Billy Bowie Special Projects Limited - Limited company accounts 17.3

REGISTERED NUMBER: SC194894 (Scotland)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 April 2017

for

Billy Bowie Special Projects Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Mrs E Allan

Mr W D Bowie

Mr D C Bowie

Mr A J H Clark

SECRETARY:

Mrs E Allan

REGISTERED OFFICE:

Moorfield Industrial Estate

Kilmarnock

Ayrshire

KA2 0BA

REGISTERED NUMBER:

SC194894 (Scotland)

AUDITORS:

Sinclair Scott

Chartered Accountants and Statutory Auditor

Registered Auditor

3 Wellington Square

Ayr

Ayrshire

KA7 1EN

SOLICITORS:

Burness Paull

120 Bothwell Street

Glasgow

G2 7JL

The directors present their strategic report of the company and group for the year ended 30 April 2017.

The company primarily operates in the waste management sector. However, in March 2014, a controlling interest was acquired in

The Park Hotel Ayrshire Limited, when a new company was formed as part of a restructuring.

In our prime business, we provide a comprehensive range of services covering tanker hire, wet waste disposal, dry waste disposal,

waste sorting and transfer, and certain waste materials can be reprocessed on site through our composting facility. We have additional

sites in Widnes, Cheshire and in Leeds, Yorkshire, although these sites do not have any waste reprocessing capabilities.

The hotel business is independently managed, has a four star rating and serves the Kilmarnock area with a full range of hospitality

options.

Situated in the popular and historic town of Kilmarnock, the heart of rural Ayrshire, the hotel is a refreshing location for romance,

golf, business, dining, short breaks, conferences, banquets, weddings and parties.

Originally opened in June 2002, the hotel has become synonymous with service excellence, innovation and value for money.

Featuring 50 king-sized rooms, state of the art with 37-inch HD televisions and freestat, purpose built conference centre, free

high-speed wireless broadband internet access and free parking for 300 cars.

REVIEW OF BUSINESS

The general economy continued to be difficult during the year. However, we managed to increase our general level of activity and

our profit levels are satisfactory. As a company, we continue to invest in our plant and equipment which ensures we remain at the

forefront of our sector in terms of capability and efficiency.

To assist the company's ongoing modernisation programme, the selling of our older vehicles and tankers to various outlets

throughout the country has become a vital part of the business.

The hotel operation has realised a profit in the current year. We will continue a program of management and operational

improvements to strengthen the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks facing the company include new competitors entering our market, the possibility of changes in the regulatory

environment rendering equipment obsolete, or inefficient and compliance with Health & Safety, Environmental and Employment

regulations, by both us and our customers.

These areas of risk are discussed during our management review meetings and our staff operation meetings and they are monitored

and reported on by various consultants working on behalf of the company. We have continued to invest in both people and systems

to ensure we operate to the highest standards and thereby reduce risk to the company and our customers.

Our hotel subsidiary faces competition on various fronts with local restaurants and small hotels. However, the company is

progressing. We are confident that with the management team now in place, the hotel performance will continue to improve for the

foreseeable future.

PERFORMANCE MONITORING

The company monitors a number of key performance factors including load capacities, fuel efficiency and financial performance on a

weekly and monthly basis. The company has attained the quality and environmental standards ISO9001 and ISO14000 which are

audited externally. These systems help the company's internal motioning and quality control.

An analysis of some key financial performance indicators for our primary activity, is set out below:

Key Performance

2017

2016

Gross profit rate

37.554%

37.276%

Overheads to sales rate

24.219%

22.062%

Profit before tax rate

12.444%

14.092%

EBITDA

28.340%

30.994%

The hotel operation produces monthly performance reports. However, we are in the process of strengthening this aspect of the

company reporting.

ON BEHALF OF THE BOARD:

Mr W D Bowie - Director

23 February 2018

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

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of £5000 per share.

The total distribution of dividends for the year ended 30 April 2017 will be £ 500,000 .

DIRECTORS

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

Mrs E Allan

Mr W D Bowie

Mr D C Bowie

Mr A J H Clark

POLITICAL DONATIONS AND EXPENDITURE

There were no political donations made in the year.

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 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 group's auditors are aware of that

information.

