Olsson Forest Limited - Limited company accounts 16.1

OLSSON FOREST LIMITED

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

to

4

Profit and loss account

5

Balance Sheet

6

Statement of Changes in Equity

7

Notes to the Financial Statements

8

to

10

Reconciliation of Equity

11

to

12

Reconciliation of Profit

13

DIRECTORS:

D S Olsson

J O Thorburn

A Douglas

C-G Lyrhem

SECRETARY:

Burness Paull LLP

REGISTERED OFFICE:

Union Plaza

6th Floor

1 Union Wynd

Aberdeen

AB10 1DQ

REGISTERED NUMBER:

SC335154 (Scotland)

AUDITORS:

MacKenzie Kerr Limited

Chartered Accountants and

Statutory Auditor

Redwood

19 Culduthel Road

Inverness

IV2 4AA

BANKERS:

Royal Bank of Scotland plc

Inverness Chief Office

29 Harbour Road

Inverness

IV1 1NU

SOLICITORS:

Burness Paull LLP

50 Lothian Road

Festival Square

Edinburgh

EH3 9WJ

The directors present their report with the financial statements of the company for the year ended 31 December 2015.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2015 to the date of this

report.

D S Olsson

J O Thorburn

A Douglas

C-G Lyrhem

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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), including Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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, MacKenzie Kerr Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to

small companies.

ON BEHALF OF THE BOARD:

C-G Lyrhem - Director

28 May 2016

We have audited the financial statements of Olsson Forest Limited for the year ended 31 December 2015 on pages

five to thirteen. The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors, including "APB Ethical Standard - Provisions Available for Small Entities (Revised)", in the circumstances set out in note twelve to the financial statements.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or

error. This includes an assessment of: whether the accounting policies are appropriate to the company's

circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant

accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we

read all the financial and non-financial information in the Report of the Directors to identify material inconsistencies

with the audited financial statements and to identify any information that is apparently materially incorrect based on,

or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become

aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2015 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial

statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Mark D Sanderson Bsc(Hons), CA (Senior Statutory Auditor)

for and on behalf of MacKenzie Kerr Limited

Chartered Accountants and

Statutory Auditor

Redwood

19 Culduthel Road

Inverness

IV2 4AA

28 May 2016

TURNOVER

-

1,000

Administrative expenses

86,158

31,278

(86,158

)

(30,278

)

Other operating income

188,197

49,734

OPERATING PROFIT

2

102,039

19,456

Interest receivable and similar income

59

60

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

102,098

19,516

Tax on profit on ordinary activities

3

-

-

PROFIT FOR THE FINANCIAL YEAR

102,098

19,516

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

102,098

19,516

FIXED ASSETS

Tangible assets

4

3,053,517

3,003,517

CURRENT ASSETS

Debtors

5

86,833

1,730

Cash at bank

191,641

139,213

278,474

140,943

CREDITORS

Amounts falling due within one year

6

103,344

17,911

NET CURRENT ASSETS

175,130

123,032

TOTAL ASSETS LESS CURRENT LIABILITIES

3,228,647

3,126,549

CREDITORS

Amounts falling due after more than one year

7

1,065,750

1,065,750

NET ASSETS

2,162,897

2,060,799

CAPITAL AND RESERVES

Called up share capital

8

2,000,001

2,000,001

Retained earnings

9

162,896

60,798

SHAREHOLDERS' FUNDS

2,162,897

2,060,799

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 28 May 2016 and were signed on its behalf by:

C-G Lyrhem - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2014

2,000,001

41,282

2,041,283

Changes in equity

Total comprehensive income

-

19,516

19,516

Balance at 31 December 2014

2,000,001

60,798

2,060,799

Changes in equity

Total comprehensive income

-

102,098

102,098

Balance at 31 December 2015

2,000,001

162,896

2,162,897

1.	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.

Turnover

Turnover represents net invoiced sales of goods and services arising directly from managing a forest,

excluding Value Added Tax.

Tangible fixed assets

Tangible fixed assets are stated at cost, being purchase price, less depreciation. Woodlands, however, is

not depreciated.

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.

Other income

Other income relates to income arising from the sale of timber and forestry related grants. This income is

incidental to the long term strategy of the company and therefore is not considered to be turnover. This

income is recognised as it becomes receivable.

