ACCOUNTS - Final Accounts preparation

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

FRANKHAM BROS HOLDINGS LIMITED - Company Information

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Registered number: 10752761

FRANKHAM BROS HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FRANKHAM BROS HOLDINGS LIMITED

COMPANY INFORMATION

Directors	M N Frankham
	S J Frankham


Registered number	10752761


Registered office	Wharf Way
	Glen Parva
	Leicester
	LE2 9TF


Independent auditors	MHA MacIntyre Hudson
	Chartered Accountants & Statutory Auditors
	Leicester

FRANKHAM BROS HOLDINGS LIMITED

CONTENTS

	Page
Group Strategic Report	1 - 2
Directors' Report	3
Directors' Responsibilities Statement	4
Independent Auditors' Report	5 - 8
Consolidated Statement of Comprehensive Income	9
Consolidated Balance Sheet	10 - 11
Company Balance Sheet	12 - 13
Consolidated Statement of Changes in Equity	14
Company Statement of Changes in Equity	15
Consolidated Statement of Cash Flows	16 - 17
Analysis of Net Debt	18
Notes to the Financial Statements	19 - 43

FRANKHAM BROS HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Introduction

The directors present their strategic report on the Group for the year ended 31 December 2020.
The principal activity of the Group for the year continued to be that of purchasing, renting and selling of properties. The activity of precision engineering ceased during the year.
The principal activity of the Company during the year was that of a purchasing, renting and selling properties. The activity of being a holding company ceased during the year.

Business review

On 17 November 2020 the Group went through a restructure which saw the investment properties and properties for resale transferred from Frankham Bros Limited to Frankham Bros Holdings Limited. Subsequently, on 17 November 2020, Frankham Bros Limited along with its remaining trade, assets and liabilities was disposed of by the Group.
The Group consolidated financial statements reflect the trade of Frankham Bros Limited up until the date of its disposal from the Group.

COVID-19

The principal risks for the Group remain the underlying performance of the national economy due to Brexit and Covid-19.
Relevant steps have been taken in order to keep the impact of Covid-19 to the Group down to a minimum. The Group has instigated the furloughing of employees where necessary under the Job Retention Scheme. Staffing reviews are completed regularly and additional furloughing of employees would be considered if required.
Exceptional items including £1,400,000 intercompany loan write off and £671,343 loss on disposal of subsidiary have caused the Group to make a loss during the year. However, if these one off transactions are taken into account, the Group has continued to be profitable. Following the restructure, the Group's forecasts demonstrate continued profitability and a strong balance sheet position after assessing the overall impact of Covid-19.
No known additional bad debts have been identified as a result of Covid-19.
Please refer to the basis of preparation of financial statements accounting policy at 2.1.
Post balance sheet events
Post year end, following the Group restructure and subsequent disposal of the subsidiary, the Company has seen consistent and steady revenue generated through net rents received.
On 8 January 2021 Frankham Bros Holdings Limited sold land for £30,000.
On 14 May 2021 Frankham Bros Holdings Limited sold the property at 7 Alton Road for £156,100.

Page 1

FRANKHAM BROS HOLDINGS LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Financial key performance indicators

The key performance indicators of the Group are turnover, gross profit margin and net profit margin.
During the year turnover has decreased by £1,938,790 (-41.7%) to £2,713,344 compared to £4,652,134 in 2019.
During the year gross profit has decreased by £638,530 (-46.6%) to £731,957 compared to £1,370,487 in 2019.
During the year net profit or loss has decreased by £2,485,860 (-325.6%) to (£1,722,463) compared to £763,397 in 2019.
In the current year there were exceptional items including £1,400,000 intercompany loan write off and £671,343 loss on disposal of subsidiary. If these one off transactions are taken into account the KPI for net profit margin is more realistic:
After the above adjustments net profit for the year has decreased by £414,517 (-54.3%) to £348,880 compared to £763,397 in 2019.

Other key performance indicators

The non financial key performance indicators of the Group are compliance with environmental and employee matters. The Group had no instances of non compliance during the period.

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

................................................

M N Frankham

Director

Date: 18 August 2021

Page 2

FRANKHAM BROS HOLDINGS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

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

Results and dividends

The loss for the year, after taxation, amounted to £1,722,463 (2019 - profit £763,397).

During the year the directors recommended dividends amounting to £102,000 (2019 - £142,000).

