REGISTERED NUMBER: 01800684 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Fulham Timber Merchants Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

A Grundman

L Nicolaou

SECRETARY:

L Nicolaou

REGISTERED OFFICE:

Unit 9

Ellerslie Square Industrial Estate

Lyham Road

London

SW2 5DZ

REGISTERED NUMBER:

01800684 (England and Wales)

AUDITORS:

SKS Audit LLP

3 Sheen Road

Richmond Upon Thames

TW9 1AD

The directors present their strategic report for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal trade of the business is the supply of timber, machined products, joinery and other building supplies to merchants, building companies and DIY customers.

The business activities are conducted through the company's network of branches, along with the company's milling facilities and online trading. The business is moving towards each branch being a 'one stop shop' for its customers offering a wide range of products at competitive prices and prompt and efficient delivery service - the company promoting and championing their motto 'speed and service'. Fulham Timber Merchants also prides itself on having the most knowledgeable staff in the industry to assist its customers and leverages the family run ethos that runs through the heart of the business, both of which enhance customer experience and ensure customers continue to come back.

REVIEW OF BUSINESS, DEVELOPMENT AND PERFORMANCE

The business faced significant challenges in 2024 due to ongoing economic uncertainty, market volatility, and a continued reduction in demand within the timber and sheet materials market. These factors, combined with elevated operating costs, impacted overall performance, resulting in a decline in profitability and a financial loss for the year.

Despite these headwinds, the company remained steadfast in its commitment to fostering loyal relationships with customers, maintaining operational efficiency, and exploring new opportunities. During the year, investments were made in key areas of the business, including enhancements to our sawmilling operations and bespoke machining services under the Fulham Sawmills brand, which continue to position us as a trusted supplier of custom timber products.

While the 2024 results reflect the tough trading environment, they also underscore the resilience of our team and our ability to adapt in challenging circumstances. The board remains confident in the long-term prospects of the business and is implementing a comprehensive strategy to address market challenges and return to profitability.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting the business include the following:

- Raw material availability and prices: the company monitors raw material sources on a national basis.

- Environmental risks: the company places considerable emphasis upon environmental compliance in each of its businesses and not only seeks to ensure ongoing compliance with relevant legislation but also strives to ensure that environmental best practice is incorporated into its key processes.

- Debtors: the company maintains strong relationships with each of its key customers and has established credit control parameters. Appropriate credit terms are agreed with all customers and these are closely managed. In addition, the company maintains credit insurance whereby the majority of outstanding debts are credit insured.

- Major disruption/disaster: business continuity planning is reviewed regularly.

- The effect of legislation or other regulatory activities: the company monitors forthcoming and current legislation regularly

- All appropriate measures are taken to protect the company's intellectual property rights and to minimise the risk of infringement of third party rights.

- Competitive risk: The company operates in highly competitive markets. The diversity of operations reduces the possible effect of action by any single competitor.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors of the company use a variety of financial performance indicators, including turnover, operating profit, profit after tax, shareholders fund and average employees. These are reviewed and assessed quarterly by the board and appropriate action taken to ensure growth targets are being achieved.

The company's key financial and non-performance indicator for the year are as follows:

2024

2023

2022

£

£

£

Turnover

13,785,185

15,773,457

15,847,450

Operating profit/(loss)

(804,151)

(461,270)

(377,540)

Profit/(loss) after tax

(673,016)

(343,085)

(314,056)

Shareholders Fund

7,160,316

7,833,332

8,456,713

Average employees

89

94

84

FUTURE DEVELOPMENTS

Looking ahead, the company will focus on several strategic initiatives to strengthen its position in 2025:

Operational Excellence: Building on our reputation for quality and reliability, we will continue refining our processes to enhance efficiency and service delivery.

Market Diversification: Expanding our customer base through new product offerings and distribution channels.

Innovation in E-Commerce: Following the groundwork laid in 2024, we will roll out an expanded online presence, including a click-and-collect service to meet evolving customer preferences.

The company is optimistic about the future and remains dedicated to overcoming challenges while delivering value to its stakeholders.

