Shiny Sky Limited - Limited company accounts 18.1d

REGISTERED NUMBER: 05244139 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2017

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

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

St Paul's House

23 Park Square

Leeds

LS1 2ND

The directors present their strategic report for the year ended 30 September 2017.

REVIEW OF BUSINESS

The directors are pleased to report another strong year of trading. Company turnover has increased by 22% with no

significant impact upon margin. Revenues are expected to continue to rise following the successful acquisition of a

smaller private hire firm in September 2016 and the directors intentions to make further acquisitions.

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 its 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

9 April 2018

The directors present their report with the financial statements of the company for the year ended 30 September 2017.

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

£80.63

Ordinary B Shares

£80.63

Ordinary C Shares

£27.00

Ordinary D Shares

£36.00

Ordinary E Shares

£41.28

Ordinary F Shares

£19.17

The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 30 September 2017 will be £684,450.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2016 to the date of this

report.

D J Richmond

Mrs B J Richmond

D Graham

Other changes in directors holding office are as follows:

Mrs H G Brown - resigned due to retirement 31 May 2017.

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made charitable donations of £12,562.

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

9 April 2018

Opinion

We have audited the financial statements of Shiny Sky Limited (the 'company') for the year ended 30 September 2017

which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 September 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.

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 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, 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 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.

Our 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.

Gavin Bell (Senior Statutory Auditor)

for and on behalf of Bartfields (UK) Limited

Statutory Auditors

St Paul's House

23 Park Square

Leeds

LS1 2ND

9 April 2018

REVENUE

11,247,185

9,201,096

Cost of sales

2,419,559

1,587,636

GROSS PROFIT

8,827,626

7,613,460

Administrative expenses

7,603,218

6,484,309

OPERATING PROFIT

4

1,224,408

1,129,151

Interest payable and similar expenses

6

205,897

120,344

PROFIT BEFORE TAXATION

1,018,511

1,008,807

Tax on profit

7

222,825

211,848

PROFIT FOR THE FINANCIAL YEAR

795,686

796,959

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

795,686

796,959

FIXED ASSETS

Intangible assets

9

348,980

633,713

Property, plant and equipment

10

3,045,313

2,748,424

3,394,293

3,382,137

CURRENT ASSETS

Debtors

11

1,939,314

1,651,027

Cash at bank and in hand

874,471

907,241

2,813,785

2,558,268

CREDITORS

Amounts falling due within one year

12

2,922,054

3,168,658

NET CURRENT LIABILITIES

(108,269

)

(610,390

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,286,024

2,771,747

CREDITORS

Amounts falling due after more than one year

13

(1,986,884

)

(1,546,670

)

PROVISIONS FOR LIABILITIES

17

(62,000

)

(99,173

)

NET ASSETS

1,237,140

1,125,904

CAPITAL AND RESERVES

Called up share capital

18

10,000

10,000

Retained earnings

19

1,227,140

1,115,904

SHAREHOLDERS' FUNDS

1,237,140

1,125,904

The financial statements were approved by the Board of Directors on 9 April 2018 and were signed on its behalf by:

D J Richmond - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 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

Changes in equity

Dividends

-

(684,450

)

(684,450

)

Total comprehensive income

-

795,686

795,686

Balance at 30 September 2017

10,000

1,227,140

1,237,140

Cash flows from operating activities

Cash generated from operations

1

2,640,747

1,612,946

Interest paid

(110,312

)

(35,287

)

Interest element of hire purchase payments paid

(95,585

)

(85,057

)

Tax paid

(234,187

)

(173,513

)

Net cash from operating activities

2,200,663

1,319,089

Cash flows from investing activities

Purchase of intangible fixed assets

-

(290,840

)

Purchase of tangible fixed assets

(1,882,197

)

(1,032,601

)

Sale of tangible fixed assets

540,223

198,858

Net cash from investing activities

(1,341,974

)

