REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
FOR |
GLOBAL TIMBER PRODUCTS LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
FOR |
GLOBAL TIMBER PRODUCTS LTD |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Statement of Income and Retained Earnings | 10 |
Statement of Financial Position | 11 |
Notes to the Financial Statements | 12 | to | 22 |
GLOBAL TIMBER PRODUCTS LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
The directors present their strategic report for the year ended 27 September 2022. |
PRINCIPAL ACTIVITY AND REVIEW OF BUSINESS |
The principal activity of the company in the year is the supply of Hardwood and Softwood machined timber products. |
We aim to present a balanced, comprehensive review of the development of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties that we face. |
KEY PERFORMANCE INDICATORS |
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole being, turnover, margins and shareholder funds. |
During the year the company experienced an increase in turnover of 6.5%. |
Turnover 2022 | Turnover 2021 |
£11,498,222 | £10,795,359 |
The volume of sales achieved was similar to prior years. |
The change in total sales income relates to an overall increase in sales prices, led by global market conditions. A scarcity of product coming out of Russia led to a shortage of supply which pushed prices up. |
The Directors remain focussed on achieving acceptable gross margin targets. The gross margins in the year have increased: |
Gross Margin 2022 |
Gross Margin 2021 |
31.4% | 27.8% |
The margin has increased due to adding increased value to products, improving quality control and the retention and growth of a pool of experienced staff. |
A move to an ERP system in the year has added an extra layer of analysis to the procurement process and helped deliver higher margins. The new ERP system tracks historic product costing allowing the team to make more informed decisions. |
Stockholding in the year increased due to a requirement to hold additional stocks of Siberian Larch as global stocks depleted |
Stock 2022 | Stock 2021 |
£4,224,414 | £2,435,905 |
The expectation is for stock levels to decrease during 2023 as Siberian Larch stock levels decrease and the industry moves to alternative products that can be sourced at shorter lead times |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
The Directors have made decisions which have enabled the company to remain in a strong financial position at the end of the year. |
Shareholder Funds 2022 |
Shareholder Funds 2021 |
£1,255,622 | £1,304,599 |
The expectation is that during 2023 shareholder funds will increase. |
The company continues to maintain its position as a leading supplier to the timber industry and remains committed to providing excellent customer service and quality products. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Directors are aware of the uncertainty within the timber trade, especially around Siberian larch stocks and manage these risks by regulating stock levels and ensuring that any price fluctuations are reflected in the sales price. |
The business has CBILS loans and utilises an Invoice Discounting Facility and overdraft with Royal Bank of Scotland. The expectation during 2023 is for the ID facility to build up headroom and usage to reduce. This should decrease the amount of borrowing and reduce the interest payable. The business is confident of continuing CBILS loan repayments with the agreed repayment schedule. |
Some of the business' customers may be exposed to rises in interest rates but the business is protected by holding a credit insurance product in place to reduce any potential exposure to bad debts. |
The Directors remain focussed on gross profit and net profit margins and remain optimistic about future growth even in light of industry challenges. |
FUTURE PLANS |
The business continues to grow in 2023 with the roll out of a detailed Sales and Marketing Plan. To complement this the business continues to invest in the site infrastructure at the Hixon site with planned expenditure during the year on additional storage solutions and groundworks to improve the layout of the site. |
ON BEHALF OF THE BOARD: |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 27 September 2022. |
DIVIDENDS |
Particulars of recommended dividends are detailed in the notes to the financial statements. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 28 September 2021 to the date of this report. |
DISCLOSURE 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 in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 including the future developments of the company. |
The strategic report can be found on page 2 of these financial statements. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
AUDITORS |
The auditors are deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GLOBAL TIMBER PRODUCTS LTD |
Qualified opinion on financial statements rising from limitation of scope |
We have audited the financial statements of GLOBAL TIMBER PRODUCTS LTD (the 'company') for the year ended 27 September 2022 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). |
Except for the financial effects of the matters described in the basis for qualified opinion section of our report, in our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 27 September 2022 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 qualified 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 Auditors' 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. With respect to opening stock having a carrying amount of £2,435,905, the audit evidence available to us was limited because we did not observe the physical counting of the stock at 27 September 2021 since this was prior to our appointment as auditors of the company. Owing to the nature of the company records at that time, we are unable to obtain sufficient audit evidence regarding the stock quantities using other audit procedures. Consequently we were unable to determine whether any adjustments to the opening stock value were necessary. |
Conclusions relating to going concern |
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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GLOBAL TIMBER PRODUCTS LTD |
Opinions on other matters 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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
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 Report of the Directors. |
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 four, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GLOBAL TIMBER PRODUCTS LTD |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
o | the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
o | results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
o | any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to: |
- |
Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- |
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- |
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
o | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
Based on this approach, we were able to assess the Company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information. |
Audit response to risks identified |
In addition to the matter described in the basis of qualified opinion section, and as a result of performing the above, we identified health and safety compliance risk as key audit matters related to the potential risk of fraud or irregularities. |
Our procedures to respond to risks identified included the following: |
o | reviewing any audits completed by regulatory bodies in the year and the outcomes of these to ensure no breach of laws and regulations; |
o | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
o | enquiring of management concerning actual and potential litigation and claims; |
o | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
o | obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
o | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GLOBAL TIMBER PRODUCTS LTD |
Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
- | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- | Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern. |
- | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
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 a Report of the Auditors 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 auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
STATEMENT OF INCOME AND RETAINED EARNINGS |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
27.9.22 | 27.9.21 |
(Unaudited) |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
1,369,128 | 969,611 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,415,894 | 969,670 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 10 | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
STATEMENT OF FINANCIAL POSITION |
27 SEPTEMBER 2022 |
27.9.22 | 27.9.21 |
(Unaudited) |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
1. | STATUTORY INFORMATION |
GLOBAL TIMBER PRODUCTS LTD is a |
The principal activity of the company in the year is the supply of Hardwood and Softwood machined timber products. |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS |
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of G T P (Midlands) Holdings Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: |
- No cash flow statement has been presented for the company. |
- No disclosure has been given for the aggregate remuneration of key management personnel. |
SIGNIFICANT JUDGEMENTS AND ESTIMATES |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Key sources of estimation uncertainty |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: |
Estimated useful lives and residual values of fixed assets |
The annual depreciation charge of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during the current and prior accounting periods. |
REVENUE RECOGNITION |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
TANGIBLE FIXED ASSETS |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
GOVERNMENT GRANTS |
Grants are recognised under the accruals basis. |
STOCKS |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
FINANCIAL INSTRUMENTS |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
FOREIGN CURRENCIES |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
HIRE PURCHASE AND LEASING COMMITMENTS |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets held under finance leases and hire purchases contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
IMPAIRMENT OF FIXED ASSETS |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
EMPLOYEE BENEFITS |
The company provides a range of benefits to employees. |
Short term benefits, including holiday pay, are recognised as an expense in the profit and loss account in the period in which they are incurred. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
27.9.22 | 27.9.21 |
(Unaudited) |
Warehouse, Drivers and Office staff | 28 | 25 |
Directors | 3 | 3 |
5. | DIRECTORS' EMOLUMENTS |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Foreign exchange differences | ( |
) |
7. | AUDITORS' REMUNERATION |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
16,780 |
- |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Bank loan interest |
Interest payable |
Hire purchase interest |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
9. | TAXATION - continued |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Total tax charge | 269,937 | 161,852 |
10. | DIVIDENDS |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Ordinary shares of 1 each |
Final |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 28 September 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 27 September 2022 |
DEPRECIATION |
At 28 September 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 27 September 2022 |
NET BOOK VALUE |
At 27 September 2022 |
At 27 September 2021 |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
11. | TANGIBLE FIXED ASSETS - continued |
Finance leases and hire purchase contracts |
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements: |
Motor vehicles | Fixtures and Fittings | Plant and Machinery | Total |
£ | £ | £ | £ |
At 27 September 2022 | 19,879 | - | 192,603 | 212,482 |
At 27 September 2021 | 5,017 | 2,467 | 300,880 | 308,364 |
12. | STOCKS |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Stocks |
Impairment losses recognised or reversed in profit or loss in accordance with section 27 were £nil (2021: £nil). |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts owed by associates |
Other debtors | 45,111 | 58,000 |
Directors' current accounts | 238,884 | 193,686 |
Prepayments and accrued income |
Amounts owed by group undertakings and associates are unsecured, interest free and repayable on demand. |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 99,058 | 82,513 |
Other creditors |
Accruals and deferred income |
Amounts owed to group undertakings and associates are unsecured, interest free and repayable on demand. |
The bank loans are secured on the same basis as disclosed in note 15. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
The bank loans and overdraft are secured as below: |
First Legal Charge dated 30 October 2014 is a fixed and floating charge covering all the property or undertaking of the company in favour of The Royal Bank of Scotland PLC. |
First Legal Charge dated 13 November 2014 over Leasehold Property known as 8 Woodland Road. |
First Legal Charge dated 10 March 2015 is a fixed and floating charge covering all the property or undertaking of the company in favour of RBS Invoice Finance Limited. |
There is a debenture dated 5 March 2010 in favour of Close Invoice Finance LTD, giving a fixed and floating charge over the undertaking and all property and assets of the company. |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans payable more than |
5 years by instalments | - | 125,811 |
- | 125,811 |
The company took out two Coronavirus Business Interruption Loans. Loan interest for the first 12 months of the loan was funded by the UK Government, thereafter the interest is payable by the company. |
The first loan was taken out in June 2020 and is repayable over a 5 year term, bearing interest at 3.89% over base rate. |
The second loan was taken out in May 2021 and is repayable over a 5 year term, bearing interest at 6.03%. |
17. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
27.9.22 | 27.9.21 |
(Unaudited |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Bank overdraft |
Bank loans |
Hire purchase contracts | 241,507 | 309,021 |
19. | PROVISIONS FOR LIABILITIES |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 28 September 2021 |
Charge to Income Statement during year |
Balance at 27 September 2022 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 27.9.22 | 27.9.21 |
value: | £ | £ |
Ordinary | 1 | 100 | 100 |
21. | RESERVES |
Retained earnings - This reserve records retained earnings and accumulated losses. |
GLOBAL TIMBER PRODUCTS LTD (REGISTERED NUMBER: 07009898) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 SEPTEMBER 2022 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 27 September 2022 and 27 September 2021: |
27.9.22 | 27.9.21 |
(Unaudited) |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
By virtue of the loan accounts, a liability to taxation exists under S455 CTA 2010 in the sum of which £79,217 will be repaid or discharged when the loans are repaid. The loans are expected to be repaid within nine months of the year end and, as such, no provision for the taxation has been made. |
23. | EVENTS AFTER THE END OF THE REPORTING PERIOD |
There were no material events up to the date of approval of the financial statements by the Board. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate parent undertaking is GTP (Midlands) Holding Limited, a company registered in England and Wales. |
There is no one controlling party in the ultimate parent company. |