Smartpay Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05618472 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2018

FOR

SMARTPAY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

6

Other 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

DIRECTOR:

Miss R J Ward

REGISTERED OFFICE:

Blackpool Techology Management Centre

Faraday Way

Blackpool

Lancashire

FY2 0JW

REGISTERED NUMBER:

05618472 (England and Wales)

AUDITORS:

Moss & Williamson Limited

Chartered Accountants

Statutory Auditor

Booth Street Chambers

Ashton-under-Lyne

Lancashire

OL6 7LQ

The directors present their 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.

STRENGTHS

Sustaining organic momentum

The director considers the results achieved this year to be satisfactory.

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

86,852,905

138,295,769

Gross margin

0.79%

0.75%

Debtor days

15

26

Creditor days

10

27

Current ratio

1.19

1.06

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.

We will endeavour to maintain our position within the market.

PRINCIPAL RISKS AND UNCERTAINTIES

We continue to work closely with our specialist advisors and industry experts to ensure we have a full

understanding of how legislative changes affect us to ensure compliance and no interruptions to service to

our customers.

ON BEHALF OF THE BOARD:

Miss R J Ward - Director

30 August 2019

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a Contracts Management Company.

DIVIDENDS

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

DIRECTORS

Miss R J Ward has held office during the whole of the period from 1 December 2017 to the date of this report.

Other changes in directors holding office are as follows:

C J Futcher - resigned 27 November 2018

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 she 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 her to ensure that the financial statements comply with the Companies Act 2006. She 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 she has taken all the steps that she

ought to have taken as a director in order to make herself 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:

Miss R J Ward - Director

30 August 2019

Opinion

We have audited the financial statements of Smartpay 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.

Mr 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

86,852,905

138,295,769

Cost of sales

86,170,893

137,265,279

GROSS PROFIT

682,012

1,030,490

Administrative expenses

575,573

845,763

OPERATING PROFIT

5

106,439

184,727

Interest receivable and similar income

178

3

PROFIT BEFORE TAXATION

106,617

184,730

Tax on profit

6

21,379

35,724

PROFIT FOR THE FINANCIAL YEAR

85,238

149,006

PROFIT FOR THE YEAR

85,238

149,006

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

85,238

149,006

FIXED ASSETS

Tangible assets

7

3,908

8,807

CURRENT ASSETS

Debtors

8

4,127,140

10,282,300

Cash at bank and in hand

75,255

532,690

4,202,395

10,814,990

CREDITORS

Amounts falling due within one year

9

3,525,196

10,227,091

NET CURRENT ASSETS

677,199

587,899

TOTAL ASSETS LESS CURRENT LIABILITIES

681,107

596,706

PROVISIONS FOR LIABILITIES

11

233

1,070

NET ASSETS

680,874

595,636

CAPITAL AND RESERVES

Called up share capital

12

1

1

Retained earnings

13

680,873

595,635

SHAREHOLDERS' FUNDS

680,874

595,636

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

Miss R J Ward - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2016

1

446,629

446,630

Changes in equity

Total comprehensive income

-

149,006

149,006

Balance at 30 November 2017

1

595,635

595,636

Changes in equity

Total comprehensive income

-

85,238

85,238

Balance at 30 November 2018

1

680,873

680,874

Cash flows from operating activities

Cash generated from operations

1

(420,974

)

385,128

Tax paid

(36,002

)

(17,917

)

Net cash from operating activities

(456,976

)

367,211

Cash flows from investing activities

Purchase of tangible fixed assets

(637

)

(7,381

)

Interest received

178

3

Net cash from investing activities

(459

)

(7,378

)

(Decrease)/increase in cash and cash equivalents

(457,435

)

359,833

Cash and cash equivalents at beginning of year

2

532,690

172,857

Cash and cash equivalents at end of year

2

75,255

532,690

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

2018

2017

£

£

Profit before taxation

106,617

184,730

Depreciation charges

5,536

9,305

Finance income

(178

)

(3

)

111,975

194,032

Decrease/(increase) in trade and other debtors

6,155,160

(1,891,734

)

(Decrease)/increase in trade and other creditors

(6,688,109

)

2,082,830

Cash generated from operations

(420,974

)

385,128

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

75,255

532,690

Year ended 30 November 2017

30.11.17

1.12.16

£

£

Cash and cash equivalents

532,690

172,857

1.	STATUTORY INFORMATION

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

company's registered number and registered address can 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 directors are 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 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 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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

33% on cost and 25% on cost

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

84,989,326

135,211,874

Europe

671,823

2,110,186

United States of America

645,811

541,789

Other

545,945

431,920

86,852,905

138,295,769

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

795,944

1,284,948

Social security costs

81,350

131,518

Other pension costs

4,642

4,558

881,936

1,421,024

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

2018

2017

Sales and administration

10

12

Service providers

32

23

42

35

2018

2017

£

£

Directors' remuneration

143,724

148,031

5.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Depreciation - owned assets

5,536

9,305

Auditors' remuneration

15,005

18,650

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

22,216

36,002

Deferred tax

(837

)

(278

)

Tax on profit

21,379

35,724

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

106,617

184,730

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.331%)

20,257

35,710

Effects of:

Expenses not deductible for tax purposes

1,140

58

Depreciation in excess of capital allowances

819

234

Deferred taxation

(837

)

(278

)

Total tax charge

21,379

35,724

7.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 December 2017

65,689

Additions

637

At 30 November 2018

66,326

DEPRECIATION

At 1 December 2017

56,882

Charge for year

5,536

At 30 November 2018

62,418

NET BOOK VALUE

At 30 November 2018

3,908

At 30 November 2017

8,807

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

3,612,840

9,770,910

Other debtors

498,000

498,000

Prepayments and accrued income

16,300

13,390

4,127,140

10,282,300

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

2,339,054

10,073,133

Tax

22,216

36,002

Social security and other taxes

23,688

33,622

VAT

1,080,853

35,911

Other creditors

32,908

22,015

Accrued expenses

26,477

26,408

3,525,196

10,227,091

10.	LEASING AGREEMENTS

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

2018

2017

£

£

Within one year

14,835

14,835

11.	PROVISIONS FOR LIABILITIES

2018

2017

£

£

Deferred tax

233

1,070

Deferred

tax

£

Balance at 1 December 2017

1,070

Capital allowances in excess

(837

)

of depreciation

Balance at 30 November 2018

233

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

1

Ordinary

£1

1

1

13.

RESERVES

Retained

earnings

£

At 1 December 2017

595,635

Profit for the year

85,238

At 30 November 2018

680,873

14.	CONTROLLING PARTY

The Company is controlled by P G Ruocco who owns 100% of the issued share capital of the

business.