Company Registration No. 02557017 (England and Wales)
BITUS UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
BITUS UK LIMITED
CONTENTS
Page
Balance sheet
4
Notes to the financial statements
5 - 13
BITUS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Principal activity

The principal activity of the company continued to be that of the importation and distribution of timber products.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

P A Marklund
S W McIntyre
(Resigned 1 February 2024)
N J McKillop
(Resigned 31 October 2024)
P O Nilsson
F Plomer
(Resigned 31 October 2024)
Results and dividends

The results for the year are set out on page 3.

Ordinary dividends were paid amounting to £420,000. The directors do not recommend payment of a further dividend.

 

As reported in the company's profit and loss account on page 3, turnover has decreased by £4,182,675 from £8,761,638 to £4,578,963. The company made an operating loss of £1,195,540, compared to the previous year's operating loss of £948,835. The loss for the year before tax of £1,070,510 compares to a pre-tax loss of £878,942 for the year ended 31 December 2023.

 

The company has adequate financial arrangements to meet the obligations of its commitments to other group companies, customers, and suppliers.

 

As detailed further in note 1.2, it is the intention of the directors to cease trading within twelve months from the date of sign off of these financial statements.

 

Financial instruments

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

BITUS UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Going concern

At the time of approving the financial statements, it is the intention of the directors to cease trading within twelve months, and so the directors have considered it inappropriate to prepare the financial statements on a going concern basis. As a result, the directors have prepared these financial statements on a break-up basis as set out in notes 1.1 and 1.2 to the financial statements.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
P A Marklund
Director
21 May 2025
BITUS UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
2024
2023
Notes
£
£
Turnover
4,578,963
8,761,638
Cost of sales
(4,754,958)
(8,320,053)
Gross (loss)/profit
(175,995)
441,585
Distribution costs
(92,114)
(192,793)
Administrative expenses
(895,565)
(1,261,228)
Other operating income
52,959
63,601
Exceptional item
(84,825)
-
0
Operating loss before interest
2
(1,195,540)
(948,835)
Interest receivable and similar income
5
152,619
120,053
Interest payable and similar expenses
(27,589)
(50,160)
Loss before taxation
(1,070,510)
(878,942)
Taxation
129,386
205,802
Loss for the financial year
(941,124)
(673,140)
Total comprehensive income for the year
(941,124)
(673,140)
Retained earnings at 1 January 2024
4,815,469
5,488,609
Dividends
(420,000)
-
0
Retained earnings at 31 December 2024
3,454,345
4,815,469

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BITUS UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 4 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
7
-
0
146,745
Current assets
Stocks
805,752
3,091,710
Debtors
8
2,953,667
2,617,971
3,759,419
5,709,681
Creditors: amounts falling due within one year
9
(245,074)
(629,872)
Net current assets
3,514,345
5,079,809
Total assets less current liabilities
3,514,345
5,226,554
Creditors: amounts falling due after more than one year
10
-
0
(342,555)
Provisions for liabilities
-
0
(8,530)
Net assets
3,514,345
4,875,469
Capital and reserves
Called up share capital
60,000
60,000
Profit and loss reserves
3,454,345
4,815,469
Total equity
3,514,345
4,875,469

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 21 May 2025 and are signed on its behalf by:
P A Marklund
Director
Company Registration No. 02557017
BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
1
Accounting policies
Company information

Bergs Timber (UK) Limited (the 'company') is a private company limited by shares incorporated in England and Wales. Its regsitered office and principal place of business is Baltic Wharf, Wallasea Island, Rochford, Essex, SS4 2HA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As set out in the Directors' Report, due to the intention of the directors to cease trading within twelve months of the date of approval of the financial statements, the directors have decided to prepare the financial statements on a basis other than that of a going concern. The financial statements have been prepared on a break-up basis at the year end. In adopting the break up basis at the year end, the following policies and procedures were implemented:

1.2
Going concern

At the time of approving the financial statements, trueit is the intention of the directors to cease trading within twelve months of the date of approval of the financial statements, and so the directors have considered it inappropriate to prepare the financial statements on a going concern basis. As a result, the directors have prepared these financial statements on a break up basis as set out above under the basis of preparation.

