Hanson Plywood Limited - Limited company accounts 17.3

REGISTERED NUMBER: 00336717 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2017

FOR

HANSON PLYWOOD LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

G M Scott

A M A Bagott

J G Mitchell

S Webster

J L Perry

S C Matthews

SECRETARY:

J G Mitchell

REGISTERED OFFICE:

Drakes Industrial Estate

Shay Lane

Ovenden

Halifax

West Yorkshire

HX3 6RL

REGISTERED NUMBER:

00336717 (England and Wales)

AUDITORS:

Bairstow and Atkinson

Statutory Auditors

Chartered Accountants

Carlton House

Bull Close Lane

Halifax

HX1 2EG

The directors present their strategic report for the year ended 30 November 2017.

Hanson Plywood Ltd is established as one of the UK's leading importers and distributors of timber based panel products.

The business provides a nationwide service to a wide ranging and diverse customer base, including merchants and

specialist manufacturers.

The company has a program of ongoing staff training and recruitment to ensure the business can operate at high levels of

service within the industry. High priority is given to technical training and environmental awareness. Regular visits are

made to various suppliers around the world to ensure relationships and trading expectations are fully maintained and

appreciated.

Marketing practices have a focus on presenting products directly to architects and specifiers to promote awareness of a

wide range of fit for purpose products. Our presentation at trade shows has been of particular benefit in these practices.

REVIEW OF BUSINESS

We are pleased to report that revenues continued to grow month on month, and the business was able to trade strongly

despite some significant fluctuations in currency and product costs resulting from the EU referendum. Although markets

have been uncertain, overall trading has remained positive.

During the year product costs have risen significantly and profit returns have come under increasing pressure. The

combination of increased costs and a competitive market place has resulted in a reduced overall profit margin for the

year. It is expected that the markets will become more stable and there will be a return to better margins going into 2018.

The business has increased the monthly order intake in line with the increase in revenues. Order values therefore remain

constant.

The cost of bad debts was £53,161 compared to £34,356 in 2016.

Debt management continues to be a focus to ensure risk exposure is limited as far as possible.

Revenue for the financial year was £33,632,878 which is 11% up on last year's £30,282,768

Operating profit was £1,515,813, up £397,094 from £1,118,719 last year (35.5%).

Profit after tax was £1,211,060 compared to £927,734 last year.

Net assets (total equity) were £7,639,517 compared to £6,428,457 last year.

Trading margins were a little disappointing during the year and resulted in an overall margin which was lower than the

previous year (17.35% compared to 19.58% in 2016). Operating costs are increasing as the company expands staffing

and resources to accommodate current and any future growth. The company continues to invest in all resources to

accommodate further future growth. Our primary aim is to ensure our customer needs are fully met at all times.

PRINCIPAL RISKS AND UNCERTAINTIES

Procedures for identifying, quantifying and managing the risks faced by the company are in place and undergo constant

monitoring and analysis.

Trading Risk

The business mitigates trading risks by ensuring products are distributed over a very wide range of industries covering

various economic sectors.

Stock

Stocks are carefully monitored to ensure volumes are in line with current and future demands, and there is minimal risk

from reduced values or market demand.

IT Risk

Computers and IT risks are covered by storing and managing data offsite.

Other Risk

The company operates with a disaster recovery plan which can be immediately implemented should the business

experience any catastrophic event.

The directors monitor specific business sectors to ensure stocks are managed in accordance with any significant factors

which may adversely influence industry trading patterns. Staff actively manage and report on performance against

budgets, performance targets and capital expenditure.

QUALITY

The company operates using a Quality Management System that is certified to the ISO 9001:2015 standard (having

recently transitioned to the latest version of the standard). This provides a framework of continual improvement for the

company and its processes.

The main objectives of the company's Quality Management System are to control non-conforming products and

customer returns while maintaining a healthy average margin. In addition to these main objectives we have recently been

monitoring the cost of external haulage, applying zonal charges as dictated by our Transport department. This allows us

to accurately measure the benefit of using our own fleet of vehicles. These objectives are monitored and measured on a

monthly basis.

Non-conforming products on sales orders rose from 3.18% of all sales orders to 5.12%, which is a significant spike. The

company has been implementing actions to deal with the rise in non-conforming products, opting for new policies on

accepting returns and monitoring influential root causes in more detail.

ENVIRONMENT

Reduction and mitigation of environmental impacts is a key concern and the company operates an Environmental

Management System (certified to ISO 14001:2015) to monitor these aspects.

As an importer of timber-based products, procurement presents the most pressing concern for the company and careful

consideration is given to the sustainability and legality of wood-based panel products sourced from high risk countries.

Since the enactment of the European Union Timber Regulation (EUTR), there are now legal ramifications for not

carrying out sufficient due diligence on the supply chains of products sourced from outside of the EU. To comply with

EUTR, the company has a developed Due Diligence System that is certified and externally audited under the Timber

Trade Federation's Responsible Purchasing Policy.

