J Hamilton & Co (Lurgan) Ltd - Limited company accounts 17.3

REGISTERED NUMBER: NI006169 (Northern Ireland)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2017

for

James Hamilton & Company (Lurgan) Ltd

Page

Company Information

1

Strategic Report

3

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Mr Alex Hamilton

Mrs Joan Rona Murray Ralston Hamilton

Mr Keith Alistair Hamilton

Mr Alan James Hamilton

Mr Gerald Hewitt

SECRETARY:

Mr Alex Hamilton

REGISTERED OFFICE:

Quaker Buildings

High Street

Lurgan

Craigavon

Co. Armagh

BT66 8BB

BUSINESS ADDRESS:

50 Millennium Way

Lurgan

Craigavon

Co. Armagh

BT66 8DH

REGISTERED NUMBER:

NI006169 (Northern Ireland)

AUDITORS:

McCleary & Company Ltd

Chartered Accountants and Registered Auditors

Quaker Buildings

High Street

Lurgan

Craigavon

Co. Armagh

BT66 8BB

BANKERS:

Danske Bank

39 Market Street

Lurgan

Co. Armagh

BT66 6AB

SOLICITORS:

Richard M Redman

13 High Street

Lurgan

Co. Armagh

BT66 8BS

The directors present their strategic report for the year ended 31 March 2017.

REVIEW OF BUSINESS

The results for the year show a pre-tax profit of £545,014, compared to £751,834 in the previous year.

Gross profit for the year was 28.95% (2016: 30.91%). The company has net funds of £255,280 (2016: net funds

£135,572).

The external commercial environment is expected to remain competitive in 2018, however we remain confident that we

will maintain our current level of performance in the future.

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 affecting the business are considered to relate to competition and the general economic

climate.

ON BEHALF OF THE BOARD:

Mr Alan James Hamilton - Director

4 December 2017

The directors present their report with the financial statements of the company for the year ended 31 March 2017.

DIVIDENDS

An interim dividend of £1.99 per share was paid on 23 December 2016. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2017 will be £ 9,956 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2016 to the date of this report.

Mr Alex Hamilton

Mrs Joan Rona Murray Ralston Hamilton

Mr Keith Alistair Hamilton

Mr Alan James Hamilton

Mr Gerald Hewitt

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 or she ought to

have taken as a director in order to make himself or herself aware of any relevant audit information and to establish

that the company's auditors are aware of that information.

AUDITORS

The auditors, McCleary & Company Ltd, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

Mr Alan James Hamilton - Director

4 December 2017

We have audited the financial statements of James Hamilton & Company (Lurgan) Ltd for the year ended

31 March 2017 on pages eight to twenty three. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or

error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances

and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates

made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Strategic Report and the Report of the Directors to identify material inconsistencies

with the audited financial statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware

of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2017 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our 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 has been prepared in accordance with applicable legal requirements. In the light of the

knowledge and understanding of the company and its environment, we have not identified any material misstatements

in the Strategic Report or the Report of the Directors.

Matters on which we are required to report by exception

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.

Warren McCleary (Senior Statutory Auditor)

for and on behalf of McCleary & Company Ltd

Chartered Accountants and Registered Auditors

Quaker Buildings

High Street

Lurgan

Craigavon

Co. Armagh

BT66 8BB

4 December 2017

McCleary & Company Ltd.

TURNOVER

3

9,754,807

8,927,395

Cost of sales

(6,930,256

)

(6,167,526

)

GROSS PROFIT

2,824,551

2,759,869

Administrative expenses

(2,391,301

)

(2,249,195

)

433,250

510,674

Other operating income

114,543

247,770

OPERATING PROFIT

6

547,793

758,444

Income from fixed asset investments

1,739

1,548

Interest receivable and similar income

2,384

2,715

551,916

762,707

Interest payable and similar expenses

7

(6,902

)

(10,873

)

PROFIT BEFORE TAXATION

545,014

751,834

Tax on profit

8

(84,938

)

(59,662

)

PROFIT FOR THE FINANCIAL YEAR

460,076

692,172

PROFIT FOR THE YEAR

460,076

692,172

OTHER COMPREHENSIVE INCOME

Revaluation of listed investments

(234

)

6,197

Write back of depreciation on properties

-

40,194

Income tax relating to components of other comprehensive income

62

(1,239

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(172

)

45,152

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

459,904

737,324

FIXED ASSETS

Tangible assets

11

2,425,481

2,269,497

Investments

12

46,516

45,011

Investment property

13

666,637

666,637

3,138,634

2,981,145

CURRENT ASSETS

Stocks

14

1,323,233

1,154,863

Debtors

15

4,487,655

3,983,421

Cash at bank and in hand

255,280

136,304

6,066,168

5,274,588

CREDITORS

Amounts falling due within one year

16

(1,661,947

)

(1,167,149

)

NET CURRENT ASSETS

4,404,221

4,107,439

TOTAL ASSETS LESS CURRENT LIABILITIES

7,542,855

7,088,584

PROVISIONS FOR LIABILITIES

19

(29,448

)

(25,125

)

NET ASSETS

7,513,407

7,063,459

CAPITAL AND RESERVES

Called up share capital

20

5,003

5,003

Retained earnings

21

7,508,404

7,058,456

SHAREHOLDERS' FUNDS

7,513,407

7,063,459

The financial statements were approved and authorised for issue by the Board of Directors on 4 December 2017 and were signed on its behalf by:

