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Euroforest Holdings Limited

Annual Report and Consolidated Financial Statements
For the period ended 28 December 2024

Registration number: 13068460

 

Euroforest Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 7

Statement of Directors' Responsibilities

8

Independent Auditor's Report

9 to 12

Consolidated Profit and Loss Account

13

Consolidated Balance Sheet

14

Balance Sheet

15

Consolidated Statement of Changes in Equity

16

Statement of Changes in Equity

17

Consolidated Statement of Cash Flows

18 to 19

Notes to the Financial Statements

20 to 43

 

Euroforest Holdings Limited

Company Information

Directors

D Symons

D C Smith

K F V Turzik

G P Adkins

A Smith

Company secretary

C Foxcroft

Registered office

The Terminal
Aviation Way
Carlisle
CA6 4NZ

Bankers

NatWest Bank plc
43 Cornmarket Street
Oxford
OX1 3HA

Auditors

PKF Francis Clark
Chartered Accountants and Statutory AuditorsMelville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

 

Euroforest Holdings Limited

Strategic Report

For the period ended 28 December 2024

The directors present their strategic report for the period ended 28 December 2024.

Principal activity

The principal activity of the group is the provision of integrated forestry services.

Fair review of the business

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.

In August 2024 Euroforest Holdings Limited acquired the remaining 45% shareholding in Pryor & Rickett Silviculture making it a 100% subsidiary of Euroforest Holdings Limited. Further detail is given in Note 30.

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 directors are not aware, at the date of this report, of any likely major changes in the group’s activities in the next year.

The group considers turnover and profit as the key indicators of performance. As shown in the group's profit and loss account on page 13, turnover achieved for the year was £139,264k (2023: £121,601k) and profit before tax was £2,342k (2023: £2,627k).

The balance sheet on page 14 shows the net assets of the group at the 2024 year end were £16,726k (2023: £17,093k). 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 group 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.

Market activity continued to be subdued for most of 2024 with some small increases in timber sales from 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 also meant reduced activity in south England with the plant back in production in early 2025.

The provision of afforestation services has been significantly affected by a difficult and slow regulatory regime meaning a significant pipeline of works has been pushed back into 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. Meanwhile we continues to maintain a fleet of modern machines and trucks pushing hard to ensure we have the latest technology available.

 

Euroforest Holdings Limited

Strategic Report

For the period ended 28 December 2024

Principal risks and uncertainties

Economic risk

Looking forward there is a confused macroeconomic 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 is 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 geopolitical events may prevent or restrict any positive effect of these policies.


Environmental risk

Major storm damage in Ireland in early 2025 means there is likely to be excess supply of sawn timber into the UK market. It is too early to say what effect this may have on trading conditions for the year ahead, but early estimates indicate three years harvest on the ground in ROI.

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.

The company has a strong pipeline of afforestation projects; however, the regulatory process is slow and cumbersome with a strong environmental focus meaning projects can take a number of years to bring to fruition.

 

Euroforest Holdings Limited

Strategic Report

For the period ended 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 group and the decision making processes ensure alignment with the sole objective of ensuring that the group 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 will look to complete Highway Sector Scheme certification in 2024.

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
D Symons
Director

 

Euroforest Holdings Limited

Directors' Report

For the period ended 28 December 2024

The directors present their report and the for the period from 31 December 2023 to 28 December 2024.

Directors of the group

The directors who held office during the period were as follows:

D Symons

D C Smith

P E Watson (retired 30 September 2024)

K F V Turzik

G P Adkins (appointed 2 December 2024)

A Smith (appointed 1 October 2024)

Going concern assessment
The directors review performance against budget each month and there is a process for 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: £1,546k and 2023: £2,110k) 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 despite the current uncertain economic climate.
 

Financial risk management objectives and policies

Liquidity risk

The group 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 group 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 Holdings Limited

Directors' Report

For the period ended 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 6 to the financial statements.

The group 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
The energy and emissions data disclosed represents the Euroforest Holdings Limited company and Euroforest Limited subsidiary only on the basis that the other subsidiaries in the group do not individually meet the criteria required for reporting.

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 group’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 Holdings Limited

Directors' Report

For the period ended 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 auditor

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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is 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 Board on 23 May 2025 and signed on its behalf by:
 

.........................................
D Symons
Director

 

Euroforest Holdings 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Euroforest Holdings Limited

Independent Auditor's Report to the Members of Euroforest Holdings Limited

Opinion

We have audited the financial statements of Euroforest Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 28 December 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the parent company's affairs as at 28 December 2024 and of the group's 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 group 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 group and parent 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.

 

Euroforest Holdings Limited

Independent Auditor's Report to the Members of Euroforest Holdings Limited

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.

Opinion on other matter 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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the 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 group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

 

Euroforest Holdings Limited

Independent Auditor's Report to the Members of Euroforest Holdings Limited

Auditor’s 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:

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 group’s GDPR policy and enquiries to the Data Protection Officer as to the occurrence and outcome of any reportable breaches.

 

Euroforest Holdings Limited

Independent Auditor's Report to the Members of Euroforest Holdings Limited

• 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.

• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates. In relation to long term contract accounting, we compared management’s standard margin estimates determined at the outset to the actual margins achieved for a sample of contracts in progress and completed. 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.

• Reviewed the work and findings of component auditors to identify any issues that could give rise to a material misstatement of the group financial statements.

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. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

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.

......................................
Duncan Leslie FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

28 May 2025

 

Euroforest Holdings Limited

Consolidated Profit and Loss Account

For the period ended 28 December 2024

Note

31 December 2023 to 28 December 2024
 £ 000

1 January 2023 to 30 December 2023
 £ 000

Turnover

3

139,264

121,601

Cost of sales

 

(123,940)

(107,709)

Gross profit

 

15,324

13,892

Amortisation of intangible assets

 

(110)

(173)

Administrative expenses

 

(12,067)

(10,742)

Other operating income

50

322

Operating profit

5

3,197

3,299

Other interest receivable and similar income

9

177

97

Interest payable and similar charges

10

(1,032)

(769)

 

(855)

(672)

Profit before tax

 

2,342

2,627

Taxation

11

(796)

(517)

Profit for the financial period

 

1,546

2,110

Profit/(loss) attributable to:

 

Owners of the company

 

1,463

1,809

Minority interests

 

83

301

 

1,546

2,110

The group has no recognised gains or losses for the period other than the results above.

 

Euroforest Holdings Limited

Consolidated Balance Sheet

28 December 2024

Note

2024
£ 000

2023
£ 000

Fixed assets

 

Intangible assets

12

838

962

Tangible assets

13

17,488

14,097

Investment property

14

1,718

1,632

Investments

15

145

155

 

20,189

16,846

Current assets

 

Stocks

16

1,267

1,070

Debtors

17

36,306

28,262

Cash at bank and in hand

18

2,486

2,707

 

40,059

32,039

Creditors: Amounts falling due within one year

19

(29,811)

(22,236)

Net current assets

 

10,248

9,803

Total assets less current liabilities

 

30,437

26,649

Creditors: Amounts falling due after more than one year

19

(11,405)

(8,048)

Provisions for liabilities

22

(2,306)

(1,508)

Net assets

 

16,726

17,093

Capital and reserves

 

Called up share capital

24

674

674

Profit and loss account

30

16,139

15,262

Equity attributable to owners of the company

 

16,813

15,936

Non-controlling interests

 

(87)

1,157

Total equity

 

16,726

17,093

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
D Symons
Director

Company Registration Number: 13068460

 

Euroforest Holdings Limited

Balance Sheet

28 December 2024

Note

2024
£ 000

2023
£ 000

Fixed assets

 

Investments

15

15,003

13,531

Current assets

 

Debtors

17

2,997

3,476

Cash at bank and in hand

 

5

10

 

3,002

3,486

Creditors: Amounts falling due within one year

19

(414)

(1,003)

Net current assets

 

2,588

2,483

Total assets less current liabilities

 

17,591

16,014

Creditors: Amounts falling due after more than one year

19

(4,100)

(2,500)

Net assets

 

13,491

13,514

Capital and reserves

 

Called up share capital

674

674

Other reserves

9,388

9,388

Profit and loss account

3,429

3,452

Total equity

 

13,491

13,514

The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial period of £650,564 (2023 - profit of £738,581).

