Leasing and hire purchase contractsRentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account on a straight line basis.StocksStocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit and loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write down or loss occurs. TaxationTaxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the accounts and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets & liabilities are measured at the tax rates that areexpected to apply in the period in which the liability is settled or asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.PensionsThe company operates a defined contribution pension scheme. The pension charge represents the amounts payable by the company to the fund in respect of the year.Going ConcernAfter making enquiries, and in the light of the company's borrowing facilities, the company's budget for 2019/20 and the medium term plans, the directors have reasonable expectation that the company has adequate resources to continue operations for the foreseeable future. The going concern basis for the accounts has therefore continued to be adopted.