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Registered number: 08299304









THOMSON SAWMILLS HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

COMPANY INFORMATION


Directors
L Grimwood 
C J Reid 
B Thomson 
J B Thomson 
M J Thomson 
O Thomson 




Registered number
08299304



Registered office
The Sawmill
Shortthorn Road

Stratton Strawless

Norwich

Norfolk

NR10 5NT




Independent auditors
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Anglia House, 6 Central Avenue

St Andrews Business Park

Thorpe St Andrew

Norwich

Norfolk

NR7 0HR





 
THOMSON SAWMILLS 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
Company Balance Sheet
 
12 - 13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
14
Consolidated Statement of Cash Flows
 
15
Consolidated Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 36


 
THOMSON SAWMILLS HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

Introduction
 
The directors present their strategic report for the year ended 31 July 2024.
The principal activity of the group is the processing and treating of timber into various wood products. The group sources its timber from British softwood sustainable forests and is FSC certified.
The principal activitiy of the parent company is that of a holding company.
Business review
Overview:
Thomson Sawmills is a leading player in the sawmilling industry, known for its sustainable practices and high-quality wood products. The group 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 group 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 group 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 group'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 group 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 group 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 group 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 group'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.

Page 1

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

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

Business review
 
Strategic Priorities Going Forward:
Diversification and Growth: Expanding into new product segments and increasing production volumes for the coming year. This will allow the group 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 group plans to enhance its environmental certifications and strengthen relationships with environmentally conscious customers.
Technology and Innovation: The group 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.

Principal risks and uncertainties
 
There are certain risks and uncertainties inherent in the business that may affect future performance as follows:
Competitive Risk
The group operates in a competitive market which is influenced by price pressures and competitors attempted 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 group 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 group 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 particularly in terms of the economic consequences.

Page 2

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

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

Financial key performance indicators
 
The group's key performance indicators are sales growth as a % and gross profit margin.

        2024   2023
Sales growth                           -4%                        -29% 
Gross profit margin        28%     26%

Other key performance indicators
 
The group 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 17 April 2025 and signed on its behalf.





L Grimwood
Director

Page 3

 
THOMSON SAWMILLS HOLDINGS 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.

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;

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, amounted to £1,753,841 (2023 - £1,727,026).

During the year the group issued £783,185 (2023 - £273,573) in dividends.

Directors

The directors who served during the year were:

L Grimwood 
C J Reid 
B Thomson 
J B Thomson 
M J Thomson 
O Thomson 

Future developments

Future developments are discussed in the Strategic Report.

Page 4

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 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

Since the year-end, the group has entered into agreements to purchase fixed assets totalling £1,055,509. This is in addition to the capital commitments at the year-end, which are disclosed in note 25.

Auditors

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

This report was approved by the board on 17 April 2025 and signed on its behalf.
 





L Grimwood
Director

Page 5

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMSON SAWMILLS HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Thomson Sawmills Holdings Limited (the 'parent Company') and its subsidiary (the 'Group') for the year ended 31 July 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows 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 July 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

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMSON SAWMILLS 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.


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.


Page 7

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMSON SAWMILLS HOLDINGS LIMITED (CONTINUED)


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:

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. 

 
Page 8

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THOMSON SAWMILLS HOLDINGS 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), and Fire Safety in Construction (HSG168).
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.


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.





Stephan Schmitt ACA (Senior Statutory Auditor)
  
for and on behalf of
Price Bailey LLP
 
Chartered Accountants
Statutory Auditors
  
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norwich
Norfolk
NR7 0HR

29 April 2025
Page 9

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024


2024
2023
Note
£
£

  

Turnover
 4 
17,028,545
17,813,487

Cost of sales
  
(12,207,708)
(13,129,343)

Gross profit
  
4,820,837
4,684,144

Administrative expenses
  
(3,013,542)
(2,866,901)

Other operating income
 5 
178,367
132,447

Fair value movements
  
286,952
-

Operating profit
 6 
2,272,614
1,949,690

Interest receivable and similar income
  
3,751
1

Interest payable and similar expenses
  
(25,300)
(42,223)

Profit before taxation
  
2,251,065
1,907,468

Tax on profit
 10 
(497,224)
(180,442)

Profit for the financial year
  
1,753,841
1,727,026

Profit for the year attributable to:
  

Owners of the parent Company
  
1,753,841
1,727,026

  
1,753,841
1,727,026

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 17 to 36 form part of these financial statements.

