Cabline UK Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05318399 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 November 2017

for

Cabline UK Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

9

Other Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

J McFaul

M McFaul

S Madge

SECRETARY:

J McFaul

REGISTERED OFFICE:

3 Bowden Drive

Boulevard Industrial Park

Beeston

Nottingham

NG9 2JY

REGISTERED NUMBER:

05318399 (England and Wales)

AUDITORS:

Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

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

REVIEW OF BUSINESS

Principal activities:

The principal activity of the business during the year is the provision of Managed Taxi Services for corporate

businesses requiring services across all parts of the UK. The business holds major contracts with large and well

known organisations from the Rail, Breakdown, Assistance, Insurance and Public Service sectors, as well as

generating regular repeat business from a range of other sectors and industries.

The Directors expect the Company to grow next year with revenue expected from additional contracts and

customers identified within some of our core markets. The digital marketing strategy is expected to increase the

number of direct sales enquiries and opportunities, along with the growing interest in the taxi and private hire

sector.

The Company is ideally placed to exploit the growing interest in ground transport solutions for business travel

through its supply chain network and ability to offer a solution that is comprehensive in relation to geographical

coverage and scale within the United Kingdom.

Business review and results:

The company aspires to be the providers of choice for businesses seeking to consolidate and simplify their taxi

and ground transport spend to enable our clients to increase operational efficiency, save costs and improve

service.

The turnover for this year decreased by 30.5% (£3.8m) due to a handful of contracts expiring. These contacts

have since been replaced with new customers identified from our core markets. The gross profit remained strong

at 21.87%, which is within The Company's target margin.

During the year we have focused on rebalancing the range of work undertaken to ensure that there is a more

diverse mix of contracts to provide sustainable work which ensures greater longevity and helps spread our

exposure. The benefits of this process will continue into 2018 and beyond.

The Company funds its growth and development projects through cash reserves. The company has no external

third party borrowings.

The Company generates positive cash flow from existing services as a result of good cash collection and tight

cost control, using these funds to invest in new technology and marketing to help expand the services and

capabilities.

PRINCIPAL RISKS AND UNCERTAINTIES

Business growth and change management:

The Company continues to grow as a result of its reliable performance capabilities and consistent service quality.

This has been achieved via the use of well defined and proven processes and the continued growth of the supply

chain. The company has also worked closely with our software partners to ensure innovative solutions are

available to our customers. The Directors ensure that the business has the capacity to respond to increases in

service demands and to mobilise more than one large contract at a time. The Directors are satisfied that such

matters are properly discussed by the senior management team and are adequately resourced.

Technology disruptors and new market entrants:

Uber's disruptive influence continues to be felt within the taxi and private hire market. The development of their

"Uber for Business" service demonstrates that whilst the technology disrupters have concentrated on the B2C

market to date, new entrants within the B2B sector will be inevitable. Current app and online booking solutions

are clearly less suited to B2B as they have traditionally concentrated on the technology solution and avoided

customers that require a more managed element to their services; this has meant few new genuine entrants into

The Company's more specialised markets. The Company's challenge will be to incorporate improved technology,

whilst maintaining the important 'managed' element to our services.

Industry consolidation and legislative changes:

The private hire industry has fought back against the tech disrupters through new technology solutions and via

mergers and consolidation. The consolidation has meant the creation of much larger taxi suppliers and the

formation of bigger more powerful taxi groups. The company is monitoring closely mergers and acquisitions

within our supply chain.

The Directors have identified three key operational priorities for the year ending 30 November 2018, which

are summarised below:

1: Creating a new digital focused marketing strategy

The Company has appointed a digital agency to refresh the brand and create a new digital marketing strategy to

transform The Company's marketing approach. This will help to define The Company's values further and create a

clear vision for our future direction.

2: New software partnership

The Company has carried out extensive market research to select the most suitable software partner that could

provide a fully tested and proven software platform that could be adapted to cater for Cabline's specific and

specialised requirements. The software will allow easy integration with other platforms and supplier software as

well as user friendly, customer facing booking tools.

