REGISTERED NUMBER: 03477258 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2018

for

Timberwolf Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Income and Retained Earnings

6

Balance Sheet

7

Cash Flow Statement

8

Notes to the Cash Flow Statement

9

Notes to the Financial Statements

10

DIRECTORS:

Mr R J Marshall

Mr G S Marshlain

Mr C Perry

REGISTERED OFFICE:

Entec House

Tomo Industrial

Estate

Stowmarket

Suffolk

IP14 5AY

REGISTERED NUMBER:

03477258 (England and Wales)

AUDITORS:

A4G Audit Limited

Chartered Accountants

& Statutory Auditors

Kings Lodge

London Road

West Kingsdown

Sevenoaks

Kent

TN15 6AR

The directors present their strategic report for the year ended 31 March 2018.

REVIEW OF BUSINESS

Timberwolf manufactures woodchippers for both the domestic and international markets these products are sold via a

network of dealers and distributors.

Turnover in the year of £14.3m increased by 12% on the previous year through continuing to consolidate our market

leading position in the UK and continued international expansion with international revenue increasing by 53%.

The net asset position of the company remains strong at £5m.

PRINCIPAL RISKS AND UNCERTAINTIES

There are not considered to be any principal risks however there is uncertainty about how the impending implementation

of the Euro V emissions legislation will effect revenue along with the general uncertainty over the terms of Brexit and

how the rise of protectionism will effect both the UK and global economy.

Risks are managed via the operation of a risk register with mitigation actions that is regularly reviewed by the board.

FUTURE DEVELOPMENTS

The business will continue to make significant strides forward during the coming 12 months, developing its underpinning

capabilities, enhancing its engineering function, strengthening and continually improving its operations and supply chain

and ensuring that it delivers even greater added value. The business is looking to enhance and complete its current

offering of machinery, developing its routes to market and pushing further with its export opportunities, all of these

things being achieved by investment in people, processes and infrastructure.

RESEARCH AND DEVELOPMENT

The business will continue to invest in future technology to ensure that it maintains a market leading position, keeping

abreast of developments in commercial technology, environmental and legislative requirements and ensuing that its

products and services are recognised as innovative and the perceived benefits derive as high added value as possible.

The market demand for the rate of new products and technology is ever increasing and the business must ensure that it

is capable of delivering upon these requirements efficiently and effectively to provide the necessary return on investment.

POSITION OF THE COMPANY AT YEAR END

Timberwolf uses a range of KPI's to monitor and manage the business including revenue, margin and profit trends,

Inventory turns and DSO, New product introductions, Productivity, labour turnover and accident frequency rate

ON BEHALF OF THE BOARD:

Mr R J Marshall - Director

11 December 2018

The directors present their report with the financial statements of the company for the year ended 31 March 2018.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2018 will be £ 5,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2017 to the date of this report.

Mr R J Marshall

Mr G S Marshlain

Mr C Perry

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), 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 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.

AUDITORS

The auditors, A4G Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr R J Marshall - Director

11 December 2018

Opinion

We have audited the financial statements of Timberwolf Limited (the 'company') for the year ended 31 March 2018 which

comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash

Flow Statement, 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 31 March 2018 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 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, 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.

Opinion 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 three, 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.

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.

Mr M Palmer (Senior Statutory Auditor)

for and on behalf of A4G Audit Limited

Chartered Accountants

& Statutory Auditors

Kings Lodge

London Road

West Kingsdown

Sevenoaks

Kent

TN15 6AR

11 December 2018

TURNOVER

14,344,567

12,783,924

Cost of sales

11,017,590

8,216,795

GROSS PROFIT

3,326,977

4,567,129

Administrative expenses

2,887,704

2,843,630

OPERATING PROFIT

5

439,273

1,723,499

Interest receivable and similar income

23,388

20,335

PROFIT BEFORE TAXATION

462,661

1,743,834

Tax on profit

6

209,252

328,624

PROFIT FOR THE FINANCIAL YEAR

253,409

1,415,210

Retained earnings at beginning of year

5,366,532

4,022,317

Dividends

7

(5,000

)

(70,995

)

RETAINED EARNINGS AT END OF YEAR

5,614,941

5,366,532

FIXED ASSETS

Tangible assets

8

489,865

326,111

Investments

9

1,180,690

1,231,999

1,670,555

1,558,110

CURRENT ASSETS

Stocks

10

1,925,351

1,293,012

Debtors

11

3,845,881

2,722,943

Cash at bank and in hand

507,616

1,082,075

6,278,848

5,098,030

CREDITORS

Amounts falling due within one year

12

2,789,566

1,776,682

NET CURRENT ASSETS

3,489,282

3,321,348

TOTAL ASSETS LESS CURRENT LIABILITIES

5,159,837

4,879,458

PROVISIONS FOR LIABILITIES

13

43,896

11,926

NET ASSETS

5,115,941

4,867,532

CAPITAL AND RESERVES

Called up share capital

14

29,000

29,000

Capital redemption reserve

15

(528,000

)

(528,000

)

Retained earnings

15

5,614,941

5,366,532

SHAREHOLDERS' FUNDS

5,115,941

4,867,532

The financial statements were approved by the Board of Directors on 11 December 2018 and were signed on its behalf by:

Mr R J Marshall - Director

Cash flows from operating activities

Cash generated from operations

1

163,270

895,066

Tax paid

(505,010

)

(333,439

)

Net cash from operating activities

(341,740

)

561,627

Cash flows from investing activities

Purchase of tangible fixed assets

(309,566

)

(320,028

)