2.	OPERATING PROFIT

The operating profit is stated after charging:

2015

2014

£

£

Hire of plant and machinery

412

-

Auditors' remuneration

1,900

1,800

Directors' remuneration

3,000

3,000

3.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2015 nor for

the year ended 31 December 2014.

4.	TANGIBLE FIXED ASSETS

Land

£

COST

At 1 January 2015

3,003,517

Additions

50,000

At 31 December 2015

3,053,517

NET BOOK VALUE

At 31 December 2015

3,053,517

At 31 December 2014

3,003,517

Woodlands comprise Strathconon Forest, Muir of Ord, Ross-shire, which is not depreciated.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2015

2014

£

£

Trade debtors

85,922

48

Other debtors

911

1,682

86,833

1,730

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2015

2014

£

£

Trade creditors

4,971

4,304

Taxation and social security

17,555

-

Other creditors

80,818

13,607

103,344

17,911

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2015

2014

£

£

Amounts owed to group undertakings

1,065,750

1,065,750

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2015

2014

value:

£

£

2,000,001

Ordinary

£1

2,000,001

2,000,001

9.

RESERVES

Retained

earnings

£

At 1 January 2015

60,798

Profit for the year

102,098

At 31 December 2015

162,896

10.	ULTIMATE PARENT COMPANY

Terminalleasing i Goteborg AB (incorporated in Sweden ) is regarded by the directors as being the

company's ultimate parent company.

11.	RELATED PARTY DISCLOSURES

Terminalleasing i Goteborg AB

The parent company of Olsson Forest Limited

At 31 December 2015 Olsson Forest Limited owed Terminalleasing i Goteborg AB £1,065,750 (2014 -

£1,065,750), which is included in creditors falling due after more than one year.

A Douglas Consultancy

A business owned by the director A Douglas

During the year, A Douglas Consultancy provided professional services to Olsson Forest Limited of £3,000,

(2014 - £3,025). These services were provided on an open market value and under normal trade credit

terms. At 31 December 2015 Olsson Forest Limited owed A Douglas Consultancy £nil (2014 - £3,025) and

this is included within trade creditors.

12.	APB ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit

returns to the tax authorities and assist with the preparation of the financial statements.

13.	ULTIMATE CONTROLLING PARTY

FIXED ASSETS

Intangible assets

3,003,517

-

3,003,517

CURRENT ASSETS

Debtors

5,899

-

5,899

Cash at bank

114,307

-

114,307

120,206

-

120,206

CREDITORS

Amounts falling due within one year

(16,690

)

-

(16,690

)

NET CURRENT ASSETS

103,516

-

103,516

TOTAL ASSETS LESS CURRENT LIABILITIES

3,107,033

-

3,107,033

CREDITORS

Amounts falling due after more than one year

(1,065,750

)

-

(1,065,750

)

NET ASSETS

2,041,283

-

2,041,283

CAPITAL AND RESERVES

Called up share capital

2,000,001

-

2,000,001

Retained earnings

41,282

-

41,282

SHAREHOLDERS' FUNDS

2,041,283

-

2,041,283

FIXED ASSETS

Tangible assets

3,003,517

-

3,003,517

CURRENT ASSETS

Debtors

1,730

-

1,730

Cash at bank

139,213

-

139,213

140,943

-

140,943

CREDITORS

Amounts falling due within one year

(17,911

)

-

(17,911

)

NET CURRENT ASSETS

123,032

-

123,032

TOTAL ASSETS LESS CURRENT LIABILITIES

3,126,549

-

3,126,549

CREDITORS

Amounts falling due after more than one year

(1,065,750

)

-

(1,065,750

)

NET ASSETS

2,060,799

-

2,060,799

CAPITAL AND RESERVES

Called up share capital

2,000,001

-

2,000,001

Retained earnings

60,798

-

60,798

SHAREHOLDERS' FUNDS

2,060,799

-

2,060,799

TURNOVER

1,000

-

1,000

Administrative expenses

(31,278

)

-

(31,278

)

Other operating income

49,734

-

49,734

OPERATING PROFIT

19,456

-

19,456

Interest receivable and similar income

60

-

60

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

19,516

-

19,516

Tax on profit on ordinary activities

-

-

-

PROFIT FOR THE FINANCIAL YEAR

19,516

-

19,516