ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

FRONTIER ESTATES LIMITED - Company Information

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Registered number: 03160388

FRONTIER ESTATES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

FRONTIER ESTATES LIMITED

COMPANY INFORMATION

Directors	A Eldred
	A J Crowther
	M G A Mansell


Company secretary	A Eldred


Registered number	03160388


Registered office	25 Oldbury Place
	London
	W1U 5PR


Independent auditors	Simmons Gainsford LLP
	Chartered Accountants & Statutory Auditors
	7-10 Chandos Street
	London
	W1G 9DQ

FRONTIER ESTATES LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 7
Consolidated profit and loss account	8
Consolidated balance sheet	9
Company balance sheet	10
Consolidated statement of changes in equity	11
Company statement of changes in equity	12
Consolidated Statement of cash flows	13
Analysis of net debt	14
Notes to the financial statements	15 - 29

FRONTIER ESTATES LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 JULY 2020

Introduction

The Directors present their report and financial statements for the year ended 31st July 2020.

Business review

Frontier Estates Limited is the holding company for the Frontier Estates Limited group of companies "the group". Frontier Estates Limited is a property developer in many sectors of the property market including healthcare, offices, industrial, food stores, residential, student accommodation and hotels.
With extensive knowledge and experience obtained over twenty years, from over 150 sites, the group undertakes the role of a property developer through each stage of the development process.
This includes; identifying the site, obtaining planning consent, identifying tenants and occupiers, construction and sale of the completed investment. The Directors are pleased to report a good performance during a period of market consolidation intensified by ongoing Brexit and political related uncertainties. The year ending 31st July 2020 continued to see good progress across the group.

Principal risks and uncertainties

Financial Risk
The group is exposed to an interest rate risk on its borrowings and loans. In order to mitigate the financial risk, the group ensures that a robust due diligence process is undertaken when assessing financial partners, lenders and terms of finance.
Credit Risk
The group is subject to minimal credit risk as it examines this thoroughly. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Liquidity Risk
The group maintains debt finance that ensures that the group has sufficient funds available for operations. To mitigate this risk the group monitors levels of loan and debt finance and the costs involved.
Market Risk
The group faces an economic risk from the uncertainty surrounding Brexit and also due to the impact of the Covid-19 pandemic. The directors are continually monitoring the property market conditions with the assistance of professional advisors. The flexibility within the group allows expansion and contraction in accordance with the market conditions.

Page 1

FRONTIER ESTATES LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

Financial key performance indicators

During the year turnover grew by a substantial 15% to £47.1m (2019: £40.8m), due to sales of multiple sites. Direct costs only increased by 0.2% and so gross profit for the year increased to £13.9m (2019: £7.6m). As at 31 July 2020 the group had 15 sites under development (2019: 13).
Despite administrative expenses increasing in the year to £6.2m (2019: £4.3m) the operating profit has increased to £7.7m (2019: £3.3m). The results for the year are shown on the Consolidated Profit and Loss Account on page 8.
Since July 2020 the group has been actively seeking to expand its portfolio of sites. The group is well positioned to achieve its objective of providing high quality developments in many leading market sectors.

This report was approved by the board on 30 April 2021 and signed on its behalf.

A J Crowther

Director

Page 2

FRONTIER ESTATES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 JULY 2020

The directors present their report and the financial statements for the year ended 31 July 2020.

Principal activity

The principal activity of the company and the group was that of the provision of services relating to the development and trading of property.

Directors

The directors who served during the year were:

A Eldred

A J Crowther

M G A Mansell

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £5,941,242 (2019 - £2,534,174).

Page 3

FRONTIER ESTATES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2020

Future developments

The directors have indicated that the group will continue in property development and are seeking wider opportunities.
The management of the Company does not believe that the Coronavirus will have a direct impact on its ability to continue to provide its services. However, the demand for these services will be dependent on the overall economic environment. The management will closely monitor the situation and act accordingly to mitigate any impact.

Matters covered in the strategic report

Principal risks and uncertainties are covered in the Strategic Report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Going concern

Prior to the balance sheet date, the World Health Organisation declared the Covid-19 virus to be a global pandemic and the UK Government introduced restrictions on certain activities and behaviours in an effort to prevent the virus’ spread and limit its longer-term impact.
Whilst these restrictions have caused the Group to assess and adapt its working practices to continue to operate without interruption, the directors do not consider that the circumstances have caused any material change to the Group's ability to trade, nor affect its status as a Going Concern.

Auditors

The auditors, Simmons Gainsford LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 30 April 2021 and signed on its behalf.

