Fairgrove Homes Limited Company Accounts

COMPANY REGISTRATION NUMBER: 03026636

Fairgrove Homes Limited

Filleted Unaudited Financial Statements

For the year ended

31 December 2017

Fairgrove Homes Limited

Financial Statements

Year ended 31st December 2017

Contents	Page

Officers and professional advisers	1

Statement of financial position	2

Notes to the financial statements	4

The following pages do not form part of the financial statements

Chartered accountants report to the board of directors on the preparation of the unaudited statutory financial statements	10

Fairgrove Homes Limited

Officers and Professional Advisers

The board of directors	Mr S H Midgley
	Mr C Sedgwick
	Mrs C Midgley
	Mr S D Midgley
	Mr J R Midgley
	Mr A Dorn

Company secretary	Mr C Sedgwick

Registered office	550 Valley Road
	Basford
	Nottingham
	NG5 1JJ

Accountants	Swandec
	Chartered Accountants
	550 Valley Road
	Basford
	Nottingham
	NG5 1JJ

Bankers	National Westminster
	42 Bath Street
	Ilkeston
	DE7 8HF

Fairgrove Homes Limited

Statement of Financial Position

31 December 2017

	2017		2016
Note	£	£	£

Fixed assets

Tangible assets	4		3,791	5,055

Current assets

Stocks		903,667	743,049
Debtors	5	2,753,661	1,656,087
Cash at bank and in hand		130,342	4,415
		------------	------------
		3,787,670	2,403,551

Creditors: amounts falling due within one year	6	572,553		201,400
		------------		------------
Net current assets			3,215,117	2,202,151
			------------	------------
Total assets less current liabilities			3,218,908	2,207,206

Creditors: amounts falling due after more than one year	7		2,517,248	1,747,229

Provisions

Taxation including deferred tax	720	1,011
	------------	------------
Net assets	700,940	458,966
	------------	------------

Capital and reserves

Called up share capital	8	520,100	295,100
Profit and loss account		180,840	163,866
		---------	---------
Members funds		700,940	458,966
		---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the income statement has not been delivered.

For the year ending 31st December 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Fairgrove Homes Limited

Statement of Financial Position (continued)

31 December 2017

These financial statements were approved by the board of directors and authorised for issue on 18 July 2018 , and are signed on behalf of the board by:

Mr S H Midgley

Director

Company registration number: 03026636

Fairgrove Homes Limited

Notes to the Financial Statements

Year ended 31st December 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 550 Valley Road, Basford, Nottingham, NG5 1JJ.

2. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Motor Vehicles	-	25% reducing balance

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

3. Employee numbers

The average number of persons employed by the company during the year amounted to 21 (2016: 22 ).

4. Tangible assets

	Motor vehicles	Total
	£	£
Cost
At 1st January 2017 and 31st December 2017	8,295	8,295
	-------	-------
Depreciation
At 1st January 2017	3,240	3,240
Charge for the year	1,264	1,264
	-------	-------
At 31st December 2017	4,504	4,504
	-------	-------
Carrying amount
At 31st December 2017	3,791	3,791
	-------	-------
At 31st December 2016	5,055	5,055
	-------	-------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Motor vehicles
	£
At 31st December 2017	3,791
	-------
At 31st December 2016	5,055
	-------

5. Debtors

	2017	2016
	£	£
Trade debtors	1,402,508	404,020
Other debtors	1,351,153	1,252,067
	------------	------------
	2,753,661	1,656,087
	------------	------------

6. Creditors: amounts falling due within one year

	2017	2016
	£	£
Bank loans and overdrafts	286,476	–
Corporation tax	4,304	8,258
Social security and other taxes	97,130	16,126
Other creditors	68,488	62,208
Remedials provision	26,500	26,500
Other creditors	89,655	88,308
	---------	---------
	572,553	201,400
	---------	---------

Included in bank loans and overdrafts are loans of £235,476 (2016: £nil). £235,476 of the repayments fall due within one year.

Included in bank loans and overdrafts is a loan of £50,000 (2016: £nil), which is personally guaranteed by one of the directors.

7. Creditors: amounts falling due after more than one year

	2017	2016
	£	£
Bank loans and overdrafts	536,887	–
Trade creditors	1,386,994	1,265,447
Other creditors	593,367	481,782
	------------	------------
	2,517,248	1,747,229
	------------	------------

Included in bank loans and overdrafts are loans of £533,054 (2016: £nil). £533,054 of the repayments fall due within two to five years.

8. Called up share capital

Issued, called up and fully paid

2017		2016
No.	£	No.	£

Amounts presented in equity:

Ordinary A shares of £ 1 each	63	63	63	63
Ordinary B shares of £ 1 each	30	30	30	30
Ordinary C shares of £ 1 each	7	7	7	7
	----	----	----	----
	100	100	100	100
	----	----	----	----

Amounts presented in liabilities:

Preference shares of £ 1 each	520,000	520,000	295,000	295,000
	---------	---------	---------	---------

The number of shares outstanding at the year end date for all other classes of shares is consistent with the prior year.

9. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2017	2016
	£	£
Not later than 1 year	60,509	59,468
Later than 1 year and not later than 5 years	82,856	35,449
	---------	--------
	143,365	94,917
	---------	--------

10. Contingencies

The company has given security in the form of being a guarantor for a loan value of £800,000 in Fairgrove (Nottingham) Limited. The loan is repayable within 2 years.

11. Directors' advances, credits and guarantees

The total amount owed to the directors at the statement of financial position date was £621,742 (2016: £509,054). The directors loans are interest free, unsecured and repayable on demand.

Fairgrove Homes Limited

Management Information

Year ended 31st December 2017

The following pages do not form part of the financial statements.

Fairgrove Homes Limited

Chartered Accountants Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of Fairgrove Homes Limited

Year ended 31st December 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Fairgrove Homes Limited for the year ended 31st December 2017, which comprise the statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of Fairgrove Homes Limited, as a body, in accordance with the terms of our engagement letter dated 18th August 2016. Our work has been undertaken solely to prepare for your approval the financial statements of Fairgrove Homes Limited and state those matters that we have agreed to state to you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Fairgrove Homes Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Fairgrove Homes Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Fairgrove Homes Limited. You consider that Fairgrove Homes Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of Fairgrove Homes Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Swandec Chartered Accountants

550 Valley Road Basford Nottingham NG5 1JJ

18 July 2018