Period from 31 December 2023 to
Registration number:
Euroforest Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Statement of Income and Retained Earnings |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Euroforest Limited
Company Information
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Directors |
D Symons D C Smith R C Palmer K F V Turzik S W Coleman M B Williams S Parr J W Hendry |
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Company secretary |
C Foxcroft |
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Registered office |
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Bankers |
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Auditors |
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Euroforest Limited
Strategic Report for the Period from 31 December 2023 to 28 December 2024
The directors present their strategic report for the period from 31 December 2023 to 28 December 2024.
Principal activity
The principal activity of the company is the harvesting and marketing of British grown timber.
Fair review of the business
The company is a wholly owned subsidiary within the Euroforest Holdings Limited group. Euroforest Holdings Limited is a partially owned subsidiary of Ahlmark Lines A-B, with whom its accounts are consolidated. In turn, Ahlmark Lines A-B is a wholly owned subsidiary of O F Ahlmark & Co Eftr, A-B, a company incorporated in Sweden.
After the year-end the group moved to a new registered office at Carlisle Airport. This is the registered office for all UK based subsidiaries. The principal benefit from the office move is bringing all of the head office support functions together in one place.
Euroforest Holdings Limited prepares the consolidated financial statements for the group.
The company considers turnover and profit as the key indicators of performance. As shown in the company's profit and loss account on page 16, turnover achieved for the year was £110,284k (2023: £98,409k) and profit before tax was £2,502k (2023: £2,682k).
Market activity continued to be subdued for most of 2024 with some small increases in timber sales October onwards. This is very much a reflection of the general economic conditions prevailing throughout most of Europe. However Arb and Infrastructure works have remained strong and have contributed greatly to the result for 2024. The cost base of the business has remained stable with fuel prices settling at a competitive level. A second major breakdown at Kent Renewable Energy (KRE) also meant reduced activity in south England with the plant back in production in early 2025.
Investment in the business has continued particularly in the Arb and Infrastructure services teams. Company wide adaption of the E-Ticket system LOGr has also led to considerable efficiencies gained with the removal of paper delivery notes and the gain of instant data.
The balance sheet on page 14 shows the net assets of the company at the 2024 year end were £14,665k (2023: £13,532k). The business has seen considerable growth over the years. Monthly cash balances continue to remain healthy and are a testament to maintaining sound credit control policies and good cash management at a time of uncertainty, which can put pressure on cash working capital. The company is therefore well funded and ideally placed to strengthen in 2025. With a strong position in the market place and having good staff and a sound strategy for the future, another year of steady progress is expected in 2025 with continued profitability.
Euroforest Limited
Strategic Report for the Period from 31 December 2023 to 28 December 2024
Principal risks and uncertainties
Economic risk
Looking forward there is a confused macro economic picture, the threat of large scale application of tariffs by the USA combined with significant taxes on employment means a challenging economic outlook. In addition while matters in the middle east are a little calmer the political implications of the new government in the USA are only just unfolding.
The international uncertainties transfer into national uncertainty about growth and in particular where government spending will be placed. New policies around the industry like fast track planning and a desire to build 300k new homes per annum are undoubtedly good news but have yet to be delivered. Likewise government policy around carbon sequestration is strong meaning the use of timber products should increase, however reduced economic activity driven by geo political events may prevent or restrict any positive effect of these policies.
Environmental risk
Major storm damage in Ireland in early 2025 mean there is likely to be excess supply of sawn timber into the UK market. It is to early to say what effect this may have on trading conditions for the year ahead.
The spread of Ash Dieback across the UK continues with most of the UK and Ireland now affected. Likewise Ips Typographus has continued its spread from Kent moving both North and West, whilst this is still outside the main spruce producing regions of the UK there is a concern the spread will continue engendering much debate in the industry about future species choices and long term timber supply.
Euroforest Limited
Strategic Report for the Period from 31 December 2023 to 28 December 2024
Section 172(1) of the UK Companies Act 2006 statement
All directors are aware that they have a responsibility to act in a way that promotes the success of the company and the decision making processes ensure alignment with the sole objective of ensuring that the company operates successfully.
The directors have identified the following as key stakeholders in the business:
- employees
- customers
- suppliers
- contractors
- hauliers
The directors and employees are united in the development and maintenance of strong long-term working relationships with suppliers, customers and others required to ensure the business operates successfully. The business invests in certifications and accreditations to ensure the company maintains high standards of business conduct in the industry.
