Smartpay Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05618472 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2017

FOR

SMARTPAY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

Miss R J Ward

C J Futcher

REGISTERED OFFICE:

Blackpool Techology Management Centre

Faraday Way

Blackpool

Lancashire

FY2 0JW

REGISTERED NUMBER:

05618472 (England and Wales)

AUDITORS:

Moss & Williamson Limited

Chartered Accountants

Statutory Auditor

Booth Street Chambers

Ashton-under-Lyne

Lancashire

OL6 7LQ

The directors present their strategic report for the year ended 30 November 2017.

REVIEW OF BUSINESS

The results for the year and financial position of the company are as shown in the annexed financial

statements.

STRENGTHS

Sustaining organic momentum

The directors are pleased to report an increase in turnover and profitability for the year.

We remain pro-active in adapting processes in response to changes in legislation to ensure that

efficiencies and standards are maintained. We pride ourselves on our customer service.

We consistently review our processes and procedures and monitor key performance indicators to manage

and improve performance and expected standards throughout the company.

Key Performance Indicators

2017

2016

£

£

Turnover

138,295,769

85,623,609

Gross margin

0.75%

0.75%

Debtor days

26

34

Creditor days

27

35

Current ratio

1.06

1.05

FUTURE DEVELOPMENTS

Our goals for the forthcoming year are to maintain the standards set and also to concentrate on ensuring all

our employees are trained to the highest standards to achieve excellence throughout the business.

We will ensure any legislation changes are complied with, endeavour to minimise the impact on our

contractors where possible and will continue to provide a compliant and fully comprehensive service.

We will endeavour to not only maintain our position within the market but hopefully enhance it through

extensive marketing.

PRINCIPAL RISKS AND UNCERTAINTIES

We continue to work closely with our specialist advisors and industry experts to ensure we have a full

understanding of how legislative changes affect us to ensure compliance and no interruptions to service to

our customers.

ON BEHALF OF THE BOARD:

Miss R J Ward - Director

24 August 2018

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a Contracts Management

Company.

DIVIDENDS

No dividends will be distributed for the year ended 30 November 2017.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2016 to the

date of this report.

Miss R J Ward

C J Futcher

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, Moss & Williamson Limited, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

Miss R J Ward - Director

24 August 2018

Opinion

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

30 November 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 November 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 three, 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.

Auditors' 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.

Use of our report

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.

Mr M G Foote FCA (Senior Statutory Auditor)

for and on behalf of Moss & Williamson Limited

Chartered Accountants

Statutory Auditor

Booth Street Chambers

Ashton-under-Lyne

Lancashire

OL6 7LQ

24 August 2018

TURNOVER

3

138,295,769

85,623,609

Cost of sales

137,265,279

84,981,999

GROSS PROFIT

1,030,490

641,610

Administrative expenses

845,763

556,130

OPERATING PROFIT

5

184,727

85,480

Interest receivable and similar income

3

1

PROFIT BEFORE TAXATION

184,730

85,481

Tax on profit

6

35,724

17,216

PROFIT FOR THE FINANCIAL YEAR

149,006

68,265

PROFIT FOR THE YEAR

149,006

68,265

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

149,006

68,265

FIXED ASSETS

Tangible assets

7

8,807

10,731

CURRENT ASSETS

Debtors

8

10,282,300

8,390,566

Cash at bank and in hand

532,690

172,857

10,814,990

8,563,423

CREDITORS

Amounts falling due within one year

9

10,227,091

8,126,176

NET CURRENT ASSETS

587,899

437,247

TOTAL ASSETS LESS CURRENT LIABILITIES

596,706

447,978

PROVISIONS FOR LIABILITIES

11

1,070

1,348

NET ASSETS

595,636

446,630

CAPITAL AND RESERVES

Called up share capital

12

1

1

Retained earnings

13

595,635

446,629

SHAREHOLDERS' FUNDS

595,636

446,630

The financial statements were approved by the Board of Directors on 24 August 2018 and were signed on its behalf by:

Miss R J Ward - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2015

1

378,364

378,365

Changes in equity

Total comprehensive income

-

68,265

68,265

Balance at 30 November 2016

1

446,629

446,630

Changes in equity

Total comprehensive income

-

149,006

149,006

Balance at 30 November 2017

1

595,635

595,636

Cash flows from operating activities

Cash generated from operations

1

385,128

(101,456

)

Tax paid

(17,917

)