A J Crowther

Director

Page 4

FRONTIER ESTATES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRONTIER ESTATES LIMITED

Opinion

We have audited the financial statements of Frontier Estates Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2020, which comprise the Group Profit and loss account, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, 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 Group's and of the parent Company's affairs as at 31 July 2020 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.

Page 5

FRONTIER ESTATES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRONTIER ESTATES LIMITED (CONTINUED)

Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Directors' report 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company 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.

Page 6

FRONTIER ESTATES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRONTIER ESTATES LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 is 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 Group's and the parent 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 Group or the parent 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 an Auditors' report 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 Group 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 Auditors' report.

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 an Auditors' 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.

Abdultaiyab Pisavadi BSc FCA (Senior statutory auditor)

for and on behalf of

Simmons Gainsford LLP

Chartered Accountants

Statutory Auditors

7-10 Chandos Street

London

W1G 9DQ

30 April 2021

Page 7

FRONTIER ESTATES LIMITED

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 JULY 2020

	2020	2019
Note	£	£


Turnover	4	47,091,850	40,775,317
Cost of sales		(33,241,252)	(33,175,044)
Gross profit		13,850,598	7,600,273
Administrative expenses		(6,193,722)	(4,293,851)
Other operating income	5	67,888	8,903
Operating profit	6	7,724,764	3,315,325
Interest receivable and similar income		23	865
Interest payable and similar expenses	10	(340,430)	(79,729)
Profit before tax		7,384,357	3,236,461
Tax on profit	11	(1,443,115)	(702,287)
Profit for the financial year		5,941,242	2,534,174

Profit for the year attributable to:
Owners of the parent	5,941,242	2,534,174
	5,941,242	2,534,174

There were no recognised gains and losses for 2020 or 2019 other than those included in the consolidated profit and loss account.

The notes on pages 15 to 29 form part of these financial statements.

Page 8

FRONTIER ESTATES LIMITED

REGISTERED NUMBER: 03160388

CONSOLIDATED BALANCE SHEET

AS AT 31 JULY 2020

		2020		2019
Note		£		£

Fixed assets
Intangible assets	12		105,000		391,442
Tangible assets	13		120,186		128,615
			225,186		520,057
Current assets
Stocks	15	23,279,672		23,879,926
Debtors: amounts falling due within one year	16	17,576,554		17,262,246
Cash at bank and in hand	17	2,340,777		3,574,767
		43,197,003		44,716,939
Creditors: amounts falling due within one year	18	(16,992,100)		(23,674,649)
Net current assets			26,204,903		21,042,290
Total assets less current liabilities			26,430,089		21,562,347
Creditors: amounts falling due after more than one year	19		(3,273,500)		(4,347,000)
Provisions for liabilities
Net assets			23,156,589		17,215,347

Capital and reserves
Called up share capital	21	1,297	1,297
Profit and loss account	22	23,155,292	17,214,050
Shareholders' funds		23,156,589	17,215,347

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 April 2021.

A J Crowther

Director

The notes on pages 15 to 29 form part of these financial statements.

Page 9

FRONTIER ESTATES LIMITED

REGISTERED NUMBER: 03160388

COMPANY BALANCE SHEET

AS AT 31 JULY 2020

		2020		2019
Note		£		£

Fixed assets
Tangible assets	13		120,186		128,615
Investments	14		740		724
			120,926		129,339
Current assets
Debtors: amounts falling due within one year	16	35,125,471		33,833,098
Cash at bank and in hand	17	334,111		385,349
		35,459,582		34,218,447
Creditors: amounts falling due within one year	18	(12,707,451)		(17,927,267)
Net current assets			22,752,131		16,291,180
Total assets less current liabilities			22,873,057		16,420,519


Net assets			22,873,057		16,420,519

Capital and reserves
Called up share capital	21		1,297		1,297
Profit and loss account brought forward		16,419,222		12,454,428
Profit for the year		6,452,538		3,964,794
Profit and loss account carried forward			22,871,760		16,419,222
Shareholders' funds			22,873,057		16,420,519

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 April 2021.

A J Crowther

Director

The notes on pages 15 to 29 form part of these financial statements.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements. The profit after tax of the parent Company for the year was £6,452,538 (2019: £3,964,794).