In addition to a strong focus on the legality of supply chains, the company is certified under FSC® and PEFC™ Chain

of Custody management schemes. This ensures that all goods certified under these schemes have been sourced from

certified forest management units who operate with sustainable forest management plans. The company monitors the

purchase of certified goods annually and has seen this figure grow from 77.39% (2014) to 82.60% (2015) to 84.30%

(2016). In 2017, the company purchased 85.7% of its material from certified sources.

Our company's strong ties with trade in Indonesia has also allowed us to benefit from the Forest Law Enforcement,

Governance and Trade Voluntary Partnership Agreement between the EU and Indonesia. The Indonesian government

implemented a nation-wide timber legality assurance system ensuring that all exported timber products legally comply

with EUTR and do not require due diligence as a result. In addition to the 85.7% of FSC® and PEFC™ goods, the

company sourced 3% of FLEGT Licenced timber from Indonesia throughout the 2017 financial year.

Other crucial environmental aspects are those of fuel consumption and waste management. These aspects are monitored

monthly through the help of a telematics solution that diagnoses vehicle performance and a recycling company with

vehicles that are able to obtain accurate weight figures for our waste. The company now recycles between 87%-90% of

all waste in a given quarter with an objective to reduce General Waste as much as possible to improve the financial

implications of waste management.

HEALTH AND SAFETY

A Health & Safety Management System has been implemented in more recent years. Aspects of this system have been

integrated into the Quality and Environmental Management Systems with weekly checks of high risk areas and

considerable investment into the latest safety equipment and PPE. Staff are fully aware of requirements under HSE and

the company monitors any noted hazards against the number of near misses and accidents in order to locate areas of

notable risk to the health and safety of employees, customers, visitors and other persons affected by the operations of

Hanson Plywood Ltd.

ON BEHALF OF THE BOARD:

G M Scott - Director

29 March 2018

The directors present their report with the financial statements of the company for the year ended 30 November 2017.

Hanson Plywood Ltd is established as one of the UK's leading importers and distributors of timber based panel products.

The business provides a nationwide service to a wide ranging and diverse customer base, including merchants and

specialist manufacturers.

The company has a programme of ongoing staff training and recruitment to ensure the business can operate at high

levels of service within the industry. High priority is given to technical training and environmental awareness. Regular

visits are made to various suppliers around the world to ensure relationships and trading expectations are fully

maintained and appreciated.

Marketing practices have a focus on presenting products directly to architects and specifiers to promote awareness of a

wide range of fit for purpose products. Our presentation at trade shows has been of particular benefit in these practices.

DIVIDENDS

No dividends will be distributed for the year ended 30 November 2017.

FUTURE DEVELOPMENTS

The directors are working on strategies which will promote further opportunities and growth. The core strength of the

business is providing specialist products and technical advice which is of greater value in the market place. To assist

with this, the company has hired a dedicated Marketing & Media Coordinator; a first ever for the company. Marketing

projects and subsequent opportunities will now be linked much closer with the sales department in order to increase the

company's reputation from a technical and advisory standpoint.

The launch of a comprehensive new company website has provided much room for growth and development. Staff have

been given the remit to develop and expand on the current website where possible to enhance the presentation of the

company.

Although the prevailing political and economic climate becomes increasingly unpredictable, the business is in a strong

financial and trading position to be able to capitalise on any opportunities available.

We will continue to offer our customers a very high level of service, technical knowledge and expertise.

DIRECTORS

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

report.

G M Scott

A M A Bagott

J G Mitchell

S Webster

J L Perry

S C Matthews

THIRD PARTY INDEMNITY PROVISION FOR DIRECTORS

Qualifying third party indemnity provision for the directors is in place for the benefit of all directors of the company.

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:

G M Scott - Director

29 March 2018

Opinion

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

30 November 2017 on pages nine to twenty two. 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).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 November 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.

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 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, 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.

Opinion 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 six, 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.

Our 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.

Peter Dyson (Senior Statutory Auditor)

for and on behalf of Bairstow and Atkinson

Statutory Auditors

Chartered Accountants

Carlton House

Bull Close Lane

Halifax

HX1 2EG

29 March 2018

TURNOVER

3

33,632,878

30,282,768

Cost of sales

27,797,829

24,354,821

GROSS PROFIT

5,835,049

5,927,947

Distribution costs

1,778,316

1,714,766

Administrative expenses

2,774,045

3,154,569

4,552,361

4,869,335

1,282,688

1,058,612

Other operating income

233,125

130,107

OPERATING PROFIT

6

1,515,813

1,188,719

Interest payable and similar expenses

7

14,402

18,195

PROFIT BEFORE TAXATION

1,501,411

1,170,524

Tax on profit

8

290,351

242,790

PROFIT FOR THE FINANCIAL YEAR

1,211,060

927,734

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,211,060

927,734

FIXED ASSETS

Tangible assets

9

2,656,454

2,713,389

CURRENT ASSETS

Stocks

10

4,367,028

3,887,806

Debtors

11

9,015,371

7,806,663

Cash at bank and in hand

1,295,339

950,105

14,677,738

12,644,574

CREDITORS

Amounts falling due within one year

12

9,399,103

8,544,980

NET CURRENT ASSETS

5,278,635

4,099,594

TOTAL ASSETS LESS CURRENT LIABILITIES

7,935,089

6,812,983

CREDITORS

Amounts falling due after more than one year

13

(184,231

)

