Househam Sprayers Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02651880 (England and Wales)

HOUSEHAM SPRAYERS LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

7

Statement of Income and Retained Earnings

8

Statement of Financial Position

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

to

23

DIRECTORS:

R J Willey

J S Dickinson

C J Trigg

P James

REGISTERED OFFICE:

Househam Sprayers Limited

Roughton Moor

Woodhall Spa

Lincolnshire

LN10 6YQ

REGISTERED NUMBER:

02651880 (England and Wales)

AUDITORS:

Duncan & Toplis Limited, Statutory Auditor

27 - 29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

BANKERS:

Santander

1 Exchange Arcade

Cornhill

Lincoln

Lincolnshire

LN5 7HJ

SOLICITORS:

Andrew & Co LLP

St Swithin's Court, 1 Flavian Road

Nettleham Road

Lincoln

Lincolnshire

LN2 4GR

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

REVIEW OF BUSINESS

The headline results for the year and two preceding years are as follows:

Year to

Year to

Year to

31 December 2018

31 December 2017

31 December 2016

£

£

£

Turnover

11,011,842

12,019,508

10,712,815

Gross profit

1,092,332

1,880,526

564,483

Gross profit margin

9.92%

15.7%

5.3%

Operating profit/(loss)

(292,305

)

390,870

(1,308,105

)

Operating profit margin

(2.65%

)

3.3%

(12.2%

)

Despite increasingly tough trading continuing in the Agricultural sector, the newly designed self-propelled sprayers continued to sell

well but total turnover and operating profit has decreased in 2018 compared to 2017.

The directors have considered the key performance indicators and the current economic conditions in the country and are pleased

with the progress made in an increasingly difficult market.

The statement of financial position remains strong and the company is in a positive position to manage the variable demand that is

forecast in the Agricultural sector for 2019.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is affected by a number of factors, the principal ones of which are:

- The company is exposed to the risk of negative developments in global and regional economies and financial markets, either

directly or through the impact on the company's bankers, suppliers or customers. These developments can result in recession,

inflation, deflation, currency fluctuations, restrictions in the availability of credit, business failures in the customer or supplier base,

or increases in financing costs, and in the cost of utilities, raw materials and finished products. Such developments might increase

operating costs, reduce revenues, lower asset values or result in the businesses being unable to meet in full its strategic objectives.

- The company operates in a competitive market, and failure to compete effectively in terms of price, product specification or levels

of service can have an adverse effect on demand and / or margins.

The company mitigates risk in several ways:

- The company has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There

are established policies and procedures for the setting of corporate strategies; financial planning and budgeting for risk

management; for information and reporting systems; for systems of operational and financial internal control; and for monitoring

operations and performance.

- Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible,

whilst maintaining long term working relationships, innovation and good lines of communication.

- The company operates a recruitment, training and selection process to ensure employees are experienced and competent in their

work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the company's corporate

objectives.

FINANCIAL KEY PERFORMANCE INDICATORS

The key financial performance indicators used by the company are turnover, gross profit and operating profit. The primary

statement of financial position indicators are solvency and the working capital position.

DEVELOPMENT AND PERFORMANCE

The directors are satisfied with the company's financial position and see the current range and the investment in further designs as

a good platform for further growth. The directors are focused on a 3 to 5 year strategy of growth that can flex with market

conditions.

The company actively develops relationships with customers to help grow export activity from within the UK. During the year it has

focused greater attention and staff in this area, especially in the new EEC countries and Ukraine, along with further development of

the business in Australia and New Zealand.

PENSIONS

The company operates both a defined contribution pension scheme and a Auto-enrolment scheme. Contributions payable to the

company's pension scheme are charged to the income statement in the period to which they relate.

ON BEHALF OF THE BOARD:

R J Willey - Director

27 September 2019

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

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of the manufacture of crop sprayers and the sale of

new and used crop spraying machines along with spare parts and service.

DIVIDENDS

An interim dividend of £140 per share was paid on 5 April 2018. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2018 will be £ 70,000 .

RESEARCH AND DEVELOPMENT

The company has an in-house research and development activity which is designed to ensure the company remains at the forefront

of sprayer technology. Househam Sprayers Limited will continue to develop new products and maximise tax gains by using the

Patent Box and R&D tax incentives.

FUTURE DEVELOPMENTS

Market and credit conditions remain challenging for the company, its customers and suppliers. The company has responded by

undergoing a process of reorganisation, which has proved to be a positive move for the business and its staff.

The company remains a responsive, innovative and flexible operator with a highly motivated and well trained workforce, and is

operating successfully despite prevailing headwinds.