Directors

The directors who served during the year were:

M N Frankham

S J Frankham

Future developments

Following the Group restructure and subsequent disposal of the subsidiary, Frankham Bros Limited, the Company has seen consistent and steady revenue generated through net rents received. The directors are confident that the Company will continue to see consistent revenue from net rents receivable.

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.

Post balance sheet events

On 8 January 2021 Frankham Bros Holdings Limited sold land for £30,000.
On 14 May 2021 Frankham Bros Holdings Limited sold the property at 7 Alton Road for £156,100.

Auditors

The auditors, MHA MacIntyre Hudson, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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

................................................

M N Frankham

Director

Date: 18 August 2021

Page 3

FRANKHAM BROS HOLDINGS LIMITED

DIRECTORS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2020

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;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

∙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.

Page 4

FRANKHAM BROS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKHAM BROS HOLDINGS LIMITED

Opinion

We have audited the financial statements of Frankham Bros Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2020, which comprise the Group Statement of Comprehensive Income, 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 December 2020 and of the Group's loss 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 5

FRANKHAM BROS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKHAM BROS HOLDINGS 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

FRANKHAM BROS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKHAM BROS HOLDINGS LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

•  Enquiry of management and those charged with governance around actual, potential or suspected litigation and claims, non-compliance with applicable laws and regulations and fraud;
•  Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accouting estimates for bias;
•  Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
•  Discussions with engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Page 7

FRANKHAM BROS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKHAM BROS HOLDINGS LIMITED (CONTINUED)

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.

Shelley Harvey FCCA (Senior Statutory Auditor)

for and on behalf of

MHA MacIntyre Hudson

Chartered Accountants

Statutory Auditors

Leicester

Date: 31 August 2021

Page 8

FRANKHAM BROS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2020

	Continuing operations	Discontin'd operations	Total	Continuing operations	Discontinued operations	Total
	2020	2020	2020	2019	2019	2019
Note	£	£	£	£	£	£


Turnover	4	15,808	2,697,536	2,713,344	-	4,652,134	4,652,134
Cost of sales		(1,824)	(1,979,563)	(1,981,387)	(5,434)	(3,276,213)	(3,281,647)
Gross profit		13,984	717,973	731,957	(5,434)	1,375,921	1,370,487
Distribution costs		-	(158,753)	(158,753)	-	(197,952)	(197,952)
Administrative expenses		(68,799)	(250,182)	(318,981)	(109,645)	(362,027)	(471,672)
Exceptional administrative expenses		-	(1,400,000)	(1,400,000)	-	-	-
Other operating income	5	188,495	214,441	402,936	199,903	-	199,903
Fair value movements		-	(21,981)	(21,981)	-	-	-
Operating (loss)/profit	6	133,680	(898,502)	(764,822)	84,824	815,942	900,766
Amounts written off investments		-	(671,343)	(671,343)	-	-	-
Interest receivable and similar income	10	2,948	-	2,948	6,839	-	6,839
Interest payable and expenses		(1,706)	-	(1,706)	-	-	-
(Loss)/profit before taxation		134,922	(1,569,845)	(1,434,923)	91,663	815,942	907,605
Tax on (loss)/profit	12	(215,783)	(71,757)	(287,540)	(17,189)	(127,019)	(144,208)
(Loss)/profit for the financial year		(80,861)	(1,641,602)	(1,722,463)	74,474	688,923	763,397

Owners of the parent Company

(80,861)

(1,641,602)

(1,722,463)

74,474

688,923

763,397

There were no recognised gains and losses for 2020 or 2019 other than those included in the consolidated statement of comprehensive income.

The notes on pages 19 to 43 form part of these financial statements.

Page 9

FRANKHAM BROS HOLDINGS LIMITED

REGISTERED NUMBER: 10752761

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2020

		2020		2019
Note		£		£

Fixed assets
Intangible assets	14		-		(1,539,347)
Tangible assets	15		-		1,260,009
Investment property	17		4,530,390		1,735,390
			4,530,390		1,456,052
Current assets
Stocks	18	927,717		1,202,069
Debtors: amounts falling due within one year	19	26,904		794,108
Current asset investments	20	-		36,000
Cash at bank and in hand	21	-		2,069,501
		954,621		4,101,678
Creditors: amounts falling due within one year	22	(44,635)		(655,059)
Net current assets			909,986		3,446,619
Total assets less current liabilities			5,440,376		4,902,671
Provisions for liabilities
Deferred taxation	24	(434,576)		(359,652)
			(434,576)		(359,652)
Net assets			5,005,800		4,543,019