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
D Symons
Director

Company Registration Number: 13068460

 

Euroforest Holdings Limited

Consolidated Statement of Changes in Equity

For the period ended 28 December 2024

Share capital
£ 000

Profit and loss account
£ 000

Total
£ 000

Non-controlling interests - Equity
£ 000

Total equity
£ 000

At 31 December 2023

674

15,262

15,936

1,157

17,093

Profit for the period

-

1,463

1,463

83

1,546

Dividends

-

(674)

(674)

-

(674)

Acquisition of subsidiaries, increase/(decrease) in equity

-

88

88

(1,327)

(1,239)

At 28 December 2024

674

16,139

16,813

(87)

16,726

Share capital
£ 000

Profit and loss account
£ 000

Total
£ 000

Non-controlling interests - Equity
£ 000

Total equity
£ 000

At 1 January 2023

674

14,209

14,883

856

15,739

Profit for the period

-

1,809

1,809

301

2,110

Total comprehensive income

-

1,809

1,809

301

2,110

Dividends

-

(756)

(756)

-

(756)

At 30 December 2023

674

15,262

15,936

1,157

17,093

 

Euroforest Holdings Limited

Statement of Changes in Equity

For the period ended 28 December 2024

Share capital
£ 000

Merger reserve
£ 000

Profit and loss account
£ 000

Total
£ 000

At 31 December 2023

674

9,388

3,452

13,514

Profit for the period

-

-

651

651

Total comprehensive income

-

-

651

651

Dividends

-

-

(674)

(674)

At 28 December 2024

674

9,388

3,429

13,491

Share capital
£ 000

Merger reserve
£ 000

Profit and loss account
£ 000

Total
£ 000

At 1 January 2023

674

9,388

3,468

13,530

Profit for the period

-

-

739

739

Total comprehensive income

-

-

739

739

Dividends

-

-

(755)

(755)

At 30 December 2023

674

9,388

3,452

13,514

 

Euroforest Holdings Limited

Consolidated Statement of Cash Flows

For the period ended 28 December 2024

Note

31 December 2023 to 28 December 2024
 £ 000

1 January 2023 to 30 December 2023
 £ 000

Cash flows from operating activities

Profit for the period

 

1,546

2,110

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

3,277

2,838

Changes in fair value of investment property

14

-

(158)

Profit on disposal of tangible assets

4

(89)

(152)

Finance income

9

(177)

(97)

Finance costs

10

1,032

769

Income tax expense

11

796

517

Foreign exchange gains/losses

 

61

40

 

6,446

5,867

Working capital adjustments

 

(Increase)/decrease in stocks

16

(197)

41

Increase in trade debtors

17

(8,006)

(3,316)

Increase in trade creditors

19

7,322

239

Increase in deferred income, including government grants

 

808

679

Cash generated from operations

 

6,373

3,510

Income taxes (paid)/received

11

(28)

264

Net cash flow from operating activities

 

6,345

3,774

Cash flows from investing activities

 

Interest received

177

97

Acquisitions of tangible assets

(729)

(541)

Proceeds from sale of tangible assets

 

2,187

821

Acquisition of intangible assets

12

(69)

(140)

Acquisition of investment properties

14

(86)

(380)

Proceeds from sale of investment properties

 

-

96

Purchase of additional shares in subsidiary

 

(816)

-

Net cash flows from investing activities

 

664

(47)

 

Euroforest Holdings Limited

Consolidated Statement of Cash Flows

For the period ended 28 December 2024

Note

31 December 2023 to 28 December 2024
 £ 000

1 January 2023 to 30 December 2023
 £ 000

Cash flows from financing activities

 

Interest paid

10

(1,032)

(769)

Proceeds from bank borrowing draw downs

 

1,600

1,000

Repayment of bank borrowing

 

(1,066)

(61)

Payments to hire purchase creditors

 

(4,892)

(3,700)

Dividends paid

(674)

(756)

Net cash flows from financing activities

 

(6,064)

(4,286)

Net increase/(decrease) in cash and cash equivalents

 

945

(559)

Cash and cash equivalents at the start of the period

 

1,208

1,767

Cash and cash equivalents at the end of the period

18

2,153

1,208

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The Terminal
Aviation Way
Carlisle
CA6 4NZ

2

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.

The financial statements are presented in GBP, which is the presentational currency of the group. All amounts are rounded to the nearest thousand, unless otherwise stated.

