Yorkshire Plywood Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01977248 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2019

for

Yorkshire Plywood Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

DIRECTORS:

J J Aylward

I C Thomson

SECRETARY:

I C Thomson

REGISTERED OFFICE:

650 Anlaby Road

Kingston upon Hull

East Yorkshire

HU3 6UU

REGISTERED NUMBER:

01977248 (England and Wales)

AUDITORS:

Derede UK Limited

138 Quay Road

Bridlington

East Yorkshire

Y16 4JB

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

REVIEW OF BUSINESS

The company has increased sales and profits during the period. Further costs in excess of £60,000 were incurred to

complete the move to new premises, and new equipment has improved the facilities.

The company has increased both sales and margins post year end, and is looking at an improved profit for 2020.

PRINCIPAL RISKS AND UNCERTAINTIES

The principle risk for the company is the lower margin and the risk of bad debts.

The company has however has maintained sales, the six months to September 2019 show sales of £8.6m. The directors

hope to improve this to the end of the year, and increase profits for 2020.

They are still actively controlling bad debts, and have not shown any material increase in bad debts at this point.

ON BEHALF OF THE BOARD:

J J Aylward - Director

11 December 2019

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

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary £1 shares

£43,350

- 30 April 2018

"B" ordinary Shares £1 shares

£4,000

- 30 April 2018

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2019 will be £ 47,350 .

DIRECTORS

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

J J Aylward

I C Thomson

FINANCIAL INSTRUMENTS

The company's financial assets and liabilities consist of trade debtors and creditors, cash balances, bank loans and

overdrafts and finance leases. These are considered to be basic financial instruments.

The directors manage the company's exposure to financial risk by researching the credit worthiness of customers and by

seeking advice from the company's providers of finance and its other external financial advisors.

Currency risk is restricted to the short term settlement of trading balances with customers and suppliers.

The company does not enter into derivative, or similar transactions neither does it trade speculatively in such financial

instruments.

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.

AUDITORS

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

ON BEHALF OF THE BOARD:

J J Aylward - Director

11 December 2019

Opinion

We have audited the financial statements of Yorkshire Plywood Limited (the 'company') for the year ended

31 March 2019 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of

Changes in Equity, 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 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 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.

S Clark BA FCA (Senior Statutory Auditor)

for and on behalf of Derede UK Limited

138 Quay Road

Bridlington

East Yorkshire

Y16 4JB

11 December 2019

TURNOVER

16,971,709

15,590,081

Cost of sales

14,325,049

13,423,594

GROSS PROFIT

2,646,660

2,166,487

Administrative expenses

2,373,750

1,967,870

272,910

198,617

Other operating income

838

-

OPERATING PROFIT

4

273,748

198,617

Interest payable and similar expenses

5

57,442

54,954

PROFIT BEFORE TAXATION

216,306

143,663

Tax on profit

6

41,353

26,410

PROFIT FOR THE FINANCIAL YEAR

174,953

117,253

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

174,953

117,253

FIXED ASSETS

Intangible assets

8

208

208

Tangible assets

9

433,462

307,369

433,670

307,577

CURRENT ASSETS

Stocks

10

6,094,396

5,451,755

Debtors

11

5,002,007

4,249,916

Cash in hand

5,691

6,360

11,102,094

9,708,031

CREDITORS

Amounts falling due within one year

12

9,520,773

8,025,207

NET CURRENT ASSETS

1,581,321

1,682,824

TOTAL ASSETS LESS CURRENT LIABILITIES

2,014,991

1,990,401

CREDITORS

Amounts falling due after more than one year

13

(612,817

)

(740,905

)

PROVISIONS FOR LIABILITIES

17

(79,724

)

(54,649

)

NET ASSETS

1,322,450

1,194,847

CAPITAL AND RESERVES

Called up share capital

18

20,100

20,100

Retained earnings

19

1,302,350

1,174,747

SHAREHOLDERS' FUNDS

1,322,450

1,194,847

The financial statements were approved by the Board of Directors on 11 December 2019 and were signed on its behalf by:

J J Aylward - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

20,100

1,077,494

1,097,594

Changes in equity

Dividends

-

(20,000

)

(20,000

)

Total comprehensive income

-

117,253

117,253

Balance at 31 March 2018

20,100

1,174,747

1,194,847

Changes in equity

Dividends

-

(47,350

)

(47,350

)

Total comprehensive income

-

174,953

174,953

Balance at 31 March 2019

20,100

1,302,350

1,322,450

Cash flows from operating activities

Cash generated from operations

1

(259,546

)

61,996

Interest paid

(56,495

)

(54,705

)

Interest element of hire purchase payments paid

(947

)