 

However, it is also the case that preparation under the break-up basis has no material impact to the carrying value of assets and liabilities reflected,

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 6 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Equipment, fixtures and fittings
15% reducing balance / 20% and 33.3% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.6
Stocks

Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

 

The value of slow-moving and obsolete stock is considered by the directors at the end of each year and as a result the financial statements include a stock provision to take account of the estimated reduction in value.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 7 -
1.8
Financial instruments

The company applies the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 8 -
Other financial liabilities

Other financial liabilities, are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 9 -
1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Fees payable to the company's auditors for the audit of the company's financial statements
30,500
29,000
Non audit remuneration paid to auditors
5,219
9,066
Depreciation of tangible fixed assets
34,607
60,312
Profit on disposal of tangible fixed assets
(16,892)
(12,659)
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
6
10
BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
4
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
230,595
278,028
Company pension contributions to defined contribution schemes
26,436
28,773
257,031
306,801

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

 

No directors exercised share options during the year (2023: nil); nor were any directors entitled to receive shares under long term incentive schemes during the year (2023: nil).

Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
149,568
177,137
Company pension contributions to defined contribution schemes
17,619
20,200
5
Interest receivable and similar income
2024
2023
£
£
Other interest receivable and similar income
152,619
120,053
6
Dividends
2024
2023
£
£
Final paid
420,000
-
0
BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
7
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2024
352,134
Disposals
(352,134)
At 31 December 2024
-
0
Depreciation and impairment
At 1 January 2024
205,389
Depreciation charged in the year
34,607
Eliminated in respect of disposals
(239,996)
At 31 December 2024
-
0
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
146,745
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
204,150
777,573
Corporation tax recoverable
12,107
-
0
Amounts due from related parties
2,720,374
1,741,721
Other debtors
17,036
98,677
2,953,667
2,617,971
9
Creditors: amounts falling due within one year
2024
2023
£
£
Loans and overdrafts
-
90,000
Other taxation and social security
69,562
79,126
Trade creditors
120,805
249,898
Amounts due to related parties
-
0
80,429
Other creditors
54,707
130,419
245,074
629,872
BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Loans and overdrafts
-
342,555
11
Loans and overdrafts
2024
2023
£
£
Loans from group undertakings and related parties
-
0
432,555
Payable within one year
-
0
90,000
Payable after one year
-
0
342,555

The group loan was unsecured and designated in GBP, and bore interest at 1.80%. The remaining loan balance was repaid in full early in November 2024.

12
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
-
0
145,640
Between two and five years
-
0
2,163
-
0
147,803

A total of £42,528 (2023: £46,230) was recognised as an operating lease expense in the year.

13
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Daniel Graves BA(Hons) FCA
Statutory Auditor:
Azets Audit Services
BITUS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
14
Financial commitments, guarantees and contingent liabilities

In January 2022, Bergs Timber AB signed an agreement with Danske Bank and SEB as creditors on the refinancing of the bulk of the group’s existing loans. The new credit facilities totalling SEK 650 million have a three-year maturity and encompass one term loan totalling SEK 250 million and a revolving credit facility of SEK 400 million. At the end of 2022, the option to extend the facilities by one year to January 2026 was exercised. In addition to these credit facilities, the Bergs Timber AB Group has an overdraft facility of SEK 50 million with Danske Bank. The loan agreement contains the customary obligations, such as the one limiting the scope for action for Bergs Timber AB (publ) regarding pledging of assets, raising loans or issuing securities, selling or transferring assets, acquisitions and merging or consolidating operations with another company. In contrast to the Bergs Timber AB Group’s existing loans, the new loan agreement is non-guaranteed and in general involves better terms for the Group.

 

The company had a commitment in respect of a service and support agreement to make monthly payments until October 2026, with an overall commitment at the balance sheet date of £14,662 (2023: £23,043).

15
Related party transactions

Bergs Timber AB prepares group financial statements and copies can be obtained from Bergs väg 13, SE-570 84, Mörlunda, Sweden. Accordingly the company has taken advantage of the exemptions available in paragraph 33.1A of FRS102 not to make disclosures concerning group related party transactions.

 

The balances due from and to group undertakings are disclosed in notes 10, 11 & 12.

 

Key management personnel remuneration is equal to that of the directors, as per note 5.

16
Parent company

The immediate parent company is Bergs UK Holdings Limited (formerly Continental Wood Limited), a company registered in England, and the intermediate parent company is Bergs Timber AB, a company registered in Sweden.

 

The ultimate parent company is Norvik hf., a company registered in Iceland. Norvik hf forms the smallest and largest group for which group accounts are prepared and of which the company is a member. The registered office of Norvik hf. is Vallakor 4, 203 Koubavogira (Kopavogur), Iceland.

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