Mr Keith Alistair Hamilton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2015

5,003

6,321,132

6,326,135

Changes in equity

Total comprehensive income

-

867,758

867,758

Balance at 31 March 2016

5,003

7,188,890

7,193,893

Prior year adjustment

-

(130,434

)

(130,434

)

As restated

5,003

7,058,456

7,063,459

Changes in equity

Dividends

-

(9,956

)

(9,956

)

Total comprehensive income

-

459,904

459,904

Balance at 31 March 2017

5,003

7,508,404

7,513,407

Cash flows from operating activities

Cash generated from operations

1

596,495

469,852

Interest paid

(6,902

)

(10,873

)

Tax paid

(146,668

)

(147,304

)

Net cash from operating activities

442,925

311,675

Cash flows from investing activities

Purchase of tangible fixed assets

(436,752

)

(160,883

)

Purchase of fixed asset investments

(1,505

)

(1,548

)

Sale of tangible fixed assets

58,551

12,000

Interest received

2,384

2,715

Dividends received

1,739

1,548

Net cash from investing activities

(375,583

)

(146,168

)

Cash flows from financing activities

Capital repayments in year

(732

)

(232,725

)

Amount introduced by directors

62,947

-

Amount withdrawn by directors

(625

)

(42,622

)

Equity dividends paid

(9,956

)

-

Net cash from financing activities

51,634

(275,347

)

Increase/(decrease) in cash and cash equivalents

118,976

(109,840

)

Cash and cash equivalents at beginning of year

2

136,304

246,144

Cash and cash equivalents at end of year

2

255,280

136,304

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

31.3.17

31.3.16

as restated

£

£

Profit before taxation

545,014

751,834

Depreciation charges

215,767

206,733

Loss/(profit) on disposal of fixed assets

6,450

(6,364

)

Gain on revaluation of fixed assets

(230

)

-

Finance costs

6,902

10,873

Finance income

(4,123

)

(4,263

)

769,780

958,813

Increase in stocks

(168,370

)

(14,966

)

Increase in trade and other debtors

(507,079

)

(546,647

)

Increase in trade and other creditors

502,164

72,652

Cash generated from operations

596,495

469,852

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 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

255,280

136,304

Year ended 31 March 2016

31.3.16

1.4.15

as restated

£

£

Cash and cash equivalents

136,304

246,144

1.	STATUTORY INFORMATION

James Hamilton & Company (Lurgan) Ltd is a private company, limited by shares , registered in Northern

Ireland. 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 represents the total invoice value, excluding value added tax, of sales made during the year and

derives from the provision of goods and services falling within the company's ordinary activities.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on cost and 15% on reducing balance

Motor vehicles

-

33% on reducing balance

Investment property

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

in fair value is recognised in profit or loss.

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.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

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

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.

Hire purchase and leasing commitments

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.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.3.17

31.3.16

as restated

£

£

United Kingdom

9,400,166

8,532,505

Europe

354,641

394,890

9,754,807

8,927,395

4.	EMPLOYEES AND DIRECTORS

31.3.17

31.3.16

as restated

£

£

Wages and salaries

1,737,318

1,638,157

Social security costs

167,686

176,565

Other pension costs

55,241

59,431

1,960,245

1,874,153

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

31.3.17

31.3.16

as restated

Administrative staff

30

28

Other

40

48

70

76

5.	DIRECTORS' EMOLUMENTS

31.3.17

31.3.16

as restated

£

£

Directors' remuneration

185,547

180,929

Directors' pension contributions to money purchase schemes

24,139

25,617

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

Money purchase schemes

3

3

During the period, payments of £67,737 were made to Hyrax Resourcing Ltd. for making available the services

of a consultant whilst they were also a non-executive director.

6.	OPERATING PROFIT

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

31.3.17

31.3.16

as restated

£

£

Other operating leases

7,700

-

Depreciation - owned assets

215,767

206,733

Loss/(profit) on disposal of fixed assets

6,450

(6,364

)

Auditors' remuneration

9,324

9,347

Auditors' remuneration for non audit work

6,950

6,850

Foreign exchange differences

46,359

68,708

Amounts paid to third parties

67,737

72,576

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.17

31.3.16

as restated

£

£

Loan interest

-

5,872

Other interest

6,902

5,001

6,902

10,873

8.

TAXATION

Analysis of the tax charge

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

31.3.17

31.3.16

as restated

£

£

Current tax:

UK corporation tax

80,553

58,099

Deferred tax

4,385

1,563

Tax on profit

84,938

59,662

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

31.3.17

31.3.16

as restated

£

£

Profit before tax

545,014

751,834

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20%)

109,003

150,367

Effects of:

Expenses not deductible for tax purposes

1,681

2,046

Income not taxable for tax purposes

(348

)

(310

)

Depreciation in excess of capital allowances

8,227

12,075

Adjustments to tax charge in respect of previous periods

(33,104

)

(104,560

)

Profits/(Losses) from JH Label Solutions LLP

(521

)

44

Total tax charge

84,938

59,662

Tax effects relating to effects of other comprehensive income

31.3.17

Gross

Tax

Net

£

£

£

Revaluation of listed investments

(234

)

62

(172

)

Write back of depreciation on properties

(234

)

62

(172

)