T(n)S Catering Management Limited - Limited company accounts 18.1d

REGISTERED NUMBER: 04811572 (England and Wales)

T(N)S CATERING MANAGEMENT LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

Page

Company Information

1

Strategic Report

2

Report of the Directors

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

DIRECTORS:

T M Smith

P Tyas

N Cox

A Odell-Rourke

S C Hughes

SECRETARY:

S P Smith

REGISTERED OFFICE:

Perseus House

3 Chapel Court

Holly Walk

Leamington Spa

Warwickshire

CV32 4YS

REGISTERED NUMBER:

04811572 (England and Wales)

AUDITORS:

Sephton & Company LLP

Chartered Certified Accountants

Statutory Auditors

Marston House

5 Elmdon Lane

Marston Green

Solihull

West Midlands

B37 7DL

The directors present their strategic report for the year ended 31 December 2017.

REVIEW OF BUSINESS

As we have stated many times T(n)S is built around the amazing, driven and passionate people we have working in the

company and as this year has seen numerous challenges thrown at us, not least of which moving office, the team have

pulled together and got us through.

We have always believed that looking after our clients and customers is the most important part of what we do and we

have intentionally managed our growth to ensure that this year we had the time to complete our office move and that our

customers still received the exceptional service we are known for. This has resulted in no culpable losses in the year. We

are determined not to join the plethora of Catering companies obsessed with growth even if it makes no profit and puts

extreme pressure on their people. This year turnover is up by 11.8% and Profit before tax by 13.5%.

We have yet again enhanced our employee benefits and this, along with our many awards for staff engagement and

welfare, has seen our reputation as a top company to work for continue to grow in the marketplace. This has reflected in

us being able to pick from the best candidates on the market to join our ever-expanding teams. Our well-established

Academy, which we have developed over the past 10 years, continues to help train, motivate and inspire our people. The

results of this investment are seen in our staff retention as well as through the excellent food and service they deliver.

In line with our commitment to delivering consistency, we have appointed Andrew Odell-Rourke as Managing Director.

Andrew has worked with in T(n)S since its inception and consequently understands the business inside out. Natasha Cox

takes the role of Finance Director, Natasha has also been in the company since its inception. We have also promoted

internally Steve Hughes formerly Operations Director Designate to Operations Director and Richard Drewett, formerly

Senior Operations Manager to Operations Director Designate.

We have also invested in a number of new strategic roles to enable us to be best placed to continue to be a market leader

in our industry. Innovation is vital to set us apart from the mainstream. Highlights include new positions in marketing

and the appointment of a company Executive chef to support new concept innovation and implementation.

Risks to the company are mainly those outside its control such as commodity prices, taxation, legislation changes and of

course Brexit. The Directors are monitoring all of these areas constantly to ensure we are best placed to deal with them.

We are looking for continued growth in 2018 due to extra investment in sales and sales support as well as our excellent

reputation for delivering on our promises every day.

ON BEHALF OF THE BOARD:

T M Smith - Director

22 March 2018

The directors present their report with the financial statements of the company for the year ended 31 December 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of catering management.

DIVIDENDS

Interim dividends per share were paid during the year as follows:

A Ordinary £1

-

£5.40919

B Ordinary £1

-

£5.40919

C Ordinary £1

-

£2.27244

D Ordinary £1

-

£2.27244

The total distribution of dividends for the year ended 31 December 2017 will be £ 592,548 .

DIRECTORS

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

report.

T M Smith

P Tyas

Other changes in directors holding office are as follows:

N Cox - appointed 14 March 2017

A Odell-Rourke - appointed 14 March 2017

S C Hughes was appointed as a director after 31 December 2017 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

During the year charitable donations were made amounting to £3,240.

ENVIRONMENTAL MATTERS AND EMPLOYEE MATTERS

The company runs an EMI scheme as a means of further encouraging the involvement of employees in the company's

performance.

