Cabline National Holdings Limited - Limited company accounts 18.2

REGISTERED NUMBER: 07690295 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 November 2018

for

Cabline National Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

J McFaul

M McFaul

REGISTERED OFFICE:

3 Bowden Drive

Boulevard Industrial Park

Beeston

Nottingham

NG9 2JY

REGISTERED NUMBER:

07690295 (England and Wales)

AUDITORS:

Mitten Clarke Audit Limited, (Statutory Auditors)

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

The directors present their strategic report of the company and the group for the year ended 30 November 2018.

REVIEW OF BUSINESS

Principal activities:

The principal activity of the business during the year is the provision of Managed Taxi Services for corporate

businesses requiring services across all parts of the UK. The business holds major contracts with large and

well-known organisations from the Rail, Breakdown, Assistance, Insurance and Public Service sectors, as well as

generating regular repeat business from a range of other sectors and industries.

The Directors expect the Group to make further strides in our bid to grow the business by maintaining a strong

position in our core and established sectors, whilst at the same time via the use of improved technology to help

target new markets, which can help realise accelerated growth.

2018 was a period of consolidation as Cabline invested in technology and carried out a full review of its brand

and values. This period of review has enabled Cabline to define a clearer strategy for growth. The investment in

technology has enabled Cabline to offer a wider scope of services and more feature enhanced booking tools,

which in turn will open up opportunities to sell to a wider cross section of clients. Establishment of the Cabline

visions and values provides great optimism for the future direction of the business.

Business review and results:

The Group has seen an increase in the demands for its services both from new and existing customers where

Cabline have been able to "upsell" to additional departments or other business units within their current groups,

or where new customers from new sectors have approached Cabline for solutions.

Cabline won a major tender with one of its largest clients securing a longer-term contractual agreement and a

significant increase in the level of services provided. This important contract win, the increased business from

new customers and the retention of all of its key contracts has meant another year of strong performance.

The new features and improvements within our new software solutions will open new markets for Cabline. The

improved software solutions can enable tracking of vehicles, credit card booking, easier white labelling of

solutions and greater configurability to match specific customer or sector needs. This has therefore resulted in

the turnover for this year increasing by 32.4% (£2.8m). The gross profit remained strong at 21.14% (2017:

21.87%), which is within the Group's target margin.

The Group funds its growth and development projects through cash reserves. The Group has no external third

party borrowings.

The Group generates positive cash flow from existing services as a result of good cash collection and tight cost

control, using these funds to invest in new technology and marketing to help expand the services and

capabilities.

PRINCIPAL RISKS AND UNCERTAINTIES

Business growth and change management:

Implementation of our new core CRM/Booking software has been completed successfully. This major change to a

new software platform for the business has been challenging but the full benefits of the new technology are now

starting to be realised. The Board is extremely optimistic about the substantial benefits the new software can

offer to our clients as well as the improvement to internal processes and reporting. The implementation of this

software solution provides some certainty on future direction and will enable the business to offer new and

improved solutions both now and in the future.

Cabline has also invested in a new branding exercise and a completely new website was developed. This was part

of the new digital marketing plan, which will see Cabline's approach generating business having more of a digital

emphasis. Cabline will launch the new brand and website in an announcement and publicity drive during 2019.

Technology disruptors and Mobility as a Service (MaaS):

With Uber's service now fully established within the hearts and minds of many consumers, its entrant into the

business to business market has been less straightforward. With more businesses realising the potential of

on-demand taxis and the role they can play in business mobility, the opportunity for credible alternatives that

can provide similar services with the added features of improved reliability, customer service, geographical

coverage and controlled predictable pricing. The Cabline board believes it is still very well placed to exploit

these significant opportunities.

The latest industry trend surrounds 'Mobility as a service' (MaaS). This is the latest disruptive technology solution

which will revolutionise how people get around in urban areas and cities in the future. MaaS solutions will enable

consumers and businesses to buy transport services from one single source or platform. Service providers will be

accessed through a single solution or app, with all transport services including bus, train, taxi etc all

incorporated into one convenient solution enabling the traveller to buy transport in a smarter, more informed

way than before.

The challenge for Cabline is to continue to position its solutions so it can offer services not easily found

elsewhere, such as the ability to supply in all geographical areas and not concentrate only on urbanised areas

whilst offering user-friendly solutions.

Industry consolidation and legislative changes:

Significant legislative changes within the taxi and private hire industry means that cost pressures are continuing

to be felt by private hire operators. These changes include increased licensing fees, congestion charging in

London (and imminent plans for other UK Cities), along with CO2 emission limits and charging zones. These

changes coupled with increasing fleet replacement costs to help tackle the move away from diesel engines have

placed considerable cost pressures within the supply chain. A full commercial review of the Cabline pricing

model will be required once the full impact of these changes is fully understood.

