Registered number:
FOR THE YEAR ENDED 31 JULY 2024
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THOMSON SAWMILLS LIMITED
COMPANY INFORMATION
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THOMSON SAWMILLS LIMITED
CONTENTS
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THOMSON SAWMILLS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
The directors present their strategic report for the year ended 31 July 2024.
The principal activity of the business is the processing and treating of timber into various wood products. The company sources its timber from British softwood sustainable forests and is FSC certified. Business review Overview: Thomson Sawmills is a leading player in the sawmilling industry, known for its sustainable practices and high-quality wood products. The company has built a strong reputation for delivering superior timber products while adhering to best environmental practices. In the strategic report for the financial year, Thomson Sawmills has provided a detailed overview of its operations, financial performance, and future strategic goals. Key Highlights: Operational Performance: The strategic report highlights that Thomson Sawmills has maintained a stable and strong operational performance over the past year, despite challenges in the wider timber market. The company has successfully increased its operational capacity by upgrading sawmilling technology and improving its production processes. These investments have led to increased efficiency and cost management, contributing to overall profitability. Market Expansion: One of the key strategies outlined in the report is Thomson Sawmills’ focus on expanding its market presence. This includes diversifying its product offerings and tapping into new geographical regions. By diversifying into new markets, the company aims to reduce its dependency on traditional markets and mitigate the risks associated with fluctuations in demand. Sustainability and Environmental Commitment: Thomson Sawmills has continued to prioritize sustainability, a key element of the company's long-term growth strategy. The report emphasises the company's commitment to responsible sourcing and its adherence to environmental standards, including certifications such as FSC (Forest Stewardship Council). The company is also working on reducing its carbon footprint and has invested in renewable energy sources for its operations. Financial Performance: The financial performance of Thomson Sawmills has shown steady growth, with an increase in profit before tax. Despite facing challenges such as fluctuating raw material prices and supply chain disruptions, the company has managed to maintain profitability through strategic pricing, cost control measures, and the optimisation of its production processes. The financial report reveals a solid balance sheet, with healthy liquidity and minimal debt, positioning the company for future investment opportunities. Innovation and Technology: Innovation remains a core driver for Thomson Sawmills, and the strategic report details several initiatives to integrate advanced technologies into their operations. The implementation of automation and advanced data analytics in production processes has improved operational efficiency. Moreover, Thomson Sawmills is exploring new timber processing techniques to create high-value, sustainable products that meet evolving customer demands. Risk Management: The report also outlines the company's approach to risk management. It highlights the potential risks related to supply chain disruptions, changes in global timber prices, and the impacts of climate change. Thomson Sawmills has taken steps to mitigate these risks through a diversified supplier base and contingency planning.
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THOMSON SAWMILLS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
Strategic Priorities Going Forward:
Diversification and Growth: Expanding into new product segments and increasing production volumes for the coming year. This will allow the company to reduce reliance on its traditional markets and explore new opportunities in construction and sustainable building materials. Sustainability Leadership: Continuing its investment in sustainability initiatives is a priority for Thomson Sawmills. The company plans to enhance its environmental certifications and strengthen relationships with environmentally conscious customers. Technology and Innovation: The company will further invest in advanced sawmilling technologies and automation systems to increase production capacity, reduce waste, and improve product quality. Conclusion: Thomson Sawmills has demonstrated resilience and adaptability in a challenging business environment. The strategic report highlights a clear vision for growth, underpinned by sustainable practices, technological innovation, and strong market positioning. With a solid financial foundation and a forward-looking strategy, Thomson Sawmills is well-placed to continue driving value for its shareholders and stakeholders in the years to come.
There are certain risks and uncertainties inherent in the business that may affect future performance as follows:
Competitive Risk The company operates in a competitive market which is influenced by price pressures and competitors attempting to buy market share. To reduce this risk, the company concentrate on promoting industry leading customer service with a broad base of softwood product users. Commercial Relationship The company benefits from close commercial relationships with a number of key suppliers. Damage to, or loss of, these relationships could have a negative impact on results. Proactive management of these relationships ensures this risk is actively monitored. Foreign Exchange The company does not have activities outside the UK, therefore its exposure to exchange rate movements is minimal coming from purchasing parts for the sawmill from Europe and investing in equipment from European manufacturers. Operational Risk We have reviewed the operational risk resulting from both Brexit and COVID-19, particularly the economic ramifications; we have concluded that, as trade in the UK comprises use of raw materials procured domestically, Brexit has not had a significant effect. However, some machinery is purchased abroad which has caused some minor issues. The effect of COVID-19 is still on-going, particular in terms of economic consequences.
The company's key performance indicators are sales growth as a % and gross profit margin.
2024 2023 Sales growth -4% -29% Gross profit margin 28% 26%
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THOMSON SAWMILLS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
The company does not have any other key performance indicators in which they monitor ongoing performance against, they feel those defined above are sufficient given the nature and scale of operations.
This report was approved by the board on 23 April 2025 and signed on its behalf.
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THOMSON SAWMILLS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
The directors present their report and the financial statements for the year ended 31 July 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,439,809 (2023 - £1,714,626).
