Panel Supplies Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06277416 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements

For The Year Ended 30th April 2022

for

Panel Supplies Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mrs D G Attwood

I D Attwood

R Attwood

A J Draper

T A D McGregor

C Bell

SECRETARY:

M C Walker

REGISTERED OFFICE:

Sharvatt House

Innsworth Technology Park

Innsworth Lane

Gloucester

Gloucestershire

GL3 1DL

REGISTERED NUMBER:

06277416 (England and Wales)

SENIOR STATUTORY AUDITOR:

Graham Wildin

AUDITORS:

Wildin (Accountants & Auditors) Ltd

Accountants

& Statutory Auditors

Kings Buildings

Lydney

Gloucestershire

GL15 5HE

The directors present their strategic report for the year ended 30th April 2022.

REVIEW OF BUSINESS

The turnover of the company during the year has increased considerably, mostly due to price increase costs of goods, and overall profits have increased significantly as a result . Turnover increased by 20.82% to £55,701,596 and the gross profit margins increased from 12.58% (2021) to 16.53% (2022) with pre tax profits increased from £3,756,700 (2021) to £6,875,896 (2022)

All of the directors/shareholders attend quarterly meetings where the progress of the company is discussed and they are therefore fully aware of the other financial aspects of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The principle risks relate to exchange variances, as the majority of all purchases come in from abroad, and increased competition.

SECTION 172(1) STATEMENT

Statement within the Strategic Report describing how the directors have had regard to the matters set out in Companies Act 2006 s172(1) (a) to (f);

a) The likely consequences of any decision in the long term

b) The interests of the company's employees

c) The need to foster the company's business relationships with suppliers, customers and others

d) The impact of the company's operations on the community and the environment

e) The desirability of the company maintaining a reputation for high standards of business conduct

f) The need to act fairly between members of the company.

In discharging our section 172(1) duties we have regard to the factors set out above.

a) We have regard to the above and other factors we consider relevant when making decisions. Such other factors include the interests and views of our shareholders, other group companies, and other stakeholders. All decisions taken by the company have ramifications, be they at board or any other level, but by considering the company's purpose, intended direction, values and strategic priorities we do our best to ensure our decisions are consistent and of optimum overall long-term benefit to stakeholders.

b) The company's success has been built on the high calibre, capability, integrity, dedication and loyalty of our people. We recruit our staff members with a view to enjoying a long-term career with the company where at all possible; we have a traditional and well-proven policy of developing employees usually at an early point in their career across a variety of disciplines, so that their potential is realised for both personal and corporate success. The company encourages employees' feedback and discussion of any concerns they may have with management in a secure and confidential environment, and their safety and welfare is of utmost importance to us.

c) The company's key stakeholders are its employees, customers, suppliers, and shareholders. We have discussed staff matters in (b) above, and will look at shareholders in item (f). Our business turns on the long-term relationships forged with our principal customers and suppliers, most of whom we have dealt with and looked after / been looked after by for 25 years or more. Our industry is quite traditional, and as such the importance of fostering and maintaining close business relationships within it is crucial. The mutual trust this engenders helps the company and its customers and suppliers to be best-placed to thrive in the economic environment.

d) The company's impact on the local community is largely positive, most visibly by providing gainful, secure, long-term and lucrative employment to employees living in the locality. The company is located on a long-established industrial estate, so any direct negative environmental impact on the locality is minimal. In terms of the company's products, the majority of stock is sourced under FSC (Forest Stewardship Council) regulations - meaning they originate from well-managed forests and/or recycled materials - so positive environmental impact is maximised.

e) In tandem with close business relationships with customers and suppliers per item (c) above, maintaining high standards of business conduct and dealings is crucial in establishing and keeping the company's positive profile in both the wider business and general environments. The company benefits from ethical business conduct; stakeholders across the board have a better disposition to the company, as do other external parties. From moral and business perspectives high quality corporate conduct is desirable, being of greater net benefit to the company.

f) The company is private and family-owned; all shareholders are members of the same immediate family, and as such there is no conflict or issue of inequitable treatment between the members.

ON BEHALF OF THE BOARD:

Mrs D G Attwood - Director

27th September 2022

The directors present their report with the financial statements of the company for the year ended 30th April 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of Timber Merchants.