The key decisions made during the financial year principally related to the ongoing management of the uncertain market conditions.
The board communicated these decisions with the stakeholders by regular internal e-mail updates and regular regional and operational teams meetings. Through the year this focused on supporting the staff and business to continue to buy, sell and market timber in uncertain times.
We maintain these strong relationships with key stakeholders through regular reviews, meetings and communications. These communications are a two way process giving both sides a chance to raise any issues and work together to resolve any problems going forward. These meetings are face to face where possible but post pandemic there is an increased use of video conferencing.
We continue to improve our management of the group Health & Safety and Environment with our compliance team of four supporting all the group businesses meaning we constantly appraise our staff via a process of internal auditing. Additionally, Euroforest Limited, Blacklock Harvesting Limited and Euroforest Timber Ireland Limited have ISO 14001 and 18001, Pryor and Rickett have now achieved ISO14001 and 45001 as well meaning all the main businesses in the group have these certificates and are subject to the rigour of ongoing external audit. Euroforest Limited now has ISO 9001 and Highway Sector Scheme certificates.
Approved and authorised by the
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Euroforest Limited
Directors' Report for the Period from 31 December 2023 to 28 December 2024
The directors present their report and the financial statements for the period from 31 December 2023 to 28 December 2024.
Directors of the company
The directors who held office during the period were as follows:
Going concern assessment
The company is a wholly owned subsidiary with the Euroforest Holdings Limited Group. The directors review performance against budget each month and there is a process of daily monitoring of cash balances. There are also regular reviews of forecasts and projections for the business as well as considering the banking facilities, requirements and the resources available. Given the consistent levels of profitability (2024: £2,502K and 2023: £2,682K) the directors are satisfied that the banking facilities and available resources are more than adequate to continue to successfully manage the business for at least the next 12 months in the current economic climate.
Financial risk management objectives and policies
Liquidity risk
The company has a strong balance sheet with strong cash reserves and facilities available to us and as such is not significantly exposed to any cash flow or liquidity risks. However, the low rate of interest earned on cash deposits continues and is likely to do so for the foreseeable future. The company continues to look at various ways to maximise the return on available cash.
Credit risk
Trade receivables are monitored under strict credit control procedures, with customer credit limits set at appropriate levels. Credit risk is therefore kept to a minimum.
Foreign exchange risk
Exiting the European Union has not so far led to any particular difficulties other than increased paperwork for exports. We continue to monitor the situation carefully with particular attention to currency.
Euroforest Limited
Directors' Report for the Period from 31 December 2023 to 28 December 2024
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that appropriate training is arranged.
Employee involvement
Details of the number of employees and related costs can be found in note 5 to the financial statements.
The company places considerable value on the involvement of its employees in the group and has continued to keep them informed on matters affecting them and the various factors affecting the performance of the group. All employees are advised monthly of the group’s financial performance against budget.
Streamlined Energy and Carbon Reporting
The UK government’s Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1 April 2019, when the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 came into force.
SECR aims to bring the benefits of energy and carbon reporting to more businesses. The reporting framework is intended to encourage the implementation of energy efficiency measures, with both economic and environmental benefits, supporting businesses with cutting costs and improving productivity at the same time as reducing carbon emissions.
We have measured our direct emissions from fuel, transport and those emissions from purchased electricity and gas for the assets that we operate.
Energy usage and emissions
UK energy use for business purposes (fuel, transport and purchased electricity and gas):
Associated greenhouse gas emissions (CO2): 740.6 tonnes (2023: 502.2 tonnes)
Intensity ratio
We have produced 6.71 tonnes of CO2 per £1 million of turnover (2023: 5.1 tonnes of CO2 per £1 million of turnover).
Energy efficiency action taken
The following principal measures have been implemented to increase the company’s energy efficiency:
• Our electricity supplier uses a mixture of fuels to create the electricity supplied to customers. This mix is predominantly renewable and therefore carbon neutral in terms of emissions.
• Where possible, we have installed energy efficient lighting within our offices.
• We have a number of hybrid energy efficient company vehicles and replace vehicles regularly to take advantage of the latest energy efficient developments and improvements.
Euroforest Limited
Directors' Report for the Period from 31 December 2023 to 28 December 2024
Methodologies used in calculations
Energy usage and consumption data was gathered throughout the year and the associated greenhouse gas (CO2) emissions were calculated using appropriate conversion rates.
Data was gathered for the consumption of energy as follows:
• Annual purchase of electricity for our own use in kWh
• Annual purchase of gas for our own use in kWh
• Annual use of fuel based on fuel purchased in litres; fuel cards record the quantities
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
PKF Francis Clark have expressed their willingness to continue in office as auditor and a resolution to reappoint them will be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
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Euroforest Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
Euroforest Limited
Independent Auditor's Report to the Members of Euroforest Limited
Opinion
We have audited the financial statements of Euroforest Limited (the 'company') for the period from 31 December 2023 to 28 December 2024, which comprise the Statement of Income and Retained Earnings, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 28 December 2024 and of its profit for the period 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Euroforest Limited
Independent Auditor's Report to the Members of Euroforest Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our 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 and the Directors' Report.
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 8, 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 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.
Auditor 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Euroforest Limited
Independent Auditor's Report to the Members of Euroforest Limited
During our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the business and the industry in which it operates in order to identify the key laws and regulations affecting the company. As part of this, we reviewed the company’s website for indication of any regulations and certification in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were health and safety regulations and The General Data Protection Regulation (“GDPR”) and we also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006.
We discussed with management how the compliance with these laws and regulations is monitored and discussed the policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.
We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key incentive identified is to meet the expectations of the group and we determined that the principal risks were related to the overstatement of profit, either through overstating revenue, understating expenditure or management bias in accounting estimates, particularly in relation to long term contract accounting.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of fraud.
• Reviewed key ISO certifications noted on the company’s website to ensure that the company was entitled to display them and that they were current.
• Discussed with the health and safety officer whether any incidents have been reported during the year under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”).
• Reviewed the company’s GDPR policy and enquiries to the Data Protection Officer as to the occurrence and outcome of any reportable breaches.
• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.
• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Euroforest Limited
Independent Auditor's Report to the Members of Euroforest Limited
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates. In particular, in relation to long term contract accounting we compared management’s standard margin estimates determined at the outset to the actual margins achieved to date for a sample of contracts. We looked to understand the reasons for any variances in order to identify any material misstatements and assess the potential for fraud via the manipulation of contract deferred income. We also checked that estimates had been reviewed during the contract and revised where necessary.
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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s 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.
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Melville Building East
Unit 18, 23 Royal William Yard
Devon
PL1 3GW
Euroforest Limited
Statement of Income and Retained Earnings
Period from 31 December 2023 to 28 December 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
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Other interest receivable and similar income |
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Interest payable and similar charges |
( |
( |
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(82) |
(123) |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial period |
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Retained earnings brought forward |
12,858 |
11,546 |
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Dividends paid |
( |
( |
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Retained earnings carried forward |
13,991 |
12,858 |
Euroforest Limited
Balance Sheet
28 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Shareholders' funds |
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Approved and authorised by the
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Company Registration Number: 01153003
Euroforest Limited
Statement of Changes in Equity
Period from 31 December 2023 to 28 December 2024
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Share capital |
Profit and loss account |
Total |
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At 31 December 2023 |
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Profit for the period |
- |
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Dividends |
- |
( |
( |
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At 28 December 2024 |
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Share capital |
Profit and loss account |
Total |
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At 1 January 2023 |
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Profit for the period |
- |
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Dividends |
- |
( |
( |
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At 30 December 2023 |
674 |
12,858 |
13,532 |
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102:
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
Going concern
The directors have considered a period of more than 12 months from the approval of these accounts, including appropriate forecasts, and are satisfied that the going concern basis continues to be appropriate. Please refer to the Directors' Report for further information.
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
Key sources of estimation uncertainty
Long term contract accounting profitability:
The business contracts in a manner which means that revenues and costs are spread over more than one accounting period. Profit taking on those contracts is estimated in order to achieve a constant gross profit margin over the life of the contract with profits recognised according to the activity (tonnes harvested) to date. The eventual sales price of the products harvested, the eventual yield and the costs involved in completing the contract are all estimates which can vary depending on factors such as market conditions, the ground conditions and weather. Hence, actual out-turn margins vary on a contract by contract basis depending on circumstances from previously estimated amounts. Therefore, the estimated profit recognised in each accounting period is a key source of estimation uncertainty. The carrying amount of deferred income in relation to this at the end of the period is £1,494,912 (2023: £687,059).
Revenue recognition
Turnover consists of sales (excluding value added tax, trade discounts and other sales taxes) invoiced to external customers including agency commission, and relates to the ordinary activities of the company. Further detail on the significant revenue streams is given below. A split of turnover by destination is shown in note 3.
