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Registered number:
FOR THE YEAR ENDED 31 AUGUST 2025
Whitings LLP
Chartered Accountants & Business Advisers
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY
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NASON DAVIS HOLDINGS LIMITED
COMPANY INFORMATION
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NASON DAVIS HOLDINGS LIMITED
CONTENTS
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NASON DAVIS HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The board presents their statement for the period.
The last financial year continued to be a challenging one for our industry as the combination of overproduction and oversupply, particularly in the commodity sector, proved to be a drag throughout the trading period.
Although attempts were made to address and rectify this, they were hampered by falling demand in most European theatres of operation. The supply mills were caught in a unique position of record high raw material costs and falling sales revenues. This continues today and has led to further serious curtailment of production volumes in the supply countries which will take time to filter through. In the UK, consumer spending was affected by uncertainty and a lack of confidence and discretionary spending power was reduced. Private house building starts softened and RMI was lower which affected the builders merchant and distribution sales resulting in lower stocking levels. Despite these prevailing market problems, turnover rose by £2.23 million (5.17%) to £45.3 million. This was in line with our budgetary forecast and was partly achieved because our average unit sales price increased during this financial year by overall 10.6%, with us targeting new sector areas. Despite the market issues and the transfer of much of the Japanese business to our Estonian group company, we were still able to increase the balance sheet from £3.016 million to £3.337 million. In Estonia, we are engaged in the production and sale of timber products, focusing mainly on planed timber. The main target markets for our products are Japan, the UK and France. We have close relations with all major Estonian sawmills and we import suitable raw material for further processing from the Nordic countries. Nason Davis Eesti OÜ is FSC® and PEFC ™ certified, as we value responsible and sustainable forest management. Nason Davis Eesti OÜ owns a 50% stake in Ilmre OÜ, a 67% stake in Assiku Puit OÜ, and a 100% stake in Oja Puit OÜ. The main activity of both subsidiaries is timber processing with sales generated for our group as the main customer and agent. The main activity of Ilmre OÜ is the production of pallet collars and special pallets. In the 2024/2025 financial year, the turnover increased, but the profit decreased compared to the previous period. The most difficult period was from the beginning of the financial year in September 2024 until January 2025, as demand was very weak. In Estonia sales revenue for the financial year was £15.348 million, the revenue in the previous financial year was £15.142 million. The majority of the turnover is value-added product from our own production. Sales to Japan accounted for 46,9% of the Group’s turnover, 28,0% to United Kingdom, 11,1% to France and 7.6% to Estonia. The net profit from Estonian Group activities was £310,898 reflecting a tougher trading climate across the year. We continue to make investment in production equipment and machinery in Estonia, in particular concentrated on further automation and increased space for further production. Throughout the Group the company’s strength lies in its staff, whose retention is of the utmost importance to us across all operations. We would like to highlight our recognition of their efforts for the year.
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NASON DAVIS HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
The principal risk we face is the economic indicators for timber in our key markets.
The company purchases primarily in Sterling. Where we buy in other currencies, our currency risk is mitigated with forward contracts purchased to cover exposure. More volatile changes in the cross rate between Sterling and other currencies can have an impact on our business in the day-to-day market. In all aspects of our purchasing we follow the guidelines set by Timber Development UK and we remain long standing members. We are signed up for their responsible purchasing policy and the UKTR regulations for which we are audited annually by an independent third party. We are FSC and PEFC certified for chain of custody and exercise continued improvement for our environmental credentials. We continue to monitor any changes in EUDR at a group level. The company is conscious of the credit risk it is exposed to and takes credit insurance to maintain 90% cover against bad debts. Outlook for 2026 Despite our optimism last year of an improving market the overall supply position is extremely difficult and will remain challenging until well into Q2 2026. We are wary of the debt some UK companies are exposed to, and the valuation of their balance sheets. We will maintain our discipline to Trade Insure in this tougher climate across all parts of our business. On the supply side, until there is dramatic change in suppliers’ cost of raw materials and an incremental change in demand, we see the trading climate remaining tight. The ongoing impact of environmental restraints continues but our product remains a key choice as one of the only renewable resources we have so the medium-term outlook remains very positive. There was a feeling of a gentle returning of consumer confidence with UK interest rates starting to reduce and building companies’ landbanks being very high, so we hoped for a return of further market stability. However, fragility remains and we will now see how the recent global conflicts could hamper any return of consumer confidence here in the UK. Japan remains a large but very tough market for our Estonian business and with a weakening Yen as well as increased domestic price competition we continue to look to expand sales in other markets.