Summary of disclosure exemptions

The company has taken advantage of the exemption, under FRS102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that is it a qualifying entity and its cash flows are included in the consolidated financial statements of the group. The company is also taking exemption from disclosure of key management personnel compensation and exemption from dislcosure of related party transactions entered into between the company and other wholly owned subsidiaries of the group.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary and joint venture undertakings drawn up to 28 December 2024. A subsidiary is an entity controlled by the company and a joint venture is an entity where the company has joint control.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies are consistent across the group.

Not all of the group’s subsidiaries are wholly owned. Non-controlling interests in the net assets of consolidated subsidiaries are identified in the non-controlling interests reserve within equity. This reserve increases each year to reflect the non-controlling interests’ shares of those subsidiaries’ profits.

Joint ventures are accounted for using the equity method of accounting where the investment is initially recognised at the transaction price and is subsequently adjusted to reflect the investor’s share of the profit or loss, other comprehensive income and equity of the associate, or joint venture. Any share of losses are only recognised to the extent that they do not reduce the investment balance below zero as the group has no obligations to make payments on behalf of the associate or joint venture, and any share of subsequent profits shall be accounted for once the unrecognised profits are equal to the unrecognised losses.

In the consolidated balance sheet, the interests in associated undertakings and joint ventures are shown as the group's share of the identifiable net assets, including any unamortised premium paid on acquisition. At the balance sheet date this balance was £145k (2023: £155k).

The company has taken advantage of the exemption in section 408 of the Companies Act from disclosing its individual profit and loss account. The profit for the year of the company was £651k (2023: £738k).

Investments

The company acquired its investments in subsidiaries via a share-for-share exchange, and has therefore disapplied the merger relief provisions of s612 of the Companies Act 2006. It has chosen to recognise the cost of investment at the fair value of the consideration received, with the difference between the nominal value of the shares issued and fair value being recognised as a merger reserve.

Investments in other equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

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.

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 £1,495k (2023: £687k).

Depreciation (plant and machinery):
Harvesters and forwarders within Blacklock Harvesting Limited are depreciated to a residual value on a straight line basis by machine hour (previously 15% reducing balance). The directors believe depreciation by the hour better aligns the asset value to the usage of the machine. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if there is an indication of a significant change since the last reporting date. The change in the depreciation estimate did not result in a material difference to the depreciation charge.

Conversion factors (accrued income):
The conversion factor of a crop of work is considered when pricing a job and a lot of factors impact this assessment which is done on a forest compartment by compartment basis. The main factors considered are age of crop, species, amount of windblow, snap or check. The directors believe whilst there was an issue with this resulting in a significant adjustment in the 2023 accounts, we now have a better control and appreciation for conversion factors.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

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 group. 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 group 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

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction or, if hedged, at the forward contractual rate. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date, or if appropriate, at the forward contract rate.

Differences are taken directly to the profit and loss account.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

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 group operates and generates taxable income.

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 statement of financial position 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:

Asset class

Depreciation method and rate

Motor vehicles

25% straight line basis

Plant and machinery

20% - 33.33% straight line basis

P&M - Forwarders and Harvesters

Machine hours

Office equipment

12.5% straight line basis

Computer hardware

12.5% - 33.33% straight line basis

Leasehold improvements

4% - 20% straight line basis

Within Blacklock Harvesting Limited there has been a change to the depreciation method during the year. Harvesters and forwarders are depreciated to a residual value on a straight line basis by machine hour (previously 15% reducing balance). The directors believe depreciation by the hour better aligns the asset value to the usage of the machine. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if there is an indication of a significant change since the last reporting date. The change in the depreciation estimate did not result in a material difference to the depreciation charge.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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:

Asset class

Amortisation method and rate

Goodwill

10% straight line basis

Customer list

16% - 20% straight line basis

Computer software

14% straight line basis

Stock

Stock consists of parts and consumable items as well as stock payments. Raw materials and consumable stock is stated at the lower of cost and net realisable value. Stock payments 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.

Work in progress relates to land acquired with a view to sale which is measured at cost. The cost of work in progress comprises direct land costs and, where applicable, direct labour costs and those overheads that have been incurred in bringing the work in progress to its present location and condition.