THIS REPORT WAS APPROVED BY THE BOARD ON:

L Nicolaou - Director

17 July 2025

The directors present their report with the financial statements of the Company for the year ended 31 December 2024.

DIVIDENDS

No dividends were paid or declared during the financial year ended 31 December 2024 (2023 - £280,296). However, subsequent to the year end, on 03rd July 2025, the directors approved a final dividend of £114,500 in respect of the year ended 31 December 2024. In accordance with FRS 102, this dividend will be recognised in the financial statements of the year ending 31 December 2025.

DIRECTORS

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

Lello Nicolaou

Angel Grundman

William Dobbs - resigned on 09/04/2025

FINANCIAL INSTRUMENTS

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling and foreign currency for which company minimise exposure to exchange rate volatility through its internal management processes. The company does not enter into any formally designated hedging arrangements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

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

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The auditors, SKS Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

THIS REPORT WAS APPROVED BY THE BOARD ON:

L Nicolaou - Director

17 July 2025

Opinion

We have audited the financial statements of Fulham Timber Merchants Limited (the 'Company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its loss 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of 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 Statement of Directors' Responsibilities set out on page four, 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 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 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 Company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

-Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

- It is considered that Health and Safety laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 Report of the Auditors.

Moganarden Chelvanaigum FCCA (Senior Statutory Auditor)

for and on behalf of SKS Audit LLP

3 Sheen Road

Richmond Upon Thames

TW9 1AD

22 July 2025

Turnover

4

13,785,185

15,773,457

Cost of sales

(8,107,763

)

(9,269,093

)

Gross profit

5,677,422

6,504,364

Administrative expenses

(6,481,573

)

(6,965,634

)

Operating loss

6

(804,151

)

(461,270

)

Interest receivable and similar income

8

5,324

-

(798,827

)

(461,270

)

Interest payable and similar expenses

9

(22,240

)

(24,887

)

Loss before taxation

(821,067

)

(486,157

)

Tax on loss

10

148,051

143,072

Loss for the financial year

(673,016

)

(343,085

)

Loss for the year

(673,016

)

(343,085

)

Other comprehensive income

-

-

Total comprehensive income for the year

(673,016

)

(343,085

)

Fixed assets

Tangible assets

12

6,294,607

6,488,195

Investments

13

100,000

100,000

6,394,607

6,588,195

Current assets

Stocks

14

1,171,560

1,558,760

Debtors: amounts falling due within one year

15

1,875,362

2,164,743

Debtors: amounts falling due after more than one year

15

170,524

170,524

Cash at bank and in hand

16

213,315

436,209

3,430,761

4,330,236

Creditors

Amounts falling due within one year

17

(2,270,585

)

(2,464,751

)

Net current assets

1,160,176

1,865,485

Total assets less current liabilities

7,554,783

8,453,680

Creditors

Amounts falling due after more than one year

18

(113,077

)

(190,907

)

Provisions for liabilities

21

(281,390

)

(429,441

)

Net assets

7,160,316

7,833,332

Capital and reserves

Called up share capital

22

5,725

5,725

Retained earnings

23

7,154,591

7,827,607

Shareholders' funds

7,160,316

7,833,332

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2025 and were signed on its behalf by:

L Nicolaou - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

5,725

8,450,988

8,456,713

Changes in equity

Dividends

-

(280,296

)

(280,296

)

Total comprehensive income

-

(343,085

)

(343,085

)

Balance at 31 December 2023

5,725

7,827,607

7,833,332

Changes in equity

Total comprehensive income

-

(673,016

)

(673,016

)

Balance at 31 December 2024

5,725

7,154,591

7,160,316

Cash flows from operating activities

Cash generated from operations

1

(154,441

)

(71,161

)

Interest element of hire purchase payments paid

(22,240

)

(24,887

)

Other adjustments

1

1

Tax paid

106,429

(156,360

)

Net cash from operating activities

(70,251

)

(252,407

)

Cash flows from investing activities

Purchase of tangible fixed assets

(61,729

)

(853,885

)

Purchase of fixed asset investments

-

(100,000

)

Sale of tangible fixed assets

24,975

2,500

Interest received

5,324

-

Net cash from investing activities

(31,430

)

