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Registered number: 09382572









NASON DAVIS HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024






































Whitings LLP
Chartered Accountants & Business Advisers
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY

 
NASON DAVIS HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
D R M Balch 
C F James 
R Laagus 
I Tani 




Registered number
09382572



Registered office
The Officers' Mess
Royston Road

Duxford

Cambridge

CB22 4QH




Independent auditors
Whitings LLP
Chartered Accountants & Statutory Auditor

Greenwood House

Greenwood Court

Skyliner Way

Bury St Edmunds

Suffolk

IP32 7GY





 
NASON DAVIS HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Consolidated Statement of Comprehensive Income
10
Consolidated Balance Sheet
11 - 12
Company Balance Sheet
13
Consolidated Statement of Changes in Equity
14
Company Statement of Changes in Equity
15
Consolidated Statement of Cash Flows
16 - 17
Consolidated Analysis of Net Debt
18
Notes to the Financial Statements
19 - 41


 
NASON DAVIS HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
The board presents their statement for the period.

Business review
 
The last financial year proved to be challenging as our industry started to correct the over reaction and over production in supply post the Russian invasion of Ukraine. This correction has been continuing throughout the financial year.
This removal of a traditional supply from Europe has had a significant impact on the dynamics of supply as countries who had previously had more reliance on supply from Belarus, Ukraine  and the Russian Federation switched back to a focus on the Nordic Countries. In turn the Nordic suppliers increased production with investments from profits made during and post Covid.
The strong demand continued into early 2023, but then weakened with less activity in either the US or Chinese domestic markets, where they had over capacity in housing along with less global activity for their products. Combined with the inflationary surge in Europe and the multiple raising of interest rates, this meant companies de-stocked, and high inflation suppressed domestic consumer consumption which resulted in lowering demand in many of our sales areas.
As a result our group turnover increased from £53.26 million to £54.68 million but our group gross profit fell from £6.06 million to £5.87 million.
UK - Nason Davis Ltd
In the UK, housing starts fell away year on year further reducing UK consumption. Selling prices fell back to pre-Covid levels as suppliers chased orders to sell their stocks resulting in significant reduction in sales prices during the year. This all impacted our average sales prices, which fell by approximately 20% and inevitably affected our gross margin.
Despite these trying market circumstances, re-assumingly, our sales volume expanded in line with budget expectations by 3% but the reduction in sales price directly affected the final market price and our subsequent resultant margin. Our turnover was reduced from £43.89 million to £43.08 million but our gross profit fell from £3.03 million to £2.81 million. 
The increase in sales volumes demonstrates the now completed integration of sales and operations post the Roger Mitchell (UK) Ltd acquisition. Positively we see volumes continuing to head upwards as our increase in supply, sales market coverage and staff familiarisation continue to develop.
Japan - Japanese operations
In Japan we had a mixed year. Japan was not subject to the environmental and economic sanctions that Europe applied and as a consequence exports from the Russian Federation to Japan grew markedly, aided by competitive export pricing compared to other supply markets. Soon Japan was overstocked leading to a noteworthy drop in new orders which continued throughout our financial period. Our sales volumes from Estonia to Japan suffered a significant drop. Now stocks are finally being adjusted or utilised we are expecting market conditions in Q1 and Q2 2025 to still be awkward but gradually to see a return to more normal trading conditions. 
Estonia - Nason Davis Eesti OÜ
In Estonia, Nason Davis Eesti OU has ownership of a processing plant, as well as two further significant investments in a processing plant and pallet collar production. With the price correction across the market, while turnover increased, profit decreased compared to the previous financial year as well as production volume decreasing owing to the very tough trading climate.

 
Page 1

 
NASON DAVIS HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Turnover increased by 8% compared to 2023 and despite pressure on margins the Estonian group increased the balance sheet by just over 2%. The majority of the turnover is value-added from our own production. Sales to Japan accounted for 52% of turnover, 21% to the UK, 13% to France and 7% within Estonia. In the 2022/23 financial year, the distribution in terms of major markets was 40% to Japan, 32% to the UK, 16% to France and 7% within Estonia.

