REGISTERED NUMBER: 04829658 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2018

FOR

I.W.T. DEESIDE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

8

Balance Sheet

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTOR:

J O Williams

SECRETARY:

C A Williams

REGISTERED OFFICE:

One St Peter's Square

Manchester

M2 3DE

REGISTERED NUMBER:

04829658 (England and Wales)

AUDITORS:

M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

BANKERS:

Bank of Scotland

One Kingsway

Cardiff

CF10 3YB

The director presents his strategic report for the year ended 31st March 2018.

REVIEW OF BUSINESS

During the year I.W.T Deeside Limited maintained its market leading position as one of Europe's leading

manufacturers of trailers.

The board is pleased to confirm that the strategic plans to grow the business have been as expected and this has resulted

in an acceptable level of increased turnover on the previous year. Profit margins remain on target to facilitate the

continued ongoing planned investment in company infrastructure.

The director is satisfied with the company's overall performance in 2018.

Operating expenses increased 16.6% on last year and the director understands the need for these to be firmly managed

and controlled going forward.

The director thinks that trading will be challenging and unpredictable in the immediate future, however he is positioned

to provide clear guidance and take all necessary actions to cope with the current climate and to steer the business

through the next 12 months of uncertainty.

KEY PERFORMANCE INDICATORS

The Key Performance Indicators that communicate the financial performance and strength of the company, including

turnover, operating profit, other operating expenses, and cash flow forecasts are in place and are monitored.

The director has a programme of reviewing and strengthening internal KPI's to provide early warning indicators that

prompt management interventions.

Manufacturing capability, product lead time and delivery schedule adherence will receive particular focus in 2019 and

through continued investment the company will seek to eliminate the already identified manufacturing bottlenecks. The

expansion of additional modern manufacturing facilities in 2019 will address the need for increased manufacturing

capability and assist the company to achieve their ongoing, customer focused, strategic plans.

The director will seek to further improve the internal efficiencies of the business by assessing the performance of

individual departments. The business will be further strengthened in key areas through mentoring, recruitment and

focused training.

31.3.18

31.3.17

Turnover

41,181,597

39,747,360

Operating profit

5,988,269

6,300,571

Other operating expenses

1,579,047

1,353,719

Source data is taken from the audited financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

Comments on the key risks perceived by the director are set out below:-

The business uncertainty surrounding the unknown market conditions post Brexit are a cause of concern for the

director. The uncertainty of the business climate will be mitigated by the careful management of ongoing investment

programmes to ensure that the strong foundations of the company are protected.

Credit risk

The company's exposure to risk is primarily attributable to the credit limits the company affords to its trade debtors.

The amounts presented in the balance sheet are net of allowances for doubtful debts. Risks are assessed by the

company's management based on prior experience and the company's assessment of the strength of their trading

partners. The company has a background of relationship longevity with its trading partners and departures from

established working agreements are rare. The company utilises the normal credit checking facilities and has policies in

place that require potential customers to satisfy set criteria before business relationships progress. The process is

subjected to regular reviews and reassessments.

Currency risk

The company's currency risk is primarily attributable to its trade debtors where customers are billed in non functional

currency.

The director will continue to identify, monitor and manage potential risks and uncertainties to the company.

At present the principal risks to the business are considered to be the ongoing political and business uncertainty that is

creating instability in world currency and trade markets with the current position of no clear vision on the continuance

of frictionless trade.

ON BEHALF OF THE BOARD:

J O Williams - Director

21st December 2018

The director presents his report with the financial statements of the company for the year ended 31st March 2018.

DIVIDENDS

The total distribution of dividends for the year ended 31st March 2018 will be £2,000,000.

FUTURE DEVELOPMENTS

Our strategy remains to continually improve the company's products and services.

DIRECTOR

J O Williams held office during the whole of the period from 1st April 2017 to the date of this report.

The director shown below was in office at 31st March 2018 but did not hold any interest in the Ordinary shares of £1

each at 1st April 2017 or 31st March 2018.

J O Williams

POST BALANCE SHEET EVENTS

There have been no events since the year end which would materially affect the financial statements.