Harvesting – The majority of revenue is generated through harvesting of timber under long term contracts. Harvesting revenue is recognised through use of an estimated profit margin, which is determined at the beginning of a contract and is released over the duration of the contract in line with the number of tonnes harvested. Any additional profit or loss generated relative to the standard margin is held in the balance sheet within deferred income. The estimated margins are reviewed regularly and are revised when necessary as the contract progresses, resulting in ongoing releases of deferred income to the profit and loss account over the period of the contract. Any residual deferred income is released to the profit and loss account at the time of contract closure. When it is probable that a contract will generate a loss overall, the loss is recognised as an expense immediately.
Management and contracting fees – Revenue relating to the management of woodland projects and harvesting contractors represents the value of services rendered during the year (excluding VAT) and comprises both completed work (fees billed) and incomplete unbilled work (accrued income). Accrued income is determined as the time spent on incomplete contracts at appropriate billing rates, reduced to realisable value. The movement in accrued income is shown within turnover for the year.
Foreign currency transactions and balances
Differences are taken directly to the profit and loss account.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Motor vehicles |
25% straight line basis |
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Plant and machinery |
20% - 33.33% straight line basis |
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Office equipment |
12.5% straight line basis |
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Computer hardware |
12.5% - 33.33% straight line basis |
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Leasehold improvements |
4% - 20% straight line basis |
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Fixtures and fittings relating to freehold property |
16.7% straight line basis |
Intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Computer software |
14% straight line basis |
Stocks
Stock consists of stock payments which relate to instances where contractors have felled timber but the product has not been despatched to the customer. Amounts are recognised as stock in these cases based on the value of the sums paid.
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
The company holds the following financial instruments, all of which meet the conditions to be classified as basic instruments:
Short term debtors and creditors
Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment judgements.
Bank loans
Loans which meet the criteria under FRS 102 to be classed as 'basic financial instruments' are initially recorded at transaction price and subsequently measured at amortised cost using the effective interest method.
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Turnover |
The analysis of the company's Turnover for the period from continuing operations is as follows:
|
2024 |
2023 |
|
|
Rendering of services |
|
|
The analysis of the company's Turnover for the period by market is as follows:
|
2024 |
2023 |
|
|
UK |
|
|
|
Europe |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
- |
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to defined contribution pension schemes |
|
|
|
1,202 |
1,186 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under defined contribution pension schemes |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
256 |
232 |
|
Company contributions to defined contribution pension schemes |
48 |
53 |
|
Auditor's remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
- |
( |
|
638 |
637 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the period is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Tax decrease from other short-term timing differences |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax increase arising from group relief |
- |
|
|
Deferred tax credit from unrecognised tax loss or credit |
- |
( |
|
Deferred tax expense from unrecognised temporary difference from a prior period |
|
- |
|
Deferred tax credit relating to changes in tax rates or laws |
- |
( |
|
Total tax charge |
|
|
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Capital allowances in excess of depreciation |
- |
|
|
- |
|
|
2023 |
Asset |
Liability |
|
Capital allowances in excess of depreciation |
- |
|
|
- |
|
|
Intangible assets |
|
Computer software |
Total |
|
|
Cost or valuation |
||
|
At 31 December 2023 |
|
|
|
Additions |
|
|
|
At 28 December 2024 |
|
|
|
Amortisation |
||
|
Amortisation charge |
|
|
|
At 28 December 2024 |
|
|
|
Carrying amount |
||
|
At 28 December 2024 |
|
|
|
At 30 December 2023 |
|
|
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Tangible assets |
|
Freehold Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||||
|
At 31 December 2023 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
|
At 28 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 31 December 2023 |
|
|
|
|
|
|
Charge for the period |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
|
At 28 December 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 28 December 2024 |
|
|
|
|
|
|
At 30 December 2023 |
|
|
|
|
|
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Motor vehicles |
822 |
683 |
Included within the net book value of land and buildings above is £794,030 (2023 - £865,296) in respect of freehold land and buildings and £240,290 (2023 - £215,167) in respect of short leasehold land and buildings.
|
Stocks |
|
2024 |
2023 |
|
|
Work in progress |
|
|
|
Debtors |
|
Note |
2024 |
2023 |
|
|
Trade debtors |
|
|
|
|
Amounts owed by group undertakings |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Accrued income |
|
|
|
|
Income tax asset |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash at bank |
|
|
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
Deferred income |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Loans and borrowings |
Non-current loans and borrowings
|
2024 |
2023 |
|
|
Hire purchase contracts |
|
|
Current loans and borrowings
|
2024 |
2023 |
|
|
Hire purchase contracts |
|
|
Other borrowings
The amounts shown as due under hire purchase contracts are secured against the assets to which they relate.