Capital and reserves
Called up share capital	25	300	300
Revaluation reserve	26	3,562,823	1,275,579
Other reserves	26	-	5,734
Profit and loss account	26	1,442,677	3,261,406
		5,005,800	4,543,019

Page 10

FRANKHAM BROS HOLDINGS LIMITED

REGISTERED NUMBER: 10752761

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2020

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

M N Frankham

Director

Date: 18 August 2021

The notes on pages 19 to 43 form part of these financial statements.

Page 11

FRANKHAM BROS HOLDINGS LIMITED

REGISTERED NUMBER: 10752761

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2020

		2020		2019
Note		£		£

Fixed assets
Investments	16		-		1,400,000
Investment property	17		4,530,390		-
			4,530,390		1,400,000
Current assets
Stocks	18	927,717		-
Debtors: amounts falling due within one year	19	26,904		300
		954,621		300
Creditors: amounts falling due within one year	22	(44,635)		-
Net current assets			909,986		300
Total assets less current liabilities			5,440,376		1,400,300

Provisions for liabilities
Deferred taxation	24	(434,576)		-
			(434,576)		-
Net assets			5,005,800		1,400,300

Capital and reserves
Called up share capital	25	300	300
Revaluation reserve	26	2,287,244	-
Non-distributable reserves	26	1,735,390	-
Profit and loss account	26	982,866	1,400,000
		5,005,800	1,400,300

Page 12

FRANKHAM BROS HOLDINGS LIMITED

REGISTERED NUMBER: 10752761

COMPANY BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2020

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

M N Frankham

Director

Date: 18 August 2021

The notes on pages 19 to 43 form part of these financial statements.

Page 13

FRANKHAM BROS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2020

	Called up share capital	Revaluation reserve	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2019	300	1,275,579	5,734	2,640,009	3,921,622

Profit for the year	-	-	-	763,397	763,397
Dividends: Equity capital	-	-	-	(142,000)	(142,000)

At 1 January 2020	300	1,275,579	5,734	3,261,406	4,543,019

Loss for the year	-	-	-	(1,722,463)	(1,722,463)
Surplus on revaluation of investment property	-	2,287,244	-	-	2,287,244
Other movement	-	-	(5,734)	5,734	-
Dividends: Equity capital	-	-	-	(102,000)	(102,000)
At 31 December 2020	300	3,562,823	-	1,442,677	5,005,800

The notes on pages 19 to 43 form part of these financial statements.

Page 14

FRANKHAM BROS HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2020

	Called up share capital	Revaluation reserve	Non-distributable reserves	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2019	300	-	-	-	300

Profit for the year	-	-	-	1,542,000	1,542,000
Dividends: Equity capital	-	-	-	(142,000)	(142,000)

At 1 January 2020	300	-	-	1,400,000	1,400,300
Comprehensive income for the year
Profit for the year	-	-	-	1,420,256	1,420,256
Surplus on revaluation of investment property	-	2,287,244	-	-	2,287,244
Other movement	-	-	1,735,390	(1,735,390)	-
Dividends: Equity capital	-	-	-	(102,000)	(102,000)
At 31 December 2020	300	2,287,244	1,735,390	982,866	5,005,800

The notes on pages 19 to 43 form part of these financial statements.

Page 15

FRANKHAM BROS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

			2020	2019
			£	£

Cash flows from operating activities
(Loss)/profit for the financial year	(1,722,463)	763,397
Adjustments for:
Amortisation of intangible assets	(193,470)	(219,907)
Depreciation of tangible assets	123,180	143,744
Impairments of fixed assets	36,000	-
Loss on disposal of tangible assets	-	(2,061)
Interest paid	1,706	-
Interest received	(2,948)	(6,839)
Taxation charge	287,540	144,208
Decrease in stocks	458,762	50,654
Decrease in debtors	796,668	249,657
Increase in amounts owed by groups	(24,712)	-
Decrease in creditors	(628,945)	(109,480)
Corporation tax paid	(406,757)	(157,197)
Loss on disposal of subsidiary	(671,343)	-
Intercompany loan write off	1,400,000	-
Net cash generated from operating activities	(546,782)	856,176

Cash flows from investing activities
Purchase of tangible fixed assets	(45,440)	(135,932)
Sale of tangible fixed assets	-	2,800
Interest received	2,948	6,839
Payments to acquire investments	(1,400,000)	-
Sale of fixed asset investments	12,553	-
Net cash from investing activities	(1,429,939)	(126,293)

Page 16

FRANKHAM BROS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

		2020	2019
		£	£


Cash flows from financing activities
Loans due from directors	10,926	3,074
Dividends paid	(102,000)	(142,000)
Interest paid	(1,706)	-
Net cash used in financing activities	(92,780)	(138,926)
Net (decrease)/increase in cash and cash equivalents	(2,069,501)	590,957
Cash and cash equivalents at beginning of year	2,069,501	1,478,544
Cash and cash equivalents at the end of year	-	2,069,501

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	-	2,069,501
	-	2,069,501

The notes on pages 19 to 43 form part of these financial statements.

Page 17

FRANKHAM BROS HOLDINGS LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2020


At 1 January 2020	Cash flows	Other non-cash changes	At 31 December 2020
£	£	£	£

Cash at bank and in hand	2,069,501	(2,069,501)	-	-
Debt due within 1 year	(3,074)	-	(10,926)	(14,000)
	2,066,427	(2,069,501)	(10,926)	(14,000)

The notes on pages 19 to 43 form part of these financial statements.

Page 18

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1.	General information

Frankham Bros Holdings Limited is a private company limited by shares, which is incorporated in England and Wales, registration number 10752761. The registered office is Wharf Way, Glen Parva, Leicester, LE2 9TF.
The principal activity of the Company during the period was that of purchasing, renting and selling of properties. The activity of being a holding company to other group companies ceased during the year.
The principal activity of the Group for the year continued to be that of purchasing, renting and selling of properties. The activity of precision engineering ceased during the year.

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 Statement of Comprehensive Income in these financial statements.

The Group's functional and presentational currency is Great British Pound Sterling (£).
The directors have taken the relevant steps in order to minimise the impact of Covid-19 and to ensure the Group remains a going concern. The Group has remained profitable post year end and has maintained a healthy cash position, utilising the government assistance available. The directors have reviewed their going concern assessment and, based on income secured under operating leases, future projections, current trade performance and working capital, are confident that the Group will be able to continue to trade for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its 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 Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Group'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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 20

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Sale of goods

Revenue 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 revenue 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

Revenue 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 revenue 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

Discontinued operations

During the year the Group discontinued operations relating to precision engineering. The revenue and expenditure relating to these discontinued operations have been disclosed separately in the Consolidated Statement of Comprehensive Income.

2.6

Operating leases: the Group as lessor

Rental income from operating leases is credited to the Consolidated Statement of Comprehensive Income on a straight line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Page 21

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income 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.

2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

2.9

Interest income

Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.

2.10

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.11

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 the Consolidated Statement of Comprehensive Income 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.

Page 22

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income 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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.13

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 23

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.14

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 Statement of Comprehensive Income over its useful economic life.

Other intangible assets

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.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.15

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.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 24

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.15

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line or reducing balance method.

Depreciation is provided on the following basis:

Freehold property	-	2% straight line per annum
Plant and machinery	-	15% reducing balance per annum
Motor vehicles	-	25% reducing balance per annum
Fixtures and fittings	-	10% reducing balance per annum

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 the Consolidated Statement of Comprehensive Income.

2.16

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.17

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Page 25

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.18

Investment property

Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated Statement of Comprehensive Income.

2.19

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.20

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.21

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.22

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. 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.

2.23

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 26

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.24

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Statement of Comprehensive Income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 27

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.25

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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price, net of transaction cost, and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and 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 in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

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 Statement of Comprehensive Income.

