Yorkshire Plywood Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01977248 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2020

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

13

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 2020.

REVIEW OF BUSINESS

The company has increased sales and profits during the period.

The company has also increased sales post year end, and is looking at an improved profit for 2021, they have continued to improve trade since the year end and have had no effects from the virus.

The company 's sales for the eleven months to February 2021 are in excess of £21m. The directors hope to keep this increase trending upwards through 2021.

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

ON BEHALF OF THE BOARD:

J J Aylward - Director

28 May 2021

The directors present their report with the financial statements of the company for the year ended 31 March 2020.

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary £1 shares

£6

- 31 March 2020

"B" ordinary Shares £1 shares

£840

- 31 March 2020

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2020 will be £ 204,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2019 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

28 May 2021

Opinion

We have audited the financial statements of Yorkshire Plywood Limited (the 'company') for the year ended 31 March 2020 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 2020 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

28 May 2021

TURNOVER

17,246,196

16,971,709

Cost of sales

14,221,389

14,325,049

GROSS PROFIT

3,024,807

2,646,660

Administrative expenses

2,624,519

2,373,750

400,288

272,910

Other operating income

-

838

OPERATING PROFIT

4

400,288

273,748

Interest payable and similar expenses

5

95,995

57,442

PROFIT BEFORE TAXATION

304,293

216,306

Tax on profit

6

58,510

41,353

PROFIT FOR THE FINANCIAL YEAR

245,783

174,953

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

245,783

174,953

FIXED ASSETS

Intangible assets

8

208

208

Tangible assets

9

438,138

433,462

438,346

433,670

CURRENT ASSETS

Stocks

10

6,178,645

6,094,396

Debtors

11

5,371,772

5,002,007

Cash in hand

5,579

5,691

11,555,996

11,102,094

CREDITORS

Amounts falling due within one year

12

9,752,111

9,520,773

NET CURRENT ASSETS

1,803,885

1,581,321

TOTAL ASSETS LESS CURRENT LIABILITIES

2,242,231

2,014,991

CREDITORS

Amounts falling due after more than one year

13

(797,275

)

(612,817

)

PROVISIONS FOR LIABILITIES

17

(80,723

)

(79,724

)

NET ASSETS

1,364,233

1,322,450

CAPITAL AND RESERVES

Called up share capital

18

20,100

20,100

Retained earnings

19

1,344,133

1,302,350

SHAREHOLDERS' FUNDS

1,364,233

1,322,450

The financial statements were approved by the Board of Directors and authorised for issue on 28 May 2021 and were signed on its behalf by:

J J Aylward - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 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

Changes in equity

Dividends

-

(204,000

)

(204,000

)

Total comprehensive income

-

245,783

245,783

Balance at 31 March 2020

20,100

1,344,133

1,364,233

Cash flows from operating activities

Cash generated from operations

1

(56,960

)

(259,546

)

Interest paid

(93,495

)

(56,495

)

Interest element of hire purchase payments paid

(2,500

)

(947

)

Tax paid

(76,792

)

-

Net cash from operating activities

(229,747

)

(316,988

)

Cash flows from investing activities

Purchase of tangible fixed assets

(59,081

)

(96,614

)

Sale of tangible fixed assets

-

1,500

Net cash from investing activities

(59,081

)

(95,114

)

Cash flows from financing activities

New loans in year

685,593

73,800

Loan movements in year

-

746,762

Capital repayments in year

(8,505

)

(12,300

)

Amount withdrawn by directors

(160,722

)

(275,382

)

Equity dividends paid

(204,000

)

(47,350

)

Net cash from financing activities

312,366

485,530

Increase in cash and cash equivalents

23,538

73,428

Cash and cash equivalents at beginning of year

2

(4,054,878

)

(4,128,306

)

Cash and cash equivalents at end of year

2

(4,031,340

)

(4,054,878

)

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

31.3.20

31.3.19

£

£

Profit before taxation

304,293

216,306

Depreciation charges

54,406

44,230

Profit on disposal of fixed assets

-

(1,409

)

Government grants

-

(838

)

Finance costs

95,995

57,442

454,694

315,731

Increase in stocks

(84,249

)

(642,641

)

Increase in trade and other debtors

(209,043

)

(496,070

)

(Decrease)/increase in trade and other creditors

(218,362

)

563,434

Cash generated from operations

(56,960

)

(259,546

)

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 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

5,579

5,691

Bank overdrafts

(4,036,919

)

(4,060,569

)

(4,031,340

)

(4,054,878

)

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

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank and in hand

5,691

(112

)

5,579

Bank overdrafts

(4,060,569

)

23,650

(4,036,919

)

(4,054,878

)

23,538

(4,031,340

)

Debt

Finance leases

(61,500

)

8,505

(52,995

)

Debts falling due within 1 year

(1,241,468

)

(479,552

)

(1,721,020

)

Debts falling due after 1 year

(575,917

)

(206,042

)

(781,959

)

(1,878,885

)

(677,089

)

(2,555,974

)

Total

(5,933,763

)

(653,551

)

(6,587,314

)

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 policy

Revenue is recognised for the sale of goods when the vendor has transferred the significant risks and rewards of ownership. It is probable that the economic benefit will flow to the entity and the revenue and associated costs can be reliably measured.

3.	EMPLOYEES AND DIRECTORS

31.3.20

31.3.19

£

£

Wages and salaries

1,272,254

1,133,375

Other pension costs

29,980

28,078

1,302,234

1,161,453

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

31.3.20

31.3.19

Management/Administration

8

8

Factory/Workshop

38

38

46

46

31.3.20

31.3.19

£

£

Directors' remuneration

10,000

10,000

4.	OPERATING PROFIT

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

31.3.20

31.3.19

£

£

Hire of plant and machinery

19,780

49,470

Depreciation - owned assets

33,860

32,272

Depreciation - assets on hire purchase contracts

20,545

11,958

Profit on disposal of fixed assets

-

(1,409

)

Auditors remuneration

7,550

5,300

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.20

31.3.19

£

£

Bank interest

9,648

26,229

Loan

83,847

30,266

Hire purchase

2,500

947

95,995

57,442

6.

TAXATION

Analysis of the tax charge

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

31.3.20

31.3.19

£

£

Current tax:

UK corporation tax

57,511

16,278

Deferred taxation

999

25,075

Tax on profit

58,510

41,353

7.

DIVIDENDS

31.3.20

31.3.19

£

£

Ordinary shares of £1 each

Interim

120,000

43,350

"B" ordinary Shares shares of £1 each

Interim

84,000

4,000

204,000

47,350

8.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 April 2019

and 31 March 2020

208

NET BOOK VALUE

At 31 March 2020

208

At 31 March 2019

208

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2019

618,392

125,100

175,400

918,892

Additions

59,081

-

-

59,081

At 31 March 2020

677,473

125,100

175,400

977,973

DEPRECIATION

At 1 April 2019

296,073

100,887

88,470

485,430

Charge for year

27,451

5,223

21,731

54,405

At 31 March 2020

323,524

106,110

110,201

539,835

NET BOOK VALUE

At 31 March 2020

353,949

18,990

65,199

438,138

At 31 March 2019

322,319

24,213

86,930

433,462