Page 10

 
THOMSON SAWMILLS HOLDINGS LIMITED
REGISTERED NUMBER: 08299304

CONSOLIDATED BALANCE SHEET
AS AT 31 JULY 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
5,454,026
4,813,879

Investments
 12 
50
50

Investment property
 13 
2,506,214
2,219,262

  
7,960,290
7,033,191

Current assets
  

Stocks
 14 
2,045,744
1,749,112

Debtors: amounts falling due within one year
 15 
4,622,496
4,416,649

Cash at bank and in hand
  
523,474
304,529

  
7,191,714
6,470,290

Creditors: amounts falling due within one year
 16 
(4,458,632)
(3,718,092)

Net current assets
  
 
 
2,733,082
 
 
2,752,198

Total assets less current liabilities
  
10,693,372
9,785,389

Creditors: amounts falling due after more than one year
 17 
(160,437)
(243,405)

Provisions for liabilities
  

Deferred taxation
 20 
(499,432)
(479,137)

  
 
 
(499,432)
 
 
(479,137)

Net assets
  
10,033,503
9,062,847


Capital and reserves
  

Called up share capital 
 21 
30,000
30,060

Profit and loss account
 22 
10,003,503
9,032,787

Equity attributable to owners of the parent Company
  
10,033,503
9,062,847


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 April 2025.


L Grimwood
Director

The notes on pages 17 to 36 form part of these financial statements.

Page 11

 
THOMSON SAWMILLS HOLDINGS LIMITED
REGISTERED NUMBER: 08299304

COMPANY BALANCE SHEET
AS AT 31 JULY 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
807,027
146,099

Investments
 12 
30,050
30,050

Investment Property
 13 
2,506,214
2,219,262

  
3,343,291
2,395,411

Current assets
  

Debtors: amounts falling due within one year
 15 
16,001
26,261

Cash at bank and in hand
  
56,807
230,137

  
72,808
256,398

Creditors: amounts falling due within one year
 16 
(2,996,695)
(2,303,414)

Net current liabilities
  
 
 
(2,923,887)
 
 
(2,047,016)

Total assets less current liabilities
  
419,404
348,395

  

Creditors: amounts falling due after more than one year
 17 
-
(243,405)

Provisions for liabilities
  

Deferred taxation
 20 
(9,319)
(8,937)

  
 
 
(9,319)
 
 
(8,937)

Net assets
  
410,085
96,053


Capital and reserves
  

Called up share capital 
 21 
30,000
30,060

Profit and loss account brought forward
  
65,993
53,593

Profit for the year
  
1,097,217
285,973

Dividends paid

  

(783,125)
(273,573)

Profit and loss account carried forward
 22 
380,085
65,993

  
410,085
96,053


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 April 2025.


L Grimwood
Director

The notes on pages 17 to 36 form part of these financial statements.
Page 12

 
THOMSON SAWMILLS HOLDINGS LIMITED
REGISTERED NUMBER: 08299304

COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2024


Page 13

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 August 2022
30,060
7,579,334
7,609,394


Comprehensive income for the year

Profit for the year
-
1,727,026
1,727,026

Dividends: Equity capital
-
(273,573)
(273,573)



At 1 August 2023
30,060
9,032,787
9,062,847


Comprehensive income for the year

Profit for the year
-
1,753,841
1,753,841

Dividends: Equity capital
-
(783,185)
(783,185)

Share Restructure
(60)
60
-


At 31 July 2024
30,000
10,003,503
10,033,503


The notes on pages 17 to 36 form part of these financial statements.


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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 August 2022
30,060
53,593
83,653


Comprehensive income for the year

Profit for the year
-
285,973
285,973

Dividends: Equity capital
-
(273,573)
(273,573)



At 1 August 2023
30,060
65,993
96,053


Comprehensive income for the year

Profit for the year
-
1,097,217
1,097,217

Dividends: Equity capital
-
(783,185)
(783,185)

Share Restructure
(60)
60
-


At 31 July 2024
30,000
380,085
410,085


The notes on pages 17 to 36 form part of these financial statements.