Principal risks and uncertainties
 
The principal risk we face is the economic indicators for timber in our key markets.
The group trades primarily in Sterling and Euro. Where we buy in other currencies, our currency risk is mitigated with forward contracts purchased to cover exposure. More volatile changes in the cross rate between Sterling and other currencies can have an impact on our business in the day-to-day market.
The group mitigates its bad debt risk by securing terms that guarantee the payment, either by insuring against its debtor book or by other means of security.
In all aspects of our purchasing we follow the regulations set by UKTR and EUTR as well as having FSC and PEFC certification for chain of custody in the UK and Estonia. We exercise continued improvement for our environmental credentials throughout our group activities.
Outlook 
The 2024-2025 UK market is hard to forecast as despite the uncertainty, we now see stronger sales prices as overall stocks are more in balance. Significant pressure on sawmills’ raw material supply is resulting in significant increases in their forward prices in the first half of  2025. 
All eyes will be across the Atlantic now following the recent change in leadership and with the threat of punitive tariffs imposed on Canadian lumber exports to the USA. This may give a significant advantage to European exporters to that market. Major European producers are likely to respond with increases in export sales offshore, all sourced from a declining basket of raw material supply, which will likely result in a price surge here.
  
Following the UK 2024 autumn budget we have some concern as this has exacerbated flagging  consumer confidence, the slowing in the predicted reduction of interest rates and flat demand.  UK housing starts seems to have bottomed out, the number of starts are set to move upward albeit slowly once more & we are well placed to benefit.
We hope we will see a return to some market stability at the end of Q1 2025 and that we can maintain our aim of expanding the business and further increasing the balance sheet.
In Estonia, we will continue with additional investments into the automation of the production process. We aim to increase sales of various value-added products to Europe and Asia and intensify cooperation with existing suppliers and customers.
Finally, as always we could not achieve our continuing expansion without the dedication and skill of our staff and would very much like to thank them for their support and endeavours once again.

Page 2

 
NASON DAVIS HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Financial key performance indicators
 
The key performance indicators that we use for measuring performance of the Group are detailed below:


2024
2023
        £
        £
Turnover

54,681,295

53,264,190
 
Gross profit

5,872,196

6,057,673
 
Pre-tax profit

1,074,308

1,863,228
 
Balance sheet total

9,303,278

9,314,330
 


This report was approved by the board and signed on its behalf.



C F James
Director

Date: 13 April 2025

Page 3

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their report and the financial statements for the year ended 31 August 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group 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 for the Group's financial statements and then apply them consistently;

make judgments 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;

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

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

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £778,944 (2023 - £1,586,615).

Directors

The directors who served during the year were:

D R M Balch 
C F James 
R Laagus 
I Tani 

Future developments

There are no major changes planned to the business, its customers or suppliers. Future developments are included in the Strategic Report.

Page 4

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There are no major changes planned to the Group, its customers or suppliers. Further developments are included in the Strategic Report.

Auditors

The auditorsWhitings LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





C F James
Director

Date: 13 April 2025

Page 5

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASON DAVIS HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Nason Davis Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 of the parent Company's affairs as at 31 August 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASON DAVIS HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the 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 the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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.


Page 7

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASON DAVIS HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Auditors' 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 Auditors' 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 Group 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:

Enquiry of management about any known or suspected instances of non-compliance with laws and regulations, and fraud; 
Enquiry of management around actual and potential litigation and claims;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Challenging assumptions and judgements made by management in their significant accounting estimates; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the course of normal business.


