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Brookridge Timber Limited

Annual Report and Consolidated Financial Statements
Year Ended 31 August 2024

Registration number: 01548757

 

Brookridge Timber Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Consolidated Profit and Loss Account

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 37

 

Brookridge Timber Limited

Company Information

Directors

R D Brooke

K Kingdon

Registered office

Hemyock
Cullompton
Devon
EX15 3PF

Auditors

PKF Francis Clark
Statutory AuditorGround Floor
Blackbrook Gate 1
Blackbrook Business Park
Taunton
Somerset
TA1 2PX

Bankers

National Westminster Bank Plc
Taunton
49 North Street
Taunton
Somerset
TA1 1NB

 

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 Board on 11 March 2025 and signed on its behalf by:

.........................................
R D Brooke
Director

   
     
 

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:

R D Brooke

N Lush (ceased 15 April 2024)

C Jandrell (ceased 15 April 2024)

K Kingdon

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 Board on 11 March 2025 and signed on its behalf by:

.........................................
R D Brooke
Director

   
     
 

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.

......................................
Robert Deare (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
Taunton
Somerset
TA1 2PX

19 March 2025

 

Brookridge Timber Limited

Consolidated Profit and Loss Account

Year Ended 31 August 2024

Note

2024
£

2023
£

Turnover

3

9,341,081

9,781,521

Cost of sales

 

(7,177,458)

(7,772,318)

Gross profit

 

2,163,623

2,009,203

Distribution costs

 

(153,526)

(162,551)

Administrative expenses

 

(2,215,425)

(2,662,415)

Other operating income

4

32,437

30,984

Operating loss

5

(172,891)

(784,779)

Other interest receivable and similar income

9

30,351

6,777

Interest payable and similar charges

10

(186,974)

(178,214)

   

(156,623)

(171,437)

Loss before tax

 

(329,514)

(956,216)

Tax on loss

11

91,500

171,626

Loss for the financial year

 

(238,014)

(784,590)

 

Brookridge Timber Limited

Consolidated Balance Sheet

31 August 2024

Note

2024
 £

2023
 £

Fixed assets

 

Intangible assets

12

20,692

24,196

Tangible assets

13

4,344,794

4,574,032

Investment property

14

352,450

352,450

Other financial assets

16

1,450

1,450

 

4,719,386

4,952,128

Current assets

 

Stocks

17

1,844,145

2,072,183

Debtors

18

1,319,232

1,402,493

Cash at bank and in hand

 

1,394,453

1,725,384

 

4,557,830

5,200,060

Creditors: Amounts falling due within one year

21

(1,475,693)

(3,919,231)

Net current assets

 

3,082,137

1,280,829

Total assets less current liabilities

 

7,801,523

6,232,957

Creditors: Amounts falling due after more than one year

21

(2,578,254)

(605,853)

Deferred income

(77,658)

(151,979)

Provisions for liabilities

24

(347,420)

(438,920)

Net assets

 

4,798,191

5,036,205

Capital and reserves

 

Called up share capital

26

37,768

37,768

Capital redemption reserve

67,280

67,280

Revaluation reserve

1,435,014

1,455,117

Profit and loss account

3,258,129

3,476,040

Total equity

 

4,798,191

5,036,205

Approved and authorised by the Board on 11 March 2025 and signed on its behalf by:

...................................
R D Brooke

Director

Company Registration Number: 01548757

 

Brookridge Timber Limited

Balance Sheet

31 August 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

20,692

24,196

Tangible assets

13

4,344,794

4,570,179

Investment property

14

352,450

352,450

Investments

15

300

300

Other financial assets

16

1,450

1,450

 

4,719,686

4,948,575

Current assets

 

Stocks

17

1,844,145

2,072,183

Debtors

18

1,160,991

1,223,348

Cash at bank and in hand

 

1,144,446

1,064,508

 

4,149,582

4,360,039

Creditors: Amounts falling due within one year

21

(1,412,933)

(3,800,041)

Net current assets

 

2,736,649

559,998

Total assets less current liabilities

 

7,456,335

5,508,573

Creditors: Amounts falling due after more than one year

21

(2,578,254)

(605,853)

Provisions for liabilities

24

(347,420)

(437,920)

Net assets

 

