FACCENDA_PROPERTY_LIMITED - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

Faccenda Property Limited is a private company limited by shares incorporated in England and Wales. The registered office is Willow Road, Brackley, Northants, NN13 7EX.

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 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 as modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

The financial statements of the company are consolidated in the financial statements of Faccenda Holdings Limited. These consolidated financial statements are available from its registered office, at Willow Road, Brackley, Northants, NN13 7EX.

Turnover represents amounts receivable from the sale of properties, goods and services net of VAT and trade discounts. Turnover is recognised when either contracts are exchanged over the sale of properties, or if the final outcome of a property development can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses.

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life. The annual rates used are:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents 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.

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

Where budgetary expectations are such that anticipated profits are sufficient to recover decelerated capital allowances, a deferred tax asset is recognised.

Certain assets have been revalued in accordance with the transitional provisions under FRS 102, deferred tax has been calculated accordingly.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 year in which the estimate is revised where the revision affects only that year, or in the year of the revision and future years where the revision affects both current and future years.

During the year ended 31 May 2021 Faccenda Property Limited wrote off £4,516,107 of work in progress. The balance related to a specific loss-making project. The issues resulting in the write-off are isolated to this specific project. The remaining balance in work in progress is expected to be recoverable on the sale of properties.

The average monthly number of persons (including directors) employed by the company during the year was:

The fair value of the investment property has been arrived at on the basis of a valuation carried out at by the directors. The valuation by the directors has been made on an open market value basis by reference to market conditions and evidence of transaction prices for similar properties.

The company has an unsecured loan facility with Faccenda Investments Limited. The amount available is £62,000,000 or such lesser amount as agreed. The loan facility is repayable at a year's notice, which as at the year end has not been given. Interest on the outstanding balance of the loan is payable at a rate of 1.75% above base rate.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The company, together with other members of the Faccenda Holdings Limited group, has entered into a composite accounting agreement with Barclays Bank plc, together with unlimited cross guarantees with the same bank.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

In accordance with section 33.1A of FRS 102 disclosure is not given in these financial statements of transactions entered into between two or more members of the group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

Faccenda Property Limited owns a 51% stake in Howes Lane Projects LLP, a limited liability partnership registered in England and Wales. As at 31 May 2021 a loan balance of £6,061,163 (2020 - £7,776,594) was owed to Faccenda Property Limited by Howes Lane Projects LLP. No interest is charged on amounts outstanding at the year end.

Faccenda Property Limited owns a 51% stake in Skimmingdish Lane Projects LLP, a limited liability partnership registered in England and Wales. As at 31 May 2021 Faccenda Property Limited owed Skimmingdish Lane Projects LLP £549 (2020 - £250,815 owed to Faccenda Property Limited in respect of profits due to members).

Faccenda Property Limited owns a 51% stake in Banbury Road Projects LLP, a limited liability partnership registered in England and Wales. As at 31 May 2021 members capital of £51 (2020 - £51) was owed to the LLP, and a loan balance of £18,468 (2020 - £17,417) was owed to Faccenda Property Limited by Banbury Road Projects LLP. No interest is charged on amounts outstanding at the year end.

Included within trade debtors at the year end are amounts owed to Faccenda Property Limited by the directors, and various trusts in which the directors have an interest or have influence. During the year recharges were made to I. J. Faccenda totalling £371,511 (2020 - £143,857) of which £644,557 (2020 - £133,557) was outstanding at the year end. Recharges were made to A. J. Gulliver of £3,419 (2020 - £1,245) of which £5,085 (2020 - £nil) was outstanding at the year end. Recharges were made to R. M. Faccenda of £nil (2020 - £nil) and £355 (2020 - £355) was outstanding at the year end. Recharges were made to H. A. Faccenda of £14,797 (2020 - £1,943) and £22,220 (2020 - £11,082) was outstanding at the year end. Interest is not charged on any of the above amounts outstanding.

During the year recharges were made by Faccenda Property Limited to The Hillesden Trust, in which the directors have an interest, of £512,596 (2020 - £867,534). At the year end there is a balance of £57,220 (2020 - £884,609) included in trade debtors owed by The Hillesden Trust, for the recharge of expenditure incurred in the year. Interest is not charged on amounts outstanding.

During the year recharges were made to Faccenda Property Limited from Faccenda Foods Limited, in which the directors have an interest, of £598,649 (2020 - £765,917). Recharges were made to Faccenda Foods Limited of £nil (2020 - £5,520). At the year end Faccenda Property Limited owed £29,236 (2020 - £nil) to Faccenda Foods Limited.

The immediate parent undertaking of the company is Faccenda Holdings Limited and the ultimate parent undertaking is Faccenda Holdings Limited. Both Faccenda Investments Limited and Faccenda Holdings Limited are incorporated and registered in England and Wales.

Copies of the consolidated financial statements of Faccenda Holdings Limited are available from the registered office at Willow Road, Brackley, Northamptonshire, NN13 7EX.

The ultimate controlling party is Payne Hicks Beach Trust Corporation Limited, a company acting as a corporate trustee for a number of trusts that own shares in Faccenda Holdings Limited.