J Hamilton & Co (Lurgan) Ltd - Limited company accounts 18.2

REGISTERED NUMBER: NI006169 (Northern Ireland)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2018

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

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

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 2018.

REVIEW OF BUSINESS

The results for the year show a pre-tax profit of £707,748, compared to £545,014 in the previous year.

Gross profit for the year was 30.48% (2017: 28.95%). The company has net funds of £659,073 (2017: net

funds £255,280).

The external commercial environment is expected to remain competitive in 2019, 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 Keith Alistair Hamilton - Director

26 November 2018

The directors present their report with the financial statements of the company for the year ended 31 March 2018.

DIVIDENDS

An interim dividend of £1.99 per share was paid on 5 December 2017. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2018 will be £ 9,956 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2017 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 Keith Alistair Hamilton - Director

26 November 2018

Opinion

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

the year ended 31 March 2018 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 2018 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.

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 four, 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.

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

26 November 2018

McCleary & Company Ltd.

TURNOVER

3

10,068,609

9,754,807

Cost of sales

(6,999,763

)

(6,930,256

)

GROSS PROFIT

3,068,846

2,824,551

Administrative expenses

(2,499,776

)

(2,391,301

)

569,070

433,250

Other operating income

153,720

114,543

OPERATING PROFIT

6

722,790

547,793

Income from fixed asset investments

1,986

1,739

Interest receivable and similar income

2,010

2,384

726,786

551,916

Interest payable and similar expenses

7

(19,038

)

(6,902

)

PROFIT BEFORE TAXATION

707,748

545,014

Tax on profit

8

(96,518

)

(84,938

)

PROFIT FOR THE FINANCIAL YEAR

611,230

460,076

PROFIT FOR THE YEAR

611,230

460,076

OTHER COMPREHENSIVE INCOME

Revaluation of listed investments

259

(234

)

Income tax relating to other comprehensive income

(5

)

62

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

254

(172

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

611,484

459,904

FIXED ASSETS

Tangible assets

11

3,299,312

2,425,481

Investments

12

48,761

46,516

Investment property

13

675,000

666,637

4,023,073

3,138,634

CURRENT ASSETS

Stocks

14

1,371,756

1,323,233

Debtors

15

4,441,918

4,487,655

Cash at bank and in hand

659,073

255,280

6,472,747

6,066,168

CREDITORS

Amounts falling due within one year

16

(1,956,860

)

(1,790,991

)

NET CURRENT ASSETS

4,515,887

4,275,177

TOTAL ASSETS LESS CURRENT LIABILITIES

8,538,960

7,413,811

CREDITORS

Amounts falling due after more than one year

17

(487,290

)

-

PROVISIONS FOR LIABILITIES

20

(65,779

)

(29,448

)

NET ASSETS

7,985,891

7,384,363

CAPITAL AND RESERVES

Called up share capital

21

5,003

5,003

Revaluation reserve

22

8,363

-

Retained earnings

22

7,972,525

7,379,360

SHAREHOLDERS' FUNDS

7,985,891

7,384,363

The financial statements were approved and authorised for issue by the Board of Directors on 26 November 2018 and were signed on its behalf by:

Mr Keith Alistair Hamilton - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2016

5,003

7,059,846

-

7,064,849

Prior year adjustment

-

(130,434

)

-

(130,434

)

As restated

5,003

6,929,412

-

6,934,415

Changes in equity

Dividends

-

(9,956

)

-

(9,956

)

Total comprehensive income

-

588,948

-

588,948

Balance at 31 March 2017

5,003

7,508,404

-

7,513,407

Prior year adjustment

-

(129,044

)

-

(129,044

)

As restated

5,003

7,379,360

-

7,384,363

Changes in equity

Dividends

-

(9,956

)

-

(9,956

)

Total comprehensive income

-

603,121

8,363

611,484

Balance at 31 March 2018

5,003

7,972,525

8,363

7,985,891

Cash flows from operating activities

Cash generated from operations

1

919,345

596,495

Interest paid

(6,862

)

(6,902

)

Interest element of hire purchase payments paid

(12,176

)

-

Tax paid

(124,034

)

(146,668

)

Net cash from operating activities

776,273

442,925

Cash flows from investing activities

Purchase of tangible fixed assets

(1,166,253

)

(436,752

)

Purchase of fixed asset investments

(2,245

)

(1,505

)

Sale of tangible fixed assets

21,501

58,551

Interest received

2,010

2,384

Dividends received

1,986

1,739

Net cash from investing activities

(1,143,001

)

(375,583

)

Cash flows from financing activities

Capital repayments in year

752,463

(732

)

Amount introduced by directors

28,138

62,947

Amount withdrawn by directors

(124

)

(625

)

Equity dividends paid

(9,956

)

(9,956

)

Net cash from financing activities

770,521

51,634

Increase in cash and cash equivalents

403,793

118,976

Cash and cash equivalents at beginning of year

2

255,280

136,304

Cash and cash equivalents at end of year

2

659,073

255,280

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

31.3.18

31.3.17

as restated

£

£

Profit before taxation

707,748

545,014

Depreciation charges

279,720

215,767

(Profit)/loss on disposal of fixed assets

(8,799

)

6,450

Gain on revaluation of fixed assets

(8,363

)

(230

)

Finance costs

19,038

6,902

Finance income

(3,996

)

(4,123

)

985,348

769,780

Increase in stocks

(48,523

)

(168,370

)

Decrease/(increase) in trade and other debtors

42,702

(507,079

)

(Decrease)/increase in trade and other creditors

(60,182

)

502,164

Cash generated from operations

919,345

596,495

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 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

659,073

255,280

Year ended 31 March 2017

31.3.17

1.4.16

as restated

£

£

Cash and cash equivalents

255,280

136,304

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 as modified by the revaluation of certain assets.

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:

31.3.18

31.3.17

as restated

£

£

United Kingdom

9,565,055

9,400,166

Europe

503,554

354,641

10,068,609

9,754,807

4.	EMPLOYEES AND DIRECTORS

31.3.18

31.3.17

as restated

£

£

Wages and salaries

1,908,318

1,737,318

Social security costs

189,623

167,686

Other pension costs

57,272

55,241

2,155,213

1,960,245

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

31.3.18

31.3.17

as restated

Administrative staff

31

30

Other

48

40

79

70

5.	DIRECTORS' EMOLUMENTS

31.3.18

31.3.17

as restated

£

£

Directors' remuneration

206,606

185,547

Directors' pension contributions to money purchase schemes

21,600

24,139

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

Money purchase schemes

3

3

Information regarding the highest paid director for the year ended 31 March 2018 is as follows:

31.3.18

£

Emoluments etc

79,600

Pension contributions to money purchase schemes

10,800