(249

)

Tax paid

-

(33,851

)

Net cash from operating activities

(316,988

)

(26,809

)

Cash flows from investing activities

Purchase of tangible fixed assets

(96,614

)

(81,100

)

Sale of tangible fixed assets

1,500

2,300

Net cash from investing activities

(95,114

)

(78,800

)

Cash flows from financing activities

New hire purchase in the year

73,800

-

Loan movements in year

746,762

290,439

Capital repayments in year

(12,300

)

(3,319

)

Amount introduced by directors

-

103,710

Amount withdrawn by directors

(275,382

)

-

Equity dividends paid

(47,350

)

(20,000

)

Net cash from financing activities

485,530

370,830

Increase in cash and cash equivalents

73,428

265,221

Cash and cash equivalents at beginning of year

2

(4,128,306

)

(4,393,527

)

Cash and cash equivalents at end of year

2

(4,054,878

)

(4,128,306

)

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

31.3.19

31.3.18

£

£

Profit before taxation

216,306

143,663

Depreciation charges

44,230

25,720

(Profit)/loss on disposal of fixed assets

(1,409

)

434

Government grants

(838

)

-

Finance costs

57,442

54,954

315,731

224,771

(Increase)/decrease in stocks

(642,641

)

1,292,344

(Increase)/decrease in trade and other debtors

(496,070

)

174,796

Increase/(decrease) in trade and other creditors

563,434

(1,629,915

)

Cash generated from operations

(259,546

)

61,996

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 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

5,691

6,360

Bank overdrafts

(4,060,569

)

(4,134,666

)

(4,054,878

)

(4,128,306

)

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

6,360

6,427

Bank overdrafts

(4,134,666

)

(4,399,954

)

(4,128,306

)

(4,393,527

)

1.	STATUTORY INFORMATION

Yorkshire Plywood 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.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Intangible assets

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

less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

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.

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks 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 Statement of Comprehensive

Income, 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.

Foreign currencies

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

statement of financial position 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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.

Patents

It is the company policy to show the patents held at cost, no depreciation is made, and the provision would not be

considered material.

Revenue recognition

Revenue is measured based on consideration specified in a contract with a customer and excludes amounts

collected on behalf of third parties. The company recognizes revenue when it transfers control over a good to a

customer. Revenue is presented net of value added tax (VAT), rebates and discounts.

3.	EMPLOYEES AND DIRECTORS

31.3.19

31.3.18

£

£

Wages and salaries

1,133,375

946,822

Other pension costs

28,078

18,989

1,161,453

965,811

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

31.3.19

31.3.18

Management/Administration

8

8

Factory/Workshop

38

33

46

41

31.3.19

31.3.18

£

£

Directors' remuneration

10,000

10,000

4.	OPERATING PROFIT

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

31.3.19

31.3.18

£

£

Hire of plant and machinery

49,470

-

Depreciation - owned assets

32,272

25,721

Depreciation - assets on hire purchase contracts

11,958

-

(Profit)/loss on disposal of fixed assets

(1,409

)

434

Auditors remuneration

5,300

5,300

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.19

31.3.18

£

£

Bank interest

26,229

8,310

Loan

30,266

46,395

Hire purchase

947

249

57,442

54,954

6.

TAXATION

Analysis of the tax charge

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

31.3.19

31.3.18

£

£

Current tax:

UK corporation tax

16,278

17,430

Deferred taxation

25,075

8,980

Tax on profit

41,353

26,410

7.

DIVIDENDS

31.3.19

31.3.18

£

£

Ordinary shares of £1 each

Interim

43,350

10,000

"B" ordinary Shares shares of £1 each

Interim

4,000

10,000

47,350

20,000

8.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 April 2018

and 31 March 2019

208

NET BOOK VALUE

At 31 March 2019

208

At 31 March 2018

208

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2018

529,978

125,100

110,400

765,478

Additions

88,414

-

82,000

170,414

Disposals

-

-

(17,000

)

(17,000

)

At 31 March 2019

618,392

125,100

175,400

918,892

DEPRECIATION

At 1 April 2018

275,080

95,236

87,793

458,109

Charge for year

20,993

5,651

17,586

44,230

Eliminated on disposal

-

-

(16,909

)

(16,909

)

At 31 March 2019

296,073

100,887

88,470

485,430

NET BOOK VALUE

At 31 March 2019

322,319

24,213

86,930

433,462

At 31 March 2018

254,898

29,864

22,607

307,369

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

Additions

82,000

At 31 March 2019

82,000

DEPRECIATION

Charge for year

11,958

At 31 March 2019

11,958

NET BOOK VALUE

At 31 March 2019

70,042