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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Page 8

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASON DAVIS HOLDINGS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Jonathan Moore ACCA (Senior Statutory Auditor)
  
for and on behalf of
Whitings LLP
 
Chartered Accountants & Statutory Auditor
  
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY

25 April 2025
Page 9

 
NASON DAVIS HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
54,681,295
53,264,190

Cost of sales
  
(48,809,099)
(47,206,517)

Gross profit
  
5,872,196
6,057,673

Administrative expenses
  
(4,674,682)
(4,454,238)

Operating profit
  
1,197,514
1,603,435

Share of profit of associates
  
44,235
458,680

Total operating profit
  
1,241,749
2,062,115

Interest receivable and similar income
 8 
23,885
5,655

Interest payable and similar expenses
 9 
(191,326)
(204,542)

Profit before taxation
  
1,074,308
1,863,228

Tax on profit
 10 
(189,644)
(192,497)

Profit for the financial year
  
884,664
1,670,731

  

Currency translation differences
  
(123,716)
(4,338)

Other comprehensive income for the year
  
(123,716)
(4,338)

Total comprehensive income for the year
  
760,948
1,666,393

Profit for the year attributable to:
  

Non-controlling interests
  
105,720
84,116

Owners of the parent Company
  
778,944
1,586,615

  
884,664
1,670,731

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
105,720
84,116

Owners of the parent Company
  
655,228
1,582,277

  
760,948
1,666,393

The notes on pages 19 to 41 form part of these financial statements.

Page 10

 
NASON DAVIS HOLDINGS LIMITED
REGISTERED NUMBER: 09382572

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
142,362
136,425

Tangible assets
 13 
2,896,188
2,742,203

Investments
 14 
916,529
932,682

  
3,955,079
3,811,310

Current assets
  

Stocks
 15 
4,704,083
3,938,373

Debtors: amounts falling due within one year
 16 
8,804,169
10,018,480

Cash at bank and in hand
 17 
1,442,938
1,296,505

  
14,951,190
15,253,358

Creditors: amounts falling due within one year
 18 
(9,368,086)
(9,241,487)

Net current assets
  
 
 
5,583,104
 
 
6,011,871

Total assets less current liabilities
  
9,538,183
9,823,181

Creditors: amounts falling due after more than one year
 19 
(234,905)
(508,851)

Net assets
  
9,303,278
9,314,330

Page 11

 
NASON DAVIS HOLDINGS LIMITED
REGISTERED NUMBER: 09382572
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 23 
463,760
463,760

Capital redemption reserve
 24 
25,500
25,500

Profit and loss account
 24 
8,430,552
8,547,324

Non-controlling interests
  
383,466
277,746

  
9,303,278
9,314,330


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




C F James
R Laagus
Director
Director


Date: 13 April 2025

The notes on pages 19 to 41 form part of these financial statements.

Page 12

 
NASON DAVIS HOLDINGS LIMITED
REGISTERED NUMBER: 09382572

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 14 
2,604,306
2,604,306

  
2,604,306
2,604,306

Current assets
  

Cash at bank and in hand
 17 
46
32

  
46
32

Creditors: amounts falling due within one year
 18 
(359)
(261)

Net current liabilities
  
 
 
(313)
 
 
(229)

Total assets less current liabilities
  
2,603,993
2,604,077

  

  

Net assets
  
2,603,993
2,604,077


Capital and reserves
  

Called up share capital 
 23 
463,760
463,760

Capital redemption reserve
 24 
25,500
25,500

Profit and loss account
 24 
2,114,733
2,114,817

  
2,603,993
2,604,077


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




C F James
R Laagus
Director
Director
Date: 13 April 2025

The notes on pages 19 to 41 form part of these financial statements.

Page 13
 

 
NASON DAVIS HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024



Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£



At 1 September 2022
463,760
25,500
7,480,047
7,969,307
193,630
8,162,937





Profit for the year
-
-
1,586,615
1,586,615
84,116
1,670,731


Currency translation differences
-
-
(4,338)
(4,338)
-
(4,338)


Dividends paid
-
-
(515,000)
(515,000)
-
(515,000)





At 1 September 2023
463,760
25,500
8,547,324
9,036,584
277,746
9,314,330





Profit for the year
-
-
778,944
778,944
105,720
884,664


Currency translation differences
-
-
(123,716)
(123,716)
-
(123,716)


Dividends paid
-
-
(772,000)
(772,000)
-
(772,000)



At 31 August 2024
463,760
25,500
8,430,552
8,919,812
383,466
9,303,278



The notes on pages 19 to 41 form part of these financial statements.

