Company registration number: 00743374
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
The company achieved a turnover of £42,482,046 (2023: £44,724,746), resulting in a profit on ordinary activities before taxation of £397,383 (2023: £708,854). A bad debt charge of £516,292 related to a customer in Mexico negatively impacted the 2024 results. The results for the year are set out on page 9. The directors are pleased with the results in both sales and profit for the fiscal year ended December 31, 2024. Given the competitive market conditions, the directors consider the development and performance of the company during the year and the state of affairs at the end of the year, to be satisfactory. Adequate finance remains available.
The principal activities of the company in the year under review were that of sale of pulp, paper, board, timber and other commodities, and acting as representative to its parent company.
The principal activities of the company in the year under review were that of sale of pulp, paper, board, timber and other commodities, and acting as representative to its parent company.
The main risk to the company is the economic conditions in the company’s markets (credit worthiness of customers and suppliers), freight market integration and structural change. The directors continue to focus on these matters in their strategy for the future. 77% of the company’s sales are exported and there is the risk of exposure to foreign economies. The company had a loss of £134,718 in foreign exchange during 2024 and exchange rates remain volatile affecting its Far East purchasing power and export sales. The Far East received 35% of the company’s sales and some parts could become subject to political uncertainty - although it is hoped that the countries currently importing the company’s goods will remain unaffected.
The Key Performance Indicator primarily used to monitor the operations of the business is gross margin. Gross margin increased to 7.1% in 2024 from 5.3% in 2023 due to favourable market conditions.
The directors are continuing to implement policies to expand the business of the company by diversifying the trade lanes in which the company is active. The directors anticipate that the business environment will remain competitive. The Board are of the opinion that risks identified are being well managed and there is confidence in the company’s ability to maintain and build on its position – albeit with cautious growth expectations.
Financial Instruments
The company’s financial risk management objectives and policies primarily relate to cash flow, credit and foreign exchange.
Cash flow - The directors monitor the cash levels of the company to ensure that there are always cash funds available to meet the day to day working capital requirements of the company.
Credit risk - The company routinely carries out credit checks on new customers.
Exchange rate - The company enters into forward hedge and spot contracts to mitigate the risk associated with orders in foreign currencies.
The company’s financial risk management objectives and policies primarily relate to cash flow, credit and foreign exchange.
Cash flow - The directors monitor the cash levels of the company to ensure that there are always cash funds available to meet the day to day working capital requirements of the company.
Credit risk - The company routinely carries out credit checks on new customers.
Exchange rate - The company enters into forward hedge and spot contracts to mitigate the risk associated with orders in foreign currencies.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to 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.
The profit for the year, after taxation, amounted to £298,483 (2023 - £540,636).
The directors do not recommend payment of a dividend for the year (2023: Nil).
Matters covered in the Strategic Report
The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report the Company's Strategic Report Information required by Schedule 7 of the Large and Medium sized companies and Groups Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
Matters covered in the Strategic Report
The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report the Company's Strategic Report Information required by Schedule 7 of the Large and Medium sized companies and Groups Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
The directors who served during the year were:
Michael Collins was appointed as director on 23 July 2025 after 31 December 2024 but prior to the date of this report.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant
audit information and to establish that the Company's auditors are aware of that information
audit information and to establish that the Company's auditors are aware of that information
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED
We have audited the financial statements of I.F.P. Forest and Paper Products (UK) Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, 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).
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's 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED (CONTINUED)
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:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with legal and regulatory frameworks by making inquiries to
management and those responsible for legal and compliance procedures and the company secretary.
management and those responsible for legal and compliance procedures and the company secretary.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
∙We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud
might occur. Audit procedures performed by the engagement team included:
might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect
fraud;
fraud;
°Understanding how those charged with governance considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process; and
controls or other inappropriate influence over the financial reporting process; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in the following areas;
organisation for fraud and identified the greatest potential for fraud in the following areas;
°Posting of unusual journals and complex transactions;
°Risk of fictitious employees; and
°Risk over the recognition of revenue.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF I.F.P. FOREST AND PAPER PRODUCTS (UK) LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Magna House
18-32 London Road
TW18 4BP
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 23 form part of these financial statements.
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
I.F.P. Forest and Paper Products (UK) Limited (00743374) is a private company limited by shares, and it is incorporated and domiciled in England and Wales. The Company's principal activity during the year was the trade of paper and wood products. The Company's principal place of business is St. Anne's House, Oxford Square, Oxford Street, Newbury, Berkshire, RG14 1JQ.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.
Under most supplier agreements, the Company acts as principal when purchasing products from suppliers and reselling them to customers. Net sales and commissions consist primarily of product sales to customers. The Company is responsible for selling products, ensuring that the shipment reaches customers, and processing sales returns. In addition, the Company takes title to products and bears risk of loss of collection. The Company recognizes revenue from sales when title to products transfers to customers.
The Company also records commission income from agreements with suppliers for which the Company is acting as an agent. Under agency-based supplier agreements, the Company recognises a percentage share of revenues generated by suppliers when products are shipped to customers.
The Company also records commission income from agreements with suppliers for which the Company is acting as an agent. Under agency-based supplier agreements, the Company recognises a percentage share of revenues generated by suppliers when products are shipped to customers.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
Derivatives are measured using the "mark to market" value of the financial instrument at the reporting date. This technique calculates the present value of the future cash flows relating to the instrument based on the foreign exchange rates prevailing at the reporting date.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
Derivatives are measured using the "mark to market" value of the financial instrument at the reporting date. This technique calculates the present value of the future cash flows relating to the instrument based on the foreign exchange rates prevailing at the reporting date.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
8.Taxation (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contribution pension scheme covering the directors and employees of the Company. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund for the year and amounted to £27,376 (2023: £26,750). No contributions were outstanding or prepaid at the balance sheet date (2023: £NIL).
Profit and loss account
This reserve records retained earnings and accumulated losses.
This reserve records retained earnings and accumulated losses.
The immediate and ultimate parent company is International Forest Products LLC , a company incorporated in the USA.
The ultimate controlling party is considered to be Robert Kraft.
The ultimate controlling party is considered to be Robert Kraft.
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