Yorkshire Plywood Limited - Limited company accounts 16.3

REGISTERED NUMBER: 01977248 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2017

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

6

Statement of Financial Position

7

Statement of Changes in Equity

8

Statement of Cash Flows

9

Notes to the Statement of Cash Flows

10

Notes to the Financial Statements

11

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 2017.

REVIEW OF BUSINESS

The company increased sales to offset the reduction in margins available in a competitive market, and maintain gross

profits.

PRINCIPAL RISKS AND UNCERTAINTIES

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

The company has however has maintained sales, the six months to September 2017 show sales of £7.7m. The directors

hope to keep this steady to the end of the year, and increase profits for 2018.

They are still actively controlling bad debts, and have not shown any material increase in bad debts at this point.

ON BEHALF OF THE BOARD:

J J Aylward - Director

15 December 2017

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

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary £1 shares

£68,000

- 30 April 2016

"B" ordinary Shares £1 shares

£10,000

- 30 April 2016

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2017 will be £ 78,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2016 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

15 December 2017

We have audited the financial statements of Yorkshire Plywood Limited for the year ended 31 March 2017 on pages six

to seventeen. 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 three, 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 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.

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.

S Clark BA FCA (Senior Statutory Auditor)

for and on behalf of Derede UK Limited

138 Quay Road

Bridlington

East Yorkshire

Y16 4JB

15 December 2017

TURNOVER

15,427,968

14,683,953

Cost of sales

13,224,301

12,408,957

GROSS PROFIT

2,203,667

2,274,996

Administrative expenses

2,030,506

2,039,175

OPERATING PROFIT

4

173,161

235,821

Interest receivable and similar income

-

27

173,161

235,848

Interest payable and similar expenses

5

21,602

35,289

PROFIT BEFORE TAXATION

151,559

200,559

Tax on profit

6

30,774

38,752

PROFIT FOR THE FINANCIAL YEAR

120,785

161,807

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

120,785

161,807

FIXED ASSETS

Intangible assets

8

208

208

Tangible assets

9

254,724

261,115

254,932

261,323

CURRENT ASSETS

Stocks

10

6,744,099

5,501,099

Debtors

11

4,509,061

3,923,905

Cash at bank and in hand

6,427

6,949

11,259,587

9,431,953

CREDITORS

Amounts falling due within one year

12

9,906,717

7,893,306

NET CURRENT ASSETS

1,352,870

1,538,647

TOTAL ASSETS LESS CURRENT LIABILITIES

1,607,802

1,799,970

CREDITORS

Amounts falling due after more than one year

13

(464,539

)

(699,373

)

PROVISIONS FOR LIABILITIES

17

(45,669

)

(45,788

)

NET ASSETS

1,097,594

1,054,809

CAPITAL AND RESERVES

Called up share capital

18

20,100

20,100

Retained earnings

19

1,077,494

1,034,709

SHAREHOLDERS' FUNDS

1,097,594

1,054,809

The financial statements were approved by the Board of Directors on 15 December 2017 and were signed on its behalf by:

J J Aylward - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2015

20,100

943,902

964,002

Changes in equity

Dividends

-

(71,000

)

(71,000

)

Total comprehensive income

-

161,807

161,807

Balance at 31 March 2016

20,100

1,034,709

1,054,809

Changes in equity

Dividends

-

(78,000

)

(78,000

)

Total comprehensive income

-

120,785

120,785

Balance at 31 March 2017

20,100

1,077,494

1,097,594

Cash flows from operating activities

Cash generated from operations

1

(334,201

)

274,461

Interest paid

(21,261

)

(34,997

)

Interest element of hire purchase payments paid

(341

)

(292

)

Tax paid

(22,717

)

(14,760

)

Net cash from operating activities

(378,520

)

224,412

Cash flows from investing activities

Purchase of tangible fixed assets

(19,345

)

(15,552

)