Page 14
 
NASON DAVIS HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 September 2022
463,760
25,500
2,114,847
2,604,107



Profit for the year
-
-
514,970
514,970

Dividends paid
-
-
(515,000)
(515,000)



At 1 September 2023
463,760
25,500
2,114,817
2,604,077



Profit for the year
-
-
771,916
771,916

Dividends paid
-
-
(772,000)
(772,000)


At 31 August 2024
463,760
25,500
2,114,733
2,603,993


The notes on pages 19 to 41 form part of these financial statements.

Page 15

 
NASON DAVIS HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
884,664
1,670,731

Adjustments for:

Amortisation of intangible assets
15,000
18,104

Depreciation of tangible assets
342,703
235,811

Loss on disposal of tangible assets
(30,660)
(57,345)

Interest paid
191,326
204,542

Interest received
(23,885)
(5,655)

Taxation charge
189,644
192,497

(Increase)/decrease in stocks
(765,707)
260,792

Decrease/(increase) in debtors
1,219,772
(141,265)

(Increase)/decrease in amounts owed by associates
(6,838)
-

Increase/(decrease) in creditors
105,299
(457,432)

Share of profit of associates net of dividend
765
(380,998)

Corporation tax (paid)
(167,762)
(331,253)

Foreign exchange on consolidation
8,766
12,816

Net cash generated from operating activities

1,963,087
1,221,345


Cash flows from investing activities

Purchase of intangible fixed assets
(23,803)
(13,206)

Purchase of tangible fixed assets
(576,945)
(556,343)

Sale of tangible fixed assets
72,957
109,541

Interest received
23,885
5,655

Hire purchase interest paid
(2,843)
(2,758)

Net cash from investing activities

(506,749)
(457,111)

Cash flows from financing activities

Repayment of loans
(98,625)
(146,669)

Repayment of/new finance leases
(41,708)
(99,860)

Movements on invoice discounting
(209,089)
(521,126)

Dividends paid
(772,000)
(515,000)

Interest paid
(188,483)
(201,784)

Net cash used in financing activities
(1,309,905)
(1,484,439)

Net increase/(decrease) in cash and cash equivalents
146,433
(720,205)

Cash and cash equivalents at beginning of year
1,296,505
2,016,710
Page 16

 
NASON DAVIS HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024


2024
2023

£
£


Cash and cash equivalents at the end of year
1,442,938
1,296,505


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,442,938
1,296,505

1,442,938
1,296,505


The notes on pages 19 to 41 form part of these financial statements.

Page 17

 
NASON DAVIS HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2024




At 1 September 2023
Cash flows
At 31 August 2024
£

£

£

Cash at bank and in hand

1,296,505

146,433

1,442,938

Debt due within 1 year

(146,992)

(1,375)

(148,367)

Debt due after 1 year

(166,668)

100,000

(66,668)

Proceeds of factored debts

(3,181,328)

209,089

(2,972,239)

Finance leases

(280,156)

41,708

(238,448)


(2,478,639)
495,855
(1,982,784)

The notes on pages 19 to 41 form part of these financial statements.

Page 18

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

Nason Davis Holdings Limited is a private, non-trading holding company, incorporated in England and Wales. The registered office is The Officers' Mess, Royston Road, Duxford, Cambridge, CB22 4QH. The principal activity of the Group is that of timber agency and trading.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.

Page 19

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 20

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Agency commission
Revenue from commission income is recognised on delivery of the goods to the customer.

 
2.5

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are recognised in the Consolidated Statement of Comprehensive Income on a straight line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method, so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in the Consolidated Statement of Comprehensive Income in the year in which they are incurred.