Page 10

FRONTIER ESTATES LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 JULY 2020

	Called up share capital	Profit and loss account	Equity attributable to owners of parent Company	Total equity
	£	£	£	£
At 1 August 2019	1,297	17,214,050	17,215,347	17,215,347

Profit for the year	-	5,941,242	5,941,242	5,941,242
At 31 July 2020	1,297	23,155,292	23,156,589	23,156,589

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 JULY 2019

	Called up share capital	Profit and loss account	Equity attributable to owners of parent Company	Total equity
	£	£	£	£
At 1 August 2018	1,269	14,679,876	14,681,145	14,681,145

Profit for the year	-	2,534,174	2,534,174	2,534,174
Shares issued during the year	28	-	28	28
At 31 July 2019	1,297	17,214,050	17,215,347	17,215,347

The notes on pages 15 to 29 form part of these financial statements.

Page 11

FRONTIER ESTATES LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 JULY 2020

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 August 2019	1,297	16,419,222	16,420,519

Profit for the year	-	6,452,538	6,452,538
At 31 July 2020	1,297	22,871,760	22,873,057

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 JULY 2019

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 August 2018	1,269	12,454,428	12,455,697

Profit for the year	-	3,964,794	3,964,794
Shares issued during the year	28	-	28
At 31 July 2019	1,297	16,419,222	16,420,519

The notes on pages 15 to 29 form part of these financial statements.

Page 12

FRONTIER ESTATES LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2020

			2020	2019
			£	£

Cash flows from operating activities
Profit for the financial year	5,941,242	2,534,174
Adjustments for:
Amortisation of intangible assets	286,442	140,475
Depreciation of tangible assets	46,182	48,089
Interest paid	340,430	79,729
Interest received	(23)	(865)
Taxation charge	1,443,115	702,287
Decrease/(increase) in stocks	600,254	(2,099,876)
(Increase) in debtors	(317,239)	(5,792,378)
(Decrease)/increase in creditors	(7,101,153)	2,987,569
Corporation tax (paid)	(1,021,580)	(2,776,787)
Net cash generated from operating activities	217,670	(4,177,583)

Cash flows from investing activities
Purchase of tangible fixed assets	(37,753)	(78,602)
Interest received	23	865
Net cash from investing activities	(37,730)	(77,737)
Cash flows from financing activities
Issue of ordinary shares	-	28
New secured loans	800,000	4,347,000
Repayment of loans	(1,873,500)	-
Interest paid	(340,430)	(79,729)
Net cash used in financing activities	(1,413,930)	4,267,299
Net (decrease)/increase in cash and cash equivalents	(1,233,990)	11,979
Cash and cash equivalents at beginning of year	3,574,767	3,562,788
Cash and cash equivalents at the end of year	2,340,777	3,574,767

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	2,340,777	3,574,767

The notes on pages 15 to 29 form part of these financial statements.

Page 13

FRONTIER ESTATES LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 JULY 2020


At 1 August 2019	Cash flows	At 31 July 2020
£	£	£

Cash at bank and in hand	3,574,767	(1,233,990)	2,340,777
Debt due after 1 year	(4,347,000)	1,073,500	(3,273,500)
Debt due within 1 year	-	-	-
	(772,233)	(160,490)	(932,723)

The notes on pages 15 to 29 form part of these financial statements.

Page 14

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

1.	General information

The company is a private company limited by shares, and is incorporated in England and Wales. The address of its registered office is 25 Oldbury Place, London, United Kingdom, W1U 5PR.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 August 2015.

2.3

Going concern

The directors have prepared the financial statements on a going concern basis taking into account the current market position and prospects of the group and company.

Page 15

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

2.Accounting policies (continued)

2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of turnover can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated profit and loss account over its useful economic life.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Page 16

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

2.Accounting policies (continued)

2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Short-term leasehold property	-		Straight line over lease term
Motor vehicles	-	25%	Reducing balance
Fixtures and fittings	-		Straight line over 3 or 5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.8

Stocks

Stocks consist of property under development and is valued at the lower of cost and net realisable value.

2.9

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 interest method, less any impairment.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 17

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

2.Accounting policies (continued)

2.11

Financial instruments

The Group only enters into basic financial instrument 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 ordinary shares.

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 Consolidated profit and loss account.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

2.12

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.

2.13

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

2.14

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 18

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

2.Accounting policies (continued)

2.15

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.16

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.17

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

	Property sales	47,091,850	40,775,317

All turnover arose within the United Kingdom.

