Company registration number SC349165 (Scotland)
TIMBER FRAMEWORKS (ALBA) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
TIMBER FRAMEWORKS (ALBA) LIMITED
COMPANY INFORMATION
Director
Mr G Taylor
Secretary
S Taylor
Company number
SC349165
Registered office
225 West George Street
Glasgow
Scotland
G2 2ND
Auditor
Thomson Cooper
3 Castle Court
Carnegie Campus
Dunfermline
Fife
KY11 8PB
Bankers
Royal Bank of Scotland
4 Almondvale South
Livingston
West Lothian
EH54 6NB
TIMBER FRAMEWORKS (ALBA) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
TIMBER FRAMEWORKS (ALBA) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The director presents the strategic report for the year ended 30 September 2024.
Fair review of the business
The principal activity of the company is the manufacture of timber frames.
The company operates from two manufacturing bases:
Deans industrial Estate, Livingston and Westwood Estate, West Calder.
It has continued to be challenging year in the housing market due to ongoing cost of living increases, and although interest rates have decreased and are projected to be lower in 2025. The introduction of trade tariffs whilst not directly impacting the company will have a knock on effect to wider economy. Margins continued to be squeezed due to an increase in raw material prices which has affected our margins.
2026 is also expected to be a challenging with an increase in timber and labour costs.
Principal risks and uncertainties
Demand for our product is directly linked to demand for new build housing, which in turn is linked to general economic activity, mortgage interest rates and availability. Raw material costs are also volatile. We regularly consult with our customer base and supply chain partners on these issues and when necessary take appropriate action.
Development and performance
2024 was the company's third full year trading with its two facilities, however total production fell slightly in the current year.
We continue to review our systems and procedures to ensure both cost effectiveness and accuracy in manufacture.
Key performance indicators
2024 2023
£ £
Turnover 12,455,369 13,040,086
Shareholders funds 5,272,018 5,000,752
Net profit percentage 3.78% 6.50%
Turnover and net profit percentage figures down due to slower market conditions.
Mr G Taylor
Director
9 April 2025
TIMBER FRAMEWORKS (ALBA) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of constructing and supply of timber frame property kits.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £200,000. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr G Taylor
Auditor
Thomson Cooper were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
TIMBER FRAMEWORKS (ALBA) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
On behalf of the board
Mr G Taylor
Director
9 April 2025
TIMBER FRAMEWORKS (ALBA) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TIMBER FRAMEWORKS (ALBA) LIMITED
- 4 -
Opinion
We have audited the financial statements of Timber Frameworks (Alba) Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
TIMBER FRAMEWORKS (ALBA) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TIMBER FRAMEWORKS (ALBA) LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and non-compliance with laws and regulations. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and inspected minutes from meetings held by management and trustees for any reference to breaches of laws and regulations. In addition, we reviewed areas of judgement for indicators of management bias to address these risks.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).
We reviewed the laws and regulations in areas that directly affect the financial statements including applicable company law and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.
TIMBER FRAMEWORKS (ALBA) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TIMBER FRAMEWORKS (ALBA) LIMITED (CONTINUED)
- 6 -
We communicated identified laws and regulations and potential fraud risks throughout our team and remained alert to any indications of non-compliance or fraud throughout the audit. However the primary responsibility for the prevention and detection of fraud rests with the director.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Sharon Collins (Senior Statutory Auditor)
For and on behalf of Thomson Cooper, Statutory Auditors
Dunfermline
9 April 2025
TIMBER FRAMEWORKS (ALBA) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
12,455,369
13,040,086
Cost of sales
(9,926,614)
(10,045,986)
Gross profit
2,528,755
2,994,100
Distribution costs
(419,970)
(416,188)
Administrative expenses
(1,460,730)
(1,484,919)
Operating profit
3
648,055
1,092,993
Interest receivable and similar income
6
19
40
Interest payable and similar expenses
7
(1,291)
(771)
Profit before taxation
646,783
1,092,262
Tax on profit
8
(175,517)
(244,596)
Profit for the financial year
471,266
847,666
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TIMBER FRAMEWORKS (ALBA) LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
214,158
116,305
Current assets
Stocks
12
420,927
318,294
Debtors
13
1,902,186
1,879,025
Cash at bank and in hand
4,131,756
4,053,365
6,454,869
6,250,684
Creditors: amounts falling due within one year
14
(1,339,161)
(1,328,771)
Net current assets
5,115,708
4,921,913
Total assets less current liabilities
5,329,866
5,038,218
Creditors: amounts falling due after more than one year
15
(6,647)
(12,344)
Provisions for liabilities
Deferred tax liability
17
51,201
25,122
(51,201)
(25,122)
Net assets
5,272,018
5,000,752
Capital and reserves
Called up share capital
19
29,100
29,100
Capital redemption reserve
30,900
30,900
Profit and loss reserves
5,212,018
4,940,752
Total equity
5,272,018
5,000,752
The financial statements were approved and signed by the director and authorised for issue on 9 April 2025
Mr G Taylor
Director
Company Registration No. SC349165
TIMBER FRAMEWORKS (ALBA) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
29,100
30,900
4,468,086
4,528,086
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
847,666
847,666
Dividends
9
-
-
(375,000)
(375,000)
Balance at 30 September 2023
29,100
30,900
4,940,752
5,000,752
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
471,266
471,266
Dividends
9
-
-
(200,000)
(200,000)
Balance at 30 September 2024
29,100
30,900
5,212,018
5,272,018
TIMBER FRAMEWORKS (ALBA) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
683,992
1,988,023
Interest paid
(1,291)
(771)
Income taxes paid
(246,650)
(344,670)
Net cash inflow from operating activities
436,051
1,642,582
Investing activities
Purchase of tangible fixed assets
(152,382)
(24,494)
Repayment of loans
400
1,600
Interest received
19
40
Net cash used in investing activities
(151,963)
(22,854)
Financing activities
Payment of finance leases obligations
(5,697)
(5,697)
Dividends paid
(200,000)
(375,000)
Net cash used in financing activities
(205,697)
(380,697)
Net increase in cash and cash equivalents
78,391
1,239,031
Cash and cash equivalents at beginning of year
4,053,365
2,814,334
Cash and cash equivalents at end of year
4,131,756
4,053,365
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information
Timber Frameworks (Alba) Limited is a private company limited by shares incorporated in Scotland. The registered office is 225 West George Street, Glasgow, Scotland, G2 2ND.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10 years straight line
Plant and machinery
33.33% reducing balance p.a.