Page 21

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 22

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Intangible assets include the subsidiary's database program for monitoring stock/sales. It is being amortised to the Consolidated Statement of Comprehensive Income over its estimated economic life. The database is amortised on a straight line basis at a rate of 35% per annum.

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 23

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
20% - 50% straight line
Plant and machinery
-
20% - 50% straight line
Motor vehicles
-
20% - 50% straight line
Office equipment
-
20% - 50% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Assets in construction are not depreciated until they are in use.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

Page 24

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated Statement of Comprehensive Income.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 25

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 26

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 27

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property, plant and equipment and accounting policy note 2.14 for the useful economic lives for each class of assets.
(ii) Impairment of debtors
The subsidiaries make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 17 for the net carrying amount of the debtors and any associated impairment provision.
(iii) Impairment of stock
The subsidiaries trade in timber and as a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating stock provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future useage of raw materials. See note 16 for the carrying amount of stock and any associated provision.

Page 28

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of timber as principal
54,576,347
53,100,284

Commission
104,948
163,906

54,681,295
53,264,190


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
42,716,053
43,617,574

Europe and rest of the world
11,965,242
9,646,616

54,681,295
53,264,190



5.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Group's auditors for the audit of the Group's annual financial statements
18,600
18,600

Page 29

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

6.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
2,465,609
2,277,735

Social security costs
546,196
492,725

Cost of defined contribution scheme
169,765
275,835

3,181,570
3,046,295


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







UK
20
19



Estonia
52
51



Japan
2
2

74
72

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)

7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
366,187
329,736

Group contributions to defined contribution pension schemes
47,779
103,621

413,966
433,357


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £116,512 (2023 - £97,775).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £18,285 (2023 - £63,826).

Page 30

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

8.


Interest receivable

2024
2023
£
£


Other interest receivable
23,885
5,655


9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
34,912
41,324

Other loan interest payable
27,488
18,626

Finance leases and hire purchase contracts
2,843
2,758

Other interest payable
126,083
141,834

191,326
204,542


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
142,556
152,732

Foreign tax


Foreign tax on income for the year
45,712
27,946

Total current tax
188,268
180,678

Deferred tax


Origination and reversal of timing differences
1,376
11,819

Total deferred tax
1,376
11,819


Taxation on profit on ordinary activities
189,644
192,497
Page 31

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,074,308
1,863,229


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19 - 25%)
268,577
400,594

268,577
400,594

Effects of:


Expenses not deductible for tax purposes
12,840
5,871

Short term timing differences
-
(212)

Non-taxable income on overseas subsidiaries
(137,485)
(241,702)

Tax suffered by overseas subsidiaries
45,712
27,946

Total tax charge for the year
189,644
192,497


11.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £771,916 (2023 - £514,970).

Page 32

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

12.


Intangible assets

Group





Computer software
Goodwill
Total

£
£
£



Cost


At 1 September 2023
68,010
180,848
248,858


Additions
23,803
-
23,803


Foreign exchange movement
(3,764)
-
(3,764)



At 31 August 2024

88,049
180,848
268,897



Amortisation


At 1 September 2023
57,836
54,598
112,434


Charge for the year on owned assets
-
15,000
15,000


Foreign exchange movement
(899)
-
(899)



At 31 August 2024

56,937
69,598
126,535



Net book value



At 31 August 2024
31,112
111,250
142,362



At 31 August 2023
10,174
126,250
136,424



Page 33

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

13.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Office equipment
Assets under construction
Total

£
£
£
£
£
£



Cost or valuation


At 1 September 2023
1,097,816
1,431,856
659,573
268,368
162,664
3,620,277


Additions
82,296
133,061
244,310
30,919
86,359
576,945


Disposals
-
(1,347)
(80,565)
-
-
(81,912)


Transfers between classes
6,056
49,199
-
-
(55,255)
-


Exchange adjustments
(19,726)
(26,928)
(6,023)
(3,373)
(3,250)
(59,300)