Page 19

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

5.	Other operating income
		2020	2019
		£	£

Other operating income	2,500	-
Net rents receivable	65,388	8,903
	67,888	8,903

Auditor's remuneration	163,141	128,256
Exchange differences	(29,108)	-
	192,249	128,256

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2020	2019	2020	2019
£	£	£	£


Wages and salaries	3,035,171	1,860,365	3,035,171	1,860,365
Social security costs	402,104	232,155	402,104	232,155
Cost of defined contribution scheme	16,189	14,787	16,189	14,787
	3,453,464	2,107,307	3,453,464	2,107,307

The average monthly number of employees, including the directors, during the year was as follows:

	Group	Group	Company	Company
	2020	2019	2020	2019
	No.	No.	No.	No.

Directors	3	3	3	3
Employees	14	14	14	14

	17	17	17	17

Page 20

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

8.	Directors' remuneration
		2020	2019
		£	£

	Directors' emoluments	485,429	313,592

	The highest paid director received remuneration of £290,552 (2019 - £210,678).
	The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2019 - £1,200).

9.	Income from investments
	During the year, the company received dividends of £8,918,867 (2019: £6,031,481) from subsidiaries.

10.	Interest payable and similar expenses
		2020	2019
		£	£

Bank interest payable

340,430

79,729

Corporation tax
Current tax on profits for the year	1,436,877	407,521
Adjustments in respect of previous periods	6,238	294,766

Total current tax	1,443,115	702,287

Page 21

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

11.Taxation (continued)

Profit on ordinary activities before tax

7,384,357

3,236,461

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)	1,403,028	614,928
Effects of:
Non-tax deductible amortisation of goodwill and impairment	54,424	26,690
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	11,020	11,791
Capital allowances for year in excess of depreciation	(2,802)	1,748
Utilisation of tax losses	(2,801)	(247,636)
Adjustments to tax charge in respect of prior periods	6,238	294,766
Other differences leading to an increase (decrease) in the tax charge	(25,992)	-
Total tax charge for the year	1,443,115	702,287

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 22

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

12.	Intangible assets
	Group

		Goodwill
		£
	Cost
	At 1 August 2019	531,917
	Disposals	(426,917)
	At 31 July 2020	105,000

	At 1 August 2019	140,475
	Charge for the year on owned assets	286,442
	On disposals	(426,917)
	At 31 July 2020	-
	Net book value
	At 31 July 2020	105,000
	At 31 July 2019	391,442

Page 23

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

13.	Tangible fixed assets
	Group and Company

	S/T Leasehold Property	Motor vehicles	Fixtures, fittings & equipment	Total
	£	£	£	£
Cost or valuation
At 1 August 2019	22,330	129,613	115,370	267,313
Additions	19,108	-	18,645	37,753
At 31 July 2020	41,438	129,613	134,015	305,066
Depreciation
At 1 August 2019	22,330	46,466	69,902	138,698
Charge for the year on owned assets	743	20,780	24,659	46,182
At 31 July 2020	23,073	67,246	94,561	184,880
Net book value
At 31 July 2020	18,365	62,367	39,454	120,186
At 31 July 2019	-	83,147	45,468	128,615

14.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 August 2019	724
	Additions	36
	Disposals	(20)
	At 31 July 2020	740

Page 24

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

Subsidiary undertakings

The following were subsidiary undertakings of the Company:
Name	Principal activity	Class of shares	Holding