The Directors have identified three key operational priorities for the next financial year, which are

summarised below:

1: Integration with software platforms to retain current customers and help attract new ones

Both customer systems and suppliers despatching platforms can be integrated with, using the new software

solutions. This will mean the ability to tie in customers in a stronger way to the Cabline solution, enabling

seamless booking and single sign on solutions etc. Likewise, for the suppliers, integrated bookings will result in

less administration and more control for the Cabline operations team.

2: Use our "insight" reporting to provide better data to our management team and customers

The new reporting system will enable key business performance indicators to be illustrated and reported upon

instantly. Providing immediate data to management staff to enable better decision making and react faster to

changing trends relating to performance and costs.

3: Focused marketing to advertise our new capabilities to businesses seeking the solutions Cabline can

deliver

The shift away from traditional sales methods has meant that alternative strategies are being pursued. This

includes a digital marketing strategy which will help target new customers searching for solutions that Cabline

provides via targeting of key search terms and online targeted advertising.

Likewise, Cabline's business development team will continue to search for and work on large tender bids along

with targeting new and emerging sectors that are starting to use taxis as a mobility solution for their business.

KEY PERFORMANCE INDICATORS

The Group has a number of KPIs which are used to analyse current performance and assist with business

development. Monthly KPIs are used to monitor financial and operational performance and are used to inform our

business decisions. The KPIs include revenue growth, client satisfaction, supplier performance tracking and

margin & cash management and compliance with regulated activities. They also include any contractual KPIs

applicable to the services provided.

Cabline have invested in a reporting system called "Insight" which provides 'live' current KPI data that will enable

the Directors and Senior Management team to see current performance and monitor any key trends and changes.

These reports will provide a real insight into the daily, weekly, monthly and annual performance of the business.

ON BEHALF OF THE BOARD:

J McFaul - Director

15 May 2019

The directors present their report with the financial statements of the company and the group for the year

ended 30 November 2018.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of providing taxi management services.

The principal activity of the parent company in the year under review was that of a holding company.

DIVIDENDS

Interim dividends of £450,000 were declared during the year.

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30th November 2018 will be £450,000.

RESEARCH AND DEVELOPMENT

Research and development costs in relation to software were incurred during the year as detailed in the notes to

the accounts.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2017 to the date of

this report.

J McFaul

M McFaul

DISCLOSURE IN THE STRATEGIC REPORT

The group has chosen in accordance with section 414C(11) of Companies Act 2006 (Strategic Report and

Directors' Report) Regulations 2013 to set out in the group's Strategic Report information required by schedule 7

of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial

position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

Mitten Clarke Audit Limited, has indicated its willingness to continue in office and will be proposed for

re-appointment in accordance with section 485 Companies Act 2006.

ON BEHALF OF THE BOARD:

J McFaul - Director

15 May 2019

Opinion

We have audited the financial statements of Cabline National Holdings Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 30 November 2018 which comprise the Consolidated Statement of

Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position,

Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement

of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 30 November 2018 and of the group's 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 group 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 group'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

Group 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, 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 Group 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 Group 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 group and the parent company and its environment

obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 five, 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 group's and the parent

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 group or the parent

company or to cease operations, or have 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.

Ashley M Conway (Senior Statutory Auditor)

for and on behalf of Mitten Clarke Audit Limited, (Statutory Auditors)

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

17 May 2019

TURNOVER

11,474,339

8,669,235

Cost of sales

9,049,107

6,773,401

GROSS PROFIT

2,425,232

1,895,834

Administrative expenses

1,430,492

1,083,157

994,740

812,677

Other operating income

5,020

10,724

OPERATING PROFIT

5

999,760

823,401

Interest receivable and similar income

13,207

12,226

1,012,967

835,627

Interest payable and similar expenses

7

695

6,387

PROFIT BEFORE TAXATION

1,012,272

829,240

Tax on profit

8

181,306

151,992

PROFIT FOR THE FINANCIAL YEAR

830,966

677,248

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

830,966

677,248

Profit attributable to:

Owners of the parent

830,966

677,248

Total comprehensive income attributable to:

Owners of the parent

830,966

677,248

FIXED ASSETS

Intangible assets

11

125,000

-

Tangible assets

12

18,594

20,848

Investments

13

1

1

143,595

20,849

CURRENT ASSETS

Debtors

14

2,548,925

2,709,315

Cash at bank

2,786,651

2,423,988

5,335,576

5,133,303

CREDITORS

Amounts falling due within one year

15

2,352,073

2,516,582

NET CURRENT ASSETS

2,983,503

2,616,721

TOTAL ASSETS LESS CURRENT LIABILITIES

3,127,098

2,637,570

PROVISIONS FOR LIABILITIES

17

26,000

2,600

NET ASSETS

3,101,098

2,634,970

CAPITAL AND RESERVES

Called up share capital

18

108

102

Retained earnings

19

3,100,990

2,634,868

SHAREHOLDERS' FUNDS

3,101,098

2,634,970

The financial statements were approved by the Board of Directors on 15 May 2019 and were signed on its behalf

by:

J McFaul - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

103

102

103

102

CURRENT ASSETS

Debtors

14

3,216

598,724

Cash at bank

1,126,983

797,187

1,130,199

1,395,911

CREDITORS

Amounts falling due within one year

15

31,646

453,871

NET CURRENT ASSETS

1,098,553

942,040

TOTAL ASSETS LESS CURRENT LIABILITIES

1,098,656

942,142

CAPITAL AND RESERVES

Called up share capital

18

108

102

Retained earnings

19

1,098,548

942,040

SHAREHOLDERS' FUNDS

1,098,656

942,142

Company's profit for the financial year

521,352

808,931

The financial statements were approved by the Board of Directors on 15 May 2019 and were signed on its behalf by:

J McFaul - Director

M McFaul - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2016

102

2,427,620

2,427,722

Changes in equity

Dividends

-

(470,000

)

(470,000

)

Total comprehensive income

-

677,248

677,248

Balance at 30 November 2017

102

2,634,868

2,634,970

Changes in equity

Increase in share capital

6

-

6

Share based payment

-

85,156

85,156

Dividends

-

(450,000

)

(450,000

)

Total comprehensive income

-

830,966

830,966

Balance at 30 November 2018

108

3,100,990

3,101,098

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2016

102

603,109

603,211

Changes in equity

Dividends

-

(470,000

)

(470,000

)

Total comprehensive income

-

808,931

808,931

Balance at 30 November 2017

102

942,040

942,142

Changes in equity

Increase in share capital

6

-

6

Share based payment

-

85,156

85,156

Dividends

-

(450,000

)

(450,000

)

Total comprehensive income

-

521,352

521,352

Balance at 30 November 2018

108

1,098,548

1,098,656

Cash flows from operating activities

Cash generated from operations

1

618,911

1,550,739

Interest paid

(695

)

(6,387

)

Tax paid

(287,641

)

(268,899

)

Net cash from operating activities

330,575

1,275,453

Cash flows from investing activities

Purchase of intangible fixed assets

(125,000

)

-

Purchase of tangible fixed assets

(6,121

)

(8,093

)

Interest received

13,207

12,226

Net cash from investing activities

(117,914

)

4,133

Cash flows from financing activities

Amount introduced by directors

599,996

-

Amount withdrawn by directors

-

(516,701

)

Share issue

6

-

Equity dividends paid

(450,000

)

(470,000

)

Net cash from financing activities

150,002

(986,701

)

Increase in cash and cash equivalents

362,663

292,885

Cash and cash equivalents at beginning of year

2

2,423,988

2,131,103

Cash and cash equivalents at end of year

2

2,786,651

2,423,988

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

2018

2017

£

£

Profit before taxation

1,012,272

829,240

Depreciation charges

8,375

6,800

Profit on disposal of fixed assets

-

(388

)

Share based payment transactions

85,156

-

Finance costs

695

6,387

Finance income

(13,207

)

(12,226

)

1,093,291

829,813

(Increase)/decrease in trade and other debtors

(435,118

)

721,388

Decrease in trade and other creditors

(39,262

)

(462

)

Cash generated from operations

618,911

1,550,739

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 30 November 2018

30.11.18

1.12.17

£

£

Cash and cash equivalents

2,786,651

2,423,988

Year ended 30 November 2017

30.11.17

1.12.16

£

£

Cash and cash equivalents

2,423,988

2,131,103

1.	STATUTORY INFORMATION

Cabline National Holdings 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 General

Information page.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention and are presented in

Pounds Sterling (£) being the functional currency.

Basis of consolidation

The consolidated financial statements incorporate those of Cabline National Holdings Limited and its

subsidiary undertakings for the period. All financial statements are made up to 30 November 2018.

All intra-group transactions, balances and unrealised gains on transactions between group companies are

eliminated on consolidation.

The holding company has not presented its profit and loss account as provided by Section 408 of the

Companies Act 2006.

The financial statements have been prepared on the assumption that the company and the group are able

to carry on business as a going concern, which the directors consider appropriate having regard to the

company and the group's current and expected performance.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related

party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the group's accounting policies, the directors are required to make judgements,

estimates and assumptions about the carrying amounts of assets and liabilities that are not readily

apparent from other sources. The estimates and associated assumptions are based on historical

experience and other factors that are considered to be relevant. Actual results may differ from these

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods.

Specific assumptions and judgements in relation to share based payment transactions can be found in

note 22.

There are no other significant judgements and estimates which have a material impact on these accounts.