WILFRED_T._FRY_LIMITED - Accounts

The directors present the strategic report for the year ended 31 March 2017.

The directors report a fall in turnover against prior year by 11% to £5.1m with an operating profit for the year of £725k against a loss last year of £95k as shown on page 7. The increase in operating margin is a direct result of increased management time invested with subsidiaries, which has resulted in increased group management fees, together with last year's increased costs as a result of a restructure of group commission receivable. The directors remain satisfied with the trading performance of the company as a whole.

The directors have controlled costs as far as possible, but continue to see significant expenditure required for operations, together with the completion of the renovation of head office. The company continues to update its computer systems with the goal of a more effective and efficient workplace with better internal controls.

The principal risk and uncertainty affecting the company is the pension scheme deficit. This year has seen the deficit increase, in the main due to changes in the actuarial assumptions, as shown by the actuarial loss in the statement of other comprehensive income.

The position of the company at the year end is shown on page 9.

The accounting disclosures of the FRS102 Section 28, 'Employee Benefits' has continued to have a significant effect on the balance sheet of the company. The deficit of £15,536k (2016 - £12,798k) has once again reduced the company's net assets considerably. This is however a snapshot of the financial position at the year end date, is volatile year-on-year, and is a long term liability.

On behalf of the board

The principal activity of the company continued to the provision of tax consultancy services.

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

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £105,000. The directors do not recommend payment of a final dividend. The directors note the unlawful dividends approved during the year as the company does not have sufficient distributable reserves to distribute dividends. The directors have informed the shareholders that dividends voted since the accounting requirements in respect of defined benefits pensions changed in November 2000 may need to be repaid in the event of the company entering liquidation.

The company's principal foreign currency exposures arise from trading with overseas companies and branches. The company's policy permits but does not demand that these exposures may be hedged in order to fix the costs in sterling.

In accordance with the company's articles, a resolution proposing that MHA Carpenter Box be reappointed as auditor of the company will be put at a General Meeting.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• •    select suitable accounting policies 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;

• •    prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Wilfred T. Fry Limited for the year ended 31 March 2017 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement Of Financial Position, the Statement of Changes in Equity and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 auditor's 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.

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

In our opinion the financial statements:

• •    give a true and fair view of the state of the company's affairs as at 31 March 2017 and of its 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.

In our opinion, based on the work undertaken in the course of our audit, the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statementstrue, and the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

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

• •    the 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.

The income statement has been prepared on the basis that all operations are continuing operations.

Wilfred T. Fry Limited is a private company limited by shares incorporated in England and Wales. The registered office is Crescent House, Crescent Road, Worthing, West Sussex, BN11 1RN.

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.

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 on the historical cost convention, modified to include the revaluation of certain fixed assets and certain financial instruments 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;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Fry Wealth Limited. These consolidated financial statements are available from Companies House.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Wilfred T. Fry Limited is a 72% subsidiary of Fry Wealth Limited and the results of Wilfred T. Fry Limited are included in the consolidated financial statements of Fry Wealth Limited which are available from Companies House.

During the current year it was noted that deferred tax movement of £44,200 in relation to an available for sale financial asset held at fair value through profit or loss, had incorrectly gone through other comprehensive income in the prior year.

The result of this prior year adjustment has increased the comparative year's loss before tax of £143,354 to £187,554. The movement of £44,200 has been transferred through to the revaluation reserve on the Statement of Changes in Equity with nil effect on equity.

In addition, the revaluation of £240,897 in the comparative year, had been included within retained earnings. This has now been transferred to revaluation reserve which has resulted in an increased revaluation reserve and reduction in retained earnings from that previously reported with nil effect on equity.

The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

The directors consider it appropriate for the treatment despite the negative retained earnings. This position is due to the accounting requirements for the defined benefit pension scheme liability. The assessment of this liability is over the very long term. The directors believe the cash position of the company and group is very healthy and future forecasts are satisfactory to ensure the going concern basis of accounting is appropriate.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

Provision for professional services

Revenue for the provision of professional services is recognised, for new clients at the point the insure risk is passed onto the client, and for the existing clients on each anniversary whilst the product is held by the client.

