Registration number: 11851943

Derome Timber UK Ltd

Contents

Company Information	1
Strategic Report	2 to 3
Directors' Report	4 to 5
Statement of Directors' Responsibilities	6
Independent Auditor's Report	7 to 10
Statement of Income and Retained Earnings	11
Statement of Financial Position	12
Notes to the Financial Statements	13 to 18

Derome Timber UK Ltd

Company Information

Directors

K Andersson A K M Andersson K D A Andersson P S G Andersson P K Mossbrant L S Andersson

Registered office

Sweden House, 5 Upper Montagu Street, London England W1H 2AG

Accountants

Accountum Limited Chartered AccountantsSweden House 5 Upper Montagu Street London W1H 2AG

Independent auditor

Shaw Gibbs Limited Statutory AuditorSalatin House 19 Cedar Road Sutton Surrey SM2 5DA

Derome Timber UK Ltd

Strategic Report for the Year Ended 31 December 2024

The directors present their strategic report on the affairs of Derome Timber UK Ltd for the year ended 31 December 2024.

Fair review of the business

The company is a wholly owned subsidiary of Derome Timber AB, an undertaking registered in Sweden. The Derome Group is one of Sweden’s largest family-owned wood industries dating back to 1946. Derome's business concept is based on processing and supplying timber and building materials in a way that is rational for the customer. With the Group's own production plants in several locations, Derome offers a unique range of products and services, both for the Swedish market and for a number of export countries including the UK. The UK company acts an intermediary by purchasing products from its parent undertaking and selling them on to UK timber merchants only. The UK business is based on having very low fixed overheads with no UK based employees but utilising the services of trusted and experienced advisors and agents.

The results of the company for the year 2024, as set out on page 11, shows turnover of £42M (2023: £41M) and profit on ordinary activities before tax of £319K (2023: £303K). The shareholders’ funds of the company at 31 December 2024 was £2,313K (2023: £2,074K).

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs	Unit	2024	2023
Turnover	£	41,782,583	41,366,475
Operating profit	£	584,215	581,821
Profit before tax	£	318,544	302,817
Shareholder's funds	£	2,313,350	2,074,442

Principal risks and uncertainties

The key business risks and uncertainties affecting the company are considered to relate to:
=> competition - The Derome Group always puts the customer at centre stage. The group manufacture and deliver according to the requirements and expectations of the timber, construction and biofuel markets. And by taking the opinions of customers, suppliers and staff into account it continues to make improvements and lead industry to mitigate against competition risks.

=> the economic climate and consumer demand - the company will continue to build upon its brand awareness in the UK and to broaden its customer base as a mitigation against the risks posed by the UK economic climate and consumer demand.

=> Accounts receivables. The company maintains an active and strong relationship with its key customers and has an appropriate dunning process in place. Credit terms are agreed with all customers and company trades with primarily national businesses with prestigious track records.

Derome Timber UK Ltd

Strategic Report for the Year Ended 31 December 2024 (continued)

Future developments

Europe is facing challenging times with economic uncertainties due to for example high inflation, increasing interest rates, exchange rate volatility, increase in electricity and fuel prices which will all have a negative impact on consumer demand. The near future will have a decrease in turnover both due to lower volume and decrease in price on wood products. The next year to come will be challenging but the impact will however not be sustainable. The overall assessment is that key customers will have a continuously demand over time which will start to increase at the end of 2024. This will ensure good business opportunities in the future, both in short and long term.

Approved and authorised by the Board on 29 September 2025 and signed on its behalf by:
 

......................................... L S Andersson Director

Derome Timber UK Ltd

Directors' Report for the Year Ended 31 December 2024

The directors present their annual report on the affairs of Derome Timber UK Ltd, together with the financial statements and the independent auditor's report for the year ended 31 December 2024.

The directors have included the following disclosure required by s416(4) in the Strategic Report: Future developments. It forms part of this report by cross reference.

