Schneider Trading Associates Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 03692131 (England and Wales)

SCHNEIDER TRADING ASSOCIATES LTD

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

Mr R J Lovell

Mr A S Quait

Mr M Nicholls

Mr R A Riddle

SECRETARY:

Mr R J Lovell

REGISTERED OFFICE:

Sterling House

Fulbourne Road

Walthamstow

London

E17 4EE

REGISTERED NUMBER:

03692131 (England and Wales)

SENIOR STATUTORY AUDITOR:

Andreas Yiannis Kounnis

AUDITORS:

Kounnis And Partners Limited

Chartered Certified Accountants

and Statutory Auditors

Sterling House

Fulbourne Road

Walthamstow

London

E17 4EE

The directors present their strategic report for the year ended 31 March 2019.

Introduction

The Company is principally engaged as a wholesale intermediary broker and brokerage facilitation provider. The

Company is a Non-Clearing Member of ICE Futures Europe and direct market access to CME NYMEX.

The company is registered with the Financial Conduct Authority under the registration number 208247.

REVIEW OF BUSINESS

Overall the Company made profit before tax of £0.15m compared to loss of £1.06m last year. Revenues decreased by

48.62% with gross profit falling to £0.79m compared to £1.15m last year due to departure of significant broker desks as

part of company buy out of the company on 30.04.2018.

Looking ahead the company has already realigned its infrastructure and balance sheet to that effect. The Company will

continue to ensure that it is sufficiently capitalised and has adequate access to liquidity sources.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the Company's strategy are subject to a number of risks. The key

business risks and uncertainties are detailed below.

The Company's operations expose it to a variety of financial risks that include the effects of changes in credit and

liquidity risks. The Company has in place a risk management programme that seeks to limit the adverse effects of such

risks on the financial performance of the Company by monitoring levels and age of market counterparty and client

balances.

Operational Risk

The Board defines Operational Risk as the risk of loss resulting from inadequate or failed internal processes, people and

systems, or from external events.

The firm considers operational risk to identify the overall level of risk based capital required to be held by the firm.

The firm has assessed its capital requirements in relation to operational risks utilizing a Risk Register containing a

comprehensive matrix of risks factors. It has determined both an expected severity and an expected frequency for each

factor and assigned a capital sum to each after adjusting for such mitigants as are deemed appropriate.

Market risk

The Company defines market risk as the risk of losses in on-and-off balance sheet positions arising from movements in

market prices or risk factors.

The Company does not hold positions in the trading book as principal specifically with the intent of benefiting from

actual or expected price or other market factor variations.

Transactions executed on behalf of our clients are then given-up to the client through the clearing services of the

exchange clearing house. This process typically occurs within the day and so as the broker we will have no house

position at the end of each day. During the give-up process we may maintain a matched daylight position until the trade

is taken-up by the client.

Market risk - foreign exchange risk

The Company maintains balances in a number of currencies, primarily Euros and US Dollars and has an active policy to

keep these foreign currency exposures to a minimum.

Credit risk

The Company is exposed to credit risk due to the fact that the Company maintains cash balances at its bankers Lloyds

Bank and with its Clearing and Settlement agents. Additionally, there are balances due from other credit institutions

relating to Schneider Trading Associates Limited's brokerage activity, prepayments and transactions between Schneider

Trading Associates Limited and other common control firms.

There is a continuous monitoring of all brokerage debts to ensure that all outstanding sums are paid in a timely manner

and as stated per the invoices. Disputed details are dealt with by the credit control department and the relevant broker

supported by the use of the recorded voice/instant messenger facilities to ensure that there are minimal impaired debts at

any time.

Counterparty credit risk

The Company generates risk through the potential default of its counterparties to fulfil their obligations to the Company

and these may arise through non-payment or failure to settle transactions. Triggers for these default events will likely be

driven by changes in market risk factors (market driven counterparty risks) and the Company differentiates between

these and other types of repayment risk arising through its non-trading book.

The Company measures pre-settlement risks on a credit equivalent exposure (CEE) basis reflecting both the current

replacement cost of any positions plus an estimate of the potential future exposure resultant from movements of market

rates or risk factors.

Liquidity risk

The Company actively maintains sufficient cash resources and bank facilities to ensure the Company has sufficient

available funds for operations and timely settlement of transactions. It has documented its liquidity requirements in

detail within the framework of a Liquidity Policy.