Contracts for services

Revenue from contracts for the provision of professional services and commissions is recognised by reference to the right of consideration based on the fair value of the work completed, reflecting any uncertainties as to outcome or recoverability. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Amounts receivable on contracts are included in current assets, less foreseeable losses and amounts received as progress payments on account. Payments on account received in excess of revenue are included in non-current liabilities.

Commissions

Revenue from commissions is based on a fixed percentage, which is received from a subsidiary of this company.

Service charge receivable

Revenue is recognised based on management's time spent at subsidiary companies.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

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.

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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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 income statement 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The company operates an employee share ownership plan (ESOP) trust and has de facto control of the shares held by the trust and bears their benefits and risks. The company records assets and liabilities of the trust as its own. Consideration paid by the ESOP scheme for shares of the company is deducted from equity. Finance costs and administrative expenses incurred by the company in relation to the ESOP are recognised on an accruals basis.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The defined net benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.

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 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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

As stated in the accounting policy at note 1.4 revenue is recognised based on the fair value of the work completed. At the year end the directors therefore review work in progress to estimate recoverable services undertaken but not invoiced.

As stated in note 22 to the accounts, the defined benefit scheme has been valued on a roll forward method based on the latest full actuarial valuation.

As stated in notes 1.6 and 13, investments in subsidiaries are held at fair value. The key estimates and assumptions used in the fair value model of its personal investment firms are 2.15% (2016 - 2.15%) of funds under advice, 3.25 (2016 - 3.37) multiple of recurring fees, and 30% (2016 - 27.5%) discount factor.

An analysis of the company's revenue is as follows:

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2016 - 4).

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged/(credited) to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

The unlisted investment has been revalued by the directors as at 31 March 2017 based on a formal valuation in February 2016 and subsequent movement in share price to May 2017. The previous formal valuation was calculated using an algorithm of participation and based on the audited financial statements of the investment.

The investment under historical cost would have been valued at £15,000.

Fixed asset investments at fair value

The directors' have valued the company's holdings in its subsidiaries at fair value. The method used for the personal financial planning subsidiaries was in line with industry standards of valuing financial service companies, based on level of funds under administration and renewal income and applying multiples or percentages as appropriate based on current market conditions and discounted where necessary.

The method used for valuing other subsidiaries was based on the recurring fee income and discounted where necessary.

These financial statements are separate company financial statements for Wilfred T. Fry Limited. Consolidated financial statements for Fry Wealth Limited, the ultimate parent company are prepared and publicly available.

Details of the company's subsidiaries at 31 March 2017 are as follows:

Details of the company's joint ventures at 31 March 2017 are as follows:

During the year, the company acquired a 50% stake in the joint venture. This has been accounted for under the gross equity method.

Registered Office address:

1) 160 Robinson Road, #17-01, SBF Centre, Singapore 068914

Bank loans and overdrafts are secured by an unlimited guarantee and letter of set off.

Borrowings are repayable initially over ten years at an interest rate of the Bank of England's Base Rate plus 1.8%.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

The deferred tax asset in relation to tax losses, as set out above, is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

The remaining deferred tax assets and liabilities, as set out above, are expected to reverse over a period of greater than one year.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund.

Introduction

The company operates a defined benefit pension scheme which is closed to new entrants. The most recent full actuarial valuation was on 31 March 2014 and was carried out by a qualified independent actuary.

The roll forward method has been used, based on the most recent comprehensive actuarial valuation. Adjustments were made to reflect benefits paid out, in addition to, differences between the assumptions used at the year end and those in the comparatives.

The assets of the scheme are invested in a M&G Prudential Absolute Return Fund and a Legal and General Fund. At 31 March 2017 the fair value of the assets has been determined as the market value of the policy. M&G have provided a market value as at 31 March 2017 of £7,689,519 (2016 - £6,365,785), Legal and General have provided a market value as at 31 March 2017 of £7,663,744 (2016 (Phoenix) - £7,269,934) and as at 31 March 2017 the scheme's bank balance was £85,305 (2016 - £48,987).

The defined benefit plan is currently underfunded, and so is in deficit. As a result, the Trustees' have agreed with the company, deficit payment contributions of £57,500 per month less member contributions, rising by 5% per annum compound from each April until 31 October 2034.

The expected total contributions for the year ending 31 March 2018 have been estimated to be £725,000.