At 31 August 2024

1,166,442
1,585,841
817,295
295,914
190,518
4,056,010



Depreciation


At 1 September 2023
29,958
472,537
243,496
132,083
-
878,074


Charge for the year on owned assets
25,837
132,356
136,186
42,478
-
336,857


Disposals
-
-
(39,615)
-
-
(39,615)


Exchange adjustments
(966)
(10,212)
(2,654)
(1,662)
-
(15,494)



At 31 August 2024

54,829
594,681
337,413
172,899
-
1,159,822



Net book value



At 31 August 2024
1,111,613
991,160
479,882
123,015
190,518
2,896,188



At 31 August 2023
1,067,858
959,319
416,077
136,285
162,664
2,742,203

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
422,809
450,012

Motor vehicles
85,052
124,517

507,861
574,529

Page 34

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

14.


Fixed asset investments

Group





Investments in associates

£



Cost or valuation


At 1 September 2023
932,682


Foreign exchange movement
(15,388)


Share of profit/(loss)
(765)



At 31 August 2024
916,529




Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2023
2,604,306



At 31 August 2024
2,604,306





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Nason Davis Limited
Timber agency and trading
Ordinary
100%
Nason Davis Eesti OÜ
Timber agency and trading
Ordinary
100%
Assiku Puit OÜ
Timber processing
Ordinary
67%
Oja Puit OÜ
Timber processing
Ordinary
100%

Nason Davis Eesti OÜ, Assiku Puit OÜ and Oja Puit OÜ are incorporated in Estonia.

Page 35

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

Associate


The following was an associate of the Company:


Name

Principal activity

Class of shares

Holding

Ilmre OÜ
Production of wooden packaging
Ordinary
50%


15.


Stocks

Group
Group
2024
2023
£
£

Finished goods and goods for resale
4,704,083
3,938,373


An impairment loss of £70,000 (2023 - £62,335) has been recognised.


16.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
8,598,610
9,740,675
-
-

Amounts owed by associates
7,155
317
-
-

Other debtors
4,307
10,177
-
-

Prepayments and accrued income
179,415
251,253
-
-

Deferred taxation
14,682
16,058
-
-

8,804,169
10,018,480
-
-


Included within trade debtors are balances totalling £7,438,288 (2023 - £8,526,285) that are subject to factoring arrangements. The trade debtor balances have been transferred to the counterparty, though the transaction does not qualify for derecognition on the basis that the risks and rewards of ownership are retained by the company. The associated liability is recognised in creditors. The group mitigates its bad debt risk by securing terms that guarantee the payment, either by insuring against its debtor book or by other means of security.

Page 36

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

17.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
1,442,938
1,296,505
46
32

1,442,938
1,296,505
46
32



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
148,367
146,992
-
-

Trade creditors
3,913,077
3,075,394
-
-

Amounts owed to group undertakings
-
-
98
-

Corporation tax
87,434
54,982
-
-

Other taxation and social security
1,520,165
1,912,011
-
-

Obligations under finance lease and hire purchase contracts
112,299
109,148
-
-

Proceeds of factored debts
2,972,239
3,181,328
-
-

Other creditors
176,623
262,414
261
261

Accruals and deferred income
437,882
499,218
-
-

9,368,086
9,241,487
359
261


Proceeds of factored debts are secured by a fixed and floating charge over all the current and future assets of the subsidiary, Nason Davis Limited.
Bank borrowings of Nason Davis Limited are secured by a debenture and trade indemnity over all assets of the Company. The borrowings have a term of 72 months, the first 12 months are interest only and this is paid by the government. Over the remaining 60 months, the loan is repayable by monthly instalments. Interest is charged at a fixed rate of 2.25% over base rate.
There is a commercial lien agreement in favour of Swedbank in the sum of €871,000 to guarantee the overdraft of Nason Davis Eesti. Nason Davis Eesti has given a guarantee to Swedbank for a loan of a subsidiary of €160,000.
Obligations under finance lease and hire purchase contracts are secured on the assets concerned.

