Shield Group Limited - Period Ending 2016-12-31

Registration number: 05544561 (England and Wales)

Shield Group Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

Shield Group Limited

Contents

Company Information	1
Directors' Report	2
Statement of Income and Retained Earnings	3
Statement of Financial Position	4 to 5
Notes to the Financial Statements	6 to 11

Shield Group Limited

Company Information

Directors

C Patsalides R Scott

Company secretary

R Scott

Registered office

Salatin House 19 Cedar Road Sutton Surrey SM2 5DA

Accountants

Harmer Slater Limited Salatin House 19 Cedar Road Sutton Surrey SM2 5DA

Page 1

Shield Group Limited

Directors' Report for the Year Ended 31 December 2016

The Directors present their report and the financial statements for the year ended 31 December 2016.

Directors of the Company

The directors who held office during the year and up to the date of approval of these financial statements were as follows:

C Patsalides

R Scott

Principal activity

The principal activity of the company is that of a holding company.

Going concern

No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.

Small companies provision statement

The directors have taken advantage of the small companies’ exemptions provided by sections 414B and 415A of the Companies Act 2006 from the requirement to prepare a strategic report and in preparing the directors’ report on the grounds that the company is entitled to prepare its accounts for the year in accordance with the small companies regime.

Approved by the Board on 28 September 2017 and signed on its behalf by:

.........................................
C Patsalides
Director

Page 2

Shield Group Limited

Statement of Income and Retained Earnings
for the Year Ended 31 December 2016

	Note	2016  £	2015  £
Revenue		-	-
Administrative expenses		(900)	(955)
Operating loss		(900)	(955)
Income from participating interests		54,000	55,000
Other interest receivable and similar income		8,937	7,811
Interest payable and similar charges		(5,417)	(5,715)
		57,520	57,096
Profit before tax		56,620	56,141
Taxation		(213)	-
Profit for the financial year		56,407	56,141
Retained earnings brought forward		14,087	18,415
Dividends paid		(56,250)	(60,470)
Retained earnings carried forward		14,244	14,086

The notes on pages 6 to 11 form an integral part of these financial statements.
Page 3

Shield Group Limited

(Registration number: 05544561)
Statement of Financial Position as at 31 December 2016

	Note	2016  £	2015  £
Non current assets
Investments		421,302	367,302
Current assets
Receivables	4	356,666	347,727
Cash at bank		-	3
		356,666	347,730
Payables: Amounts falling due within one year	5	(159,493)	(157,362)
Net current assets		197,173	190,368
Total assets less current liabilities		618,475	557,670
Payables: Amounts falling due after more than one year	5	(603,231)	(542,584)
Net assets		15,244	15,086
Equity
Called up share capital		1,000	1,000
Retained earnings		14,244	14,086
Total equity		15,244	15,086

The notes on pages 6 to 11 form an integral part of these financial statements.
Page 4

Shield Group Limited

(Registration number: 05544561)
Statement of Financial Position as at 31 December 2016 (continued)

For the financial year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.

These financial statements were approved and authorised by the Board on 28 September 2017 and signed on its behalf by:
 

.........................................

C Patsalides

Director

The notes on pages 6 to 11 form an integral part of these financial statements.
Page 5

Shield Group Limited

Notes to the Financial Statements
for the Year Ended 31 December 2016

1	General information

Shield Group Limited ("the company") is a private company limited by share capital incorporated in the United Kingdom under the Companies Act.

The address of its registered office is given on page 1. The nature of the company's operations and its principal activities are set out in the Director's Report on page 2.

2	Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' Section 1A and in accordance with the Companies Act 2006. There were no material departures from that standard.

These financial statements for the year ended 31 December 2016 are the first financial statements that comply with FRS 102 Section 1A small entities. The company transitioned from previously extant UK GAAP to FRS 102 on 1 January 2015. An explanation of how the transition to FRS 102 has affected the reported financial position and financial performance is given in note 8.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of the company is considered to be pounds sterling (£) because that is that currency of the primary economic environment in which the company operates. The financial statements are presented in sterling (£).

Tax

Corporation tax payable is provided on taxable profits at the current rate of tax.

Deferred tax is provided in full on timing differences which represent a liability at the balance sheet date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income or expenditure in tax computations in periods different from those in which they are included in the financial statements. Deferred tax assets and liabilities are not discounted.

Page 6

Shield Group Limited

Notes to the Financial Statements
for the Year Ended 31 December 2016
(continued)

2	Accounting policies (continued)

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Receivables

Receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Payables

Payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 7

Shield Group Limited

Notes to the Financial Statements
for the Year Ended 31 December 2016
(continued)

2	Accounting policies (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Income Statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
 

3	Investments

	2016  £	2015  £
Investments in subsidiaries	421,302	367,302

Page 8

Shield Group Limited

Notes to the Financial Statements
for the Year Ended 31 December 2016
(continued)

3	Investments (continued)

Subsidiaries	£
Cost
At 1 January 2016	367,302
Additions	54,000
At 31 December 2016	421,302
Provision
Carrying amount
At 31 December 2016	421,302
At 31 December 2015	367,302

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Country of incorporation	Holding	Proportion of voting rights and shares held
			2016	2015
Subsidiary undertakings
Business Line Insurance Services Limited	England and Wales	Ordinary	60%	60%
Allied Systems Limited	England and Wales	Ordinary	60%	60%

The principal activity of Business Line Insurance Services Limited is Insurance brokers

The principal activity of Allied Systems Limited is Holding company

The profit for the financial period of Business Line Insurance Services Limited was £57,838 and the aggregate amount of capital and reserves at the end of the period was £118,687.

The profit for the financial period of Allied Systems Limited was £53,755 and the aggregate amount of capital and reserves at the end of the period was £528.

Page 9

Shield Group Limited

Notes to the Financial Statements
for the Year Ended 31 December 2016
(continued)

4	Receivables

	2016  £	2015  £
Other Receivables	81,216	79,622
Accrued income	275,450	268,105
	356,666	347,727

5

Payables

	Note	2016  £	2015  £
Due within one year
Bank overdraft		348	-
Trade payables		900	-
Corporation tax		213	-
Accruals		158,032	157,362
		159,493	157,362
Due after one year
Amount owed to subsidiary company		341,162	271,715
Other payables		262,069	270,869
		603,231	542,584

6

Dividends

	2016	2015
	£	£
Final dividend of £56.25 (2015 - £60.47) per ordinary share	56,250	60,470

Page 10

Shield Group Limited

Notes to the Financial Statements
for the Year Ended 31 December 2016
(continued)

7	Related party transactions

At 31 December 2016 the company was owed £421,242 (2015: £367,242) by its subsidiary Allied Systems Limited. The loan is receivable after more than one year and carries interest at a rate of 2%.

At 31 December 2016 the company owed £341,162 (2015: £271,715) to its subsidiary Business Line Insurance Services Limited. The loan is interest free and has no fixed repayment date or repayment schedule.

At 31 December 2016 the company owed its directors, C Patsalides £241,759 (2015: £250,559) and R Scott £20,310 (2015: £20,310). The loans are repayable after more than one year and carry interest at 2%.

8	Transition to FRS 102

The company is a first time adopter of FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council. The last financial statements prepared under previously extant UK GAAP was for the year ended 31 December 2015 and the date of transition to FRS 102 was therefore 1 January 2015. As a consequence of the adoption of FRS 102, there has been no effect on accounting policies. In addition, the transition has had no effect on the company's reported financial position and financial performance.

Page 11