DIVIDENDS

The total distribution of dividends for the year ended 30th April 2022 will be £ 2,000,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1st May 2021 to the date of this report.

Mrs D G Attwood

I D Attwood

R Attwood

A J Draper

T A D McGregor

C Bell

Other changes in directors holding office are as follows:

S C Golding - resigned 16th April 2022

LABOUR AND PERSONNEL COSTS

There are no staff directly employed by the company. All labour and personnel costs are recharged costs from International Plywood (Gloucester) Limited, being the primary employer of the labour and personnel used within the group.

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;

-	state whether applicable 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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Wildin (Accountants & Auditors) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs D G Attwood - Director

27th September 2022

Opinion

We have audited the financial statements of Panel Supplies Limited (the 'company') for the year ended 30th April 2022 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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 30th April 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 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.

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.

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.

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:

-enquiry of management, those charged with governance around instances of actual and potential litigation and claims.

-enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations by way of data submission report, and whether they are aware of any instances of non-compliance.

-detecting and responding to the risks of fraud and whether they have knowledge of actual, suspected or alleged fraud,

-reviewed financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations in direct relation to the company.

- performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

-assessment of the nature of the industry and sector, control environment and business performance including the design of the company bonus levels.

-the matters discussed among the audit engagement team, including tax, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential of fraud in the following areas: timing of recognition of income to despatch, posting of unusual journals and complex transactions and manipulation of company profits to meet bonus targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, pension legislation and tax legislation.

In addition, we considered provisions of other 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.

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 Report of the Auditors.

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.

Graham Wildin (Senior Statutory Auditor)

for and on behalf of Wildin (Accountants & Auditors) Ltd

Accountants

& Statutory Auditors

Kings Buildings

Lydney

Gloucestershire

GL15 5HE

27th September 2022

TURNOVER

55,701,596

46,104,650

Cost of sales

46,496,372

40,303,058

GROSS PROFIT

9,205,224

5,801,592

Administrative expenses

2,325,213

2,023,218

OPERATING PROFIT

4

6,880,011

3,778,374

Interest receivable and similar income

1,753

122

6,881,764

3,778,496

Interest payable and similar expenses

5

5,868

21,796

PROFIT BEFORE TAXATION

6,875,896

3,756,700

Tax on profit

6

1,307,067

715,876

PROFIT FOR THE FINANCIAL YEAR

5,568,829

3,040,824

PROFIT FOR THE YEAR

5,568,829

3,040,824

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,568,829

3,040,824

FIXED ASSETS

Tangible assets

8

201,239

219,667

CURRENT ASSETS

Inventories

9

6,621,445

2,999,979

Debtors

10

11,012,708

9,906,346

Cash at bank

140,242

1,010,409

17,774,395

13,916,734

CREDITORS

Amounts falling due within one year

11

9,447,082

9,174,258

NET CURRENT ASSETS

8,327,313

4,742,476

TOTAL ASSETS LESS CURRENT LIABILITIES

8,528,552

4,962,143

PROVISIONS FOR LIABILITIES

14

34,035

36,455

NET ASSETS

8,494,517

4,925,688

CAPITAL AND RESERVES

Called up share capital

15

501,000

501,000

Retained earnings

16

7,993,517

4,424,688

SHAREHOLDERS' FUNDS

8,494,517

4,925,688

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 27th September 2022 and were signed on its behalf by:

Mrs D G Attwood - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st May 2020

501,000

2,383,864

2,884,864

Changes in equity

Dividends

-

(1,000,000

)

(1,000,000

)

Total comprehensive income

-

3,040,824

3,040,824

Balance at 30th April 2021

501,000

4,424,688

4,925,688

Changes in equity

Dividends

-

(2,000,000

)

(2,000,000

)

Total comprehensive income

-

5,568,829

5,568,829

Balance at 30th April 2022

501,000

7,993,517

8,494,517

1.	STATUTORY INFORMATION

Panel Supplies Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Inventories

Inventories are held at the lower of cost and estimated selling price less costs to complete and sell.

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.