Purchase of fixed asset investments

(427,963

)

(510,332

)

Sale of tangible fixed assets

2,150

-

Sale of fixed asset investments

479,272

989,604

Interest received

23,388

20,335

Net cash from investing activities

(232,719

)

179,579

Cash flows from financing activities

Amount introduced by directors

5,000

-

Amount withdrawn by directors

-

(30,024

)

Equity dividends paid

(5,000

)

(70,995

)

Net cash from financing activities

-

(101,019

)

(Decrease)/increase in cash and cash equivalents

(574,459

)

640,187

Cash and cash equivalents at beginning of year

2

1,082,075

441,888

Cash and cash equivalents at end of year

2

507,616

1,082,075

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

462,661

1,743,834

Depreciation charges

140,363

63,020

Loss on disposal of fixed assets

3,299

-

Finance income

(23,388

)

(20,335

)

582,935

1,786,519

Increase in stocks

(632,339

)

(460,478

)

Increase in trade and other debtors

(1,122,938

)

(629,515

)

Increase in trade and other creditors

1,335,612

198,540

Cash generated from operations

163,270

895,066

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

507,616

1,082,075

Year ended 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

1,082,075

441,888

1.	STATUTORY INFORMATION

Timberwolf 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Revenue recognition

Sales comprise the fair value of the consideration received or receivable for the sale of goods in the ordinary

course of the company's activities. Sales are presented, net of value-added tax, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that

future economic benefits will flow to the entity and when specific criteria have been met for each of the

company's activities as follows:

Revenue from the sale of goods is recognised at the point at which the goods have been delivered to the

customer.

Tangible fixed assets

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

Improvements to property

-

20 years

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost and 20% on cost

Stocks

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.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet 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.

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.

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

1,951,800

1,743,386

Social security costs

233,959

202,350

Other pension costs

20,109

19,598

2,205,868

1,965,334

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

2018

2017

Administration

8

6

Production and procurement

25

23

Research and development

13

11

Sales

11

9

Warehouse and transport

14

11

71

60

2018

2017

£

£

Directors' remuneration

103,674

133,208

5.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Hire of plant and machinery

17,674

16,647

Depreciation - owned assets

140,363

63,020

Loss on disposal of fixed assets

3,299

-

Auditors' remuneration

13,000

8,960

6.

TAXATION

Analysis of the tax charge

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

2018

2017

£

£

Current tax:

UK corporation tax

270,276

350,811

Over/under provision in prior

year

(92,994

)

(23,083

)

Total current tax

177,282

327,728

Deferred tax

31,970

896

Tax on profit

209,252

328,624

7.

DIVIDENDS

2018

2017

£

£

Founder shares of £0.01 each

Interim

5,000

70,995

8.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 April 2017

19,464

210,488

59,283

Additions

37,945

108,476

104,160

Disposals

(2,455

)

(570

)

(4,300

)

At 31 March 2018

54,954

318,394

159,143

DEPRECIATION

At 1 April 2017

1,171

34,654

9,366

Charge for year

1,500

69,154

30,064

Eliminated on disposal

(409

)

(428

)

(1,039

)

At 31 March 2018

2,262

103,380

38,391

NET BOOK VALUE

At 31 March 2018

52,692

215,014

120,752

At 31 March 2017

18,293

175,834

49,917

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 April 2017

35,694

77,057

401,986

Additions

-

58,985

309,566

Disposals

-

-

(7,325

)

At 31 March 2018

35,694

136,042

704,227

DEPRECIATION

At 1 April 2017

10,282

20,402

75,875

Charge for year

8,354

31,291

140,363

Eliminated on disposal

-

-

(1,876

)

At 31 March 2018

18,636

51,693

214,362

NET BOOK VALUE

At 31 March 2018

17,058

84,349

489,865

At 31 March 2017

25,412

56,655

326,111

9.	FIXED ASSET INVESTMENTS

The amount included as a fixed asset investment represents the company's capital account outstanding as at the

balance sheet date in Richard Marshall Investments LLP and Environmental Manufacturing LLP.

10.

STOCKS

2018

2017

£

£

Stocks

1,559,332

1,056,885

Work-in-progress

366,019

236,127

1,925,351

1,293,012

11.

DEBTORS

2018

2017

£

£

Amounts falling due within one year:

Trade debtors

2,903,102

1,891,195

Other debtors

70,712

67,641

Corporation Tax

60,201

-

VAT

53,844

-

Prepayments

124,291

81,466

3,212,150

2,040,302

Amounts falling due after more than one year:

Other debtors

633,731

682,641

Aggregate amounts

3,845,881

2,722,943

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

1,008,747

968,063

Tax

-

327,728

Social security and other taxes

62,932

82,810

VAT

-

75,424

Credit card

18,572

8,593

Pension liability

3,996

5,896

Warranty provision

1,180,800

91,375

Directors' current accounts

24,716

19,716

Deferred income

4,653

6,992

Accrued expenses

485,150

190,085

2,789,566

1,776,682

13.	PROVISIONS FOR LIABILITIES

2018

2017

£

£

Deferred tax

43,896

11,926

Deferred

tax

£

Balance at 1 April 2017

11,926

Accelerated capital allowances

31,970

Balance at 31 March 2018

43,896

14.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

2,900,000

Founder

£0.01

29,000

29,000

15.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 April 2017

5,366,532

(528,000

)

4,838,532

Profit for the year

253,409

253,409

Dividends

(5,000

)

(5,000

)

At 31 March 2018

5,614,941

(528,000

)

5,086,941