The key performance indicators that we use for measuring performance of the Group are detailed below:
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NASON DAVIS HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
The directors are aware under Section 172 of the Companies Act 2006 that each of them have duty to act in a way that would, in good faith, be most likely to promote the success of the Group for the benefit of its members as a whole but having regard to the matters set out in section 172 (1) (a) to (f) of the Companies Act 2006.
The following summarises how the directors fulfil their duties. Likely consequences of any decision in the long term: The directors are conscious that decision making must have regard to the longer term viability and prospects of the Group and this is considered when we are making strategic decisions and plans as a Board. Interests of the Group's employees: The directors recognise that our employees are key to the success of the Group and we endeavour to create and maintain good relationships with our people through ongoing engagement and a culture of support. Engagement with suppliers, customers and others: The directors recognise the importance of relationships with all of the Groups key stakeholders including suppliers, customers and its bankers. The Group has many long term suppliers and customers and we monitor these relationships, along with those newer ones, on a continual basis to ensure these are maintained. The Group continues to have good relationships with its bankers. Impact of the Group's operations on the community and the environment: The directors recognise the Group has a responsibility to monitor its operations to ensure, where possible, that any environmental impacts are minimised as well as ensuring that relevant environment legislation is followed. The Desirability of the Group maintaining a reputation for high standards of business conduct: The Group has been built on a reputation of reliability and good service and the directors are aware of the need to maintain this and demonstrate that they continue to act in a responsible manner. The need to act fairly between the members of the Group: The directors have due regard for all members when making decisions on behalf of the Group.
This report was approved by the board and signed on its behalf.
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NASON DAVIS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The directors present their report and the financial statements for the year ended 31 August 2025.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 Group's financial statements and then apply them consistently;
∙make judgments 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation and minority interests, amounted to £522,773 (2024 - £778,944).
The directors who served during the year were:
The Group has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action.
The energy consumption in the United Kingdom for the year is 40,000kWh or lower and the energy consumption in Estonia is not disclosed on the basis that it is exempt from doing so.
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NASON DAVIS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Details in respect of future developments and engagement with suppliers, customers and other is provided in the Group Strategic Report.
There are no major changes planned to the Group, its customers or suppliers. Further developments are included in the Strategic Report.
The auditors, Whitings LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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NASON DAVIS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASON DAVIS HOLDINGS LIMITED
We have audited the financial statements of Nason Davis Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity 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 Auditors' 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 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 Group's or the parent 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.
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NASON DAVIS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASON DAVIS HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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NASON DAVIS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASON DAVIS HOLDINGS 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 Auditors' 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 Group 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:
∙Enquiry of management about any known or suspected instances of non-compliance with laws and regulations, and fraud;
∙Enquiry of management around actual and potential litigation and claims;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Challenging assumptions and judgements made by management in their significant accounting estimates; and
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the course of normal business.
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 Auditors' Report.
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NASON DAVIS HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASON DAVIS HOLDINGS 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 Auditors' 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
Greenwood House
Greenwood Court
Skyliner Way
Suffolk
IP32 7GY
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NASON DAVIS HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2025
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NASON DAVIS HOLDINGS LIMITED
REGISTERED NUMBER: 09382572
CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2025
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NASON DAVIS HOLDINGS LIMITED
REGISTERED NUMBER: 09382572
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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NASON DAVIS HOLDINGS LIMITED
REGISTERED NUMBER: 09382572
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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