NORDIC_ROOM_LIMITED - Accounts

The director presents his annual report and financial statements for the year ended 31 December 2020.

The principal activity of the company in the year under review was that of designing, importing and supplying timber frame buildings of various sizes for private gardens and the leisure sector. The product is based on Scandinavian design, building method and materials. We work with our own trained carpenter teams who erect the buildings as turn-key projects. In 2020 the main type of buildings has become garden studios as a result of increased demand for a cabin for leisure and working from home.

Review of business

2020 has been an unusual year in many ways, dominated by adjusting to the COVID-19 pandemic.

At the beginning of the year, we lost a few carpenters in the turmoil, and a large building contract was first delayed before we had to cancel due to travel restrictions and team shortage. The first 6 months of 2020 would have been very difficult without the government furlough scheme. During the second part of the year, we were able to take better advantage of the increased demand for cabins for working from home. We were able to rebuild carpenter teams and make back the loss of the first 6 months.

A significant number of people started to work from home in 2020 and as a result we got increased demand for garden studios, and we launched a new WFH (Work from Home) product to meet the demand and to simplify the build process. This has resulted in steady growth in the garden cabin market from May 2020 enabling us to show a small profit for the year despite the problems and turbulence.

The materials market was stable at the beginning of the year, but due to increase demand for wood and reduced production the prices of our materials saw a steady increase and caused a small reduction in our gross margin for 2020. Towards the end of the year, we caught up with the price increases and due to demand were able to get back to our normal margin, which sees us well prepared for 2021.

Accounts

Both the turnover and the results are below our original budget, which is a result of the problematic start to the year and Covod-19. Circumstances taken into account, the directors are happy with the years result.

The second part of the year gave some indication that we could be increasing our turnover if demand for WFH cabins continued to increase. We have therefore made an optimistic budget for 2021 and hope we will be able to re-build carpenter teams to meet an increase in local demand. Concentrating our activity in the near geographical area will increase our margin and efficiency in completing each build.

Outlook for 2021

We will continue to strengthen our Nordic brand in our main area of Surrey and SW London. The demand looks healthy and we should be able, through training of new carpenter teams, to increase capacity of build and increase the efficiency of our projects.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Nordic Room Limited for the year ended 31 December 2020 set out on pages 4 to 9 from the company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Nordic Room Limited, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Nordic Room Limited and state those matters that we have agreed to state to the Board of Directors of Nordic Room Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Nordic Room Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Nordic Room Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Nordic Room Limited. You consider that Nordic Room Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Nordic Room Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 480 of the Companies Act 2006 relating to dormant companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Nordic Room Limited is a private company limited by shares incorporated in England and Wales. The registered office is 16 Gorselands Close, West Byfleet, Surrey, KT14 6PU.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The average monthly number of persons (including directors) employed by the company during the year was: