Skerritt Consultants Limited - Limited company accounts 18.1d

REGISTERED NUMBER: 04129116 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 31 December 2017

for

Skerritt Consultants Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Income and Retained Earnings

7

Statement of Financial Position

8

Statement of Cash Flows

9

Notes to the Financial Statements

10

Directors:

K L Mcgrath

R J Skerritt

C Y G Skerritt

Secretary:

R J Skerritt

Registered office:

Skerritt House

23 Coleridge Street

Hove

East Sussex

BN3 5AB

Registered number:

04129116 (England and Wales)

Auditors:

Wilson Sandford Limited

Chartered accountant & statutory auditor

85 Church Road

Hove

East Sussex

BN3 2BB

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

Directors

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

of this report.

K L Mcgrath

R J Skerritt

C Y G Skerritt

Statement of directors' responsibilities

The directors are responsible for preparing 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), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'. 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, Wilson Sandford Limited, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

On behalf of the board:

R J Skerritt - Director

27 April 2018

Opinion

We have audited the financial statements of Skerritt Consultants Limited (the 'company') for the year ended

31 December 2017 which comprise the Statement of Income and Retained Earnings, Statement of Financial

Position, Statement of Cash Flows and 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 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, 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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.

Lorna Overstall FCA (Senior Statutory Auditor)

for and on behalf of Wilson Sandford Limited

Chartered accountant & statutory auditor

85 Church Road

Hove

East Sussex

BN3 2BB

27 April 2018

Turnover

3

7,193,646

8,390,694

Cost of sales

(2,994,738

)

(3,766,414

)

Gross profit

4,198,908

4,624,280

Administrative expenses

(1,927,991

)

(2,337,637

)

2,270,917

2,286,643

Other operating income

-

25,239

Operating profit

5

2,270,917

2,311,882

Interest receivable and similar income

2,814

4,118

2,273,731

2,316,000

Interest payable and similar expenses

7

(59

)

-

Profit before taxation

2,273,672

2,316,000

Tax on profit

8

(475,940

)

(489,500

)

Profit for the financial year

1,797,732

1,826,500

Retained earnings at beginning of year

928,117

859,617

Dividends

9

(1,397,478

)

(1,758,000

)

Retained earnings at end of year

1,328,371

928,117

Fixed assets

Intangible assets

10

5,369

90,026

Tangible assets

11

87,617

106,319

92,986

196,345

Current assets

Debtors

12

741,771

879,652

Cash at bank and in hand

1,435,182

730,101

2,176,953

1,609,753

Creditors

Amounts falling due within one year

13

930,226

865,759

Net current assets

1,246,727

743,994

Total assets less current liabilities

1,339,713

940,339

Provisions for liabilities

16

1,342

2,222

Net assets

1,338,371

938,117

Capital and reserves

Called up share capital

17

10,000

10,000

Retained earnings

18

1,328,371

928,117

Shareholders' funds

1,338,371

938,117

The financial statements were approved and authorised for issue by the Board of Directors on 27 April 2018 and were signed on its behalf by:

R J Skerritt - Director

Cash flows from operating activities

Cash generated from operations

21

2,419,174

1,978,915

Interest paid

(59

)

-

Tax paid

(490,033

)

(278,776

)

Net cash from operating activities

1,929,082

1,700,139

Cash flows from investing activities

Purchase of tangible fixed assets

(19,242

)

(57,906

)

Sale of tangible fixed assets

-

18,251

Interest received

2,813

5,913

Net cash from investing activities

(16,429

)

(33,742

)

Cash flows from financing activities

Amount introduced by directors

189,906

83,589

Amount withdrawn by directors

-

(22,478

)

Equity dividends paid

(1,397,478

)

(1,758,000

)

Net cash from financing activities

(1,207,572

)

(1,696,889

)

Increase/(decrease) in cash and cash equivalents

705,081

(30,492

)

Cash and cash equivalents at beginning of year

22

730,101

760,593

Cash and cash equivalents at end of year

22

1,435,182

730,101

1.	Statutory information

Skerritt Consultants 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 (£).

The company's principal activities are the provision of independent financial advisory services and

wealth management.

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.

