A wooden toy maker and wholesaler saw pre-tax profits slip to £194,000 from £427,000 due to failed tax relief schemes.

Bigjig Toys, based in Folkestone, suffered an overall loss on the year of £101,000, after a profit of £288,000 in 2014, when it was forced to pay a £295,000 tax bill, above the rate of corporation tax.

The company, which employs about 40 people on the West Farm Park Industrial Estate, had made significant payments into failed tax mitigation schemes.

The firm, which sells its products in John Lewis, Amazon, Trotters and Mulberry Bush online toy shop, increased turnover to £8.1 million, up from £7.3 million.

International sales have spearheaded recent growth, but selling abroad brings its complexities.

The company buys from its suppliers in dollars and sells in pounds, euros and zlotys, the Polish currency.

Gross profit reached £1.96 million, up slightly from £1.94 million, although the margin slipped to 24.1% from 26.2%.

Earnings before interest, taxes and other charges slipped to £319,000 from £502,000 in 2014.