AUDITORS

The auditors, Sinclair Scott, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr W D Bowie - Director

23 February 2018

We have audited the financial statements of Billy Bowie Special Projects Limited for the year ended 30 April 2017 on pages seven to

twenty nine. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable

assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an

assessment of: whether the accounting policies are appropriate to the group's and the parent company's circumstances and have been

consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the

overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Group

Strategic Report and the Report of the Directors to identify material inconsistencies with the audited financial statements and to

identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by

us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider

the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company's affairs as at 30 April 2017 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.

Other matter - prior period adjustment

The financial statements of the company for the year ended 30 April 2016, were audited by another auditor who expressed an

unmodified opinion on those statements on 21 April 2017.

As part of our audit of the 2017 financial statements, we also audited the adjustments described in Note 10 that were applied to

amend the 2016 financial statements. In our opinion, such adjustments are appropriate and have been properly applied. We were not

engaged to audit, review, or apply any procedures to the 2016 financial statements of the company other than with respect to the

adjustments and, accordingly, we do not express an opinion or any other form of assurance on the 2016 financial statements taken as

a whole.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our 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 has been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding

of the group and the parent company and its environment, we have not identified any material misstatements in the Group Strategic

Report or the Report of the Directors.

Matters on which we are required to report by exception

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.

Stephen Wilkie (Senior Statutory Auditor)

for and on behalf of Sinclair Scott

Chartered Accountants and Statutory Auditor

Registered Auditor

3 Wellington Square

Ayr

Ayrshire

KA7 1EN

23 February 2018

TURNOVER

Group and share of associates

21,712,265

21,206,951

Less:

Share of associates' turnover

(1,221,981

)

(955,041

)

GROUP TURNOVER

3

20,490,284

20,251,910

Cost of sales

12,886,110

12,923,343

GROSS PROFIT

7,604,174

7,328,567

Administrative expenses

5,081,943

4,664,881

2,522,231

2,663,686

Other operating income

903

3,053

GROUP OPERATING PROFIT

5

2,523,134

2,666,739

Share of operating profit/(loss) in

Associates

257,576

(16,502

)

Interest payable and similar expenses

6

221,021

269,279

PROFIT BEFORE TAXATION

2,559,689

2,380,958

Tax on profit

7

444,311

488,471

PROFIT FOR THE FINANCIAL YEAR

2,115,378

1,892,487

Profit attributable to:

Owners of the parent

2,104,797

1,947,351

Non-controlling interests

10,581

(54,864

)

2,115,378

1,892,487

PROFIT FOR THE YEAR

2,115,378

1,892,487

OTHER COMPREHENSIVE INCOME

Share of associate revaluation reserve

(26,483

)

(26,494

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(26,483

)

(26,494

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,088,895

1,865,993

Total comprehensive income attributable to:

Owners of the parent

2,078,314

1,920,857

Non-controlling interests

10,581

(54,864

)

2,088,895

1,865,993

FIXED ASSETS

Tangible assets

11

14,520,993

13,890,218

Investments

12

Interest in associate

2,221,655

1,990,562

16,742,648

15,880,780

CURRENT ASSETS

Stocks

13

265,806

305,289

Debtors

14

4,155,918

5,035,321

Cash at bank and in hand

351,345

140,813

4,773,069

5,481,423

CREDITORS

Amounts falling due within one year

15

5,318,601

6,080,665

NET CURRENT LIABILITIES

(545,532

)

(599,242

)

TOTAL ASSETS LESS CURRENT LIABILITIES

16,197,116

15,281,538

CREDITORS

Amounts falling due after more than one year

16

(1,409,127

)

(2,038,976

)

PROVISIONS FOR LIABILITIES

20

(568,757

)

(604,757

)

NET ASSETS

14,219,232

12,637,805

CAPITAL AND RESERVES

Called up share capital

21

100

100

Revaluation reserve

22

(78,334

)

(51,851

)

Retained earnings

22

13,850,480

12,245,683

SHAREHOLDERS' FUNDS

13,772,246

12,193,932

NON-CONTROLLING INTERESTS

23

446,986

443,873

TOTAL EQUITY

14,219,232

12,637,805

The financial statements were approved by the Board of Directors on 23 February 2018 and were signed on its behalf by:

Mr W D Bowie - Director

FIXED ASSETS

Tangible assets

11

12,174,522

11,527,276

Investments

12

1,646,343

1,690,000

13,820,865

13,217,276

CURRENT ASSETS

Stocks

13

224,082

272,325

Debtors

14

4,116,047

4,731,978

Cash at bank and in hand

307,400

173,683

4,647,529

5,177,986

CREDITORS

Amounts falling due within one year

15

4,808,080

5,437,429

NET CURRENT LIABILITIES

(160,551

)

