Shiny Sky Limited - Limited company accounts 16.3

REGISTERED NUMBER: 05244139 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2016

FOR

SHINY SKY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

D J Richmond

Mrs B J Richmond

D Graham

Mrs H G Brown

SECRETARY:

H Palmer

REGISTERED OFFICE:

107 - 109 New Road Side

Horsforth

Leeds

LS18 4QD

REGISTERED NUMBER:

05244139 (England and Wales)

AUDITORS:

Bartfields (UK) Limited

Statutory Auditors

4th Floor, Stockdale House

Headingley Office Park

8 Victoria Road

Leeds

LS6 1PF

The directors present their strategic report for the year ended 30 September 2016.

REVIEW OF BUSINESS

The directors are pleased to report another strong year of trading. Company turnover has increased by 25% with no

discernible impact upon margin. Revenues are expected to continue to rise following the succesful acquisition of a

smaller private hire firm in September 2016. In order to assist with this and other potential future acquisitions additional

long term financing was put in place just before the year end.

PRINCIPAL RISKS AND UNCERTAINTIES

The company continues to comfortably meet its minimum guarantee requirements and covenants for its exclusive airport

contracts thereby mitigating the company's principal risk of these contracts coming to an end.

In addition, the Company continues to invest heavily in it's vehicle fleet and marketing activities thus enabling it to

manage the risk posed by it's competitors.

The Company has a blue chip customer base and strict debtor procedures in place to manage the risk of bad debts, which

are consistently at a negligible level.

Other than factors outside of the Company's control, the Directors are not aware of any significant risks which may

adversely impact on the Company during the forthcoming financial year.

ON BEHALF OF THE BOARD:

D J Richmond - Director

10 April 2017

The directors present their report with the financial statements of the company for the year ended 30 September 2016.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of licensed private hire firm and private hire

booking agency.

DIVIDENDS

Interim dividends per share were paid as follows:

Ordinary A Shares

£78.75

Ordinary B Shares

£78.75

Ordinary D Shares

£34.50

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 30 September 2016 will be £664,500.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2015 to the date of this

report.

D J Richmond

Mrs B J Richmond

D Graham

Mrs H G Brown

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made charitable donations of £6,000.

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, Bartfields (UK) Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

D J Richmond - Director

10 April 2017

We have audited the financial statements of Shiny Sky Limited for the year ended 30 September 2016 on pages seven to

nineteen. 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 30 September 2016 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.

Gavin Bell (Senior Statutory Auditor)

for and on behalf of Bartfields (UK) Limited

Statutory Auditors

4th Floor, Stockdale House

Headingley Office Park

8 Victoria Road

Leeds

LS6 1PF

10 April 2017

REVENUE

9,201,096

7,357,405

Cost of sales

1,587,636

1,200,291

GROSS PROFIT

7,613,460

6,157,114

Administrative expenses

6,484,309

5,049,305

OPERATING PROFIT

4

1,129,151

1,107,809

Interest payable and similar charges

6

120,344

95,128

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

1,008,807

1,012,681

Tax on profit on ordinary activities

7

211,848

210,861

PROFIT FOR THE FINANCIAL YEAR

796,959

801,820

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

796,959

801,820

FIXED ASSETS

Intangible assets

9

633,713

47,917

Property, plant and equipment

10

2,748,424

2,634,522

3,382,137

2,682,439

CURRENT ASSETS

Debtors

11

1,651,027

1,027,398

Cash at bank and in hand

907,241

554,735

2,558,268

1,582,133

CREDITORS

Amounts falling due within one year

12

3,168,658

2,057,196

NET CURRENT LIABILITIES

(610,390

)

(475,063

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,771,747

2,207,376

CREDITORS

Amounts falling due after more than one year

13

(1,546,670

)

(1,094,674

)

PROVISIONS FOR LIABILITIES

17

(99,173

)

(119,257

)

NET ASSETS

1,125,904

993,445

CAPITAL AND RESERVES

Called up share capital

18

10,000

10,000

Retained earnings

19

1,115,904

983,445

SHAREHOLDERS' FUNDS

1,125,904

993,445

The financial statements were approved by the Board of Directors on 10 April 2017 and were signed on its behalf by:

D J Richmond - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2014

10,000

689,952

699,952

Changes in equity

Dividends

-

(508,327

)

(508,327

)

Total comprehensive income

-

801,820

801,820

Balance at 30 September 2015

10,000

983,445

993,445

Changes in equity

Dividends

-

(664,500

)

(664,500

)

Total comprehensive income

-

796,959

796,959

Balance at 30 September 2016

10,000

1,115,904

1,125,904

Cash flows from operating activities

Cash generated from operations

1

1,612,946

2,059,105

Interest paid

(35,287

)

(16,044

)

Interest element of hire purchase payments paid

(85,057

)

(79,084

)

Tax paid

(173,513

)

(158,179

)

Net cash from operating activities

1,319,089

1,805,798

Cash flows from investing activities

Purchase of intangible fixed assets

(290,840

)

-

Purchase of tangible fixed assets

(1,032,601

)