The company is an equal opportunity employer. We are committed to ensuring within the framework of the law that our

workplaces are free from unlawful or unfair discrimination on the grounds of colour, race, nationality, ethnic or national

origin, sex, gender (including gender reassignment), sexual orientation, religion or belief, age, marital or civil

partnership status or physical or mental disability.

The company value diversity and are committed to promoting diversity within the workplace by seeking to ensure that

all individuals are treated fairly with dignity and respect and by recognising and encouraging individual contribution

within the organisation.

The company aims to ensure that its staff achieve their full potential and that all employment decisions are taken without

reference to irrelevant or discriminatory criteria. The company has adopted this Equal Opportunities Policy as a means

of helping to achieve these aims.

The company is committed to ensuring that all its staff and all applicants for employment are protected from unlawful

discrimination in the workplace. We endeavour not to discriminate in the areas of recruitment, selection, promotion,

transfer, training, access to benefits and services, discipline or dismissal. It is also our policy that all employees should

be allowed to work in an environment free from harassment, bullying or unsolicited or unwelcome comments or

overtures on discriminatory grounds.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

company's auditors are aware of that information.

AUDITORS

The auditors, Sephton & Company LLP, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

T M Smith - Director

22 March 2018

Opinion

We have audited the financial statements of T(n)S Catering Management Limited (the 'company') for the year ended

31 December 2017 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).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2017 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 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 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 directors are responsible for the other information. The other information comprises the information in the 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 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, 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 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 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 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 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, 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 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 four, 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 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 company or to cease operations, or have no realistic

alternative but to do so.

Our 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.

Steven Douglas Connell (Senior Statutory Auditor)

for and on behalf of Sephton & Company LLP

Chartered Certified Accountants

Statutory Auditors

Marston House

5 Elmdon Lane

Marston Green

Solihull

West Midlands

B37 7DL

22 March 2018

TURNOVER

18,295,549

16,359,006

Cost of sales

15,490,502

13,992,495

GROSS PROFIT

2,805,047

2,366,511

Administrative expenses

1,787,095

1,469,837

OPERATING PROFIT

4

1,017,952

896,674

Interest receivable and similar income

880

516

PROFIT BEFORE TAXATION

1,018,832

897,190

Tax on profit

5

195,594

196,151

PROFIT FOR THE FINANCIAL YEAR

823,238

701,039

PROFIT FOR THE YEAR

823,238

701,039

OTHER COMPREHENSIVE INCOME

Share based payment

11,362

11,362

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

11,362

11,362

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

834,600

712,401

FIXED ASSETS

Tangible assets

7

64,378

58,241

CURRENT ASSETS

Stocks

8

288,374

258,395

Debtors

9

2,609,667

1,864,866

Cash at bank and in hand

828,770

871,909

3,726,811

2,995,170

CREDITORS

Amounts falling due within one year

10

2,982,466

2,488,981

NET CURRENT ASSETS

744,345

506,189

TOTAL ASSETS LESS CURRENT LIABILITIES

808,723

564,430

PROVISIONS FOR LIABILITIES

12

8,487

6,246

NET ASSETS

800,236

558,184

CAPITAL AND RESERVES

Called up share capital

13

80,000

80,000

Other reserves

14

43,075

31,713

Retained earnings

14

677,161

446,471

SHAREHOLDERS' FUNDS

800,236

558,184

The financial statements were approved by the Board of Directors on 22 March 2018 and were signed on its behalf by:

T M Smith - Director

P Tyas - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2016

80,000

340,978

20,351

441,329

Changes in equity

Dividends

-

(595,546

)

-

(595,546

)

Total comprehensive income

-

701,039

11,362

712,401

Balance at 31 December 2016

80,000

446,471

31,713

558,184

Changes in equity

Dividends

-

(592,548

)

-

(592,548

)