These payments are designed to eliminate the deficit, pay the expenses of running the Scheme and meet the costs of future accrual for remaining active members.

The total current service cost represents the cost of the pension rights accrued in the coming year (net of employee contributions), pension scheme administration costs and the Pension Protection Levy.

Assumed life expectations on retirement at age 65:

Future pension increases     2017     2016

     %     %

Pre88 GMP (3.0% fixed)*     3.00     3.00

Post88 GMP (3.0% fixed)     3.00     3.00

Pre 01/04/1993 excess over GMP (3.0% fixed)*     3.00     3.00

Post 01/01/1993 excess over GMP (5.0% fixed)     5.00     5.00

Post 01/04/1997 (LPI min 3.0%, max 5.0%)**     3.70/3.30     3.50/3.30

Post 06/03/2006 (LPI max 2.5%)***     1.90/1.50     1.70/1.50

Statutory increases in deferment CPI 2.20 2.20

Statutory increases in deferment RPI 3.20 2.90

*Prior to 2012 assumed to be 0.0% and LPI minimum of 3.0% respectively. Now fixed 3.0% as per legal advice.

**For service post 01/04/1997 previously assumed to be LPI max 5.0%. Now LPI min 3.0% max 5.0% as per legal advice. Lower figures based on CPI pension increases and higher figures based on RPI pension increases.

***For service post 06/03/2006 previously assumed to be post 05/04/2005. Changed as per legal advice. Lower figures based on CPI pension increases and higher figures based on RPI pension increases.

(i) For members who left the scheme before 10 February 2010, members' deferred pensions in excess of GMP increase before retirement in line with RPI up to 1 January 2011 and CPI from 1 January 2011 although the total increase over the whole period between leaving and retirement is restricted so that it does not exceed 5.0% per annum compound. The assumption of 2.2% per annum in respect of future revaluation is calculated in this way. For members who left the scheme on or after 10 February 2010, members' deferred pensions in excess of GMP increase before retirement in line with RPI, again the total increase over the whole period between leaving and retirement is restricted so that it does not exceed 5.0% per annum compound. The assumption this year for this type of revaluation is 3.2% per annum.

The expected return on annuity policies is taken to be the discount rate used to value the pensioner liabilities.

The overall expected return on all the scheme assets is 2.7% (2016 - 3.6%) which is set at the same rate as the discount rate as required by the standard.

Amounts recognised in the income statement

Amounts taken to other comprehensive income

The amounts included in the statement of financial position arising from the company's obligations in respect of defined benefit plans are as follows:

Movements in the present value of defined benefit obligations

The defined benefit obligations arise from plans which are wholly unfunded.

Movements in the fair value of plan assets

The actual return on plan assets was £2,822,000 (2016 - £684,000).

Fair value of plan assets at the reporting period end

Each share is entitled to one vote in any circumstances and each share is also entitled pari passu to dividend payments or any other distribution, including a distribution arising from a winding up of the company.

Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

The directors continue to separate revaluation reserves in order to distinguish between unrealised reserves which are not available from distribution.

Other reserves represents the advance to the Wilfred T. Fry Limited Staff Share Trust which has been shown as a reduction from reserves. The results of the Wilfred T. Fry Limited Staff Share Trust are not material for consolidation.

Includes all current and prior year retained profits and losses.

The directors note that they have paid unlawful dividends during the period, as the company does not have sufficient reserves to distribute any dividends due to the accounting requirements of recognising defined benefit pension scheme obligations. The directors have informed the shareholders that dividends may need to be repaid in the event of the company entering liquidation.

The company's bankers hold security and have an unlimited guarantee and letter of set off between all of Wilfred T. Fry Limited, Wilfred T. Fry (Personal Financial Planning) Limited and Wilfred T. Fry (Executor and Trustee) Limited. There are no outstanding bank liabilities in the subsidiary companies.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

After the year end dividends of £40,000 have been approved for the year ended 31 March 2018.

During the year management charges amounting to £1,900,000 (2016 - £1,800,000) were charged and dividends of £75,469 (2016 - £75,259) were paid to Fry Wealth Limited.

The company is a 72% subsidiary of Fry Wealth Limited, a company without one single ultimate controlling party. Fry Wealth Limited prepares consolidated financial statements which are available from Companies House, Cardiff.