(951,385

)

Cash flows from financing activities

Capital repayments in year

(126,236

)

-

Amount introduced by directors

6,652

(11,429

)

Amount withdrawn by directors

(1,629

)

60,207

Capital borrowing in year

-

116,526

Equity dividends paid

-

(280,296

)

Net cash from financing activities

(121,213

)

(114,992

)

Decrease in cash and cash equivalents

(222,894

)

(1,318,784

)

Cash and cash equivalents at beginning of year

2

436,209

1,754,993

Cash and cash equivalents at end of year

2

213,315

436,209

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Loss before taxation

(821,067

)

(486,157

)

Depreciation charges

217,558

203,732

Loss on disposal of fixed assets

12,784

7,045

Finance costs

22,240

24,887

Finance income

(5,324

)

-

(573,809

)

(250,493

)

Decrease in stocks

387,200

299,612

Decrease in trade and other debtors

177,929

90,170

Decrease in trade and other creditors

(145,761

)

(210,450

)

Cash generated from operations

(154,441

)

(71,161

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

213,315

436,209

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

436,209

1,754,993

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

436,209

(222,894

)

213,315

436,209

(222,894

)

213,315

Debt

Finance leases

(350,231

)

126,236

(223,995

)

(350,231

)

126,236

(223,995

)

Total

85,978

(96,658

)

(10,680

)

1.	STATUTORY INFORMATION

Fulham Timber Merchants Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

TURNOVER

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

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer;

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of turnover can be measured reliably;

- it is probable that the Company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the bases as below.

Depreciation is provided on the following bases:

Leasehold improvement

Straight Line Over Lease Life

Plant and machinery

20% Reducing Balance

Motor vehicles

20% Reducing Balance

Freehold property

2% Straight line on Building element

The assets' residual values, useful lives and depreciation methods are reviewed, and 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 the Statement of Income and Retained Earnings.

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 weighted average basis.

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.

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income, 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.

CURRENT TAX

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

DEFERRED TAX

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.

HIRE PURCHASE LEASES

Rentals paid under operating leases are charged to the Income statement on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

LEASED ASSETS

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Income Statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

DEFINED CONTRIBUTION PENSION PLAN

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

The contributions are recognised as an expense in the income statement 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 Company in independently administered funds.

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. At 31 December 2024 the company’s had net current assets of £1,160,176 (2023: £1,865,485) and a net loss of £673,016 (2023: £343,085).

The directors have considered the ongoing financial performance of the company and concluded it appropriate to prepare the accounts on the going concern basis.

The company’s directors review and factor potential delays and reassess cash flow forecasts and budgets, which show that the company would have sufficient working capital for at least a year from the date these Financial Statements are approved. This is based on the assumptions that the budgeted forecasts are achievable, and demand continues for its metals and governments continue to support timber and materials industry. Given the above, the directors consider it appropriate to adopt a going concern basis in preparing the financial statements.

INTEREST INCOME

Interest income is recognised in the income statement using the effective interest method.

FINANCE COSTS

Finance costs are charged to the income statement 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.

BORROWING COSTS

All borrowing costs are recognised in the income statement in the year in which they are incurred.

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Income statement in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance sheet.

DEBTORS

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

CASH AND CASH EQUIVALENTS

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

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

CREDITORS

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

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.

INVESTMENTS

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method.

Dividends on equity securities are recognised in income when receivable.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in note 2, the directors liabilities that are not readily apparent from other sources. The estimates and associated assumptions are required to make judgements, estimates and assumptions about the carrying amount of assets and based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic lives of tangible assets

The annual amortisation charge for intangible assets and depreciation charge for tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary.

(ii) Going concern

The directors consider the company to be a going concern, for the reasons as detailed in note 2 to these financial statements.

4.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the Company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Timber and sheet materials

8,271,111

9,464,074

Other building materials

5,514,074

6,309,383

13,785,185

15,773,457

All turnover arose within the United Kingdom.

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,806,239

2,964,390

Social security costs

288,362

313,360

Other pension costs

51,316

55,934

3,145,917

3,333,684