FINANCIAL KEY PERFORMANCE INDICATORS

The Company records and tracks both financial and non-financial key performance indicators at various frequency

levels. A sample of key financial performance indicators are illustrated below.

Profitability ratios such as gross profit margins for the year was 11.86% (2018: 8.9%) and operating margins for the year

was 2.27% (2018: -8.3%) are key indicators for the Company and the Company monitors performance against these

ratios on at least a monthly basis.

Return on Equity for the year was 3.05% (2018: -12%) has improved compared to last year reflecting the profit before

tax in the year.

At an operational level the Company monitors financial and non-financial performance indicators in all its key areas of

operation.

PILLAR 3 DISCLOSURES

Schneider Trading Associates Limited ("the company") is authorised and regulated by the Financial Conduct Authority

and is categorised as a BIPRU €50,000 limited licence firm.

The company publishes a Pillar 3 statement in accordance with the FCA handbook rules concerning Pillar 3 disclosures

and is available on its website: http/www.mars-energy.co.uk

ON BEHALF OF THE BOARD:

Mr R J Lovell - Director

25 June 2019

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a wholesale intermediary broker and

brokerage facilitation provider.

DIVIDENDS

An interim dividend of 52.867p per share was paid on the Ordinary share 42.769p shares on 30 April 2018.

The total distribution of dividends for the year ended 31 March 2019 will be £1,765,000.

DIRECTORS

Mr R A Riddle has held office during the whole of the period from 1 April 2018 to the date of this report.

Other changes in directors holding office are as follows:

Mr R J Lovell - appointed 1 May 2018

Mr A S Quait - appointed 1 May 2018

Mr M Nicholls - appointed 1 May 2018

Mr S D W Schneider - resigned 30 April 2018

DIRECTORS' RESPONSIBILITIES STATEMENT

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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on

the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial

statements may differ from legislation in other jurisdictions.

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, Kounnis And Partners Limited, were appointed as statutory auditors of Schneider Trading Associates

Limited during the year and will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr R J Lovell - Director

25 June 2019

Opinion

We have audited the financial statements of Schneider Trading Associates Ltd (the 'company') for the year ended

31 March 2019 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, 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 2019 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, 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 Directors' Responsibilities Statement, 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.

Andreas Yiannis Kounnis (Senior Statutory Auditor)

for and on behalf of Kounnis And Partners Limited

Chartered Certified Accountants

and Statutory Auditors

Sterling House

Fulbourne Road

Walthamstow

London

E17 4EE

25 June 2019

Note:

The maintenance and integrity of the Schneider Trading Associates Ltd website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

REVENUE

6,653,786

12,949,601

Cost of sales

5,864,933

11,796,625

GROSS PROFIT

788,853

1,152,976

Administrative expenses

676,866

2,659,777

111,987

(1,506,801

)

Other operating income

38,980

449,638

OPERATING PROFIT/(LOSS)

4

150,967

(1,057,163

)

Interest payable and similar expenses

5

3,602

6,232

PROFIT/(LOSS) BEFORE TAXATION

147,365

(1,063,395

)

Tax on profit/(loss)

6

28,069

(158,973

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

119,296

(904,422

)

PROFIT/(LOSS) FOR THE YEAR

119,296

(904,422

)

OTHER COMPREHENSIVE INCOME

Transfer on share capital reduction

1,350,050

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,350,050

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,469,346

(904,422

)

FIXED ASSETS

Property, plant and equipment

8

27,676

9,355

CURRENT ASSETS

Debtors

9

2,774,058

4,612,429

Cash at bank and in hand

612,606

1,631,048

3,386,664

6,243,477

CREDITORS

Amounts falling due within one year

10

1,709,712

2,335,311

NET CURRENT ASSETS

1,676,952

3,908,166

TOTAL ASSETS LESS CURRENT LIABILITIES

1,704,628

3,917,521

CAPITAL AND RESERVES

Called up share capital

12

1,432,761

3,350,000

Retained earnings

13

271,867

567,521

SHAREHOLDERS' FUNDS

1,704,628

3,917,521

The financial statements were approved by the Board of Directors on 25 June 2019 and were signed on its behalf by:

Mr R J Lovell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

3,350,000

4,171,943

7,521,943

Changes in equity

Dividends

-

(2,700,000

)

(2,700,000

)

Total comprehensive income

-

(904,422

)

(904,422

)

Balance at 31 March 2018

3,350,000

567,521

3,917,521

Changes in equity

Reduction in share capital

(1,917,239

)

-

(1,917,239

)

