Target Umbrella Limited - Limited company accounts 18.2

REGISTERED NUMBER: NI601264 (Northern Ireland)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2018

FOR

TARGET UMBRELLA LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTOR:

B A R Newton

REGISTERED OFFICE:

303a Antrim Road

Newtownabbey

Antrim

BT36 7AP

REGISTERED NUMBER:

NI601264 (Northern Ireland)

AUDITORS:

Moss & Williamson Limited

Chartered Accountants

Statutory Auditor

Booth Street Chambers

Ashton-under-Lyne

Lancashire

OL6 7LQ

The director presents his strategic report for the year ended 30 November 2018.

REVIEW OF BUSINESS

The results for the year and financial position of the company are as shown in the annexed financial statements.

The directors are pleased to report that revenues continue to be strong with turnover for the year at £50.8m.

We remain pro-active in adapting processes in response to changes in legislation to ensure that efficiencies and

standards are maintained. We pride ourselves on our customer service.

We consistently review our processes and procedures and monitor key performance indicators to manage and

improve performance and expected standards throughout the company.

Key Performance Indicators

2018

2017

£

£

Turnover

50,879,066

50,608,905

Gross margin

1.02%

0.82%

Debtor days

2

11

Creditor days

1

1

Current ratio

1.06

1.02

FUTURE DEVELOPMENTS

Our goals for the forthcoming year are to maintain the standards set and also to concentrate on ensuring all our

employees are trained to the highest standards to achieve excellence throughout the business.

We will ensure any legislation changes are complied with, endeavour to minimise the impact on our contractors

where possible and will continue to provide a compliant and fully comprehensive service.

PRINCIPAL RISKS AND UNCERTAINTIES

The principle risks and uncertainties facing the company are competition impacting on market share and ability to

respond to customer requirements for efficient contractor management solutions.

The company continues to focus on these matters in its strategy for the future.

ON BEHALF OF THE BOARD:

B A R Newton - Director

30 August 2019

The director presents his report with the financial statements of the company for the year ended 30 November 2018.

DIVIDENDS

No dividends will be distributed for the year ended 30 November 2018.

DIRECTOR

B A R Newton held office during the whole of the period from 1 December 2017 to the date of this report.

EMPLOYEES

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the respective

aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled, every

effort is made to ensure that their employment with the Company continues and the appropriate training is

arranged. It is the policy of the Company that the training, career development and promotion of a disabled person

should, as far as possible, be identical to that of a person who does not suffer from a disability.

Employee involvement

Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that

views are taken into account when decisions are made that are likely to affect their interests. All employees are

aware of the financial and economic performance of their business units and of the Company as a whole, and are

rewarded according to the results of both through an annual bonus scheme.

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, Moss & Williamson Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

B A R Newton - Director

30 August 2019

Opinion

We have audited the financial statements of Target Umbrella Limited (the 'company') for the year ended

30 November 2018 which comprise the Income Statement, Other 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).

In our opinion the financial statements:

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

Opinions 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 three, 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.

M G Foote FCA (Senior Statutory Auditor)

for and on behalf of Moss & Williamson Limited

Chartered Accountants

Statutory Auditor

Booth Street Chambers

Ashton-under-Lyne

Lancashire

OL6 7LQ

30 August 2019

TURNOVER

3

50,879,066

50,608,905

Cost of sales

50,361,873

50,193,046

GROSS PROFIT

517,193

415,859

Administrative expenses

424,858

346,261

92,335

69,598

Other operating income

3,640

6,550

OPERATING PROFIT and

PROFIT BEFORE TAXATION

95,975

76,148

Tax on profit

6

19,808

16,409

PROFIT FOR THE FINANCIAL YEAR

76,167

59,739

PROFIT FOR THE YEAR

76,167

59,739

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

76,167

59,739

FIXED ASSETS

Intangible assets

7

16,850

-

CURRENT ASSETS

Debtors

8

1,417,419

2,908,090

Cash at bank

1,888,336

1,612,343

3,305,755

4,520,433

CREDITORS

Amounts falling due within one year

9

3,138,247

4,412,242

NET CURRENT ASSETS

167,508

108,191

TOTAL ASSETS LESS CURRENT LIABILITIES

184,358

108,191

CAPITAL AND RESERVES

Called up share capital

11

1

1

Retained earnings

12

184,357

108,190

SHAREHOLDERS' FUNDS

184,358

108,191

The financial statements were approved by the director on 30 August 2019 and were signed by:

B A R Newton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2016

1

48,451

48,452

Changes in equity

Total comprehensive income

-

59,739

59,739

Balance at 30 November 2017

1

108,190

108,191

Changes in equity

Total comprehensive income

-

76,167

76,167

Balance at 30 November 2018

1

184,357

184,358

Cash flows from operating activities

Cash generated from operations

1

309,252

480,136

Tax paid

(16,409

)

(8,641

)

Net cash from operating activities

292,843

471,495

Cash flows from investing activities

Purchase of intangible fixed assets

(16,850

)

-

Net cash from investing activities

(16,850

)

-

Increase in cash and cash equivalents

275,993

471,495

Cash and cash equivalents at beginning of year

2

1,612,343

1,140,848

Cash and cash equivalents at end of year

2

1,888,336

1,612,343

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

2018

2017

£

£

Profit before taxation

95,975

76,148

Decrease/(increase) in trade and other debtors

1,490,671

(1,508,414

)

(Decrease)/increase in trade and other creditors

(1,277,394

)

1,912,402

Cash generated from operations

309,252

480,136

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 November 2018

30.11.18

1.12.17

£

£

Cash and cash equivalents

1,888,336

1,612,343

Year ended 30 November 2017

30.11.17

1.12.16

£

£

Cash and cash equivalents

1,612,343

1,140,848

1.	STATUTORY INFORMATION

Target Umbrella Limited is a private company, limited by shares, registered in England and Wales. The

company's registered number and registered address may be found on the Company Information page.

The presentation currency of the financial statements is 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, the director is required to make judgements,

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

from other sources. The estimates and other 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 where the revision affects only that

period, or the period of revision and future periods where the revision affects both current and future periods.

Turnover

Turnover represents the value of services provided where the right to consideration has been obtained.

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.

Computer software is being amortised evenly over its estimated useful life of three years.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

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:

2018

2017

£

£

United Kingdom

50,547,050

50,523,896

Europe

275,407

75,529

United States of America

56,609

9,480

50,879,066

50,608,905

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

11,997,028

11,876,509

Social security costs

853,046

868,836

Other pension costs

92,931

35,049

12,943,005

12,780,394

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

2018

2017

Contractors

1,191

1,246

Sales

3

4

1,194

1,250

2018

2017

£

£

Directors' remuneration

2,133

1,500

5.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Auditors' remuneration

9,123

6,750

Foreign exchange differences

21,591

17,641

6.

TAXATION

Analysis of the tax charge

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

2018

2017

£

£

Current tax:

UK corporation tax

19,808

16,409

Tax on profit

19,808

16,409

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:

2018

2017

£

£

Profit before tax

95,975

76,148

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.332%)

18,235

14,721

Effects of:

Expenses not deductible for tax purposes

1,573

1,688

Total tax charge

19,808

16,409

7.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

Additions

16,850

At 30 November 2018

16,850

NET BOOK VALUE

At 30 November 2018

16,850

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

205,135

1,418,925

Other debtors

24,996

15,782

Prepayments and accrued income

1,187,288

1,473,383

1,417,419

2,908,090

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

22,677

15,711

Tax

19,808

16,409

Social security and other taxes

141,414

151,238

VAT

1,796,150

734,288

Other creditors

128,436

34,831

Accruals and deferred income

1,029,762

3,459,765

3,138,247

4,412,242

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2018

2017

£

£

Within one year

38,034

12,075

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

1

Ordinary

1

1

1

12.

RESERVES

Retained

earnings

£

At 1 December 2017

108,190

Profit for the year

76,167

At 30 November 2018

184,357

13.	ULTIMATE CONTROLLING PARTY

The controlling party is B A R Newton.