Principal activity

The principal activity of the company is that of agents involved in the sale of timber and building materials.

Directors of the company

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

K Andersson

A K M Andersson

K D A Andersson

P S G Andersson

P K Mossbrant

L S Andersson

Dividends

No dividends were declared or paid by the company during the current and the preceding period and the directors do not propose a final dividend.

Donations

The company has made no charitable donations or political donations and incurred no items of political expenditure during the year (2023: £nil).

Financial risk management

Foreign currency risk
The company’s key objective is to minimise the effect of exchange rate volatility. The company achieves this objective by purchasing all of its stocks from its parent entity which invoices the company in Sterling. In addition, it ensures that the majority of suppliers for all other goods and services are also invoiced in Sterling.

Credit risk
The company does not have exposure to external credit risk other than in respect of its cash at bank and trade receivables. This risk is managed by dealing only with good quality vetted customers and major banks and financial institutions with appropriate credit ratings.

Liquidity risk
The company has limited liquidity risk exposure as its operations are financed by a mixture of retained profits and substantial borrowings from its parent entity. Given the size and nature of the company,
liquidity risks are managed by the Group finance department.

Derome Timber UK Ltd

Directors' Report for the Year Ended 31 December 2024 (continued)

Going concern

The strategic report contains information on the performance of the company during the year ended 31 December 2024 and information relating to the company's principal risks and uncertainties that could impact its performance. The company's financial risk management is also detailed above in this report. The directors have considered financial projections for the company over the foreseeable future and have also reviewed the ongoing committed financial support from the company's parent undertaking and are confident that this will be available for the foreseeable future, being at least 12 months from signing the financial statements. After making enquiries, the directors are satisfied that the company has sufficient resources to continue in operation for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Events after the financial period

There have been no significant events between the year end and the date of approval of these financial statements which would require a change to, or disclosure in, the financial statements.

Directors' liabilities

The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.

Statement of disclosure to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information (as defined by section 418 of the Companies Act 2006) and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Shaw Gibbs Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 29 September 2025 and signed on its behalf by:
 

......................................... L S Andersson Director

Derome Timber UK Ltd

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),including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

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

•	state whether applicable UK Accounting Standards have been followed; 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 company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Derome Timber UK Ltd

Independent Auditor's Report to the Member of
Derome Timber UK Ltd

Opinion

We have audited the financial statements of Derome Timber UK Ltd (the 'company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
•	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

Derome Timber UK Ltd

Independent Auditor's Report to the Member of
Derome Timber UK Ltd (continued)

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 year 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, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:


 

Derome Timber UK Ltd

Independent Auditor's Report to the Member of
Derome Timber UK Ltd (continued)

The extent to which the audit was considered capable of detecting irregularities including fraud

	Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
•	the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements;
•	we obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the laws and regulations applicable to the company through discussions with directors and other management, and from our cumulative audit and commercial knowledge and experience of the company and the clothing industry;
•	we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, European Union Timber Regulations (EUTR), employment law, taxation and health and safety legislation. We also considered and identified laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty, including the Bribery Act and Anti-Money Laundering regulations;
•	we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
•	identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
	We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
•	making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
•	considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
	We are also required to perform specific procedures to respond to the risk of management bias and override of controls. To address this, we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions.
	In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
•	agreeing financial statement to disclosures underlying supporting documentation;
•	enquiring of management as to actual and potential litigation and claims; and
•	reviewing correspondence with HMRC and Health and Safety Executive (HSE), analysing legal costs to ascertain if there have been instances of non-compliance with laws and regulations.

Derome Timber UK Ltd

Independent Auditor's Report to the Member of
Derome Timber UK Ltd (continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Ransford Agyei-Boamah (Senior Statutory Auditor)
For and on behalf of Shaw Gibbs Limited, Statutory Auditor

Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

29 September 2025

Derome Timber UK Ltd

Statement of Income and Retained Earnings
for the Year Ended 31 December 2024