Computer equipment
25% reducing balance p.a.
Motor vehicles
33.33% reducing balance p.a.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Work in progress is valued based on the company's performance of contracts undertaken and its subsequent right to consideration. Profit can be recognised on contracts which were not invoiced at the year end based on the stage of completion of the individual contracts, where the profit can be ascertained with reasonable certainty.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
19
40
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,035
8,775
Depreciation of owned tangible fixed assets
54,528
49,029
Operating lease charges
7,996
11,870
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
71
74
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,204,612
1,988,046
Social security costs
196,148
157,359
Pension costs
43,037
36,718
2,443,797
2,182,123
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
82,401
80,957
Company pension contributions to defined contribution schemes
1,321
1,321
83,722
82,278
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
19
40
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
520
-
Other finance costs:
Interest on finance leases and hire purchase contracts
771
771
1,291
771
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
149,438
246,691
Adjustments in respect of prior periods
1,783
Total current tax
149,438
248,474
Deferred tax
Origination and reversal of timing differences
26,079
(3,878)
Total tax charge
175,517
244,596
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
646,783
1,092,262
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
161,696
273,066
Tax effect of expenses that are not deductible in determining taxable profit
1,361
1,943
Effect of change in corporation tax rate
(33,535)
Permanent capital allowances in excess of depreciation
(13,619)
5,217
Under/(over) provided in prior years
26,079
(3,878)
Deferred tax adjustments
1,783
Taxation charge for the year
175,517
244,596
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
9
Dividends
2024
2023
£
£
Interim paid
200,000
375,000
10
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
26,642
Amortisation and impairment
At 1 October 2023 and 30 September 2024
26,642
Carrying amount
At 30 September 2024
At 30 September 2023
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
21,217
278,354
35,473
49,039
384,083
Additions
43,380
2,095
106,907
152,382
At 30 September 2024
64,597
278,354
37,568
155,946
536,465
Depreciation and impairment
At 1 October 2023
5,401
194,773
24,873
42,732
267,779
Depreciation charged in the year
5,032
27,858
2,912
18,726
54,528
At 30 September 2024
10,433
222,631
27,785
61,458
322,307
Carrying amount
At 30 September 2024
54,164
55,723
9,783
94,488
214,158
At 30 September 2023
15,817
83,581
10,599
6,308
116,305
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
9,353
14,029
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
12
Stocks
2024
2023
£
£
Work in progress
67,343
94,984
Finished goods and goods for resale
353,584
223,310
420,927
318,294
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,789,829
1,649,116
Other debtors
72,050
161,530
Prepayments and accrued income
40,307
68,379
1,902,186
1,879,025
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
5,697
5,697
Trade creditors
902,864
820,522
Corporation tax
149,438
246,650
Other taxation and social security
85,461
98,901
Other creditors
3,776
3,776
Accruals and deferred income
191,925
153,225
1,339,161
1,328,771
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
6,647
12,344
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
5,697
5,697
In two to five years
6,647
12,344
12,344
18,041
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
16
Finance lease obligations
(Continued)
- 20 -
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4.17 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
51,201
25,122
2024
Movements in the year:
£
Liability at 1 October 2023
25,122
Charge to profit or loss
26,079
Liability at 30 September 2024
51,201
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,037
36,718
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
29,100
29,100
29,100
29,100
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
197,250
197,250
Between two and five years
988,800
329,600
1,186,050
526,850
21
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
74,750
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
82,401
80,957
TIMBER FRAMEWORKS (ALBA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
471,266
847,666
Adjustments for:
Taxation charged
175,517
244,596
Finance costs
1,291
771
Investment income
(19)
(40)
Depreciation and impairment of tangible fixed assets
54,529
49,029
Movements in working capital:
(Increase)/decrease in stocks
(102,633)
307,258
(Increase)/decrease in debtors
(23,561)
1,207,639
Increase/(decrease) in creditors
107,602
(668,896)
Cash generated from operations
683,992
1,988,023
24
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
4,053,365
78,391
4,131,756
Obligations under finance leases
(18,041)
5,697
(12,344)
4,035,324
84,088
4,119,412
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