3: Continued recruitment to strengthen the management team

The Company has identified key areas within the business that will benefit from the recruitment of new

management roles within the Management team to help cater for the anticipated growth generated by the new

brand, marketing and software initiatives. These positions will be phased in over a 12-month period to cater for

the strategic growth.

KEY PERFORMANCE INDICATORS

The Company has a number of KPIs which are used to analyse current performance and assist with business

development. Monthly KPIs are used to monitor financial and operational performance and are used to inform our

business decisions. The KPIs include revenue growth, client satisfaction, supplier performance tracking and

margin & cash management and compliance with regulated activities.

ON BEHALF OF THE BOARD:

J McFaul - Director

28 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 providing taxi management services.

DIVIDENDS

Interim dividends of £800,000 were paid during the year.

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 November 2017 will be £800,000.

DIRECTORS

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

this report.

J McFaul

M McFaul

S Madge

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) of Companies Act 2006 (Strategic Report and

Directors' Report) Regulations 2013 to set out in the company's Strategic Report information required by schedule

7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to

establish that the company's auditors are aware of that information.

AUDITORS

Mitten Clarke Audit Limited, has indicated its willingness to continue in office and will be proposed for

re-appointment in accordance with section 485 Companies Act 2006.

ON BEHALF OF THE BOARD:

J McFaul - Director

28 August 2018

Opinion

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

30 November 2017 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial

Position, Statement of Changes in Equity 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).

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 five, 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.

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 an auditor's report 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.

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.

Adam Clarke BA FCA (Senior Statutory Auditor)

for and on behalf of Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

31 August 2018

TURNOVER

8,669,235

12,480,983

Cost of sales

6,773,401

9,726,843

GROSS PROFIT

1,895,834

2,754,140

Administrative expenses

1,082,135

1,375,909

813,699

1,378,231

Other operating income

10,724

1,369

OPERATING PROFIT

6

824,423

1,379,600

Interest receivable and similar income

135

-

824,558

1,379,600

Interest payable and similar expenses

8

6,387

834

PROFIT BEFORE TAXATION

818,171

1,378,766

Tax on profit

9

149,852

277,445

PROFIT FOR THE FINANCIAL YEAR

668,319

1,101,321

PROFIT FOR THE YEAR

668,319

1,101,321

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

668,319

1,101,321

FIXED ASSETS

Tangible assets

11

20,848

24,143

Investments

12

2

2

20,850

24,145

CURRENT ASSETS

Debtors

13

2,562,321

3,418,213

Cash at bank

1,626,801

1,023,539

4,189,122

4,441,752

CREDITORS

Amounts falling due within one year

14

2,514,440

2,636,622

NET CURRENT ASSETS

1,674,682

1,805,130

TOTAL ASSETS LESS CURRENT LIABILITIES

1,695,532

1,829,275

CREDITORS

Amounts falling due after more than one year

15

-

(2,262

)

PROVISIONS FOR LIABILITIES

18

(2,600

)

(2,400

)

NET ASSETS

1,692,932

1,824,613

CAPITAL AND RESERVES

Called up share capital

19

102

102

Retained earnings

20

1,692,830

1,824,511

SHAREHOLDERS' FUNDS

1,692,932

1,824,613

The financial statements were approved by the Board of Directors on 28 August 2018 and were signed on its behalf by:

J McFaul - Director

M McFaul - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2015

102

1,833,790

1,833,892

Changes in equity

Dividends

-

(1,110,600

)

(1,110,600

)

Total comprehensive income

-

1,101,321

1,101,321

Balance at 30 November 2016

102

1,824,511

1,824,613

Changes in equity

Dividends

-

(800,000

)

(800,000

)

Total comprehensive income

-

668,319

668,319

Balance at 30 November 2017

102

1,692,830

1,692,932

1.	STATUTORY INFORMATION

Cabline UK 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.	STATUTORY INFORMATION

Cabline UK 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.