(1,124,583

)

Cash flows from financing activities

New loans in year

-

1,250,000

Loan repayments in year

-

(338,509

)

Net hire purchase repayments in year

(112,863

)

(85,403

)

Amount introduced by directors

648,450

630,000

Amount withdrawn by directors

(742,596

)

(633,588

)

Equity dividends paid

(684,450

)

(664,500

)

Net cash from financing activities

(891,459

)

158,000

(Decrease)/increase in cash and cash equivalents

(32,770

)

352,506

Cash and cash equivalents at beginning of year

2

907,241

554,735

Cash and cash equivalents at end of year

2

874,471

907,241

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

2017

2016

£

£

Profit before taxation

1,018,511

1,008,807

Depreciation charges

1,091,537

823,898

Loss on disposal of fixed assets

30,782

987

Finance costs

205,897

120,344

2,346,727

1,954,036

Increase in trade and other debtors

(194,141

)

(620,041

)

Increase in trade and other creditors

488,161

278,951

Cash generated from operations

2,640,747

1,612,946

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 2017

30.9.17

1.10.16

£

£

Cash and cash equivalents

874,471

907,241

Year ended 30 September 2016

30.9.16

1.10.15

£

£

Cash and cash equivalents

907,241

554,735

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.

Goodwill

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

evenly over its estimated useful life in relation to each business acquired.

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.

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

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.

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.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

1,904,786

1,501,763

Social security costs

171,402

134,497

Other pension costs

31,918

7,907

2,108,106

1,644,167

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

2017

2016

Operatives

72

59

Administrative

18

17

90

76

2017

2016

£

£

Directors' remuneration

201,361

195,974

Directors' pension contributions to money purchase schemes

20,000

-

Information regarding the highest paid director for the year ended 30 September 2017 is as follows:

2017

£

Emoluments etc

113,964

4.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Hire of plant and machinery

12,050

9,659

Other operating leases

2,210,150

2,250,933

Depreciation - owned assets

231,479

252,376

Depreciation - assets on hire purchase contracts

782,824

566,478

Loss on disposal of fixed assets

30,782

987

Goodwill amortisation

77,233

5,044

5.	AUDITORS' REMUNERATION

2017

2016

£

£

Fees payable to the company's auditors for:

Audit of the company's financial statements

9,600

9,600

Accountancy and tax advisory services

12,354

11,424

21,954

21,024

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Bank loan interest

110,312

35,287

Hire purchase

95,585

85,057

205,897

120,344

7.

TAXATION

Analysis of the tax charge

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

2017

2016

£

£

Current tax:

UK corporation tax

259,998

231,932

Deferred taxation

(37,173

)

(20,084

)

Tax on profit

222,825

211,848

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:

2017

2016

£

£

Profit before tax

1,018,511

1,008,807

Profit multiplied by the standard rate of corporation tax in the UK of 19.500% (2016 - 20%)

198,610

201,761

Effects of:

Expenses not deductible for tax purposes

3,781

3,499

Depreciation in excess of capital allowances

57,607

28,927

Overprovision

-

(2,255

)

Movement in deferred tax

(37,173

)

(20,084

)

Total tax charge

222,825

211,848

8.

DIVIDENDS

2017

2016

£

£

Ordinary A shares of £1 each

285,027

278,381

Ordinary B shares of £1 each

319,698

351,619

Ordinary C shares of £1 each

13,500

-

Ordinary D shares of £1 each

36,000

34,500

Ordinary E shares of £1 each

20,640

-

Ordinary F shares of £1 each

9,585

-

684,450

508,327

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 October 2016

1,145,840

Reduction in cost of goodwill

(207,500

)

At 30 September 2017

938,340

AMORTISATION

At 1 October 2016

512,127

Amortisation for year

77,233

At 30 September 2017

589,360

NET BOOK VALUE

At 30 September 2017

348,980

At 30 September 2016

633,713