(259,443

)

TOTAL ASSETS LESS CURRENT LIABILITIES

13,660,314

12,957,833

CREDITORS

Amounts falling due after more than one year

16

(390,249

)

(926,762

)

PROVISIONS FOR LIABILITIES

20

(564,028

)

(599,691

)

NET ASSETS

12,706,037

11,431,380

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

12,705,937

11,431,280

SHAREHOLDERS' FUNDS

12,706,037

11,431,380

Company's profit for the financial year

1,774,657

2,020,956

The financial statements were approved by the Board of Directors on 23 February 2018 and were signed on its behalf by:

Mr W D Bowie - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 May 2015

100

10,798,332

(25,357

)

Changes in equity

Dividends

-

(500,000

)

-

Total comprehensive income

-

1,947,351

(26,494

)

Balance at 30 April 2016

100

12,245,683

(51,851

)

Changes in equity

Dividends

-

(500,000

)

-

Total comprehensive income

-

2,104,797

(26,483

)

Balance at 30 April 2017

100

13,850,480

(78,334

)

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 May 2015

10,773,075

498,737

11,271,812

Changes in equity

Dividends

(500,000

)

-

(500,000

)

Total comprehensive income

1,920,857

(54,864

)

1,865,993

Balance at 30 April 2016

12,193,932

443,873

12,637,805

Changes in equity

Dividends

(500,000

)

-

(500,000

)

Total comprehensive income

2,078,314

10,581

2,088,895

Balance at 30 April 2017

13,772,246

454,454

14,226,700

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2015

100

9,910,324

9,910,424

Changes in equity

Dividends

-

(500,000

)

(500,000

)

Total comprehensive income

-

2,020,956

2,020,956

Balance at 30 April 2016

100

11,431,280

11,431,380

Changes in equity

Dividends

-

(500,000

)

(500,000

)

Total comprehensive income

-

1,774,657

1,774,657

Balance at 30 April 2017

100

12,705,937

12,706,037

Cash flows from operating activities

Cash generated from operations

1

5,359,708

4,690,904

Interest paid

(131,304

)

(121,417

)

Interest element of finance lease payments paid

(89,717

)

(147,862

)

Share of (profit)/loss of associated co

(257,576

)

16,502

Tax paid

(598,259

)

(725,375

)

Net cash from operating activities

4,282,852

3,712,752

Cash flows from investing activities

Purchase of tangible fixed assets

(3,714,500

)

(1,606,502

)

Purchase of fixed asset investments

-

(50,000

)

Sale of tangible fixed assets

1,256,267

1,264,973

Net cash from investing activities

(2,458,233

)

(391,529

)

Cash flows from financing activities

Loan repayments in year

(88,894

)

(93,336

)

Capital repayments in year

(1,458,302

)

(2,865,594

)

Amount introduced by directors

813,843

22,943

Amount withdrawn by directors

(656,218

)

-

Equity dividends paid

(500,000

)

(500,000

)

Net cash from financing activities

(1,889,571

)

(3,435,987

)

Decrease in cash and cash equivalents

(64,952

)

(114,764

)

Cash and cash equivalents at beginning of year

2

140,813

255,577

Cash and cash equivalents at end of year

2

75,861

140,813

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

2017

2016

as restated

£

£

Profit before taxation

2,559,689

2,380,958

Depreciation charges

3,216,365

2,865,482

Profit on disposal of fixed assets

(636,068

)

(574,410

)

Government grants

(903

)

(3,053

)

Finance costs

221,021

269,279

5,360,104

4,938,256

Decrease/(increase) in stocks

39,483

(59,677

)

Decrease/(increase) in trade and other debtors

879,403

(887,102

)

(Decrease)/increase in trade and other creditors

(919,282

)

699,427

Cash generated from operations

5,359,708

4,690,904

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 April 2017

30/4/17

1/5/16

£

£

Cash and cash equivalents

351,345

140,813

Bank overdrafts

(275,484

)

-

75,861

140,813

Year ended 30 April 2016

30/4/16

1/5/15

as restated

£

£

Cash and cash equivalents

140,813

313,087

Bank overdrafts

-

(57,510

)

140,813

255,577