Page 14

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

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

As restated
2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,753,841
1,727,026

Adjustments for:

Depreciation of tangible assets
798,470
834,071

Loss on disposal of tangible assets
-
(18,165)

Interest paid
25,300
42,223

Interest received
(3,751)
(1)

Taxation charge
497,224
180,442

(Increase)/decrease in stocks
(296,632)
864,822

(Increase)/decrease in debtors
(219,238)
1,220,746

Decrease in amounts owed by joint ventures
274,166
96,418

Increase/(decrease) in creditors
931,473
(2,563,922)

Net fair value (gains)/losses recognised in P&L
(286,952)
-

Corporation tax (paid)
(160,913)
(746,326)

Net cash generated from operating activities

3,312,988
1,637,334


Cash flows from investing activities

Purchase of tangible fixed assets
(1,835,941)
(313,605)

Sale of tangible fixed assets
-
19,500

Interest received
3,751
1

Net cash from investing activities

(1,832,190)
(294,104)

Cash flows from financing activities

Repayment of loans
(657,408)
(1,330,279)

Repayment of/new finance leases
204,132
-

Dividends paid
(783,185)
(273,573)

Interest paid
(25,300)
(42,223)

Net cash used in financing activities
(1,261,761)
(1,646,075)

Net increase/(decrease) in cash and cash equivalents
219,037
(302,845)

Cash and cash equivalents at beginning of year
304,437
607,282

Cash and cash equivalents at the end of year
523,474
304,437


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
523,474
304,529

Credit card balances
-
(92)


Page 15

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

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





At 1 August 2023
Cash flows
New finance leases
At 31 July 2024
£

£

£

£

Cash at bank and in hand

304,529

218,945

-

523,474

Debt due after 1 year

(243,405)

243,405

-

-

Debt due within 1 year

(436,553)

436,553

-

-

Finance leases

-

33,858

(237,990)

(204,132)


(375,429)
932,761
(237,990)
319,342

The notes on pages 17 to 36 form part of these financial statements.

Page 16

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

1.


General information

Thomson Sawmills Holdings 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 principle activity is that of a holding company.

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.

Page 17

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. Monetary amounts in these financial statements are rounded to the nearest £1.

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.

 
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. 
Revenue is recognised either on delivery or collection of goods, this is when the risks and rewards of ownership are deemed to transfer to the customer.
Rental income is recognised over the period of the lease.
Renewable heat incentive income is recognised as renewable heat is generated.

 
2.5

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss 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.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 18

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.9

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.

 
2.10

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 corporation 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

 
2.11

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.

Page 19

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.11
Tangible fixed assets (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:

Leasehold property
-
4% - 10% straight line
Plant and machinery
-
15% - 20% reducing balance
Motor vehicles
-
25% reducing balance
Office equipment
-
15% reducing balance

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.

 
2.12

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

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.

Page 20

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.15

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 profit or loss.

 
2.16

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.

 
2.17

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.

  
2.18

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the
balance sheet date and carried forward to future periods. This is measured at the undiscounted
salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 21

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.20

Financial instruments

The Group 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 Consolidated Statement of Comprehensive Income.

 
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.


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 income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. No judgments (apart from those involving estimates) have been made when preparing the financial statements.
The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
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 meter 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).
Valuation of property
Management have estimated the value of the investment property held at the year end. A property was purchased in the year ending 31 July 2016 and management consider that the cost value remains appropriate. Assets were transferred from freehold property to investment property in the year ended 31 July 2023. Management consider that the carrying value remains appropriate.

Page 22

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

4.


Turnover

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


2024
2023
£
£

Sale of goods
16,983,761
17,762,155

Rental income
44,684
45,156

Other income
100
6,176

17,028,545
17,813,487


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Income from Renewable Heating Incentive scheme
178,367
132,447



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
798,470
834,071

Cost of defined contribution pension scheme
136,150
189,340

Profit/loss on disposal of tangible fixed assets
-
(18,165)

Bad debts
-
(14,068)

Difference on foreign exchange
6,083
1,265

Operating lease rentals
137,165
131,003


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
19,900
18,900

Page 23

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

8.