EQUAL OPPORTUNITIES AND DIVERSITY

The company procedures comply with the requirements of the Disability Discrimination Act 1995. The company has an

equal opportunities policy and actively pursues equality of opportunity for all employees.

EMPLOYEE INVOLVEMENT

The company holds regular communication meetings with employee representatives. Employees are kept informed of

matters affecting the company by regular team briefings.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in

accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director

has 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 director must not

approve the financial statements unless he is 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 director is

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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

J O Williams - Director

21st December 2018

Opinion

We have audited the financial statements of I.W.T. Deeside Limited (the 'company') for the year ended

31st March 2018 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 31st 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has 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 director is responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Anthony Lewis (Senior Statutory Auditor)

for and on behalf of M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

21st December 2018

TURNOVER

3

41,181,597

39,747,360

Other operating income

4

46,381

69,499

41,227,978

39,816,859

Raw materials and consumables

29,116,156

28,207,324

Other external expenses

2,452,841

2,178,215

31,568,997

30,385,539

9,658,981

9,431,320

Staff costs

5

1,960,234

1,711,110

Depreciation

131,431

65,920

Other operating expenses

1,579,047

1,353,719

3,670,712

3,130,749

OPERATING PROFIT

6

5,988,269

6,300,571

Interest receivable and similar income

7

8,985

19,889

5,997,254

6,320,460

Interest payable and similar expenses

8

3,305

5,860

PROFIT BEFORE TAXATION

5,993,949

6,314,600

Tax on profit

9

873,330

936,741

PROFIT FOR THE FINANCIAL YEAR

5,120,619

5,377,859

Retained earnings at beginning of year

4,699,893

3,822,034

Dividends

10

(2,000,000

)

(4,500,000

)

RETAINED EARNINGS AT END OF YEAR

7,820,512

4,699,893

FIXED ASSETS

Tangible assets

11

874,160

439,808

CURRENT ASSETS

Stocks

12

4,057,196

2,356,790

Debtors

13

6,928,253

6,671,701

Cash at bank and in hand

1,075,885

2,488,122

12,061,334

11,516,613

CREDITORS

Amounts falling due within one year

14

5,114,981

7,256,527

NET CURRENT ASSETS

6,946,353

4,260,086

TOTAL ASSETS LESS CURRENT LIABILITIES

7,820,513

4,699,894

CAPITAL AND RESERVES

Called up share capital

17

1

1

Retained earnings

18

7,820,512

4,699,893

SHAREHOLDERS' FUNDS

7,820,513

4,699,894

The financial statements were approved by the director on 21st December 2018 and were signed by:

J O Williams - Director

Cash flows from operating activities

Cash generated from operations

1

1,951,161

6,238,771

Interest paid

(3,305

)

(5,860

)

Tax paid

(803,294

)

(961,762

)

Net cash from operating activities

1,144,562

5,271,149

Cash flows from investing activities

Purchase of tangible fixed assets

(565,784

)

(105,727

)

Interest received

8,985

19,889

Net cash from investing activities

(556,799

)

(85,838

)

Cash flows from financing activities

Equity dividends paid

(2,000,000

)

(4,500,000

)

Net cash from financing activities

(2,000,000

)

(4,500,000

)

(Decrease)/increase in cash and cash equivalents

(1,412,237

)

685,311

Cash and cash equivalents at beginning of year

2

2,488,122

1,802,811

Cash and cash equivalents at end of year

2

1,075,885

2,488,122

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

31.3.18

31.3.17

£

£

Profit before taxation

5,993,949

6,314,600

Depreciation charges

131,431

65,920

Decrease/(increase) in group debtors

(1,195,876

)

300,235

Increase/(decrease) in group creditors

(2,592,445

)

1,067,165

Finance costs

3,305

5,860

Finance income

(8,985

)

(19,889

)

2,331,379

7,733,891

(Increase)/decrease in stocks

(1,700,406

)

90,222

Decrease/(increase) in trade and other debtors

869,289

(2,041,502

)

Increase in trade and other creditors

450,899

456,160

Cash generated from operations

1,951,161

6,238,771

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 31st March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

1,075,885

2,488,122

Year ended 31st March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

2,488,122

1,802,811

1.	STATUTORY INFORMATION

I.W.T. Deeside 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 presentation currency of the financial statements is the Pound Sterling (£).