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.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

2.26

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 28

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

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 Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i) Useful economic lives of intangible fixed assets
The directors consider that the useful economic life of the goodwill included within these financial statements cannot be reliably measured. As a result, the directors have adopted the maximum useful economic life allowed under FRS 102.
(ii) Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
(iii) Fair value of investment property
The fair value of the investment properties is sensitive to changes in the current market. The fair value adjustments have no effect on tax charges dividends proposed or directors' remuneration and are therefore purley an accounting exercise to comply with FRS 102. In the opinion of the directors, fair value can be measured reliably by the directors.
(iv) Work in progress
The Group estimates work in progress on the basis of the level of completion at the year end. A fixed percentage is applied to the total expected job costs of each job based on the level of completion assessed to determine the value of work in progress. The percentages applied are reassessed annually.
(v) Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Page 29

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Engineering sales	2,697,536	4,652,134
Net rents receivable	15,808	-
	2,713,344	4,652,134

Analysis of turnover by country of destination:

					2020	2019
					£	£

United Kingdom	2,518,346	4,398,376
Rest of Europe	194,998	253,758
	2,713,344	4,652,134

5.	Other operating income
		2020	2019
		£	£

Income from solar panels	9,151	18,545
Net rents receivable	179,344	181,358
Government grants receivable	214,441	-
	402,936	199,903

Depreciation of tangible fixed assets	123,180	143,744
Exchange differences	(3,288)	(2,061)
Amortisation of intangible fixed assets	(193,470)	(219,907)
Defined contribution pension cost	10,672	15,533

Page 30

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

7.	Auditors' remuneration
		2020	2019
		£	£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements

26,000

18,000

Fees payable to the Group's auditor and its associates in respect of:
All other services	18,000	11,700
	18,000	11,700

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

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


Wages and salaries	830,114	1,158,230	-	-
Social security costs	55,168	92,811	-	-
Cost of defined contribution scheme	10,672	15,533	-	-
	895,954	1,266,574	-	-

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.

Production staff	38	45	-	-
Office and management staff	5	7	-	-
Directors	2	2	2	2

	45	54	2	2

Page 31

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

9.	Directors' remuneration
		2020	2019
		£	£

Directors' emoluments	16,848	42,785
	16,848	42,785

10.	Interest receivable
		2020	2019
		£	£

	Other interest receivable	2,948	6,839
		2,948	6,839

11.	Interest payable and similar expenses
		2020	2019
		£	£

	Bank interest payable	1,706	-
		1,706	-

Corporation tax
Current tax on profits for the year	106,431	130,718

Total current tax	106,431	130,718

Deferred tax
Origination and reversal of timing differences (note 24)	181,109	13,490
Total deferred tax	181,109	13,490


	Taxation on profit on ordinary activities	287,540	144,208

Page 32

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

12.Taxation (continued)

(Loss)/profit on ordinary activities before tax

(1,434,923)

907,605

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)	(272,635)	172,445
Effects of:
Non-tax deductible amortisation of goodwill and impairment	(36,759)	(41,782)
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	273,372	(291)
Capital allowances for year in excess of depreciation	10,115	(4,632)
Non qualifying depreciation	4,027	5,369
Qualifying profit/(loss) on disposal	240	(391)
Deferred tax	181,109	13,490
Loss on disposal of subsidiary	127,555	-
Changes in provisions leading to an increase in the tax charge	246	-
Unrelieved tax losses carried forward	270	-
Total tax charge for the year	287,540	144,208

Factors that may affect future tax charges

Under FRS 102 deferred tax must be measured using the tax rates and laws that have been enacted, or substantively enacted, by the reporting date, and that are expected to apply to the reversal of the timing difference. The tax rates have been changed after the report date of 31 December 2020. For periods on or after 1 April 2023 the rates applicable to asset sales will be 25%. The impact on the deferred tax liability of the application of a tax rate of 25% rather than 19% is an increase in the deferred tax liaibility of £111,290.

Page 33

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

13.	Exceptional items
		2020	2019
		£	£

	Write off of intercompany debt	1,400,000	-
		1,400,000	-

On 4 December 2020 the directors approved the write off of an intercompany loan, between Frankham Bros Property Holdings Limited and Frankham Bros Holdings Limited, in the sum of £1,400,000. Frankham Bros Property Holdings Limited did not form part of the consolidation and so the amount is included within the Consolidated Statement of Comprehensive Income.
In the prior year, on 12 December 2019, the directors approved the write off of an intercompany loan, between Frankham Bros Holdings Limited and Frankham Bros Limited, in the sum of £1,400,000. Frankham Bros Holdings Limited and Frankham Bros Limited formed part of the conosolidation and so the amount was eliminated from the Consolidated Statement of Comprehensive Income on consoldiation.