Frontier Estates (BNSL) Limited*	Property Development	Ordinary	100%
Frontier Estates (BSN) Ltd	Property Development	Ordinary	100%
Frontier Estates (BSNC) Ltd	Property Development	Ordinary	100%
Frontier Estates (BSNH) Ltd	Property Development	Ordinary	100%
Frontier Estates (BSNN) Ltd	Property Development	Ordinary	100%
Frontier Estates (Chard) Ltd	Property Development	Ordinary	100%
Frontier Estates (Cross) Ltd	Property Development	Ordinary	100%
Frontier Estates (EG) Ltd	Property Development	Ordinary	100%
Frontier Estates (Enfield) Ltd	Property Development	Ordinary	100%
Frontier Estates (Epping) Limited	Property Development	Ordinary	100%
Frontier Estates (Frome) Ltd	Property Development	Ordinary	100%
Frontier Estates (HH) Ltd	Property Development	Ordinary	100%
Frontier Estates (Kin) Ltd*	Property Development	Ordinary	100%
Frontier Estates (Kingham) Ltd	Property Development	Ordinary	100%
Frontier Estates (Lincs) Ltd	Property Development	Ordinary	100%
Frontier Estates (Loughton) Ltd	Property Development	Ordinary	100%
Frontier Estates (Mering) Limited	Property Development	Ordinary	100%
Frontier Estates (Midlands) Ltd	Property Development	Ordinary	100%
Frontier Estates (Mos) Ltd	Property Development	Ordinary	100%
Frontier Estates (Oliver) Limited	Property Development	Ordinary	100%
Frontier Estates (Oxon 3) Limited	Property Development	Ordinary	100%
Frontier Estates (Oxon 4) Limited	Property Development	Ordinary	100%
Frontier Estates (Oxon 5) Limited	Property Development	Ordinary	100%
Frontier Estates (Parklands) Limited	Property Development	Ordinary	100%
Frontier Estates (San) Limited	Property Development	Ordinary	100%
Frontier Estates (Sea) Ltd	Property Development	Ordinary	100%
Frontier Estates (Shrewsbury) Ltd	Property Development	Ordinary	100%
Frontier Estates (Southwark) Ltd	Property Development	Ordinary	100%
Frontier Estates (Stevenage) Ltd	Property Development	Ordinary	100%
Frontier Estates (Studley) Ltd	Property Development	Ordinary	100%
Frontier Estates (Ten) Limited	Property Development	Ordinary	100%
Frontier Estates (Victoria) Limited	Property Development	Ordinary	100%
Frontier Estates (Wheatley) Ltd	Property Development	Ordinary	100%
Frontier Estates (York) Ltd	Property Development	Ordinary	100%
FE Biggleswade Dev Co Ltd	Property Development	Ordinary	100%
FE Botleigh Dev Co Ltd	Property Development	Ordinary	100%
FE Chichester Dev Co Ltd	Property Development	Ordinary	100%
FE Flitwick Dev Co Ltd	Property Development	Ordinary	100%
FE Kempston Dev Co Ltd	Property Development	Ordinary	100%
FE Stotfold Dev Co Ltd	Property Development	Ordinary	100%
FE Watford Dev Co Ltd	Property Development	Ordinary	100%
Frontier Estates (B G) Ltd	Dormant	Ordinary	100%
Frontier Estates (Bicester) Ltd	Dormant	Ordinary	100%
Frontier Estates (Bil) Ltd*	Dormant	Ordinary	100%
Frontier Estates (Birmingham) Limited	Dormant	Ordinary	100%
Frontier Estates (Boston) Ltd	Dormant	Ordinary	100%

Page 25

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

.Subsidiary undertakings (continued)

(continued)

Name

Principal activity

Class of shares

Holding

Frontier Estates (Cambs) Ltd	Dormant	Ordinary	100%
Frontier Estates (Darley) Ltd	Dormant	Ordinary	100%
Frontier Estates (Dartford) Ltd	Dormant	Ordinary	100%
Frontier Estates (East) Ltd	Dormant	Ordinary	100%
Frontier Estates (Exeter) Ltd	Dormant	Ordinary	100%
Frontier Estates (Far) Ltd*	Dormant	Ordinary	100%
Frontier Estates (Kempston) Limited	Dormant	Ordinary	100%
Frontier Estates (Lakeside) Ltd	Dormant	Ordinary	100%
Frontier Estates (LB) Ltd*	Dormant	Ordinary	100%
Frontier Estates (Mar) Ltd*	Dormant	Ordinary	100%
Frontier Estates (Northants) Limited	Dormant	Ordinary	100%
Frontier Estates (RW) Limited*	Dormant	Ordinary	100%
Frontier Estates (Say) Ltd*	Dormant	Ordinary	100%
Frontier Estates (Shef) Ltd*	Dormant	Ordinary	100%
Frontier Estates (Sol) Ltd	Dormant	Ordinary	100%
Frontier Estates (Stam) Limited*	Dormant	Ordinary	100%
Frontier Estates (Sto) Ltd*	Dormant	Ordinary	100%
Frontier Estates (Taplow) Ltd	Dormant	Ordinary	100%
Frontier Estates (Wal) Ltd	Dormant	Ordinary	100%
Frontier Estates (Watling) Ltd	Dormant	Ordinary	100%
Frontier Estates (West) Ltd	Dormant	Ordinary	100%
Frontier Estates (Worcs) Limited	Dormant	Ordinary	100%
FE BSN Care Dev Co Ltd*	Dormant	Ordinary	100%
FE BSN Local Dev Co Ltd*	Dormant	Ordinary	100%
FE BSN Nursery Dev Co Ltd*	Dormant	Ordinary	100%
FE BSN Surgery Dev Co Ltd*	Dormant	Ordinary	100%
FE Iwade Dev Co Ltd	Dormant	Ordinary	100%
FE MH Dev Co Ltd*	Dormant	Ordinary	100%
FE Royston Dev Co Ltd*	Dormant	Ordinary	100%
FE Taplow Dev Co Ltd	Dormant	Ordinary	100%

All the above are direct subsidiaries and have the same registered office at 25 Oldbury Place, London, W1U 5PR.
Companies marked * were acquired or incorporated during the year.