Page 37

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

19.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Bank loans
66,668
166,668

Net obligations under finance leases and hire purchase contracts
126,149
171,009

Other creditors
42,088
171,174

234,905
508,851


Other creditors are payable in instalments and interest is charged at 5%.


20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Bank loans due within one year
148,367
146,992

Bank loans due within 1-2 years
66,668
166,668


215,035
313,660



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
115,814
113,231

Between 1-5 years
168,987
177,337

284,801
290,568

Page 38

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

22.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
16,058
28,565


Charged to profit or loss
(1,376)
(12,507)



At end of year
14,682
16,058

Company


2024
2023






At end of year
-
-
The deferred tax asset is made up as follows:

Group
Group
2024
2023
£
£

Fixed asset timing differences
-
(4,317)

Short term timing differences
14,682
20,375

14,682
16,058


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



231,880 (2023 - 231,880) Ordinary shares of £1 each
231,880
231,880
115,940 (2023 - 115,940) Ordinary C Shares shares of £1 each
115,940
115,940
115,940 (2023 - 115,940) Ordinary D Shares shares of £1 each
115,940
115,940

463,760

463,760


Page 39

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

24.


Reserves

Capital redemption reserve

The capital redemption reserve comprises £25,500 arising from the purchase of own share capital.

Profit and loss account

Includes all current and prior period retained profits and losses.

Non-controlling interests

Includes the non-controlling interest share of subsidiaries net assets at the point of acquisition to the group, plus any subsequent share of profits and losses of the subsidiary.


25.


Contingent liabilities

According to tax legislation currently applicable in Estonia, the subsidiaries based in Estonia are not liable to pay Estonian corporation tax on the profits recognised in an accounting period. Instead, Estonian corporation tax becomes due when dividends are paid to the shareholders.
If the allowable retained profits were distributed, the group's total estimated tax liability in respect of the Estonian profits at the year end would increase by approximately €1,406,898 (2023 - €1,398,084). In accordance with FRS 102, deferred tax has not been provided for in respect of this timing difference as the Group is able to control the distribution of the profits and there are no plans to distribute the historic retained profits in the foreseeable future.


26.


Pension commitments

The Group operates defined contributions pension schemes. The assets of the schemes are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the funds and amounted to £167,764 (2023 - £275,835). Contributions totalling £30,500 (2023 - £81,500) were payable to the funds at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

At 31 August 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
157,833
161,271

Later than 1 year and not later than 5 years
369,895
522,399

527,728
683,670

Lease payments of £176,701 (2023 - 175,508) were recognised as an expense during the year.

Page 40

 
NASON DAVIS HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

28.


Related party transactions

Where possible, the Group has taken advantage of the exemption conferred by section 33.1A of Financial Reporting Standard 102: Related Party Disclosures; from the requirement to disclose transactions with wholly-owned group companies.
Refer to note 7 for disclosure of the company's directors' remuneration. 
Key management comprise the directors of the company and board members of its subsidiaries. Total key management personnel remuneration was £533,795 (2023 - £490,126).
During the year, total dividends of £772,000 (2023 - £515,500) were paid to the directors of the company.
During the year total sales made to associates was £83,874 (2023 - £66,934) and total purchases was £16,040 (2023 - £53,003). At the balance sheet date, amounts owed by associates was £nil (2023 - £836) and included within debtors. Amounts owed to associates was £nil (2023 - £nil) and included within creditors.
During the year total sales made to subsidiaries not wholly owned by the group was £31,340 (2023 - £21,863) and total purchases was £1,259,570 (2023 - £1,032,099). At the balance sheet date, amounts owed by these subsidiaries was £181,433 (2023 - £354,869) and amounts owed to these subsidiaries was £64,584 (2023 - £37,227). In line with accounting policy 2.2, these transactions and balances are eliminated upon consolidation and therefore do not appear in these financial statements.


29.


Controlling Party

There is no ultimate controlling party.

Page 41