At each repotring date, work in progress is assesseed for impairment. If 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.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 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 group 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

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the asset expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company's obligations are discharged, expire or are cancelled.

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 Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

3

Turnover

The analysis of the group's turnover for the period from continuing operations is as follows:

2024
£ 000

2023
£ 000

Rendering of services

139,256

121,549

Grants received

8

50

Other revenue

-

2

139,264

121,601

The analysis of the group's turnover for the period by market is as follows:

2024
£ 000

2023
£ 000

UK

122,242

107,728

Europe

17,022

13,873

139,264

121,601

4

Other gains and losses

The analysis of the group's other gains and losses for the period is as follows:

2024
£ 000

2023
£ 000

Gain on disposal of tangible assets

89

152

Gain on investment properties

-

158

89

310

5

Operating profit

Arrived at after charging/(crediting)

2024
£ 000

2023
£ 000

Depreciation expense

3,085

2,656

Amortisation expense

193

182

Research and development cost

1

1

Foreign exchange losses

61

39

Operating lease expense - property

74

51

Operating lease expense - other

1

-

Profit on disposal of property, plant and equipment

(89)

(152)

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£ 000

2023
£ 000

Wages and salaries

8,092

7,178

Social security costs

929

790

Pension costs, defined contribution scheme

683

603

Other employee expense

32

40

9,736

8,611

The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:

2024
No.

2023
No.

Production

117

111

Administration and support

61

57

178

168

7

Directors' remuneration

The directors' remuneration for the period was as follows:

2024
£ 000

2023
£ 000

Remuneration

447

423

Contributions paid to defined contribution pension schemes

84

87

531

510

During the period the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under defined contribution pension schemes

2

2

In respect of the highest paid director:

2024
£ 000

2023
£ 000

Remuneration

256

232

Company contributions to defined contribution pension schemes

48

53

The figures in the above table represent amounts remunerated to the directors of Euroforest Holdings Limited for services to the group.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

8

Auditor's remuneration

2024
£ 000

2023
£ 000

Audit of these financial statements

8

6

Audit of the financial statements of subsidiaries of the company pursuant to legislation

103

95

111

101

Other fees to auditors

All other non-audit services

36

21


 

9

Other interest receivable and similar income

2024
£ 000

2023
£ 000

Interest income on bank deposits

177

97

10

Interest payable and similar expenses

2024
£ 000

2023
£ 000

Interest on bank overdrafts and borrowings

182

158

Interest on obligations under finance leases and hire purchase contracts

534

374

Interest expense on other finance liabilities

316

237

1,032

769

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£ 000

2023
£ 000

Current taxation

UK corporation tax

38

92

UK corporation tax adjustment to prior periods

(39)

(38)

(1)

54

Deferred taxation

Arising from origination and reversal of timing differences

797

463

Tax expense in the income statement

796

517

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

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 25% (2023 - 23.45%).

The differences are reconciled below:

2024
£ 000

2023
£ 000

Profit before tax

2,342

2,627

Corporation tax at standard rate

586

616

Decrease in UK and foreign current tax from adjustment for prior periods

(39)

(32)

Tax decrease from effect of capital allowances and depreciation

(30)

(32)

Tax (decrease)/increase from other short-term timing differences

(55)

5

Effect of revenues exempt from taxation

(13)

(95)

Effect of expense not deductible in determining taxable profit (tax loss)

39

52

Increase in UK and foreign current tax from unrecognised tax loss or credit

253

2

Deferred tax expense from unrecognised temporary difference from a prior period

55

-

Deferred tax expense relating to changes in tax rates or laws

-

1

Total tax charge

796

517

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£ 000

Liability
£ 000

-

2,306

-

2,306

2023

Asset
£ 000

Liability
£ 000

-

1,508

-

1,508

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

12

Intangible assets

Group

Goodwill
 £ 000

Customer list
 £ 000

Computer Software
 £ 000

Total
£ 000

Cost or valuation

At 31 December 2023

1,993

822

608

3,423

Additions

-

-

69

69

At 28 December 2024

1,993

822

677

3,492

Amortisation

At 31 December 2023

1,639

822

-

2,461

Amortisation charge

120

-

73

193

At 28 December 2024

1,759

822

73

2,654

Carrying amount

At 28 December 2024

234

-

604

838

At 30 December 2023

354

-

608

962

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

13

Tangible assets

Group

Land and buildings
£ 000

Motor vehicles
 £ 000

Other property, plant and equipment
 £ 000

Total
£ 000

Cost or valuation

At 31 December 2023

1,536

5,184

15,034

21,754

Additions

45

3,397

5,132

8,574

Disposals

-

(1,355)