The directors continue to develop the company both in the UK and overseas in order to ensure a more robust and stronger

business, and look forward to the future of the company and the industry sector with cautious optimism.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this report.

R J Willey

J S Dickinson

C J Trigg

Other changes in directors holding office are as follows:

A Kneen - resigned 31 December 2018

P James - appointed 1 July 2018

J C Hind ceased to be a director after 31 December 2018 but prior to the date of this report.

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;

-	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.

ON BEHALF OF THE BOARD:

R J Willey - Director

27 September 2019

Opinion

We have audited the financial statements of Househam Sprayers Limited (the 'company') for the year ended 31 December 2018

which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and

Notes to the Statement of Cash Flows, 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 December 2018 and of its loss 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.

Material uncertainty related to going concern

We draw your attention to note 2 'going concern' in the financial statements.

The events or conditions described in note 2 indicate that a material uncertainty exists that may cast significant doubt on the

entity's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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 there is a material misstatement in the financial statements or a material

misstatement of the other information. 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.

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.

Damon Brain FCA FMAAT (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

27 - 29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

27 September 2019

TURNOVER

3

11,011,842

12,019,508

Cost of sales

9,919,510

10,138,982

GROSS PROFIT

1,092,332

1,880,526

Administrative expenses

1,389,437

1,494,456

(297,105

)

386,070

Other operating income

4,800

4,800

OPERATING (LOSS)/PROFIT

5

(292,305

)

390,870

Interest receivable and similar income

-

744

(292,305

)

391,614

Interest payable and similar expenses

6

107,386

101,386

(LOSS)/PROFIT BEFORE TAXATION

(399,691

)

290,228

Tax on (loss)/profit

7

(159,069

)

47,398

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(240,622

)

242,830

Retained earnings at beginning of year

1,922,995

1,652,473

Dividends

8

(70,000

)

(70,000

)

RETAINED EARNINGS AT END OF YEAR

1,612,373

1,825,303

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

289,099

186,713

Investments

11

100

100

Investment property

12

160,000

160,000

449,199

346,813

CURRENT ASSETS

Stocks

13

4,594,702

4,125,073

Debtors

14

2,446,062

2,231,008

Cash at bank and in hand

903

37,588

7,041,667

6,393,669

CREDITORS

Amounts falling due within one year

15

5,515,936

4,216,682

NET CURRENT ASSETS

1,525,731

2,176,987

TOTAL ASSETS LESS CURRENT LIABILITIES

1,974,930

2,523,800

CREDITORS

Amounts falling due after more than one year

16

299,781

538,029

NET ASSETS

1,675,149

1,985,771

CAPITAL AND RESERVES

Called up share capital

22

500

500

Revaluation reserve

23

61,776

61,776

Capital redemption reserve

23

500

500

Retained earnings

23

1,612,373

1,922,995

SHAREHOLDERS' FUNDS

26

1,675,149

1,985,771

The financial statements were approved by the Board of Directors on 27 September 2019 and were signed on its behalf by:

R J Willey - Director

Cash flows from operating activities

Cash generated from operations

1

517,481

243,083

Interest paid

(98,671

)

(98,509

)

Interest element of hire purchase payments paid

(8,715

)

(2,877

)

Tax paid

(59,221

)

50,450

Net cash from operating activities

350,874

192,147

Cash flows from investing activities

Purchase of tangible fixed assets

(229,633

)

(94,564

)

Sale of tangible fixed assets

36,275

480,200

Increase in value of investments

-

(2,178

)

Interest received

-

744

Net cash from investing activities

(193,358

)

384,202

Cash flows from financing activities

New loans in year

-

1,330,000

Loan repayments in year

(115,000

)

(812,365

)

New HP loans in year

134,208

70,745

Capital repayments in year

(58,088

)

(54,974

)

Amount introduced by directors

70,000

145,000

Amount withdrawn by directors

(74,870

)

(199,508

)

Amount owed by group

(80,000

)

47,363

Equity dividends paid

(70,000

)

(70,000

)

Net cash from financing activities

(193,750

)

456,261

(Decrease)/increase in cash and cash equivalents

(36,234

)

1,032,610

Cash and cash equivalents at beginning of year

2

(418,724

)

(1,451,334

)

Cash and cash equivalents at end of year

2

(454,958

)

(418,724

)

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

(Loss)/profit before taxation

(399,691

)

290,228

Depreciation charges

127,247

106,802

Profit on disposal of fixed assets

(36,275

)

(43,532

)

Finance costs

107,386

101,386

Finance income

-

(744

)

(201,333

)

454,140

Increase in stocks

(469,629

)

(209,050

)

Decrease/(increase) in trade and other debtors

2,169

(739,961

)

Increase in trade and other creditors

1,186,274

737,954

Cash generated from operations

517,481

243,083

2.	CASH AND CASH EQUIVALENTS

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

Statement of Financial Position amounts:

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

903

37,588

Bank overdrafts

(455,861

)

(456,312

)

(454,958

)

(418,724

)

Year ended 31 December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

37,588

37,775

Bank overdrafts

(456,312

)

(1,489,109

)

(418,724

)

(1,451,334

)

1.	GENERAL INFORMATION

Househam Sprayers Limited is a company incorporated in England and Wales. The address of the registered offices is given

in the company information on page one of these financial statements. The nature of the company's operations and

principal activities are detailed in the report of the director's on pages four and five.

