Fairfax (Somerton) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 11351851 (England and Wales)

FAIRFAX (SOMERTON) LIMITED

FINANCIAL STATEMENTS FOR THE PERIOD 9 MAY 2018 TO 31 MARCH 2019

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

J P Ball

D E Jacobson

REGISTERED OFFICE:

Buncton Barn

Buncton Lane

Bolney

Haywards Heath

RH17 5RE

REGISTERED NUMBER:

11351851 (England and Wales)

AUDITORS:

Wilkins Kennedy Audit Services

Statutory Auditor

Anglo House

Bell Lane Office Village

Bell Lane

Amersham

Buckinghamshire

HP6 6FA

CURRENT ASSETS

Stocks and work in progress

3,022,876

Debtors

4

138,801

3,161,677

CREDITORS

Amounts falling due within one year

5

(3,379,949

)

NET CURRENT LIABILITIES

(218,272

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(218,272

)

CAPITAL AND RESERVES

Called up share capital

1

Retained earnings

(218,273

)

(218,272

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 17 September 2019 and were signed on its behalf by:

J P Ball - Director

1.	STATUTORY INFORMATION

Fairfax (Somerton) 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.

Fairfax (Somerton) Limited is a private company limited by shares and is registered in England and

Wales.

The principal activity is land and property development.

Registered number 11351851

Registered address: Buncton Barn, Buncton Lane, Bolney, Haywards Heath, RH17 5RE.

The presentation currency of the financial statements is the Pound 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial reporting standard 102 - reduced disclosure exemptions

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

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

Republic of Ireland"

- the requirement of Section 33.1A Related Party Disclosures

The information is included in the consolidated financial statements of its immediate parent

undertaking, Fairfax Group Holdings Limited, as at 31 March 2019 and these financial statements may

be obtained from Companies House.

Work in progress

Work in progress is valued on the basis of direct costs only. Provision is made for any foreseen losses

where appropriate. No element of profit is included in the valuation of work in progress.

Work in progress comprises property and land held for development and sale. Interest costs are

expensed in the period and not included in work in progress.

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.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are

measured initially at fair value, net of transaction costs and are measured subsequently at amortised

cost using the effective method, less any impairment.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of

financial assets and liabilities like trade and other debtors and creditors, loans from banks and other

third parties, loans to related parties and investments in non-puttable ordinary share.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and

other accounts receivable and payable, are initially measured at present value of the future cash lows

and subsequently at amortised cost using the effective interest method. Debt instruments that are

repayable or receivable within one year, typically trade debtors and trade creditors, are measured,

initially and subsequently, at the undiscounted amount of the cash or other consideration expected to

be paid or received. However, if the arrangements of a short-term instrument constitute a financing

transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a

rate of interest that is not a market rate or in case of an out-right short-term loan at market rate, the

financial asset or liability is measured, initially, at the present value of the future cash flow discounted

at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each

reporting period for objective evidence of impairment. If objective evidence of impairment is found, an

impairment loss is recognised in the Statement of comprehensive income.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank

loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at

amortised cost using the effective interest method.

Going concern

WGT Limited has confirmed that they will provide support to enable the company to fulfil its financial

obligations as and when they fall due.

The directors have prepared cashflow forecasts and have assessed that the operating cashflows

generated, together with the financial support outlined above is adequate to ensure that the company

will meet its liabilities as and when they fall due for a period of at least twelve months from the date

from which these accounts were approved. On this basis the directors are of the opinion that the

financial statements should be drawn up on a going concern basis.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires management to make

judgements, estimates and assumptions that affect the application of policies and reported profits

during the financial year. Estimates and judgements are continually evaluated and are based on

experience and other factors that are believed to be reasonable under current circumstances. Although

these estimates are management's best knowledge of the amount, events or actions, actual results

ultimately may differ from these estimates.

The directors have made the following significant estimates and judgements which they consider to be

applicable to the financial statements.

Work in progress

Consideration has been given by the directors to the recoverability of work in progress. In determining

this the directors have used their knowledge of the market and guidance from independent valuation

tools.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 2 .

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Other debtors

138,801

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade creditors

832,800

Amounts owed to group undertakings

2,328,876

Other creditors

218,273

3,379,949

6.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

David Green MA (Cantab) ACA (Senior Statutory Auditor)

for and on behalf of Wilkins Kennedy Audit Services

7.	RELATED PARTY DISCLOSURES

Included in trade creditors is a balance due to a connected party, Fairfax Acquisitions Limited. The

total balance due to this company at the Statement of financial position date was £832,800.

8.	POST BALANCE SHEET EVENTS

Non-adjusting post balance sheet event

On the 21 May 2019 a fixed charge was registered over the assets of the company.

In the opinion of the directors this constitutes a non-adjusting post balance sheet event.

9.	CONTROLLING PARTY

The immediate parent company of Fairfax (Somerton) Limited is Fairfax Group Holdings Limited by

virtue of its ownership of 100% of the shares issued by the company. It is the belief of the Directors

that the ultimate controlling party is WGT Limited as trustee of The Westminster Group Trust, a

company which is resident in Jersey.

Fairfax Group Holdings Limited, whose registered office address is Buncton Barn, Buncton Lane,

Bolney Haywards Heath RH17 5RE prepares consolidated financial statements in which Fairfax

(Somerton) Limited trading results are included.