4,530,661

4,464,800

Capital and reserves

 

Called up share capital

26

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 Board on 11 March 2025 and signed on its behalf by:
 

...................................
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

37,768

67,280

1,455,117

3,476,040

5,036,205

Loss for the year

-

-

-

(238,014)

(238,014)

Transfers

-

-

(20,103)

20,103

-

At 31 August 2024

37,768

67,280

1,435,014

3,258,129

4,798,191

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total equity
£

At 1 September 2022

37,768

67,280

1,493,613

4,222,134

5,820,795

Loss for the year

-

-

-

(784,590)

(784,590)

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

37,768

67,280

1,455,117

2,904,635

4,464,800

Profit for the year

-

-

-

65,861

65,861

Transfers

-

-

(20,103)

20,103

-

At 31 August 2024

37,768

67,280

1,435,014

2,990,599

4,530,661

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 September 2022

37,768

67,280

1,493,613

3,764,503

5,363,164

Loss for the year

-

-

-

(898,364)

(898,364)

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

 

(238,014)

(784,590)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

272,592

409,806

Profit on disposal of tangible assets

(7,091)

(16,881)

Loss from disposals of investments

-

1

Finance income

9

(30,351)

(6,777)

Finance costs

10

186,974

178,214

Tax expense

11

(91,500)

(171,626)

 

92,610

(391,853)

Working capital adjustments

 

Decrease in stocks

17

228,038

967,895

Decrease/(increase) in trade debtors

18

14,289

(7,266)

(Decrease)/increase in trade creditors

21

(229,146)

98,715

(Decrease)/increase in deferred income

(74,321)

16,461

Cash generated from operations

 

31,470

683,952

Taxes received

11

68,972

-

Net cash flow from operating activities

 

100,442

683,952

Cash flows from investing activities

 

Interest received

30,351

6,777

Acquisitions of tangible assets

(39,850)

(384,180)

Proceeds from sale of tangible assets

 

7,091

25,199

Net cash flows from investing activities

 

(2,408)

(352,204)

Cash flows from financing activities

 

Interest paid

10

(164,342)

(158,203)

Repayment of bank borrowing

 

(60,360)

(60,879)

Net receipts/(payments) to finance lease creditors

 

(181,631)

(204,891)

Dividends on preference shares

10

(22,632)

(20,011)

Net cash flows from financing activities

 

(428,965)

(443,984)

Net decrease in cash and cash equivalents

 

(330,931)

(112,236)

Cash and cash equivalents at 1 September

 

1,725,384

1,837,620

Cash and cash equivalents at 31 August

19

1,394,453

1,725,384

 

Brookridge Timber Limited

Notes to the Financial Statements

Year Ended 31 August 2024

1

General information

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

The address of its registered office is:
Hemyock
Cullompton
Devon
EX15 3PF

These financial statements were authorised for issue by the Board on 11 March 2025.

2

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

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

Investment properties are measured at fair value. Fair value 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. Changes in fair value are recognised in profit or loss.

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
The group holds the following financial instruments:

• 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
The company has chosen to apply the recognition and measurement principles in FRS102.

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

3

Revenue

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

2024
£

2023
£

Sale of goods

9,341,081

9,781,521

The analysis of the group's turnover for the year by class of business is as follows:

2024
£

2023
£

Timber products

9,341,081

9,781,521

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

2024
£

2023
£

UK

9,341,081

9,781,521

4

Other operating income

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

2024
£

2023
£

Rental income

32,437

30,984

5

Operating loss

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

269,088

406,302

Amortisation expense

3,504

3,504

Foreign exchange gains

(3,437)

(8,449)

Profit on disposal of property, plant and equipment

(7,091)

(16,881)

 

Brookridge Timber Limited

Notes to the Financial Statements

Year Ended 31 August 2024

6

Staff costs

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

2024
£

2023
£

Wages and salaries

1,797,537

1,874,898

Social security costs

169,537

180,282

Pension costs, defined contribution scheme

41,673

89,630

2,008,747

2,144,810

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

2024
No.

2023
No.

Production

35

29

Administration and support

15

24

Sales

11

11

Distribution

6

6

67

70

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

237,671

387,875

Contributions paid to money purchase schemes

4,117

46,950

241,788

434,825

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

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

4

4

In respect of the highest paid director:

2024
£

2023
£

Remuneration

71,333

160,943

Company contributions to money purchase pension schemes

1,321

1,321

 

Brookridge Timber Limited

Notes to the Financial Statements

Year Ended 31 August 2024

8

Auditor's remuneration

2024
£

2023
£

Audit of these financial statements

11,600

7,500


 

9

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

27,477

6,527

Other finance income

2,874

250

30,351

6,777

10

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

146,437

133,117

Dividends on preference shares

22,632

20,011

Interest on obligations under hire purchase contracts

17,905

25,086

186,974

178,214

11

Taxation

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

2024
£

2023
£

Current taxation

UK corporation tax adjustment to prior periods

-

(8,126)

Deferred taxation

Arising from origination and reversal of timing differences

(91,500)

(163,500)

Tax receipt in the income statement

(91,500)

(171,626)

 

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 25% (2023 - 21.52%).

The differences are reconciled below:

2024
£

2023
£

Loss before tax

(329,514)

(956,216)

Corporation tax at standard rate

(82,379)

(205,778)

Expenses not deductible for tax purposes

21,833

6,349

Deferred tax expense/(credit) relating to changes in tax rates

449

(24,216)

Deferred tax (credit)/expense from unrecognised temporary difference from a prior period

(32,000)

10,000

Adjustments in respect of prior periods

-

(8,126)

Tax increase due to permanent fixed asset differences

876

57,424

Tax decrease from other short-term timing differences

(279)

(7,279)

Total tax credit

(91,500)

(171,626)

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Fixed asset timing differences

-

307,000

Short term timing differences

39,500

-

Capital gains

-

181,000

Lossed and other deductions

254,000

-

293,500

488,000

2023

Asset
£

Liability
£

Fixed asset timing differences

-

358,000

Short term timing differences

36,000

-

Capital gains

-

190,000

Lossed and other deductions

226,000

-

262,000

548,000

 

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

-

307,000

Short term timing differences

39,500

-

Capital gains

-

181,000

Losses and other deductions

254,000

-

293,500

488,000

2023

Asset
£

Liability
£

Fixed asset timing differences

-

357,000

Short term timing differences

36,000

-

Capital gains

-

190,000

Losses and other deductions

226,000

-

262,000

547,000

12

Intangible assets

Group and company

Goodwill
 £

Total
£

Cost or valuation

At 1 September 2023

35,000

35,000

At 31 August 2024

35,000

35,000

Amortisation

At 1 September 2023

10,804

10,804

Amortisation charge

3,504

3,504

At 31 August 2024

14,308

14,308

Carrying amount

At 31 August 2024

20,692

20,692

At 31 August 2023

24,196

24,196

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

13

Tangible assets

Group

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and equipment
 £

Total
£

Cost or valuation

At 1 September 2023

3,805,847

2,018,743

936,512

576,851

7,337,953

Additions

3,361

12,834

23,655

-

39,850

Disposals

-

-

(8,750)

(75,350)

(84,100)

At 31 August 2024

3,809,208

2,031,577

951,417

501,501

7,293,703

Depreciation

At 1 September 2023

309,368

1,310,149

607,769

536,635

2,763,921

Charge for the year

53,995

110,078

64,799

40,216

269,088

Eliminated on disposal

-

-

(8,750)

(75,350)

(84,100)

At 31 August 2024

363,363

1,420,227

663,818

501,501

2,948,909

Carrying amount

At 31 August 2024

3,445,845

611,350

287,599

-

4,344,794

At 31 August 2023

3,496,479

708,594

328,743

40,216

4,574,032

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 12 April 2018 by an independent valuer. As at the year end this carrying value has been assessed as being fair value by the directors.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,997,333 (2023 - £2,047,959).