Dividends

-

(1,765,000

)

(1,765,000

)

Total comprehensive income

-

1,469,346

1,469,346

Balance at 31 March 2019

1,432,761

271,867

1,704,628

Cash flows from operating activities

Cash generated from operations

1

1,254,589

(397,956

)

Interest paid

(3,602

)

(6,232

)

Tax paid

88,348

(225,878

)

Net cash from operating activities

1,339,335

(630,066

)

Cash flows from investing activities

Purchase of tangible fixed assets

(25,588

)

(8,128

)

Sale of tangible fixed assets

-

1,604,494

Net cash from investing activities

(25,588

)

1,596,366

Cash flows from financing activities

Share capital reduction

(1,917,239

)

-

Transfer on share capital reduction

1,350,050

-

Equity dividends paid

(1,765,000

)

(2,700,000

)

Net cash from financing activities

(2,332,189

)

(2,700,000

)

Decrease in cash and cash equivalents

(1,018,442

)

(1,733,700

)

Cash and cash equivalents at beginning of year

2

1,631,048

3,364,748

Cash and cash equivalents at end of year

2

612,606

1,631,048

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

2019

2018

£

£

Profit/(loss) before taxation

147,365

(1,063,395

)

Depreciation charges

7,268

1,105,857

Profit on disposal of fixed assets

-

(434,693

)

Deferred tax

(14,204

)

-

Finance costs

3,602

6,232

144,031

(385,999

)

Decrease in trade and other debtors

1,750,023

2,733,001

Decrease in trade and other creditors

(639,465

)

(2,744,958

)

Cash generated from operations

1,254,589

(397,956

)

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 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

612,606

1,631,048

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

1,631,048

3,364,748

1.	STATUTORY INFORMATION

Schneider Trading Associates Ltd 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 (£).

The company's functional currency is mainly US dollar ($) and 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.

The principal accounting policies applied in the preparation of the financial statements are set out below. These

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

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions

that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the

amounts reported for revenue:s and expenses during the year. However, the nature of estimation means that

actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts

recognised in the financial statements.

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives

and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are

amended when necessary to reflect current estimates, based on technological advancement, future investments,

economic utilisation and the physical condition of the assets.

(ii) Debtors

The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment

of trade and other debtors, management considers factors including the current credit rating of the debtor, the

ageing profile of debtors and historical experience.

There are no key assumptions concerning the future at the reporting date that have a significant risk causing a

material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Brokerage commission income is recognised to the extent that it is probable that the economic benefits will flow

to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the

consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover comprises revenue recognised by the company in respect of services supplied during the year,

exclusive of Value Added Tax and trade discounts.

Turnover in respect of broking is recognised when transactions are executed except for cash settled securities

where turnover is recognised when transactions are settled.

Turnover in relation to the provision of broking facilitation services is recognised over the period the service is

provided.

Tangible fixed assets

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

Fixtures and fittings

-

20% on cost

Computer equipment

-

20% on cost

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.

Foreign currencies

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the

dates of the transactions.

At each year end foreign currency monetary items are translated using the closing rate. Non­ monetary items

measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary

items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at

period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in

the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash

flow hedges.

Financial instruments

The Company only enters into basic financial instruments that result in the recognition of financial assets and

liabilities.

(i) Financial assets

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the

arrangement constitutes a financing transaction, where the transaction is measured at the present value of the

future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

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 Statement of Comprehensive Income.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors and loans from fellow group companies are initially

recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt

instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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. Trade creditors 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.

Operating leases: the company as lessee

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line

basis over the period of the lease.

Cash and cash equivalents

Cash and cash equivalents are represented by deposits with financial institutions repayable without penalty on

notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than

three months from the date of acquisition and that are readily convertible to known amounts of cash with

insignificant risk of change in value.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 March 2019 nor for the year ended 31 March 2018.

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

2019

2018

Director

4

3

2019

2018

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT/(LOSS)

The operating profit (2018 - operating loss) is stated after charging/(crediting):

2019

2018

£

£

Hire of plant and machinery

22,777

-

Depreciation - owned assets

7,267

67,434

Profit on disposal of fixed assets

-

(434,693

)

Auditors' remuneration

9,750

25,143

Foreign exchange differences

(38,396

)

(16,269

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Bank interest

3,602

6,232

6.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

13,865

(74,514

)

Deferred tax

14,204

(84,459

)

Tax on profit/(loss)

28,069

(158,973

)