Total comprehensive income

-

823,238

11,362

834,600

Balance at 31 December 2017

80,000

677,161

43,075

800,236

Cash flows from operating activities

Cash generated from operations

1

787,776

883,675

Tax paid

(193,731

)

(150,887

)

Net cash from operating activities

594,045

732,788

Cash flows from investing activities

Purchase of tangible fixed assets

(49,245

)

(40,983

)

Sale of tangible fixed assets

3,729

-

Interest received

880

516

Net cash from investing activities

(44,636

)

(40,467

)

Cash flows from financing activities

Equity dividends paid

(592,548

)

(595,546

)

Net cash from financing activities

(592,548

)

(595,546

)

(Decrease)/increase in cash and cash equivalents

(43,139

)

96,775

Cash and cash equivalents at beginning of year

2

871,909

775,134

Cash and cash equivalents at end of year

2

828,770

871,909

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

2017

2016

£

£

Profit before taxation

1,018,832

897,190

Depreciation charges

37,568

33,211

Loss on disposal of fixed assets

1,811

719

Share based payment reserve

11,362

11,362

Finance income

(880

)

(516

)

1,068,693

941,966

Increase in stocks

(29,979

)

(34,485

)

Increase in trade and other debtors

(744,801

)

(324,249

)

Increase in trade and other creditors

493,863

300,443

Cash generated from operations

787,776

883,675

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 31 December 2017

31/12/17

1/1/17

£

£

Cash and cash equivalents

828,770

871,909

Year ended 31 December 2016

31/12/16

1/1/16

£

£

Cash and cash equivalents

871,909

775,134

1.	STATUTORY INFORMATION

T(n)S Catering Management 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 Company Information page.

The presentation currency of the financial statements is the Pound 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.

Turnover

Turnover represents net invoiced sales in respect of service contracts where turnover is recognised when the

company obtains the right to consideration and has been wholly generated within the United Kingdom.

Tangible fixed assets

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

Office equipment

-

33% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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.

Share-based payments

The company has issued share options to certain employees. The fair value of the employee services received in

exchange for the grant options is recognised as an expense with a corresponding adjustment to equity. The

amount to be expensed each reporting period is determined by reference to the fair value of the options granted

using the intrinsic value method. Non-market vesting conditions (for example profitability and sales targets) are

included in assumptions about the number of options that are expected to vest. At each balance sheet date the

company revises its estimates of the number of options that are expected to vest. After the vesting date, the

company reverses the amount recognised for employee services if the share options are later forfeited or lapse at

the end of the options life.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

9,169,554

8,259,981

Social security costs

121,667

90,127

Other pension costs

130,339

95,362

9,421,560

8,445,470

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

2017

2016

Head office

30

28

Operations

15

15

Site staff

504

485

549

528

2017

2016

£

£

Directors' remuneration

163,645

15,906

4.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Other operating leases

105,194

85,513

Depreciation - owned assets

37,568

33,211

Loss on disposal of fixed assets

1,811

719

Auditors' remuneration

6,000

6,000

Other non- audit services

1,500

1,200

5.

TAXATION

Analysis of the tax charge

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

2017

2016

£

£

Current tax:

UK corporation tax

193,353

193,730

Deferred tax

2,241

2,421

Tax on profit

195,594

196,151

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

2017

2016

£

£

Profit before tax

1,018,832

897,190

Profit multiplied by the standard rate of corporation tax in the UK of 19.250% (2016 - 20%)

196,125

179,438

Effects of:

Expenses not deductible for tax purposes

(125

)

16,713

Capital allowances in excess of depreciation

(2,647

)

(2,421

)

Deferred taxation

2,241

2,421

Total tax charge

195,594

196,151

Tax effects relating to effects of other comprehensive income

2017

Gross

Tax

Net

£

£

£

Share based payment

11,362

-

11,362

2016

Gross

Tax

Net

£

£

£

Share based payment

11,362

-

11,362