Dividends for the year amounted to £783,185 (2023 - £273,573).
The directors who served during the year were:
Future developments are discussed in the Strategic Report.
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THOMSON SAWMILLS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
Since the year-end, the company has entered into agreements to purchase fixed assets totalling £1,005,509. This is in addition to the capital commitments at the year-end, which are disclosed in note 19.
The auditors, Price Bailey LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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THOMSON SAWMILLS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMSON SAWMILLS LIMITED
We have audited the financial statements of Thomson Sawmills Limited (the 'Company') for the year ended 31 July 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Company 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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THOMSON SAWMILLS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMSON SAWMILLS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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THOMSON SAWMILLS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMSON SAWMILLS LIMITED (CONTINUED)
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 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:
Procedures to detect fraud • We carried out testing of journal entries and other adjustments for appropriateness, and evaluating the business rational of significant transactions to identify large or unusual transactions; • We critically assessed significant estimates inherent in the financial statements. This involved assessing estimates in light of our expectations which are formed on the basis of past experience and our knowledge of the entity and the industry; • We obtained confirmation directly from the Company’s bank, to confirm the accounts and balances held in their name at the balance sheet date; • We confirmed the existence of a sample of employees to identify potential fictitious employees being paid, and to ensure there are no duplicate employees; • We made enquiries with management as to whether they were aware of any fraud; and • We reviewed a randomly selected payroll run to check for any duplicated bank details. Procedures to detect irregularities including non-compliance with laws and regulations • We reviewed a sample of employee payslips to ensure all employees are paid on or above the National Minimum Wage; • We reviewed legal expenses to identify potential instances of non-compliance with laws and regulations; • We obtained correspondence with key regulators including the FSC’s annual audit report, to assess the company’s ongoing compliance with laws and regulations; • We made enquiries with management as to whether they were aware of any legislative breaches, including with a fire marshall; • We reviewed the accident book for any potential health and safety breaches, and discussed procedures with the company’s health & safety officer; and • We reviewed correspondence with the company’s insurers, to ensure there is adequate safeguards and coverage in place to protect against business risks. We performed the procedures set out above after gaining an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and after considering the risk of acts by the Company contrary to applicable laws and regulations including fraud. We obtained this understanding from discussions with those charged with governance, who did not make the engagement team aware of any non compliance with laws and regulations or instances of fraud throughout the year or since the year end.
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THOMSON SAWMILLS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMSON SAWMILLS LIMITED (CONTINUED)
In performing the above procedures, we focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, FSC Standards: 40-004 V3-0 CoC Standard, 40-005 V3-1 Controlled Wood and 50-001 V2-0 Trademark, Health & Safety in Sawmilling (HSG172), Fire Safety in Construction (HSG168), the Companies Act 2006 and UK tax legislation.
Following detailed team briefings, the Responsible Individual has assessed that the audit engagement team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with applicable laws and regulation. Nonetheless, 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.
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norfolk
NR7 0HR
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THOMSON SAWMILLS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
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THOMSON SAWMILLS LIMITED
REGISTERED NUMBER: 03179745
BALANCE SHEET
AS AT 31 JULY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 13 to 26 form part of these financial statements.
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THOMSON SAWMILLS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
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THOMSON SAWMILLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Thomson Sawmills Limited is a private company, limited by shares, and registered in England and Wales. The Company's registered office is, The Sawmill, Shortthorn Road, Stratton Strawless, Norwich, Norfolk, NR10 5NT, which is the same address as its place of business.
The company's principal activity is that of sawmilling, planing of wood, and sale of timber.
2.Accounting policies
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 management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Thomson Sawmills Holdings Limited as at 31 July 2024 and these financial statements may be obtained from The Sawmill, Shortthorn Road, Stratton Strawless, Norwich, Norfolk, NR10 5NT.
Functional and presentation currency
Transactions and balances
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THOMSON SAWMILLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.Accounting policies (continued)
Renewable heat incentive income is recognised as renewable heat is generated.
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THOMSON SAWMILLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
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.
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THOMSON SAWMILLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.Accounting policies (continued)
Stock is valued on a first in first out basis. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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THOMSON SAWMILLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. Valuation of stock Management have estimated costs directly attributable to the manufacturing of stock. These estimates include a proportion of overheads absorbed into the stock valuation, the ageing of logs in stock, and the average weight per metre cubed of logs in stock. The other key estimates within this calculation are: the percentage of logs that is turned into each byproduct and a stratification of the cost per tonne of logs across each byproduct. Management also estimate the volume of certain stock lines held at the year-end. At the 31 July 2024 stock was valued at £2,045,744 (2023: £1,749,112). Depreciation Management have estimated the useful economic life (UEL) of fixed assets and depreciation has in turn been calculated on the UEL. The depreciation charged in the year amounted to £798,470 (2023: £823,423).
The whole of the turnover is attributable to the sale of timber and timber related byproducts.
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THOMSON SAWMILLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
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THOMSON SAWMILLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
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THOMSON SAWMILLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
There were no factors that may affect future tax charges.
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