3.	STATEMENT OF COMPLIANCE

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.

4.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements cover the company as an individual entity, have been prepared under the

historical cost convention and are presented in Pounds Sterling (£) being the functional currency.

The financial statements have been prepared on the assumption that the company is able to carry on

business as a going concern, which the directors consider appropriate having regard to the company's

current and expected performance.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic

of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland' section 1AC.35, not to

disclose related party transactions with wholly owned subsidiaries within the group.

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 amounts 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 if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods.

Key sources of estimation uncertainty

The directors consider that the key estimates and assumptions used in preparing the financial statements

relates to the completeness and accuracy of a liability in respect of certain permits, which is held within

other creditors. For elements of the permits liability, there is a matching asset held within cash at bank.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Fixtures and fittings

-

15% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33.33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

Taxation for the year comprises current and deferred tax if applicable. 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held

under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the

shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account 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.

Fixed assets investments

Fixed asset investments are stated at transaction price less provision for permanent diminution in value.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the

contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the

assets of the company after deducting all of its liabilities.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs),

except for those financial assets classified as at fair value through profit or loss, which are initially

measured at fair value (which is normally the transaction price excluding transaction costs), unless the

arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction,

the financial asset or financial liability is measured at the present value of the future payments

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

Debt instruments which meet the conditions for basic financial instruments are subsequently measured at

amortised cost using the effective interest method.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged,

cancelled or expires.

(ii) Investments and Equity instruments

In the company balance sheet, investment in subsidiaries are measured at cost less impairment.

5.

EMPLOYEES

2017

2016

£

£

Wages and salaries

704,081

869,247

Social security costs

53,273

56,741

Other pension costs

12,973

155,000

770,327

1,080,988

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

2017

2016

Directors, management and administration

13

11

Operators and controllers

29

52

42

63

2017

2016

£

£

Directors' remuneration

104,718

91,133

Directors' pension contributions to money purchase schemes

12,000

155,000

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

Money purchase schemes

1

3

6.	OPERATING PROFIT

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

2017

2016

£

£

Depreciation - owned assets

6,800

5,939

Depreciation - assets on hire purchase contracts

-

1,529

Profit on disposal of fixed assets

(388

)

-

Auditors' remuneration

7,500

7,500

R&D expenditure

23,712

21,219

7.	EXCEPTIONAL ITEMS

2017

2016

£

£

Share of profit from LLP

10,724

1,369

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Other interest

6,387

-

Hire purchase

-

834

6,387

834

9.

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

149,652

275,045

Deferred tax

200

2,400

Tax on profit

149,852

277,445

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

818,171

1,378,766

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2016 - 20%)

155,452

275,753

Effects of:

Expenses not deductible for tax purposes

13

157

Changes in UK tax rates

2,670

-

Other income not taxable

(2,111

)

(274

)

Deferred tax not provided

(165

)

1,809

Tax allowable loss from Cabline Properties LLP

(254

)

-

Tax reclaimed on R&D

(6,044

)

-

Share of rental income from Cabline Properties LLP

291

-

Total tax charge

149,852

277,445

10.

DIVIDENDS

2017

2016

£

£

Interim

800,000

1,110,600

11.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 December 2016

39,158

14,500

30,295

83,953

Additions

7,163

-

930

8,093

Disposals

-

(14,500

)

-

(14,500

)

At 30 November 2017

46,321

-

31,225

77,546

DEPRECIATION

At 1 December 2016

22,829

9,912

27,069

59,810

Charge for year

4,873

-

1,927

6,800

Eliminated on disposal

-

(9,912

)

-

(9,912

)

At 30 November 2017

27,702

-

28,996

56,698

NET BOOK VALUE

At 30 November 2017

18,619

-

2,229

20,848

At 30 November 2016

16,329

4,588

3,226

24,143