(1,261,561

)

Sale of tangible fixed assets

198,858

184,112

Net cash from investing activities

(1,124,583

)

(1,077,449

)

Cash flows from financing activities

New loans in year

1,250,000

150,000

Loan repayments in year

(338,509

)

(50,060

)

Net hire purchase repayments in year

(85,403

)

99,702

Amount introduced by directors

630,000

506,821

Amount withdrawn by directors

(633,588

)

(492,666

)

Equity dividends paid

(664,500

)

(508,327

)

Net cash from financing activities

158,000

(294,530

)

Increase in cash and cash equivalents

352,506

433,819

Cash and cash equivalents at beginning of year

2

554,735

120,916

Cash and cash equivalents at end of year

2

907,241

554,735

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

2016

2015

£

£

Profit before taxation

1,008,807

1,012,681

Depreciation charges

823,898

684,753

Loss/(profit) on disposal of fixed assets

987

(1,541

)

Finance costs

120,344

95,128

1,954,036

1,791,021

Increase in trade and other debtors

(620,041

)

(72,229

)

Increase in trade and other creditors

278,951

340,313

Cash generated from operations

1,612,946

2,059,105

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 30 September 2016

30.9.16

1.10.15

£

£

Cash and cash equivalents

907,241

554,735

Year ended 30 September 2015

30.9.15

1.10.14

£

£

Cash and cash equivalents

554,735

120,916

1.	STATUTORY INFORMATION

Shiny Sky 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 represents net invoices sales of services, excluding value added tax. Income from drivers who use

company owned vehicles is included within turnover as it falls due.

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.

Improvements to property

-

25% on cost

Plant and machinery

-

25% on cost and 15% on cost

Fixtures and fittings

-

25% on cost, 16.67% on cost and 15% on cost

Motor vehicles

-

25% on cost, 20% on cost and 15% on cost

Computer equipment

-

25% on cost

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

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.

Goodwill

Goodwill, being the amounts paid in connection with the acquisition of several businesses, is being written off

evenly over its estimated useful life. This varies between ten and twenty years.

3.	STAFF COSTS

2016

2015

£

£

Wages and salaries

1,501,763

1,257,922

Social security costs

134,497

109,415

Other pension costs

7,907

1,441

1,644,167

1,368,778

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

2016

2015

Operatives

59

51

Administrative

17

16

76

67

4.	OPERATING PROFIT

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

2016

2015

£

£

Hire of plant and machinery

9,659

14,865

Other operating leases

2,250,933

1,656,179

Depreciation - owned assets

252,376

117,051

Depreciation - assets on hire purchase contracts

566,478

562,658

Loss/(profit) on disposal of fixed assets

987

(1,541

)

Goodwill amortisation

5,044

5,044

Directors' remuneration

195,974

187,522

5.	AUDITORS' REMUNERATION

2016

2015

£

£

Fees payable to the company's auditors for:

Audit of the company's financial statements

9,600

8,600

Accountancy and tax advisory services

11,424

1,000

21,024

9,600

6.

INTEREST PAYABLE AND SIMILAR CHARGES

2016

2015

£

£

Bank loan interest

35,287

16,044

Hire purchase

85,057

79,084

120,344

95,128

7.

TAXATION

Analysis of the tax charge

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

2016

2015

£

£

Current tax:

UK corporation tax

231,932

175,769

Deferred taxation

(20,084

)

35,092

Tax on profit on ordinary activities

211,848

210,861

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2016

2015

£

£

Profit on ordinary activities before tax

1,008,807

1,012,681

Profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 20% (2015 - 20.500%)

201,761

207,600

Effects of:

Expenses not deductible for tax purposes

3,499

4,375

Capital allowances in excess of depreciation

-

(37,651

)

Depreciation in excess of capital allowances

28,927

-

Marginal relief

-

(810

)

Overprovision

(2,255

)

2,255

Movement in deferred tax

(20,084

)

35,092

Total tax charge

211,848

210,861

8.

DIVIDENDS

2016

2015

£

£

Ordinary A shares of £1 each

278,381

201,557

Ordinary B shares of £1 each

351,619

254,582

Ordinary C shares of £1 each

-

50,682

Ordinary D shares of £1 each

34,500

1,506

664,500

508,327

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 October 2015

555,000

Additions

590,840

At 30 September 2016

1,145,840

AMORTISATION

At 1 October 2015

507,083

Amortisation for year

5,044

At 30 September 2016

512,127

NET BOOK VALUE

At 30 September 2016

633,713

At 30 September 2015

47,917

10.	PROPERTY, PLANT AND EQUIPMENT

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 October 2015

102,557

642,467

213,513

Additions

8,080

50,346

366,490

At 30 September 2016

110,637

692,813

580,003

DEPRECIATION

At 1 October 2015

92,506

522,370

138,022

Charge for year

7,174

45,276

42,252

Eliminated on disposal

-

-

-

At 30 September 2016

99,680

567,646

180,274

NET BOOK VALUE

At 30 September 2016

10,957

125,167

399,729

At 30 September 2015

10,051

120,097

75,491