LOVEL'S_FARM_(FACILITIES_ - Accounts

The directors present their annual report and financial statements for the period ended 30 June 2019.

The principal activity of the company is to acquire, hold, manage and administer certain freehold or leasehold property or properties located at the land at Station Road, Castle Cary, including any common areas, roads, accessways, footpaths, parking areas, drains, sewers, lighting, security and associated facilities.

The company has no income or expenditure in its own right, all transactions in the period being related to the maintenance of the common parts. Service charges collected are held on trust for the purpose of meeting the relevant costs in relation to the property in accordance with the provision of section 42 of the Landlord and Tenant Act 1987.

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

The company is a subsidiary undertaking of Backhouse (Castle Cary) JV Limited since the latter controls 100% of the voting rights of the former.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Lovel's Farm (Facilities Management) Limited for the period ended 30 June 2019 set out on pages 3 to 6 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 http://www.icaew.com/en/members/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Lovel's Farm (Facilities Management) Limited, as a body, in accordance with the terms of our engagement letter dated 11 October 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Lovel's Farm (Facilities Management) Limited and state those matters that we have agreed to state to the Board of Directors of Lovel's Farm (Facilities Management) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lovel's Farm (Facilities Management) Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Lovel's Farm (Facilities Management) 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 result of Lovel's Farm (Facilities Management) Limited. You consider that Lovel's Farm (Facilities Management) Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of Lovel's Farm (Facilities Management) 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.

In accordance with section 444 of the Companies Act 2006 all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).

For the financial period ended 30 June 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

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

Lovel's Farm (Facilities Management) Limited is a private company limited by shares incorporated in England and Wales. The registered office is DAC Beachcroft LLP, Portwall Place, Portwall Lane, Bristol, BS1 9HS.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements have been prepared with early application of the FRS 102 Triennial Review 2017 amendments in full.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company's accounts have been prepared for the period 6 June 2018 to 30 June 2019 inclusive. The company was incorporated on 6 June 2018 and its accounting reference date is 30 June each year. As this is the first accounting period for the company, the accounts do not include any comparative figures.

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Income and expenditure

The company has no income or expenditure in its own right. All transactions in the period relate to maintenance of the common parts. Income and expenditure arising from these transactions is shown in separate service charge accounts for the property that do not form part of the annual accounts of the company and are not filed at Companies House. All service charge monies received from residents are held on trust for the residents.

Contractual commitments

The company contracts with third parties in its own name for the supply of services to the property for maintenance of the common parts. At 30 June 2019 the company had not entered into any non-cancellable contractual agreements.

The average monthly number of persons (including directors) employed by the company during the period was 0.