1. Accounting policies

Basis of measurement and preparation of accounts

The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective April 2008)

Turnover policy

The turnover shown in the profit and loss account represents revenue earned during the period, exclusive of VAT

Tangible fixed assets depreciation policy

Depreciation is provided, after taking account of any grants receivable, at the following annual rates in order to write off each asset over its estimated useful life. Commercial woodlands - as this asset is appreciating in value no depreciation is being provided for, Plant and Machinery - 20% of net book value

Intangible fixed assets amortisation policy

Intangible fixed assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight basis over their estimated useful economic lives, not to exceed twenty years. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable

Valuation information and policy

Stocks and work -in-progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Other accounting policies

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. Research and Development Expenditure on research and development is written off in the year in which it is incurred

3. Intangible assets

4. Tangible assets

Land and buildings consist of woodlands run on a commercial basis with a view to realising a profit.

6. Debtors

7. Creditors: amounts falling due within one year

Bank loans and overdrafts of £47,898 (2014 £80,804) are secured.

8. Creditors: amounts falling due after more than one year

Bank loans are secured and repayable over the next two years.

9. Called up share capital

Allotted, called up and paid

There are two classes of ordinary shares namely 600 A and 400 B shares. They both have the same voting and distribution rights in the event of a liquidation.

11. Related party disclosures

The company sold £1,218,750 (2014 £1,949,719) timber to Munro Sawmills Ltd a company controlled by P G Blake. The company purchased £67,583 (2014 £47,615) of labour and paid rent of £5,000 (2014 £5,000) to Munro Sawmills Ltd. All transactions are at normal commercial terms prevailing at the time. The above year end balances are net amounts due in the sales and purchase ledgers.