15.	Stocks
		Group	Group
		2020	2019
		£	£

	Property under development	23,279,672	23,879,926

Page 26

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

16.

Debtors

Group	Group	Company	Company
2020	2019	2020	2019
£	£	£	£


Trade debtors	3,041,339	1,268,396	3,000	-
Amounts owed by group undertakings	-	-	23,294,944	24,187,299
Other debtors	12,242,263	11,505,539	11,301,665	9,452,097
Prepayments and accrued income	2,292,952	4,485,380	525,862	190,771
Tax recoverable	-	2,931	-	2,931
	17,576,554	17,262,246	35,125,471	33,833,098

17.	Cash and cash equivalents
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

	Cash at bank and in hand	2,340,777	3,574,767	334,111	385,349

18.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

Trade creditors	2,304,020	2,346,390	340,028	338,463
Amounts owed to group undertakings	-	-	1,297,543	376,445
Corporation tax	826,877	408,273	-	-
Other taxation and social security	387,174	803,084	67,558	341,936
Other creditors	10,968,890	16,894,829	10,958,342	16,845,307
Accruals and deferred income	2,505,139	3,222,073	43,980	25,116
	16,992,100	23,674,649	12,707,451	17,927,267

Included in other creditors is an amount of £8,407,245 (2019: £14,293,460) which is owed to the directors and is secured by a debenture over the assets of the company.

Page 27

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

19.	Creditors: Amounts falling due after more than one year
		Group	Group
		2020	2019
		£	£

	Bank loans	3,273,500	4,347,000

The bank loan is repayable in April 2024. Interest is charged at 6.5% over 3 month LIBOR and is being paid in monthly instalments. The bank loan is secured by a first ranking legal mortgage, a first ranking debenture and security over the shares in five group companies. In addition, there is an interest guarantee limited to £2m, from Frontier Estates Limited and a subordination agreement in respect of debt due to the directors.

20.	Financial instruments
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	2,340,777	3,574,767	334,111	385,349

Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.

21.	Share capital
		2020	2019
		£	£

Allotted, called up and fully paid

1,297 (2019 - 1,297) Ordinary shares of £1.00 each	1,297	1,297

22.

Reserves

Profit and loss account

The company's reserves of £22,871,760 (2019: £16,419,222) are all distributable.

Page 28

FRONTIER ESTATES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

23.	Commitments under operating leases
	At 31 July 2020 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

Group	Group	Company	Company
2020	2019	2020	2019
£	£	£	£

Not later than 1 year	147,000	38,700	147,000	38,700
Later than 1 year and not later than 5 years	561,000	33,000	561,000	33,000
Later than 5 years	1,282,500	-	1,282,500	-
	1,990,500	71,700	1,990,500	71,700

24.

Related party transactions

Group
The group was due £6,406,620 (2019: £4,194,802) from entities over which the company has control or significant influence at the year end.
The group owed £2,504,180 (2019: £2,519,577) to entities over which the company has control or significant influence at the year end.
The group owed £ 8,407,245 (2019: £ 14,293,460) to the directors at the year end. The amounts owed to the directors are secured by a debenture over the assets of the company.
No interest is charged on these balances and they are repayable on demand.
Company
The company has taken the exemption not to disclose transactions with fully owned subsidiaries.
The company owed £8,407,245 (2019: £14,293,460) to the directors at the year end. The amounts owed to the directors are secured by a debenture over the assets of the company.

No Interest is charged on these balances and they are repayable on demand.

25.	Post balance sheet events

In March 2021, two of the subsidiaries obtained a bank loan totalling £2,255,000. The bank loan is repayable in April 2024. Interest is charged at 6.5% over 3 month LIBOR and is being paid in monthly installments. The bank loan is secured by a first ranking legal mortgage, a first ranking debenture and security over the shares. In addition, there is a cross company guarantee, with fellow subsidiaries, an interest guarantee limited to £2m, from Frontier Estates Limited and a subordination agreement in respect of debt due to the directors.

26.	Controlling party

The directors, A Eldred and A J Crowther, were the ultimate controlling parties of the company throughout this and the previous year.

Page 29