 

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

3,805,847

2,018,743

910,512

572,822

7,307,924

Additions

3,361

12,834

23,655

-

39,850

Disposals

-

-

(8,750)

(75,350)

(84,100)

At 31 August 2024

3,809,208

2,031,577

925,417

497,472

7,263,674

Depreciation

At 1 September 2023

309,368

1,310,149

585,253

532,975

2,737,745

Charge for the year

53,995

110,078

61,315

39,847

265,235

Eliminated on disposal

-

-

(8,750)

(75,350)

(84,100)

At 31 August 2024

363,363

1,420,227

637,818

497,472

2,918,880

Carrying amount

At 31 August 2024

3,445,845

611,350

287,599

-

4,344,794

At 31 August 2023

3,496,479

708,594

325,259

39,847

4,570,179

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 12 April 2018 by an independent valuer. As at the year end this carrying value has been assessed as being fair value by the directors.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,997,333 (2023 - £2,047,959).

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

14

Investment properties

Group and company

2024
£

At 1 September

352,450

At 31 August

352,450

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

15

Investments

Company

2024
£

2023
£

Investments in subsidiaries

300

300

Subsidiaries

£

Cost or valuation

At 1 September 2023

300

Carrying amount

At 31 August 2024

300

At 31 August 2023

300

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

Brookridge (Timber Products) Limited

Fourways Cross, Hemyock, Cullompton, Devon, EX15 3PF

Ordinary shares

100%

100%

         

Blackdown Buildings Limited

Fourways Cross, Hemyock, Cullompton, Devon, EX15 3PF

Ordinary shares

100%

100%

         

Ecowood Pellets Limited

Fourways Cross, Hemyock, Cullompton, Devon, EX15 3PF

Ordinary shares

100%

100%

         
 

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 the supply of timber cladding.

Blackdown Buildings Limited

The principal activity of Blackdown Buildings Limited is the sale of timber buildings.

Ecowood Pellets Limited

The principal activity of Ecowood Pellets Limited is that of a dormant company. The company ceased to trade in March 2017 and has remained inactive since that time.

16

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

1,450

17

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Raw materials and consumables

1,844,145

2,072,183

1,844,145

2,072,183

 

Brookridge Timber Limited

Notes to the Financial Statements

Year Ended 31 August 2024

18

Debtors

   

Group

Company

2024
£

2023
£

2024
£

2023
£

Trade debtors

 

1,016,679

982,043

896,537

806,091

Amounts due from group undertakings

 

-

-

173,262

211,076

Other debtors

 

207,810

211,538

-

-

Prepayments

 

94,743

139,940

91,192

137,209

Corporation tax

11

-

68,972

-

68,972

 

1,319,232

1,402,493

1,160,991

1,223,348

19

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

16,777

14,470

16,777

14,469

Cash at bank

1,377,676

1,710,914

1,127,669

1,050,039

1,394,453

1,725,384

1,144,446

1,064,508

20

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

21

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

22

204,305

2,418,697

204,305

2,418,697

Trade creditors

 

572,715

738,152

569,842

709,185

Amounts due to group undertakings

 

-

-

100

100

Social security and other taxes

 

298,968

286,369

278,698

265,696

Other creditors

 

4,094

3,951

4,094

3,951

Accrued expenses

 

374,584

428,966

355,894

402,412

Payments on account

 

21,027

43,096

-

-

 

1,475,693

3,919,231

1,412,933

3,800,041

Due after one year

 

Loans and borrowings

22

2,578,254

605,853

2,578,254

605,853

22

Loans and borrowings

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

67,206

2,239,121

67,206

2,239,121

Hire purchase contracts

137,099

179,576

137,099

179,576

204,305

2,418,697

204,305

2,418,697

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

2,111,554

-

2,111,554

-

Hire purchase contracts

177,702

316,855

177,702

316,855

Redeemable preference shares

288,998

288,998

288,998

288,998

2,578,254

605,853

2,578,254

605,853

 

Brookridge Timber Limited

Notes to the Financial Statements

Year Ended 31 August 2024

Group and company

Bank borrowings

Bank loans are denominated in sterling with a nominal interest rate of 1.75% - 5.73%, and the final instalment of the loans in existence at the balance sheet date is due on 13 May 2029. The carrying amount at year end is £2,178,760 (2023 - £2,239,121).

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

-

23

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

20,988

26,052

Later than one year and not later than five years

-

9,761

20,988

35,813

The amount of non-cancellable operating lease payments recognised as an expense during the year was £29,857 (2023 - £46,116).

 

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

20,000

20,000

Later than one year and not later than five years

80,000

80,000

Later than five years

18,872

47,309

118,872

147,309

Total contingent rents recognised as income in the period are £28,437 (2023 - £26,184).

24

Provisions

Group

Deferred tax
£

Other provisions
£

Total
£

At 1 September 2023

286,000

152,920

438,920

Decrease in existing provisions

(91,500)

-

(91,500)

At 31 August 2024

194,500

152,920

347,420

Company

Deferred tax
£

Other provisions
£

Total
£

At 1 September 2023

285,000

152,920

437,920

Decrease in existing provisions

(90,500)

-

(90,500)

At 31 August 2024

194,500

152,920

347,420

25

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 £41,673 (2023 - £89,630).

 

Brookridge Timber Limited

Notes to the Financial Statements

Year Ended 31 August 2024

26

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

33,992

33,992

33,992

33,992

A Ordinary shares of £1 each

3,776

3,776

3,776

3,776

A Preference shares of £1 each

58,278

58,278

58,278

58,278

B Preference shares of £1 each

50,000

50,000

50,000

50,000

C Preference shares of £1 each

55,720

55,720

55,720

55,720

D Preference shares of £1 each

125,000

125,000

125,000

125,000

 

326,766

326,766

326,766

326,766

The ordinary shares are shown as equity and the preference shares are included within creditors.

Redeemable preference shares

The A Preference shares are redeemable at the option of the company. They are redeemable at £1.10 per share and carry no voting rights. On a winding up of the company the holders of the shares have a right to receive repayment of the capital paid up on those shares and any arrears on the fixed dividends. The redeemable preference shares have a right to a fixed cumulative preference dividend at the rate of 8%. Winding up value for redeemable preference share is £1.

The B Preference shares are redeemable at the option of the company. They are redeemable at £1.00 per share and carry no voting rights. On a winding up of the company the holders of the shares have a right to receive repayment of the capital paid up on those shares and any arrears on the fixed dividends. The redeemable preference shares have a right to a fixed cumulative preference dividend at the rate of 2.5% above the bank base rate. Winding up value for redeemable preference share is £1.

The C Preference shares are redeemable at the option of the company. They are redeemable at £1.10 per share and carry no voting rights. On a winding up of the company the holders of the shares have a right to receive repayment of the capital paid up on those shares and any arrears on the fixed dividends. The redeemable preference shares have a right to a fixed cumulative preference dividend at the rate of 8%. Winding up value for redeemable preference share is £1.

The D Preference shares are redeemable at the option of the company. They are redeemable at £1.00 per share and carry no voting rights. On a winding up of the company the holders of the shares have a right to receive repayment of the capital paid up on those shares and any arrears on the fixed dividends. The redeemable preference shares have a right to a fixed cumulative preference dividend at the rate of 2.5% above the bank base rate. Winding up value for redeemable preference share is £1.

 

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:
The ordinary shares are non-redeemable and attract full voting, equity and dividend rights.

Ordinary A shares have the following rights, preferences and restrictions:
The ordinary A Shares are not entitled to receive notice of or attend or speak or vote at general meetings. Any dividends declared in favour of Ordinary A Shares shall be distributed amongst the holders of Ordinary A Shares according to the amount paid up or credited as paid up on each such Share. On a return of capital on liquidation or otherwise (except on a redemption or purchase by the Company of and Shares), the surplus assets of the Company remaining after the payment of its liabilities shall be distributed amongst the holders of the Ordinary Shares and the Ordinary A Shares according to the amount paid up on each such Share.

27

Non adjusting events after the financial period

The company redeemed 113,998 of redeemable preference shares belonging to a director, Roy Brooke, at a redemption value of £113,998. The total payment amounted to £113,998, which was paid to the director on 14 November 2024.

In addition to the redemption payment, accrued dividends on these preference shares, totalling £135,861, were also paid out to the director post year-end. These dividends were accrued up to 30 September 2024.

These transactions are considered non-adjusting events after the reporting period and, while they do not affect the financial position as of 31 August 2024, they are disclosed here to provide additional information about the company's financial activities subsequent to the year-end.

28

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).

29

Parent and ultimate parent undertaking

The ultimate controlling party is R D Brooke, by virtue of his 100% ordinary shareholding, being the only voting shares of the company.