14.	Intangible assets
	Group and Company

		Goodwill
		£

	At 1 January 2020	(2,199,068)
	On disposal of subsidiaries	2,199,068
	At 31 December 2020	-

	At 1 January 2020	(659,721)
	Charge for the year	(193,470)
	On disposals	853,191
	At 31 December 2020	-
	Net book value
	At 31 December 2020	-
	At 31 December 2019	(1,539,347)

Page 34

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

15.	Tangible fixed assets
	Group

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£

At 1 January 2020	953,141	3,166,921	117,820	202,636	4,440,518
Additions	-	45,440	-	-	45,440
Disposals	-	(3,212,361)	(117,820)	(202,636)	(3,532,817)
Transfers between classes	(953,141)	-	-	-	(953,141)
At 31 December 2020	-	-	-	-	-

At 1 January 2020	424,190	2,544,282	75,858	136,179	3,180,509
Charge for the year on owned assets	21,195	86,886	9,244	5,855	123,180
Disposals	-	(2,631,168)	(85,102)	(142,034)	(2,858,304)
Transfers between classes	(445,385)	-	-	-	(445,385)
At 31 December 2020	-	-	-	-	-
Net book value
At 31 December 2020	-	-	-	-	-
At 31 December 2019	528,951	622,639	41,962	66,457	1,260,009

The net book value of land and buildings may be further analysed as follows:
	2020	2019
	£	£

Freehold property	-	528,951
	-	528,951

Page 35

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

16.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2020	1,400,000
	Additions	36,000
	Disposals	(1,400,000)
	At 31 December 2020	36,000
	Impairment
	Charge for the period	36,000
	At 31 December 2020	36,000
	Net book value
	At 31 December 2020	-
	At 31 December 2019	1,400,000

On 17 November 2020 the Company acquired the shareholding in Summit Fabrications Limited from Frankham Bros Limited.
On 17 November 2020 the Company disposed of its investment in Frankham Bros Limited.

Page 36

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

17.	Investment property
	Group

		Freehold investment property
		£
	Valuation
	At 1 January 2020	1,735,390
	Surplus on revaluation	2,287,244
	Transfers between classes	507,756
	At 31 December 2020	4,530,390

The 2020 valuations were made by the directors, on an open market value for existing use basis.

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2020	2019
	£	£

Historic cost	1,872,763	459,811
Accumulated depreciation and impairments	(1,100,497)	(185,797)
	772,266	274,014

	Company
		Freehold investment property
		£

	Valuation
	At 1 January 2020	-
	Transfers from group undertakings	2,243,146
	Surplus on revaluation	2,287,244
	At 31 December 2020	4,530,390

Page 37

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

18.	Stocks
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

Properties for resale	927,717	927,717	927,717	-
Work in progress	-	132,839	-	-
Finished goods and goods for resale	-	141,513	-	-
	927,717	1,202,069	927,717	-

19.

Debtors

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


Trade debtors	480	732,272	480	-
Amounts owed by group undertakings	24,712	-	24,712	-
Other debtors	1,712	16,313	1,712	300
Prepayments and accrued income	-	43,272	-	-
Tax recoverable	-	2,251	-	-
	26,904	794,108	26,904	300

20.	Current asset investments
		Group	Group
		2020	2019
		£	£

Unlisted investments	-	36,000
	-	36,000

21.	Cash and cash equivalents
		Group	Group
		2020	2019
		£	£

Cash at bank and in hand	-	2,069,501
	-	2,069,501

Page 38

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

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

Trade creditors	20,635	288,651	20,635	-
Corporation tax	-	130,058	-	-
Other taxation and social security	-	104,480	-	-
Other creditors	14,000	3,459	14,000	-
Accruals and deferred income	10,000	128,411	10,000	-
	44,635	655,059	44,635	-

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

	Financial assets
	Financial assets that are debt instruments measured at amortised cost	26,904	748,585	26,904	300

	Financial liabilities
	Financial liabilities measured at amortised cost	(44,635)	(420,521)	(44,635)	-

Group financial assets measured at amortised cost comprises of trade debtors of £480 (2019 - £732,272), amounts owed to group undertakings of £24,712 (2019 - £Nil) and other debtors of £1,712 (2019 - £16,313).
Company financial assets measured at amortised cost comprises of trade debtors of £480 (2019 - £Nil), amounts owed to group undertakings of £24,712 (2019 - £Nil) and other debtors of £1,712 (2019 - £300).
Group financial liabilities measured at amortised cost comprises of trade creditors of £20,635 (2019 - £288,651), other creditors £14,000 (2019 - £3,459) and accruals and deferred income of £10,000 (2019 - £128,411).
Company financial liabilities measured at amortised cost comprises of trade creditors of £20,635 (2019 - £Nil), other creditors £14,000 (2019 - £Nil) and accruals and deferred income of £10,000 (2019 - £Nil).