3.	EMPLOYEES AND DIRECTORS

30.4.22

30.4.21

£

£

Wages and salaries

984,828

848,824

The average number of employees during the year was as follows:

30.4.22

30.4.21

Directors

7

7

Drivers & Admin

24

21

31

28

There are no staff directly employed by the company. All labour and personnel costs are recharged costs from International Plywood (Gloucester) Limited, being the primary employer of the labour and personnel used within the group.

30.4.22

30.4.21

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

30.4.22

30.4.21

£

£

Depreciation - owned assets

59,676

46,123

Loss on disposal of fixed assets

1,117

-

Auditors' remuneration

12,000

12,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.4.22

30.4.21

£

£

Bank Interest

1,039

-

Factoring Costs & Charges

4,829

21,796

5,868

21,796

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.4.22

30.4.21

£

£

Current tax:

UK corporation tax

1,313,698

705,812

Prior Years & Interest

(4,210

)

-

Total current tax

1,309,488

705,812

Deferred tax

(2,421

)

10,064

Tax on profit

1,307,067

715,876

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:

30.4.22

30.4.21

£

£

Profit before tax

6,875,896

3,756,700

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

1,306,420

713,773

Effects of:

Expenses not deductible for tax purposes

647

2,103

Total tax charge

1,307,067

715,876

7.

DIVIDENDS

30.4.22

30.4.21

£

£

Ordinary A shares of £1 each

Final

-

1,000,000

Interim

2,000,000

-

2,000,000

1,000,000

8.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1st May 2021

25,650

21,437

773,557

820,644

Additions

-

-

43,198

43,198

Disposals

-

-

(11,000

)

(11,000

)

At 30th April 2022

25,650

21,437

805,755

852,842

DEPRECIATION

At 1st May 2021

25,309

21,437

554,231

600,977

Charge for year

60

-

59,616

59,676

Eliminated on disposal

-

-

(9,050

)

(9,050

)

At 30th April 2022

25,369

21,437

604,797

651,603

NET BOOK VALUE

At 30th April 2022

281

-

200,958

201,239

At 30th April 2021

341

-

219,326

219,667

9.	INVENTORIES

30.4.22

30.4.21

£

£

Inventories

6,621,445

2,999,979

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.22

30.4.21

£

£

Trade debtors

10,882,209

9,874,554

Amounts owed by group undertakings

92,438

-

Prepayments & Other Debtors

38,061

31,792

11,012,708

9,906,346

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.22

30.4.21

£

£

Bank loans and overdrafts (see note 12)

1,782,731

409,184

Trade creditors

1,329,699

1,833,492

Amounts owed to group undertakings

4,289,787

4,487,026

Tax

437,698

963,836

VAT

11,921

462,340

Accrued expenses

1,595,246

1,018,380

9,447,082

9,174,258

12.

LOANS

An analysis of the maturity of loans is given below:

30.4.22

30.4.21

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

1,782,731

409,184

The company factors it's debts and the factoring company have a charge over those debts. The company also gives a cross guarantee in respect of all bank borrowings within the International Plywood plc group of companies.

13.	SECURED DEBTS

The following secured debts are included within creditors:

30.4.22

30.4.21

£

£

Bank overdrafts

1,782,731

409,184

14.	PROVISIONS FOR LIABILITIES

30.4.22

30.4.21

£

£

Deferred tax

34,035

36,455

Deferred

tax

£

Balance at 1st May 2021

36,455

Credit to Income Statement during year

(2,420

)

Balance at 30th April 2022

34,035

The deferred taxation movement relates to accelerated capital allowances.

15.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.4.22

30.4.21

value:

£

£

800

Ordinary A

£1

800

800

500,000

Preference

£1

500,000

500,000

200

Ordinary B

£1

200

200

501,000

501,000

16.

RESERVES

Retained

earnings

£

At 1st May 2021

4,424,688

Profit for the year

5,568,829

Dividends

(2,000,000

)

At 30th April 2022

7,993,517

17.	ULTIMATE PARENT COMPANY

International Plywood plc is regarded by the directors as being the company's ultimate parent company.

The company is 100% owned subsidiary of International Plywood PLC, Sharvatt House, Innsworth Technology Park, Innsworth Lane, Gloucester GL3 1DL

18.	RELATED PARTY DISCLOSURES

The Company has taken advantage of the exemptions granted by Financial Reporting Standard 8 not to disclose transactions within the group.

19.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is David Attwood.