(3,464)

(4,819)

At 28 December 2024

1,581

7,226

16,702

25,509

Depreciation

At 31 December 2023

109

2,135

5,413

7,657

Charge for the period

94

1,270

1,721

3,085

Eliminated on disposal

-

(1,053)

(1,668)

(2,721)

At 28 December 2024

203

2,352

5,466

8,021

Carrying amount

At 28 December 2024

1,378

4,874

11,236

17,488

At 30 December 2023

1,427

3,049

9,621

14,097

Included within the net book value of land and buildings above is £1,176,704 (2023 - £1,083,248) in respect of freehold land and buildings and £247,592 (2023 - £344,404) in respect of short leasehold land and buildings.
 

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
£ 000

2023
£ 000

Motor vehicles

3,540

1,872

Plant and machinery

9,937

8,703

13,477

10,574

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

14

Investment properties

Group

2024
£ 000

At the start of the period

1,632

Additions

86

At the end of the period

1,718


The fair value of the investment property within Edder Farms Limited has been valued at £1,170,000 by an independent valuer in 2023. There has been no valuation of the remaining investment properties by an independent valuer.

15

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Joint ventures

Tradeforus Forestry Limited

Unit 1C Sycamore House
Millennium Park
Naas
Kildare

Ordinary

50%

50%

Ireland

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

Aggregate financial information of joint ventures

2024
£ 000

2023
£ 000

Group's share of profit or loss in joint ventures

(49)

(51)

Aggregate financial information of joint ventures

2024
£ 000

2023
£ 000

Investments in joint ventures and associated undertakings

145

155

Joint venture undertakings

Tradeforus Forestry Limited

The principal activity of Tradeforus Forestry Limited is to operate an online auction platform for timber and land suitable for forestry.

Company

2024
£ 000

2023
£ 000

Investments in subsidiaries

15,003

13,531

Subsidiaries

£ 000

Cost or valuation

At 31 December 2023

13,531

Additions

1,472

At 28 December 2024

15,003

Provision

Carrying amount

At 28 December 2024

15,003

At 30 December 2023

13,531

During the year the remaining 45% shareholding in Pryor & Ricket Silviculture was acquired for consideration of £1,224,000.

A debt to equity conversion was executed with respect to Baltfor Trading OU resulting in an increase in shareholding for effective consideration of £248,000.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Baltfor Trading OU

Ordinary

82%

75%

 

Estonia

     

Blacklock Harvesting Limited

Karlstad House, 3 Merchants Drive, Parkhouse, Carlisle, CA3 0JW

Ordinary

100%

100%

 

United Kingdom

     

Edder Farms Limited

Skiddaw House, Carlisle Airport, Carlisle, United Kingdom, CA6 4NW

Ordinary

100%

55%

 

United Kingdom

     

Euroforest Limited

Karlstad House, 3 Merchants Drive, Parkhouse, Carlisle, CA3 0JW

Ordinary

100%

100%

 

United Kingdom

     

Euroforest Timber Ireland Limited

Arklow Business Enterprise Centre, Kilbride Industrial Business Estate, Arklow, Co. Wicklow

Ordinary

70%

70%

 

Ireland

     

Forestry Farms Limited

Karlstad House, 3 Merchants Drive, Parkhouse, Carlisle, CA3 0JW

Ordinary

100%

100%

 

United Kingdom

     

Pryor & Rickett Silviculture Limited

Skiddaw House, Carlisle Airport, Carlisle, United Kingdom, CA6 4NW

Ordinary

100%

55%

 

United Kingdom

     

Sheffield and Company Limited

Karlstad House, 3 Merchants Drive, Parkhouse, Carlisle, CA3 0JW

Ordinary

100%

100%

 

United Kingdom

     
 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

Subsidiary undertakings

Baltfor Trading OU

The principal activity of Baltfor Trading OU is supplying bioenergy companies in Great Britain with hardwood fuel wood.

Blacklock Harvesting Limited

The principal activity of Blacklock Harvesting Limited is the harvesting of timber.

Edder Farms Limited

The principal activity of Edder Farms Limited is the acquisition of land for afforestation.

Euroforest Limited

The principal activity of Euroforest Limited is harvesting and marketing of british grown timber.

Euroforest Timber Ireland Limited

The principal activity of Euroforest Timber Ireland Limited is timber harvesting and marketing.

Forestry Farms Limited

The principal activity of Forestry Farms Limited is the acquisition of land for afforestation.

Pryor & Rickett Silviculture Limited

The principal activity of Pryor & Rickett Silviculture Limited is support services to forestry.

Sheffield and Company Limited

The principal activity of Sheffield and Company Limited is hauliers, timber merchants and forestry contractors.

For the period ending 28 December 2024 the subsidiary Forestry Farms Limited was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

16

Stocks

 

Group

Company

2024
£ 000

2023
£ 000

2024
£ 000

2023
£ 000

Parts and consumables

856

693

-

-

Work in progress

411

377

-

-

1,267

1,070

-

-

17

Debtors

   

Group

Company

Note

2024
£ 000

2023
£ 000

2024
£ 000

2023
£ 000

Trade debtors

 

32,348

24,527

-

-

Amounts due from group undertakings

29

-

-

2,957

3,421

Other debtors

 

1,429

829

-

-

Prepayments and accrued income

 

2,172

2,515

41

55

Accrued income

 

53

124

-

-

Income tax asset

11

304

267

-

-

Total current trade and other debtors

 

36,306

28,262

2,998

3,476

18

Cash and cash equivalents

 

Group

2024
£ 000

2023
£ 000

Cash at bank

2,486

2,707

Bank overdrafts

(333)

(1,499)

Cash and cash equivalents in statement of cash flows

2,153

1,208

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

19

Creditors

   

Group

Company

Note

28 December 2024
 £ 000

30 December 2023
 £ 000

28 December 2024
 £ 000

30 December 2023
 £ 000

Due within one year

 

Loans and borrowings

20

4,765

5,801

-

1,000

Trade creditors

 

20,599

13,894

-

-

Social security and other taxes

 

1,112

977

-

-

Other creditors

 

864

442

407

-

Accruals and deferred income

 

934

402

7

3

Corporation tax

 

42

33

-

-

Deferred income

 

1,495

687

-

-

 

29,811

22,236

414

1,003

Due after one year

 

Loans and borrowings

20

11,405

8,048

4,100

2,500

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

20

Loans and borrowings

 

Group

Company

2024
£ 000

2023
£ 000

2024
£ 000

2023
£ 000

Non-current loans and borrowings

Bank borrowings

4,157

3,112

4,100

2,500

Hire purchase contracts

7,248

4,936

-

-

11,405

8,048

4,100

2,500

 

Group

Company

2024
£ 000

2023
£ 000

2024
£ 000

2023
£ 000

Current loans and borrowings

Bank borrowings

549

1,061

-

1,000

Bank overdrafts

333

1,499

-

-

Hire purchase contracts

3,883

3,241

-

-

4,765

5,801

-

1,000

Group

Bank borrowings

The bank loan is denominated in £ with a nominal interest rate of 2.25% above SONIA, and the expiry date of this facility is 10 November 2027. The carrying amount at the period end is £4,100,000 (2023 - £3,500,000).

The bank loan and overdrafts are secured by fixed and floating charges over the assets of the group.

Other borrowings

The amounts shown as due under hire purchase contracts are secured against the assets to which they relate.

Company

Bank borrowings

The bank loan is denominated in £ with a nominal interest rate of 2.25% above SONIA, and the expiry date of this facility is 10 November 2027. The carrying amount at the period end is £4,100,000 (2023 - £3,500,000).

The bank loan is secured by fixed and floating charges over the assets of the group.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

21

Obligations under leases and hire purchase contracts

Group

Hire purchase contracts

The total of future minimum lease payments is as follows:

2024
£ 000

2023
£ 000

Not later than one year

3,883

3,241

Later than one year and not later than five years

7,249

4,936

11,132

8,177

Operating leases

The total of future minimum lease payments is as follows:

2024
£ 000

2023
£ 000

Not later than one year

107

109

Later than one year and not later than five years

159

244

Later than five years

53

69

319

422

The amount of non-cancellable operating lease payments recognised as an expense during the period was £134,193 (2023 - £136,542).