Page 39

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

24.	Deferred taxation
	Group

	2020	2019
	£	£

At beginning of year	(359,652)	(346,162)
Charged to profit or loss (note 12)	(181,109)	(13,490)
Eliminated on disposal of subsidiary	106,185	-
At end of year	(434,576)	(359,652)

Company

		2020
		£

	Charged to profit or loss	(434,576)
	At end of year	(434,576)

Group	Group	Company
2020	2019	2020
£	£	£

	Accelerated capital allowances	(434,576)	(359,652)	(434,576)
		434,576	359,652	434,576

25.	Share capital
		2020	2019
		£	£

Allotted, called up and fully paid

10,000 (2019 - 100) Ordinary A shares of £0.01(2019 - £1.00) each	100	100
19,940 (2019 - 19,940) Ordinary B shares of £0.01 each	199	199
60 (2019 - 60) Ordinary C shares of £0.01 each	1	1

	300	300

On 17 November 2020, the Ordinary A shares were subdivided from 100 Ordinary A shares worth £1.00 each into 10,000 Ordinary A shares worth £0.01 each.

Page 40

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

26.

Reserves

Revaluation reserve

Includes changes in the value of investment properties.

Other reserves

Includes changes in the value of investments.

Non-distributable reserves

Includes amounts relating to the transfer of investment properties to the Company as part of the group restructure. All amounts are non-distributable.

Profit and loss account

Includes all current year retained profits. All amounts are distributable.

27.	Discontinued operations
	On 17 November 2020, the Group disposed of its operations involving the precision engineering as the result of the sale of Frankham Bros Limited to Frankham Bros Property Holdings Limited. Details of this transaction are as follows:
		£

Cash proceeds		1,400,000
		1,400,000
Net assets disposed of:
Tangible fixed assets	674,513
Stocks	184,410
Debtors	734,752
Cash	2,218,273
Creditors	(1,740,605)
		(2,071,343)
Profit on disposal before tax		(671,343)


		£

	Cash consideration	1,400,000
	Net inflow of cash	1,400,000

Page 41

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

28.	Commitments receivable under operating leases
	At 31 December 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	120,000	25,000	120,000	-
Later than 1 year and not later than 5 years	840,000	-	840,000	-
Later than 5 years	1,620,000	-	1,620,000	-
	2,580,000	25,000	2,580,000	-

29.	Transactions with directors

At the year end M N Frankham, a director of the Group, was owed by the Group £7,000 (2019 - £1,537) included within other creditors. During the year payments totalled £205,000 and repayments totalled £210,463.
At the year end S J Frankham, a director of the Group, was owed by the Group £7,000 (2019 - £1,537) included within other creditors. During the year payments totalled £55,000 and repayments totalled £60,463.
The directors had interest free loans during the year that are repayable on demand.

30.

Related party transactions

The wholly owned subsidaries of the group are exempt from the requirements of Financial Reporting Standard 102, section 33.1A to disclose transactions.
Total key management personnel remuneration for the year was £16,848 (2019 - £42,785).
Consultancy fees of £50,000 (2019 - £50,000) were paid to other related parties during the year.
No other transactions with related parties were undertaken such as are required to be disclosed under Financial Report Standard 102, section 33.

Page 42

FRANKHAM BROS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

31.	Other commitments
	From the 1 January 2018, the group had commited to pay G N Frankham a sum of £50,000 per annum for a fixed term of four year, following the purhcase of Frankham Bros Limited.
		2020	2019
		£	£

Not later than 1 year	50,000	50,000
Later than 1 year and not later than 5 years	-	50,000
	50,000	100,000

32.	Controlling party

On 17 November 2020 the Company formed part of a group restructure. This saw the transfer of the Company's entire share capital to Frankham Bros Property Holdings Limited, the Company's immediate parent.
The new ultimate parent company of the Group is Frankham Bros Property Holdings Limited.
The directors do not consider there to be ultimate controlling party in the year.

Page 43