(257,325

)

PROVISIONS FOR LIABILITIES

17

(111,341

)

(127,201

)

NET ASSETS

7,639,517

6,428,457

CAPITAL AND RESERVES

Called up share capital

18

1,002

1,002

Retained earnings

19

7,638,515

6,427,455

SHAREHOLDERS' FUNDS

7,639,517

6,428,457

The financial statements were approved by the Board of Directors on 29 March 2018 and were signed on its behalf by:

G M Scott - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2015

1,002

5,499,721

5,500,723

Changes in equity

Total comprehensive income

-

927,734

927,734

Balance at 30 November 2016

1,002

6,427,455

6,428,457

Changes in equity

Total comprehensive income

-

1,211,060

1,211,060

Balance at 30 November 2017

1,002

7,638,515

7,639,517

1.	STATUTORY INFORMATION

Hanson 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.

The principal activity of the company for the year under review was that of timber merchants.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

•

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Turnover

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

and value added tax.

Turnover is recognised when the risks and rewards are transferred to the customer, which is usually upon

delivery to the customer.

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.

Freehold property

-

2% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

The company measures the cost of stock by using the weighted average cost formula.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

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.

Derivatives (including forward foreign exchange contracts) are not basic financial instruments and are

recognised initially at fair value on the date the contract has been entered into and are re-measured at fair value

each year end. Changes in fair value are recognised in the profit and loss account.

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.

Financial instruments

Basic financial assets and liabilities are recognised when the company becomes a party to the contractual

provisions of the instrument

Basic financial assets and liabilities are initially recognised at transaction price, unless the arrangement

constitutes a financing transaction. Financing transactions are measured at the present value of the future

payments discounted at a market rate of interest for a similar debt instrument.

Basic financial assets and liabilities consist of trade debtors, other debtors, cash and bank, trade creditors and

inter-company balances (payable on demand). These assets and liabilities are measured at amortised cost

equivalent to the undiscounted amount of cash or other consideration expected to be paid or received.

Derivatives, which are forward foreign currency contracts, are measured at fair value with movements being

posted through the profit and loss account.

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 is posted through the profit and loss.

Critical accounting judgements and sources of estimation uncertainty

Estimates and judgements are continually evaluated by management and are based on historical experience and

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

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will,

by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk

of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are

addressed below:

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 re-assessed 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.

Stock provisions

The company acts as a stock holder and as a result it is necessary to consider the recoverability of the cost of

inventory and the associated provisioning required. When calculating the inventory provision, management

considers the nature and condition of the inventory, as well as applying assumptions around anticipated

saleability of stock.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

30.11.17

30.11.16

£

£

Sale of goods

33,632,878

30,282,768

33,632,878

30,282,768

An analysis of turnover by geographical market is given below:

30.11.17

30.11.16

£

£

United Kingdom

33,592,023

30,218,630

Europe

5,997

9,760

Asia

34,858

54,378

33,632,878

30,282,768

4.	EMPLOYEES AND DIRECTORS

30.11.17

30.11.16

£

£

Wages and salaries

1,694,283

1,669,414

Social security costs

183,432

180,911

Other pension costs

187,627

197,431

2,065,342

2,047,756

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

30.11.17

30.11.16

Distribution

30

27

Administration

13

11

Sales

11

12

54

50

5.	DIRECTORS' EMOLUMENTS

30.11.17

30.11.16

£

£

Directors' remuneration

297,585

332,911

Directors' pension contributions to money purchase schemes

85,279

105,794

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

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

30.11.17

30.11.16

£

£

Emoluments etc

126,706

142,302

Pension contributions to money purchase schemes

32,915

32,606

6.	OPERATING PROFIT

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

30.11.17

30.11.16

£

£

Hire of plant and machinery

109

2,902

Other operating leases

277,287

272,187

Depreciation - owned assets

115,099

115,192

Depreciation - assets on hire purchase contracts

88,972

89,330

Loss on disposal of fixed assets

6,437

11,797

Auditors' remuneration

14,533

13,600

Taxation compliance services

1,000

1,175

Taxation advisory services

1,290

2,264

Other non- audit services

6,005

11,896

Foreign exchange differences

(27,073

)

(1,691

)

Loss / Gain on forward currency contracts

18,502

(18,502

)

Cost of acquiring stock charged as an expense

27,797,829

24,354,821

Impairment of trade debtors

53,161

34,356

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.11.17

30.11.16

£

£

Bank interest

132

75

Bank loan interest

1,598

4,443

Pension scheme loan

-

1,313

Interest payable to HMRC

500

3

Hire purchase

12,172

12,361

14,402

18,195

8.

TAXATION

Analysis of the tax charge

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

30.11.17

30.11.16

£

£

Current tax:

UK corporation tax

306,211

230,833

Deferred tax:

Deferred tax: timing

524

15,817

Deferred tax: rate change

(16,384

)

(3,860

)

Total deferred tax

(15,860

)

11,957

Tax on profit

290,351

242,790

UK corporation tax has been charged at 19.33% (2016 - 20%).