The financial statements are prepared in sterling which is the functional currency of the company and rounded to the

nearest £.

The significant accounting policies applied in the preparation of these financial statement's are set out below. These

policies have been consistently applied to all years presented unless otherwise stated.

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 as modified by the revaluation of certain assets.

Going concern

The company is currently re-negotiating its loan finance with both its current and other potential lenders. These

negotiations have not yet been finalised. The going concern basis is dependent upon the availability of this loan finance.

However, the directors are confident that new finance will be secured and therefore the financial statements have been

prepared on a going concern basis, which the Directors believe is appropriate.

Preparation of consolidated financial statements

The financial statements contain information about Househam Sprayers Limited as an individual company and do not

contain consolidated financial information as the parent of a group. The company is exempt under Section 402 of the

Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The

policies adopted for the recognition of turnover are as follows:

SALE OF GOODS

Turnover from the sale of crop sprayers is recognised when significant risks and rewards of ownership of the goods have

transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits

associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the

transaction can be measured reliably. This is usually on dispatch of the goods.

RENDERING OF SERVICES

When the outcome of a transaction can be estimated reliably, turnover from servicing is recognised by reference to the

stage of completion at the reporting date.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that

are recoverable.

AMOUNTS RECOVERABLE ON CONTRACTS

Revenue is recognised on contracts in accordance with Financial Reporting Standard 102 where the company has obtained

a right to consideration. Turnover recognised in this manner is based on an assessment of the fair value of the goods and

services provided at the financial reporting date as a proportion of the total value of the contract. Provision is made against

unbilled amounts on those contracts where the right to receive payment is contingent on factors outside the control of the

company. Unbilled revenue is included in debtors.

INTEREST RECEIVABLE

Interest income is recognised using the effective interest method.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any

accumulated amorisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

33% on cost

Plant and machinery

-

at varying rates on cost

Motor vehicles

-

25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is

recognised on the income statement.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of

purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is

calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where

appropriate.

Taxation

Taxation for the year comprises current and deferred tax 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.

Research and development

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

Foreign currencies

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate

between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the financial reporting date are translated using the

closing rate.

Hire purchase and leasing commitments

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected

useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the

outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are

included in creditors.

Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive

future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction

of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net

investment in the finance lease.

Rentals payable and receivable under operating leases are charged to the income statement on a straight line basis over

the period of the lease.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are

entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they

become payable.

Provisions

Provisions are recognised when the company has an obligation at the financial reporting date as a result of a past event, it

is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each financial reporting

date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and

compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is

recognised in the income statement unless the asset is carried at a revalued amount where the impairment loss is a

revaluation decrease.

Financial Instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction

price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of

the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of

impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present

value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is

recognised in the income statement.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from

suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are

presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured

at amortised cost using the effective interest method.

Critical accounting judgements and estimation uncertainty

In the application of the Company's accounting policies, management is required to make judgements, estimates and

assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The

estimates and underlying 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 if the revision affects only that period, or in the period of the

revision and future periods if the revision affects both current and future periods.

Assets held for leasing and leasing income

3.

TURNOVER

The turnover and loss (2017 - profit) before taxation are attributable to the principal activities of the company.

An analysis of turnover by geographical market is given below:

2018

2017

£

£

United Kingdom

8,189,737

8,816,918

European Countries

1,481,404

1,790,878

Non European Countries

1,340,701

1,411,712

11,011,842

12,019,508

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

2,341,514

2,211,336

Social security costs

213,178

205,448

Other pension costs

100,691

104,534

2,655,383

2,521,318

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

2018

2017

Production

57

64

Sales

6

7

Administration

13

12

76

83

2018

2017

£

£

Directors' remuneration

232,461

192,875

Directors' pension contributions to money purchase schemes

34,039

40,566

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

4

3

Information regarding the highest paid director for the year ended 31 December 2018 is as follows:

2018

£

Emoluments etc

75,088

Pension contributions to money purchase schemes

3,000