Snappy Snaps Franchises Limited - Limited company accounts 16.3

REGISTERED NUMBER: 02632020 (England and Wales)

SNAPPY SNAPS FRANCHISES LIMITED

DIRECTORS' REPORT AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 2 OCTOBER 2016 TO 30 SEPTEMBER 2017

Page

Company Information

1

Directors' Report

2

Statement of Comprehensive Income

3

Balance Sheet

4

Statement of Changes in Equity

6

Notes to the Financial Statements

7

DIRECTORS:

W J A Timpson

W J Timpson

P Majithia

SECRETARY:

P Majithia

REGISTERED OFFICE:

Timpson House

Claverton Road

Wythenshawe

Manchester

M23 9TT

REGISTERED NUMBER:

02632020 (England and Wales)

The directors present their report with the financial statements of the company for the period 2 October 2016 to 30 September 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of the franchising of retail outlets specialising

in photographic processing and imaging. There were no significant changes in the year.

DIRECTORS

The directors shown below have held office during the whole of the period from 2 October 2016 to the date of this

report.

W J A Timpson

W J Timpson

P Majithia

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:

P Majithia - Director

15 May 2018

TURNOVER

3,980,013

3,776,630

Cost of sales

1,858,827

1,542,870

GROSS PROFIT

2,121,186

2,233,760

Administrative expenses

832,371

608,500

OPERATING PROFIT

4

1,288,815

1,625,260

Interest receivable and similar income

981

2,589

PROFIT BEFORE TAXATION

1,289,796

1,627,849

Tax on profit

6

298,190

319,909

PROFIT FOR THE FINANCIAL PERIOD

991,606

1,307,940

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

991,606

1,307,940

FIXED ASSETS

Intangible assets

7

9,195

20,846

Tangible assets

8

263,229

224,567

272,424

245,413

CURRENT ASSETS

Stocks

39,360

36,321

Debtors

9

6,423,039

5,317,298

Cash at bank and in hand

566,136

385,096

7,028,535

5,738,715

CREDITORS

Amounts falling due within one year

10

2,586,431

2,260,779

NET CURRENT ASSETS

4,442,104

3,477,936

TOTAL ASSETS LESS CURRENT LIABILITIES

4,714,528

3,723,349

PROVISIONS FOR LIABILITIES

31,482

31,909

NET ASSETS

4,683,046

3,691,440

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

4,683,044

3,691,438

SHAREHOLDERS' FUNDS

4,683,046

3,691,440

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 September 2017.

The members have not required the company to obtain an audit of its financial statements for the period ended 30 September 2017 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 15 May 2018 and were signed on its behalf by:

P Majithia - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 27 September 2015

2

2,383,498

2,383,500

Changes in equity

Total comprehensive income

-

1,307,940

1,307,940

Balance at 1 October 2016

2

3,691,438

3,691,440

Changes in equity

Total comprehensive income

-

991,606

991,606

Balance at 30 September 2017

2

4,683,044

4,683,046

1.	STATUTORY INFORMATION

Snappy Snaps Franchises 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of 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 comprises revenue recognised by the company in respect of goods and services supplied during the 12

months, exclusive of Value Added Tax and trade discounts.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets and depreciation

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

Plant and machinery

-

Straight line over 10 years

Fixtures and fittings

-

Straight line over 7 years

Computer equipment

-

Straight line over 5 years

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 period 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 period 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 30 .

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

Period

2.10.16

27.9.15

to

to

30.9.17

1.10.16

£

£

Hire of plant and machinery

30,232

26,951

Other operating leases

267,799

265,025

Depreciation - owned assets

45,192

38,053

Profit on disposal of fixed assets

-

(141,443

)

Goodwill amortisation

11,215

13,225

Patents and licences amortisation

436

436

Pension costs

4,364

4,029

5.	EXCEPTIONAL ITEMS

Period

Period

2.10.16

27.9.15

to

to

30.9.17

1.10.16

£

£

Exceptional items

18,081

-

During the year the company wrote back inter-group loans totalling £18,081 (2016: £0).

6.

TAXATION

Analysis of the tax charge

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

Period

Period

2.10.16

27.9.15

to

to

30.9.17

1.10.16

£

£

Current tax:

UK corporation tax

302,578

301,011

Adjustment in respect or prior

periods

(3,961

)

(270

)

Total current tax

298,617

300,741

Deferred tax:

Deferred tax

-

13,265

Adjustment in respect of prior year

(427

)

5,903

Total deferred tax

(427

)

19,168

Tax on profit

298,190

319,909

UK corporation tax has been charged at 19.50% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

Period

Period

2.10.16

27.9.15

to

to

30.9.17

1.10.16

£

£

Profit before tax

1,289,796

1,627,849

Profit multiplied by the standard rate of corporation tax in the UK of 19.500% (2016 - 20%)

251,510

325,570

Effects of:

Expenses not deductible for tax purposes

49,558

-

Income not taxable for tax purposes

(873

)

(30,991

)

Depreciation in excess of capital allowances

2,383

6,432

Adjustments to tax charge in respect of previous periods

(4,388

)

5,633

Deferred tax

-

13,265

Total tax charge

298,190

319,909

7.	INTANGIBLE FIXED ASSETS

Patents

and

Goodwill

licences

Totals

£

£

£

COST

At 2 October 2016

and 30 September 2017

53,105

3,788

56,893

AMORTISATION

At 2 October 2016

35,445

602

36,047

Amortisation for period

11,215

436

11,651

At 30 September 2017

46,660

1,038

47,698

NET BOOK VALUE

At 30 September 2017

6,445

2,750

9,195

At 1 October 2016

17,660

3,186

20,846

8.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 2 October 2016

137,026

164,940

7,793

309,759

Additions

41,656

31,034

7,371

80,061

Disposals

(3,159

)

(450

)

-

(3,609

)

Transfer to ownership

5,300

-

1,891

7,191

At 30 September 2017

180,823

195,524

17,055

393,402

DEPRECIATION

At 2 October 2016

29,342

52,419

3,431

85,192

Charge for period

16,224

26,186

2,782

45,192

Eliminated on disposal

(184

)

(27

)

-

(211

)

At 30 September 2017

45,382

78,578

6,213

130,173

NET BOOK VALUE

At 30 September 2017

135,441

116,946

10,842

263,229

At 1 October 2016

107,684

112,521

4,362

224,567

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

217,338

225,552

Other debtors

225,701

221,746

Amounts owed by group undertakings

5,980,000

4,870,000

6,423,039

5,317,298

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

21,269

6,250

Amounts owed to group undertakings

919,751

873,623

Tax

122,989

145,921

Social security and other taxes

158,913

157,559

Other creditors

1,363,509

1,077,426

2,586,431

2,260,779