Employees

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


Group
Group
2024
2023
£
£


Wages and salaries
1,672,733
1,614,386

Social security costs
158,867
156,431

Cost of defined contribution scheme
136,150
189,340

1,967,750
1,960,157


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


        2024
        2023
            No.
            No.







Production & Sales
47
48



Adminstration & Management
8
8

55
56


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
50,910
59,330

Group contributions to defined contribution pension schemes
104,975
158,435

Benefits in kind
10,647
15,567

166,532
233,332


During the year retirement benefits were accruing to 6 directors (2023 - 6) in respect of defined contribution pension schemes.
In 2023, the highest paid director received remuneration of £50,360. The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director in 2023
amounted to £39,986.
Disclosures regarding the highest paid director have not been made in 2024 in accordance with the Companies Act 2006, given that total directors' remuneration is less than £200,000.
There were no other key management personnel employed during the current or previous year.

Page 24

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
476,929
221,044


Total current tax
476,929
221,044

Deferred tax


Origination and reversal of timing differences
20,295
(40,602)

Total deferred tax
20,295
(40,602)


Taxation on profit on ordinary activities
497,224
180,442

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 - 25%) The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,251,065
1,907,468


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
562,766
476,867

Effects of:


Expenses not deductible for tax purposes
5,248
1,583

Other differences leading to an increase (decrease) in taxation
948
25,004

Surplus on revaluation of investment property
(71,738)
-

Super deduction uplift
-
(5,147)

Effect of changes in tax rates
-
(85,307)

Profit on disposal of fixed assets
-
(4,541)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(228,017)

Total tax charge for the year
497,224
180,442


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25
 


 
THOMSON SAWMILLS HOLDINGS LIMITED


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024


11.


Tangible fixed assets


Group







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

£
£
£
£
£
£



Cost or valuation


At 1 August 2023 (as previously stated)
2,550,191
16,796,161
317,428
110,665
-
19,774,445


Prior Year Adjustment
-
-
-
-
146,099
146,099


At 1 August 2023 (as restated)
2,550,191
16,796,161
317,428
110,665
146,099
19,920,544


Additions
306,202
109,246
242,390
-
780,779
1,438,617



At 31 July 2024

2,856,393
16,905,407
559,818
110,665
926,878
21,359,161



Depreciation


At 1 August 2023
1,730,031
13,045,635
246,457
84,542
-
15,106,665


Charge for the year
102,472
613,938
78,141
3,919
-
798,470



At 31 July 2024

1,832,503
13,659,573
324,598
88,461
-
15,905,135



Net book value



At 31 July 2024
1,023,890
3,245,834
235,220
22,204
926,878
5,454,026



At 31 July 2023 (as restated)
820,160
3,750,526
70,971
26,123
146,099
4,813,879

Page 26
 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

           11.Tangible fixed assets (continued)

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


2024
2023
£
£



Motor vehicles
178,493
-

178,493
-


Company






Assets under construction

£

Cost or valuation


At 1 August 2023 (as previously stated)
-


Prior Year Adjustment

146,099


At 1 August 2023 (as restated)
146,099


Additions
660,928



At 31 July 2024

807,027



Depreciation


At 1 August 2023
-



At 31 July 2024

-



Net book value



At 31 July 2024
807,027



At 31 July 2023 (as restated)
146,099






Page 27

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

12.


Fixed asset investments

Group





Investment in joint ventures

£



Cost or valuation


At 1 August 2023
50



At 31 July 2024
50




Company





Investments in subsidiary companies
Investment in joint ventures
Total

£
£
£



Cost or valuation


At 1 August 2023
30,000
50
30,050



At 31 July 2024
30,000
50
30,050





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Thomson Sawmills Limited
The Sawmill, Shortthorn Road, Stratton Strawless, Norwich, Norfolk, England, NR10 5NT
Processing and treating of timber into various wood products.
Ordinary
100%

The aggregate of the share capital and reserves as at 31 July 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit

Thomson Sawmills Limited
9,618,614
1,405,005

Page 28

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

Associate


The following was an associate of the Company:


Name

Registered office

Class of shares

Holding

Forwood Production Limited
Theberton Hall Farm, Theberton, Leiston, United Kingdom, IP16 4SE
Ordinary
50%

The results of Forwood Production Limited are excluded from the Group financial statements as Thomson Sawmills Holdings Limited does not control this entity.