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Obligations under leases and hire purchase contracts |
Hire purchase contracts
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 31 December 2023 |
|
|
|
Additional provisions |
|
|
|
At 28 December 2024 |
|
|
|
|
||
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. 000 |
£ 000 |
No. 000 |
£ 000 |
|
|
|
|
674 |
|
674 |
Rights, preferences and restrictions
|
Ordinary Shares have the following rights, preferences and restrictions: |
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Dividends |
Interim dividends paid
|
2024 |
2023 |
|
|
Interim dividend of £1 (2023 - £1.12) per ordinary share |
674 |
755 |
|
Off-balance sheet arrangements |
Guarantee
Euroforest Limited has provided an unlimited guarantee in respect of Blacklock Harvesting Limited with regards to the company’s borrowings with Lombard North Central PLC.
Euroforest Limited has provided an unlimited guarantee in respect of Euroforest Holdings Limited with regards to the company's borrowing with National Westminster Bank PLC.
Euroforest Limited has provided a guarantee in respect of Edder Farms Limited with regards to the company's borrowing with Clydesdale Bank PLC.
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
Euroforest Limited
Notes to the Financial Statements
Period from 31 December 2023 to 28 December 2024
|
Related party transactions |
Summary of transactions with other related parties
During the year the company made sales to A W Jenkinson Forest Products of £9,646,000 (2023: £6,479,000) and purchases of £4,325,000 (2023: £4,746,000). At the balance sheet date the amount due from A W Jenkinson Forest Products was £4,877,000 (2023: £586,000) owed from A W Jenkinson Forest Products).
A W Jenkinson Transport Limited (A W Jenkinson is a shareholder of A W Jenkinson Transport Limited and a shareholder of Euroforest Holdings Limited, who wholly own Euroforest Limited).
During the year the company made purchases of £4,309,000 (2023: £3,532,000) from A W Jenkinson Transport Limited. At the balance sheet date the amount due to A W Jenkinson Transport Limited was £3,388,000 (2023: £1,498,000).
Berite (Sawmills) Limited (A W Jenkinson is a shareholder of Berite (Sawmills) Limited and a shareholder of Euroforest Holdings Limited, who wholly own Euroforest Limited).
During the year the company made sales to Berite (Sawmills) Limited of £1,435,000 (2023: £1,046,000). At the balance sheet date the amount due from Berite (Sawmills) Limited was £486,000 (2023: £333,000).
Forest Garden Group Limited (A W Jenkinson is a shareholder of Forest Garden Group Limited and a shareholder of Euroforest Holdings Limited, who wholly own Euroforest Limited).
During the year the company made sales to Forest Garden Group Limited of £4,454,000 (2023: £2,202,000). During the year the company made purchases of £nil (2023: £4,000) from Forest Garden Group Limited. At the balance sheet date the amount due from Forest Garden Group Limited was £1,302,000 (2023: £701,000).
Euroforest Timber Ireland Limited (who is a member of the same group as Euroforest Limited)
During the year the company made sales to Euroforest Timber Ireland Limited of £150,000 (2023: £21,000). At the balance sheet date the amount due from Euroforest Timber Ireland Limited was £1,196,000 (2023: £1,274,000).
Baltor Trading OU (who is a member of the same group as Euroforest Limited)
During the year the company made purchases from Baltfor of £nil (2023: £nil), and other non-trade payments of £463,000 (2023: £36,000). During the year Baltfor also converted part of its debt with Euroforest to equity, for the value of £231,000. At the balance sheet date the amount due from Baltor Trading OU was £697,000 (2023: £234,000).
Ahlmark Shipping (UK) (100% subsidiary of Ahlmark Lines AB which is a shareholder of Euroforest Holdings Limited, who is the immediate parent of the company)
During the year the company made recharges to Ahlmark Shipping (UK) Limited of £494,000 (2023: £439,000) with purchases in the year amounting to £5,000 (2023; £33,000). At the balance sheet date the amount due from Ahlmark Shipping (UK) Limited was £nil (2023: £8,000).