Sale of tangible fixed assets

-

2,100

Interest received

-

27

Net cash from investing activities

(19,345

)

(13,425

)

Cash flows from financing activities

Loan movements in year

(242,684

)

195,091

Capital repayments in year

(5,690

)

-

Amount introduced by directors

-

3,295

Amount withdrawn by directors

(89,146

)

(1,503

)

Equity dividends paid

(78,000

)

(71,000

)

Net cash from financing activities

(415,520

)

125,883

(Decrease)/increase in cash and cash equivalents

(813,385

)

336,870

Cash and cash equivalents at beginning of year

2

(3,580,142

)

(3,917,012

)

Cash and cash equivalents at end of year

2

(4,393,527

)

(3,580,142

)

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

31.3.17

31.3.16

£

£

Profit before taxation

151,559

200,559

Depreciation charges

25,736

27,636

Profit on disposal of fixed assets

-

(139

)

Finance costs

21,602

35,289

Finance income

-

(27

)

198,897

263,318

(Increase)/decrease in stocks

(1,243,000

)

905,542

(Increase)/decrease in trade and other debtors

(500,807

)

548,035

Increase/(decrease) in trade and other creditors

1,210,709

(1,442,434

)

Cash generated from operations

(334,201

)

274,461

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 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

6,427

6,949

Bank overdrafts

(4,399,954

)

(3,587,091

)

(4,393,527

)

(3,580,142

)

Year ended 31 March 2016

31.3.16

1.4.15

£

£

Cash and cash equivalents

6,949

9,174

Bank overdrafts

(3,587,091

)

(3,926,186

)

(3,580,142

)

(3,917,012

)

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 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.

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.

3.	EMPLOYEES AND DIRECTORS

31.3.17

31.3.16

£

£

Wages and salaries

950,248

979,987

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

31.3.17

31.3.16

Management/Administration

8

8

Factory/Workshop

31

31

39

39

31.3.17

31.3.16

£

£

Directors' remuneration

10,000

10,000

4.	OPERATING PROFIT

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

31.3.17

31.3.16

£

£

Depreciation - owned assets

22,750

25,929

Depreciation - assets on hire purchase contracts

2,986

1,706

Profit on disposal of fixed assets

-

(139

)

Auditors remuneration

6,300

6,300

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.17

31.3.16

£

£

Bank interest

6,538

-

Loan

14,723

34,997

Hire purchase

341

292

21,602

35,289

6.

TAXATION

Analysis of the tax charge

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

31.3.17

31.3.16

£

£

Current tax:

UK corporation tax

30,893

41,188

Deferred taxation

(119

)

(2,436

)

Tax on profit

30,774

38,752

7.

DIVIDENDS

31.3.17

31.3.16

£

£

Ordinary shares of £1 each

Interim

68,000

64,000

"B" ordinary Shares shares of £1 each

Interim

10,000

7,000

78,000

71,000

8.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 April 2016

and 31 March 2017

208

NET BOOK VALUE

At 31 March 2017

208

At 31 March 2016

208

9.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2016

449,550

105,083

119,150

673,783

Additions

18,405

940

-

19,345

At 31 March 2017

467,955

106,023

119,150

693,128

DEPRECIATION

At 1 April 2016

251,152

86,198

75,318

412,668

Charge for year

10,406

4,373

10,957

25,736

At 31 March 2017

261,558

90,571

86,275

438,404

NET BOOK VALUE

At 31 March 2017

206,397

15,452

32,875

254,724

At 31 March 2016

198,398

18,885

43,832

261,115

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 April 2016

and 31 March 2017

13,650

DEPRECIATION

At 1 April 2016

1,706

Charge for year

2,986

At 31 March 2017

4,692

NET BOOK VALUE

At 31 March 2017

8,958

At 31 March 2016

11,944

10.

STOCKS

31.3.17

31.3.16

£

£

Stocks

6,744,099

5,501,099