13.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 1 August 2023
2,219,262


Surplus on revaluation
286,952



At 31 July 2024
2,506,214

The 2024 valuations were made by the directors, on an open market value for existing use basis.





14.


Stocks

Group
Group
2024
2023
£
£

Raw materials and consumables
861,834
617,000

Work in progress (goods to be sold)
670,650
414,786

Finished goods and goods for resale
513,260
717,326

2,045,744
1,749,112


No provision for impairment has been made against stock and work in progress (2023: £ Nil).
The replacement value of stock is not materially different to the carrying value.
Page 29

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

15.


Debtors

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,315,343
3,011,189
-
7,500

Amounts owed by joint ventures
349,988
624,154
-
-

Other debtors
567,414
335,278
16,001
18,761

Prepayments and accrued income
389,751
446,028
-
-

4,622,496
4,416,649
16,001
26,261


Included within trade debtors are amounts totaling £3,267,332 (2023: £2,921,057) that are subject to the invoice discounting agreement. These assets have not been derecognised from the balance sheet because the Company remains ultimately responsible for any unpaid balance, so the directors' consider significant risks to have been retained.
Included within other debtors is an amount owed by directors of £118,016 (2023: £183,203).


16.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Bank loans
-
414,003
-
58,557

Trade creditors
2,469,338
2,035,412
339
88,992

Amounts owed to group undertakings
-
-
2,979,531
2,130,602

Corporation tax
180,544
1,137
1,137
1,137

Social security and other taxation
274,765
271,526
-
-

Obligations under finance lease and hire purchase contracts
43,695
-
-
-

Other creditors
1,138,613
711,928
15,688
22,126

Accruals and deferred income
351,677
284,086
-
2,000

4,458,632
3,718,092
2,996,695
2,303,414


Other creditors include an amount of £903,960 (2023: £642,278) which relates to amounts advanced under invoice discounting. The balance is secured on the trading debts for which the company has received monies in advance of trading debt settlement. 
Amounts owed to group undertakings are unsecured, interest free, and have no fixed date of repayment.
Included within other creditors is an amount owed to directors' of £185,043 (2023: £22,550).

Page 30

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

17.


Creditors: Amounts falling due after more than one year

Group

Group
Company

Company
2024
2023
2024
2023
£
£
£
£

Bank loans
-
243,405
-
243,405

Net obligations under finance leases and hire purchase contracts
160,437
-
-
-

160,437
243,405
-
243,405


Secured loans
The hire purchase loan is secured against the specific asset is was used to finance. 
Repayments are made on a monthly basis to September 2028. Interest is charged in total at 3.57%.
There is a Composite Company Unlimited Multilaterial Guarantee dated 28 January 2013 given by Thomson Sawmills Holdings Limited and its subsidiary, Thomson Sawmills Limited.
Securities held over the amounts advanced under invoice discounting comprises a debenture including a Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattles, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 19 May 2004. Securities held over the amounts advanced under invoice discounting also include charges dated 21 July 2010 and 29 April 2024 over any monies in respect of the company’s contractual rights under Debt Purchase agreements with the bank.


18.


Loans


Analysis of the maturity of loans is given below:


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

Amounts falling due within one year

Bank loans
-
414,003
-
58,557

Amounts falling due 1-2 years

Bank loans
-
60,692
-
60,692

Amounts falling due 2-5 years

Bank loans
-
182,713
-
182,713



Page 31

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

19.


Financial instruments

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets that are debt instruments measured at amortised cost
4,852,609
4,239,572
70,277
256,398


Financial liabilities

Financial liabilities measured at amortised cost
4,122,984
3,663,860
2,991,727
2,545,682





Financial assets that are debt instruments measured at amortised cost comprise the bank balance, trade debtors, other debtors, accrued income, and amounts owed by joint ventures.
Financial liabilities measured at amortised cost comprise trade creditors, other creditors, accruals, bank loans & overdrafts, and amounts owed to group undertakings.