(18,103

)

Net cash from operating activities

367,211

(119,559

)

Cash flows from investing activities

Purchase of tangible fixed assets

(7,381

)

(4,722

)

Interest received

3

1

Net cash from investing activities

(7,378

)

(4,721

)

Increase/(decrease) in cash and cash equivalents

359,833

(124,280

)

Cash and cash equivalents at beginning of year

2

172,857

297,137

Cash and cash equivalents at end of year

2

532,690

172,857

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

2017

2016

£

£

Profit before taxation

184,730

85,481

Depreciation charges

9,305

9,074

Loss on disposal of fixed assets

-

27

Finance income

(3

)

(1

)

194,032

94,581

Increase in trade and other debtors

(1,891,734

)

(1,666,405

)

Increase in trade and other creditors

2,082,830

1,470,368

Cash generated from operations

385,128

(101,456

)

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 November 2017

30.11.17

1.12.16

£

£

Cash and cash equivalents

532,690

172,857

Year ended 30 November 2016

30.11.16

1.12.15

£

£

Cash and cash equivalents

172,857

297,137

1.	STATUTORY INFORMATION

Smartpay Limited is a private company, limited by shares, registered in England and Wales. The

company's registered number and registered address can be found on the Company Information

page.

The presentation currency of the financial statements is 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.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make

judgements, estimates and assumptions about the carrying amount of assets and liabilities that are

not readily apparent from other sources. The estimates and associated assumptions are based on

historical experience and other factors that are considered to be relevant. Actual results may differ

from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the estimate is revised where the

revision affects only that period, or the period of revision and future periods where the revision affects

both current and future periods.

Turnover

Turnover represents the value of services provided where the right to consideration has been

obtained.

Tangible fixed assets

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

Fixtures and fittings

-

33% on cost and 25% on cost

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling

at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate

of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving

at the operating result.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight line

basis over the period of the lease.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2017

2016

£

£

United Kingdom

135,211,874

83,164,877

Europe

2,110,186

1,613,705

United States of America

541,789

466,039

Other

431,920

378,988

138,295,769

85,623,609

4.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

1,284,948

1,616,294

Social security costs

131,518

170,424

Other pension costs

4,558

2,626

1,421,024

1,789,344

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

2017

2016

Sales and administration

12

8

Service providers

23

33

35

41

2017

2016

£

£

Directors' remuneration

148,031

79,000

5.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Depreciation - owned assets

9,305

9,075

Loss on disposal of fixed assets

-

27

Auditors' remuneration

18,650

6,000

6.

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

36,002

17,917

Deferred tax

(278

)

(701

)

Tax on profit

35,724

17,216

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:

2017

2016

£

£

Profit before tax

184,730

85,481

Profit multiplied by the standard rate of corporation tax in the UK of 19.331% (2016 - 20%)

35,710

17,096

Effects of:

Expenses not deductible for tax purposes

58

120

Depreciation in excess of capital allowances

234

695

Loss on disposal of assets

-

6

Deferred taxation

(278

)

(701

)

Total tax charge

35,724

17,216

7.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 December 2016

58,308

Additions

7,381

At 30 November 2017

65,689

DEPRECIATION

At 1 December 2016

47,577

Charge for year

9,305

At 30 November 2017

56,882

NET BOOK VALUE

At 30 November 2017

8,807

At 30 November 2016

10,731

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

9,770,910

7,905,463

Other debtors

498,000

448,000

VAT

-

23,497

Prepayments and accrued income

13,390

13,606

10,282,300

8,390,566

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

10,073,133

8,017,014

Tax

36,002

17,917

Social security and other taxes

33,622

28,988

VAT

35,911

-

Other creditors

22,015

37,933

Accrued expenses

26,408

24,324

10,227,091

8,126,176

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2017

2016

£

£

Within one year

14,835

14,835

11.	PROVISIONS FOR LIABILITIES

2017

2016

£

£

Deferred tax

1,070

1,348

Deferred

tax

£

Balance at 1 December 2016

1,348

Capital allowances in excess

(278

)

of depreciation

Balance at 30 November 2017

1,070

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

1

Ordinary

£1

1

1

13.

RESERVES

Retained

earnings

£

At 1 December 2016

446,629

Profit for the year

149,006

At 30 November 2017

595,635

14.	CONTROLLING PARTY

The Company is controlled by P G Ruocco who owns 100% of the issued share capital of the

business.