
504,613 |
Investment properties |
Group and company
2024 |
|
At 1 September |
|
At 31 August |
|
Investment properties were valued by the directors on 12 April 2018. The directors have reviewed the value of the investment properties and consider the current value to be as stated in the financial statements at the year end.
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 September 2023 |
|
Carrying amount |
|
At 31 August 2024 |
|
At 31 August 2023 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Fourways Cross, Hemyock, Cullompton, Devon, EX15 3PF |
Ordinary shares |
|
|
|
Fourways Cross, Hemyock, Cullompton, Devon, EX15 3PF |
Ordinary shares |
|
|
|
Fourways Cross, Hemyock, Cullompton, Devon, EX15 3PF |
Ordinary shares |
|
|
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Subsidiary undertakings |
Brookridge (Timber Products) Limited The principal activity of Brookridge (Timber Products) Limited is |
Blackdown Buildings Limited The principal activity of Blackdown Buildings Limited is |
Ecowood Pellets Limited The principal activity of Ecowood Pellets Limited is |
Other financial assets |
Group and company
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 September 2023 |
1,450 |
1,450 |
At 31 August 2024 |
1,450 |
1,450 |
Carrying amount |
||
At 31 August 2024 |
|
1,450 |
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Raw materials and consumables |
|
|
|
|
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Debtors |
Group |
Company |
||||
2024 |
2023 |
2024 |
2023 |
||
Trade debtors |
|
|
|
|
|
Amounts due from group undertakings |
- |
- |
|
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
|
|
|
Corporation tax |
- |
|
- |
|
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
Analysis of net debt |
At 1 September 2023 |
Cash flow |
At 31 August 2024 |
|
£ |
£ |
£ |
|
Cash at bank and on hand |
1,725,384 |
(330,931) |
1,394,453 |
Cash and cash equivalents |
1,725,384 |
(330,931) |
1,394,453 |
Bank loans |
(2,239,121) |
60,361 |
(2,178,760) |
Finance lease obligations |
(496,431) |
181,630 |
(314,801) |
Redeemable preference shares |
(288,998) |
- |
(288,998) |
Net debt |
(1,299,166) |
(88,940) |
(1,388,106) |
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Amounts due to group undertakings |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
Other creditors |
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
Payments on account |
|
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
Loans and borrowings |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
|
|
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
- |
|
- |
Hire purchase contracts |
|
|
|
|
Redeemable preference shares |
|
|
|
|
|
|
|
|
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Group and company
Bank borrowings
The bank loans are secured by way of a first legal charge over all freehold and long leasehold property owned by the group, in addition to a cross guarantee (limited to £2,300,000) between the group companies. |
Other borrowings
Hire purchase liabilities are denominated in sterling with a nominal interest rate of 8%, and the final instalment of the liabilities in existence at the balance sheet date is due on 26 July 2025. The carrying amount at year end is £314,801 (2023 - £496,431).
The hire purchase liabilities are secured on the assets to which they relate.
The redeemable preference shares classified as financial liabilities are divided into different classes and attract cumulative dividends as disclosed in note 26 to the accounts.
Included in the loans and borrowings are the following amounts due after more than five years:
2024 |
2023 |
|
After more than five years by instalments |
1,814,722 |
- |
Obligations under leases and hire purchase contracts |
Group and company
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
- |
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Operating leases - lessor
The total of future minimum lease income is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Total contingent rents recognised as income in the period are £
Provisions |
Group
Deferred tax |
Other provisions |
Total |
|
At 1 September 2023 |
|
|
|
Decrease in existing provisions |
( |
- |
( |
At 31 August 2024 |
|
|
|
|
Company
Deferred tax |
Other provisions |
Total |
|
At 1 September 2023 |
|
|
|
Decrease in existing provisions |
( |
- |
( |
At 31 August 2024 |
|
|
|
|
Pension scheme |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme, and personal plans, and amounted to £
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
33,992 |
|
33,992 |
|
|
3,776 |
|
3,776 |
|
|
58,278 |
|
58,278 |
|
|
50,000 |
|
50,000 |
|
|
55,720 |
|
55,720 |
|
|
125,000 |
|
125,000 |
|
326,766 |
|
326,766 |
The ordinary shares are shown as equity and the preference shares are included within creditors.
Redeemable preference shares
The |
The |
The |
The |
Brookridge Timber Limited
Notes to the Financial Statements
Year Ended 31 August 2024
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Ordinary A shares have the following rights, preferences and restrictions: |
Non adjusting events after the financial period |
|
Related party transactions |
Group
Summary of transactions with other related parties
A company over which a director has significant influence
In a previous year, the group advanced a loan of £167,293 and last year, £40,000 to a company over which one of the directors has significant influence. The loan was made interest free and is repayable on demand. The balance outstanding at the year end was £207,293 (2023 - £207,293).
A partnership over which a director has significant influence.
During the year purchases of £12,261 (2023 - £11,594) were made from the partnership over which a director has significant influence. The outstanding balance due to the partnership at the year end was £nil (2023 - £3,854).
Parent and ultimate parent undertaking |
The ultimate controlling party is