Page 32

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

20.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(479,137)
(519,739)


Charged to the profit or loss
(20,295)
40,602



At end of year
(499,432)
(479,137)

Company


2024
2023


£

£






At beginning of year
(8,937)
(10,035)


Charged to profit or loss
(382)
1,098



At end of year
(9,319)
(8,937)

The provision for deferred taxation is made up as follows:

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

Accelerated capital allowances
(500,843)
(480,392)
(9,319)
(8,937)

Pension surplus
1,411
1,255
-
-

(499,432)
(479,137)
(9,319)
(8,937)

Page 33

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



15,600 (2023 - 10,000) Ordinary A shares of £1.000000 (2023 - £0.33) each
15,600
10,000
9,600 (2023 - 10,000) Ordinary B shares of £1.000000 (2023 - £0.33) each
9,600
10,000
1,200 (2023 - 10,000) Ordinary C shares of £1.000000(2023 -£0.33) each
1,200
10,000
1,200 (2023 - 10) Ordinary D shares of £1.000000 each
1,200
10
1,200 (2023 - 10) Ordinary E shares of £1.000000 each
1,200
10
1,200 (2023 - 10) Ordinary F shares of £1.000000 each
1,200
10
Nil (2023 - 10) Ordinary G shares of £1.000000 each
-
10
Nil (2023 - 10) Ordinary H shares of £1.000000 each
-
10
Nil (2023 - 10) Ordinary I shares of £1.000000 each
-
10

30,000

30,060

All shares rank pari-passu.



22.


Reserves

Profit and loss account

This balance represents accumulated retained profits and losses.

23.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £136,150 (2023: £189,340). Contributions totalling £5,643 (2023: £5,020) were payable to the fund at the balance sheet date and are included in creditors.


24.


Prior year adjustment

The Directors identified that an asset under constuction totalling £146,099 was incorrectly classified in the prior year. Therefore, the comparatives for the Group and Company in these financial statements have been restated as follows:
Increase in tangible fixed assets  £146,099
Decrease in other debtors           £137,130
Increase in other creditors           £8,969

Page 34

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

25.


Capital commitments




At 31 July 2024 the Group and Company had capital commitments as follows:


Group
Group
2024
2023
£
£

Contracted for but not provided in these financial statements
1,116,133
-


26.


Commitments under operating leases

At 31 July 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
122,058
78,207

Later than 1 year and not later than 5 years
323,222
227,932

Later than 5 years
84,048
-

529,328
306,139

27.


Transactions with directors

Advances granted by the Group to it's directors during the year totalled £138,888 (2023: £197,121). Interest is charged on directors' loan accounts at the HMRC official rate.
Additional information regarding directors' loan accounts is disclosed in Note 28.

Page 35

 
THOMSON SAWMILLS HOLDINGS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

28.


Related party transactions

During the year the Group made sales of £1,698,014 (2023: £1,388,363), and purchases of £nil (2023: £96) from a joint venture. The joint venture made payments to the Group totalling £1,972,180 (2023: £1,484,780). The amount owed from joint ventures at the year end was £349,988 (2023: £624,154).
Amounts owed from Directors
During the year, the directors' with overdrawn loan accounts received advances totalling £40,336 (2023: £89,621) and made repayments of £105,691 (2023: £Nil). At the year end, such directors owed the Group £118,106 (2023: £183,203).
Amounts owed to Directors
During the year, the directors' with loan accounts in credit received advances totalling £98,552 (2023: £107,500) and made repayments of £261,046 (2023: £Nil). At the year end, the Group owed such directors £185,043 (2023: £22,550).
Interest is charged on directors' loan accounts at the HMRC official rate.
A close family member of a Director is employed by the Group on an arm's length basis. Payments made to the employee totalled £20,996 (2023: £15,489).
The Group was charged £55,200 (2023: £55,200) for the rental of land and premises owned by a related company (related by virtue of common ownership). The Group paid expenses on behalf of the related company totalling £580 (2023: £4,205). The amount due to the Group at the year-end is £4,785 (2023: £4,205).


29.


Post balance sheet events

Since the year-end, the Group has entered into agreements to purchase fixed assets totalling £1,055,509. This is in addition to the capital commitments at the year-end, which are disclosed in note 25.
On 28 December 2024, the Group took out a loan for £1,000,000. The loan will be paid over 60 monthly instalments of £16,667 to be fully repaid by 28 November 2029.


30.


Controlling party

The ultimate controlling party of the Company is Mr B Thomson.


Page 36