In the previous financial period, the financial reporting date changed from 30 June 2016 to 31

December 2016. The financial statements cover a twelve month period from 1 January 2017 to 31

December 2017, and the comparative period covers an eighteen month period from 1 July 2015 to 31

December 2016. The reporting date was changed for administrative reasons.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the amounts reported. These estimates and judgements are continually

reviewed and are based on experience and other factors, including expectations of future events that

are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely

equal the related actual outcome. There are no key assumptions and other sources of estimation

uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of

assets and liabilities within the next financial year.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents

commissions and fees receivable for services rendered, stated net of VAT and clawbacks. When the

outcome of a transaction involving the rendering of services can be reliably estimated, revenue from

the rendering of services is measured by reference to the stage of completion of the service transaction

at the end of the reporting period. When the outcome of a transaction involving the rendering of

services cannot be reliably estimated, revenue is recognised only to the extent that expenses

recognised are recoverable. Commissions are receivable on completion of client transactions on risk

date.

Goodwill

Goodwill is initially recorded at cost, and subsequently stated at cost less any accumulated

amortisation and impairment losses.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over

the useful life of that asset as follows:

Goodwill - 20% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or

residual value of an intangible asset, the amortisation is revised prospectively to reflect the new

estimates.

Tangible fixed assets

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

Improvements to property

-

10% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated

depreciation and impairment losses.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the

contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement

constitutes a financing transaction, where it is recognised at the present value of the future payments

discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of

impairment at the end of each reporting date. If there is objective evidence of impairment, an

impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the

reversal does not result in a carrying amount of the financial asset that exceeds what the carrying

amount would have been had the impairment not previously been recognised.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the statement of financial position 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.

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.

3.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover is given below:

Year ended 31/12/17

Period 1/7/15 to 31/12/16

£

£

Rendering of services

6,236,716

7,400,886

Commissions

956,930

989,808

7,193,646

8,390,694

4.	Employees and directors

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

£

£

Wages and salaries

1,454,435

1,602,607

Social security costs

161,407

165,969

Other pension costs

100,503

136,560

1,716,345

1,905,136

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

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

Fee earning staff

13

13

Administrative staff

23

19

36

32

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

£

£

Directors' remuneration

99,595

98,138

Directors' pension contributions to money purchase schemes

42,565

77,243

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

5.	Operating profit

The operating profit is stated after charging:

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

£

£

Shop rent and service charges

147,263

245,419

Depreciation - owned assets

37,910

63,075

Loss on disposal of fixed assets

34

6,831

Goodwill amortisation

84,657

161,173

Auditors' remuneration

7,500

10,000

Taxation compliance services

1,400

2,000

Other non- audit services

10,053

9,191

6.	Exceptional items

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

£

£

Liability released

-

111,666

The company has agreed settlement with a creditor resulting in the release of a liability of £nil (2016:

£111,666).

7.

Interest payable and similar expenses

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

£

£

Interest payable

59

-

8.

Taxation

Analysis of the tax charge

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

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

£

£

Current tax:

UK corporation tax

476,820

490,033

Deferred tax

(880

)

(533

)

Tax on profit

475,940

489,500

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:

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

£

£

Profit before tax

2,273,672

2,316,000

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

437,682

463,200

Effects of:

Expenses not deductible for tax purposes

20,163

22,529

Depreciation in excess of capital allowances

18,975

4,304

Deferred tax

(880

)

(533

)

Total tax charge

475,940

489,500

The standard rate of tax will change from 19% to 18% on 1 April 2020 in line with United Kingdom

legislation.

9.

Dividends

Period

1/7/15

Year Ended

to

31/12/17

31/12/16

£

£

Ordinary A shares of £1 each

Interim

1,397,478

1,758,000

10.	Intangible fixed assets

Goodwill

£

Cost

At 1 January 2017

and 31 December 2017

1,708,869

Amortisation

At 1 January 2017

1,618,843

Amortisation for year

84,657

At 31 December 2017

1,703,500

Net book value

At 31 December 2017

5,369

At 31 December 2016

90,026

11.	Tangible fixed assets

Improvements

Fixtures

to

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

£

£

£

£

Cost

At 1 January 2017

120,757

76,640

77,985

84,535

359,917

Additions

-

11,010

6,667

1,565

19,242

Disposals

-

(13,423

)

(345

)

(1,749

)

(15,517

)

At 31 December 2017

120,757

74,227

84,307

84,351

363,642

Depreciation

At 1 January 2017

91,773

70,436

24,541

66,848

253,598

Charge for year

12,076

6,837

9,011

9,986

37,910

Eliminated on disposal

-

(13,423

)

(311

)

(1,749

)

(15,483

)

At 31 December 2017

103,849

63,850

33,241

75,085

276,025

Net book value

At 31 December 2017

16,908

10,377

51,066

9,266

87,617

At 31 December 2016

28,984

6,204

53,444

17,687

106,319