22

Provisions for liabilities

Group

Deferred tax
£ 000

Total
£ 000

At 31 December 2023

1,508

1,508

Increase (decrease) in existing provisions

798

798

At 28 December 2024

2,306

2,306

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

23

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £683,251 (2023 - £603,474).

Contributions totalling £90k (2023 - £63k) were payable to the scheme at the end of the financial year and are included in creditors.

24

Share capital

Allotted, called up and fully paid shares

 

28 December 2024

30 December 2023

 

No. 000

£ 000

No. 000

£ 000

Ordinary shares of £1 each

674

674

674

674

         

Rights, preferences and restrictions

Ordinary Shares have the following rights, preferences and restrictions:
These shares hold equal voting rights and equal rights to dividends announced.

25

Dividends

2024
£ 000

2023
£ 000

Interim dividend of £1.00 (2023 - £1.12) per each ordinary share

674

755

 

 

26

Off-balance sheet arrangements

Guarantee
Euroforest Holdings Limited has provided a guarantee in respect of Edder Farms Limited with regards to the company's borrowing with Clydesdale Bank PLC.

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

27

Analysis of changes in net debt

Group

At 31 December 2023
£ 000

Cash flow
£ 000

New finance leases
£ 000

At 28 December 2024
£ 000

Cash and cash equivalents

Cash

2,707

(221)

-

2,486

Overdrafts

(1,499)

1,166

-

(333)

1,208

945

-

2,153

Borrowings

Long term borrowings

(4,173)

(533)

-

(4,706)

Lease liabilities

(8,177)

4,892

(7,847)

(11,132)

(12,350)

4,359

(7,847)

(15,838)

 

(11,142)

5,304

(7,847)

(13,685)

28

Parent and ultimate parent undertaking

The company's immediate parent is Ahlmark Lines AB, incorporated in Sweden.

The address of the company's immediate parent is:

Södra Kyrkogatan 6 652 24,
Karlstad,
Värmland Sweden

 The ultimate parent is O F Ahlmark & Co Eftr, A.-B., incorporated in Sweden.

 The most senior parent entity producing publicly available financial statements is O F Ahlmark & Co Eftr, A.-B.. These financial statements are available upon request from P O 306, S-651 07 Karlstad 1, Sweden.

 

 

Euroforest Holdings Limited

Notes to the Financial Statements

For the period ended 28 December 2024

29

Related party transactions

Group

Summary of transactions with other related parties

During the year, the group has transacted with a partnership which is connected to a shareholder of Euroforest Holdings. During the year, the group made sales of £9,649k (2023 - £6,479k) and purchases of £4,325k (2023 - £4,746k). At the balance sheet date the amount due to the group was £4,877k (2023 - £586k).

During the year, the group has transacted with other related parties who have common shareholders. During the year, the group made sales of £5,889k (2023 - £3,248k) and purchases of £4,309k (2023 - £3,536k). At the balance sheet date the amount due from the group was £1,600k (2023 - £464k).

During the year, the group has transacted with a subsidiary under common control of a shareholder. During the year, the group made sales of £494k (2023 - £439k) and purchases of £5k (2023 - £33k). At the balance sheet date the amount due to the group was £Nil (2023 - £8k).

30

Reserves

Group

Share capital

Share capital represents the nominal value of shares that have been issued.

Share premium

Share premium represents the excess value of the shares issued to their nominal value.

Profit and loss account

The profit and loss account includes all current and prior year retained profits and losses.

Non-controlling interests

This reserve reflects the fair value attributable to non controlling interests in group undertakings as at the balance sheet date. Profits / losses attributable to non controlling interests in the year are disclosed on the face of the profit and loss account.

On 15 August 2024 the group acquired the remaining 45% of the issued shares of Pryor and Rickett Silviculture Limited for a purchase consideration of £1,244k. The group now holds 100% of the equity share capital of Pryor and Rickett Silviculture Limited. At the date of acquisition the group derecognised the carrying amount of the non-controlling interest of £1,327k and recorded an increase in equity attributable to owners of the parent of £88k.