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.

Significant judgements and estimates

In the application of the Company’s accounting policies, management is required to make judgements, estimates

and assumptions about carrying values of assets and liabilities that are not readily available from other sources.

The estimates and underlying assumptions are based on historical experience and other factors that are

considered to be relevant. Actual results may differ from these estimates.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts

recognised in the financial statements are described below:

- Estimated useful lives and residual values of fixed assets:

The carrying value of fixed assets are reviewed each year end for indicators of impairment triggers. If such

triggers exist, management would be required to carry out a formal impairment review using a discounted cash

flow model to determine their value in use on a cash-generating unit basis. The value in use calculation requires

management to estimate the future cash flows expected to arise from the cash-generating unit and a sustainable

discount rate in order to calculate the present value.

Depreciation of tangible and intangible fixed assets has been based on estimated useful lives and residual values

deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and

revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in

the sector and actual asset lives and residual values, as evidenced by disposals during current and prior

accounting periods.

- Estimated write down of stock to net realisable value:

Stock valuation has been based on an estimated useful life and residual value deemed appropriate by the

directors. The estimated write down of stock to net realisable value is reviewed annually and revised as

appropriate by the directors.

- Revenue recognition:

In making its judgement, management consider the detailed criteria for the recognition of revenue as set out

within Section 23 of FRS 102. The directors are satisfied that the recognition point being typically when goods

are delivered and legal title has passed is correct.

Turnover

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

value added tax and other sales taxes.

The company recognises revenue when the amount of revenue can be measured reliably, when it is probable

that future economic benefits will flow to the entity and when risks and rewards of ownership have passed to the

customer. This typically happens when goods are delivered and legal title has passed.

Tangible fixed assets

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

Short leasehold

-

The length of the lease

Plant and machinery

-

10% - 20% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% 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.

Financial instruments

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

provisions of the financial instrument.

Cash and cash equivalents:

These comprise cash at bank and short-term highly liquid bank deposits with an original maturity of three

months or less.

Debtors:

Debtors do not carry any interest and are stated at their nominal value. Appropriate allowances for estimated

irrecoverable amounts are recognised in the Profit and Loss account when there is objective evidence that the

asset is impaired.

Creditors:

Creditors are not interest bearing and are stated at their nominal amount.

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 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

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

£

£

EU sales

37,720,671

36,214,592

Non-EU sales

3,460,926

3,532,768

41,181,597

39,747,360

4.	OTHER OPERATING INCOME

31.3.18

31.3.17

£

£

Scrap sales

13,981

12,998

Management income

32,400

32,400

Exchange gains

-

24,101

46,381

69,499

5.	EMPLOYEES AND DIRECTORS

31.3.18

31.3.17

£

£

Wages and salaries

1,889,037

1,653,850

Social security costs

62,831

49,193

Other pension costs

8,366

8,067

1,960,234

1,711,110

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

31.3.18

31.3.17

Production

82

80

Administration

5

5

87

85

31.3.18

31.3.17

£

£

Director's remuneration

-

-

6.	OPERATING PROFIT

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

31.3.18

31.3.17

£

£

Depreciation - owned assets

131,432

65,920

Auditors remuneration

13,750

12,500

Auditors' remuneration for non audit work

823

1,277

Foreign exchange differences

70,562

(24,101

)

Operating lease rentals: property

287,294

222,000

Operating lease rentals: plant & machinery

54,495

55,189

Research & development expenditure

1,003

-

Pension costs

8,366

8,067

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

31.3.18

31.3.17

£

£

Bank interest received

6,452

18,267

Corporation tax interest

2,533

1,622

8,985

19,889

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.18

31.3.17

£

£

Corporation tax interest

3,305

5,860

9.

TAXATION

Analysis of the tax charge

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

31.3.18

31.3.17

£

£

Current tax:

UK corporation tax

864,116

928,876

Deferred tax

9,214

7,865

Tax on profit

873,330

936,741

UK corporation tax has been charged at 19% (2017 - 20%).