West Somerset Free Press Limited - Accounts

Registered number

0063882

West Somerset Free Press Limited

Annual Report

31 March 2014

West Somerset Free Press Limited
Report and accounts
Contents
Page
Company information	1
Directors' report	2
Independent auditors' report	4
Profit and loss account	5
Balance sheet	6
Notes to the accounts	7

West Somerset Free Press Limited

Company Information

Directors

Sir Ray Tindle CBE, DL, FCIS

W.D. Craig

K.L. Fyfield

Secretary

K.L. Fyfield

Auditors

David Pinder & Co Limited

23 Lockyer Street

Plymouth

Devon

PL1 2QZ

Bankers

Lloyds Bank plc

147 High Street

Guildford

Surrey

GU1 3AG

Solicitors

TWM Solicitors LLP

65 Woodbridge Road

Guildford

Surrey

GU1 4RD

Registered office

The Old Court House

Union Road

Farnham

Surrey

GU9 7PT

Registered number

0063882

West Somerset Free Press Limited
Directors' Report
The directors present their report and accounts for the year ended 31 March 2014.
Principal activities
During the year to 31 March 2014 the company's principal activity has been the publication of newspapers.
Review of the business
The directors are concerned with the results for the year and have put in place cost control measures to minimise the adverse effects of the economy. The directors are confident that appropriate measures have been put in place to improve results over the next few years.
Financial instrument risk
The company uses as its key performance indicators the revenue, operating profit and net profit amounts. The principal challenges facing the company arise from the vagaries of the economy in the United Kingdom leading to fluctuations in the advertising market. A full assessment of risk is disclosed in the accounts of the company's parent undertaking.
Dividends
An interim ordinary dividend was paid amounting to £40,000 (2013 - £50,000).
Directors
The following persons served as directors during the year:
	Sir Ray Tindle CBE, DL, FCIS
	W.D. Craig
	B.G. Doel			(Retired 30 April 2014)
	K.L. Fyfield			(Appointed 13 June 2014)
	S.R. Yates			(Resigned 12 June 2014)
In accordance with the company's Articles of Association, Sir Ray Tindle CBE, DL, FCIS retires by rotation and, being eligible, offers to stand for re-election.
Directors' responsibilities

The directors are responsible for preparing the report and accounts in accordance with applicable law and regulations.
Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts 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 accounts 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 accounts, the directors are required to:
●	select suitable accounting policies and then apply them consistently;
●	make judgements and 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 accounts;
●	prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.
Directors' responsibilities - continued
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 accounts 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.

Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and
●	they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditor
David Pinder & Co Limited are deemed to be reappointed as auditors under section 487(2) of the Companies Act 2006.
This report was approved by the board on 15 December 2014 and signed on its behalf.
W.D. Craig
Director
Registered number:			0063882

West Somerset Free Press Limited

Independent auditors' report

to the members of West Somerset Free Press Limited

We have audited the financial statements of West Somerset Free Press Limited for the year ended 31 March 2014 which comprise the Profit and Loss Account, the Balance Sheet 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).

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities, 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 (APB's) Ethical Standards for Auditors.

Scope of the audit of the accounts

A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm

Opinion on the accounts

In our opinion the financial statements:
●	give a true and fair view of the state of the company's affairs as at 31 March 2014 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.

Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial year for which the accounts are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
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.
David Pinder
Senior Statutory Auditor		23 Lockyer Street
for and on behalf of		Plymouth
David Pinder & Co Limited		Devon
Statutory Auditor, Chartered Accountants		PL1 2QZ
18 December 2014

West Somerset Free Press Limited
Profit and Loss Account
for the year ended 31 March 2014
Notes						2014		2013
£							£
Turnover				2		779,829		818,864
Cost of sales						(507,605)		(533,958)
Gross profit						272,224		284,906
Distribution costs						(52,921)		(53,068)
Administrative expenses						(192,302)		(168,717)
Other operating income						17,927		17,887
Operating profit				3		44,928		81,008
Interest receivable						6,115		6,894
Profit on ordinary activities before taxation						51,043		87,902
Tax on profit on ordinary activities				5		(11,584)		(21,421)
Profit for the financial year						39,459		66,481
Continuing operations
None of the company's activities were acquired or discontinued during the above two financial years.
Statement of total recognised gains and losses
The company has no recognised gains or losses other than the profit for the above two financial years.

West Somerset Free Press Limited
Balance Sheet
as at 31 March 2014
Notes				2014			2013
£					£
Fixed assets
Tangible assets	6			37,632			39,086
Current assets
Stocks	7		380			380
Debtors	8		618,514			735,445
Cash at bank and in hand			295,767			171,119
			914,661			906,944
Creditors: amounts falling due within one year	9		(98,544)			(91,740)
Net current assets				816,117			815,204
Net assets				853,749			854,290
Capital and reserves
Called up share capital	10			8,800			8,800
Revaluation reserve	11			28,861			28,861
Capital redemption reserve	12			46,623			46,623
Profit and loss account	13			769,465			770,006
Shareholders' funds	15			853,749			854,290
K.L. Fyfield
Director
Approved by the board on 15 December 2014

West Somerset Free Press Limited
Notes to the Accounts
for the year ended 31 March 2014
1	Accounting policies
	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards. The company has taken advantage of the exemption in Financial Reporting Standard No 1 from the requirement to produce a cash flow statement on the grounds that it is a wholly-owned subsidiary whose results are included in the publicly available consolidated accounts of the ultimate parent company.
	Turnover
	Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is attributable to the company's main activity, the publication of weekly newspapers and is comprised mainly of advertising and circulation income. Advertising revenue is recognised upon publication and circulation revenue is recognised at the time of sale.
	Tangible assets and depreciation
	Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
	Freehold land and buildings			2% on cost or valuation of buildings
	Fixtures, fittings and equipment			over 5 years
	The charge to depreciation commences in the month following the month of acquisition. Where there is evidence of impairment, fixed assets are written down to the recoverable amount and fair value adjustments are made on acquisitions as required.
	Stocks
	Stock is valued at the lower of cost and net realisable value and comprises good for resale.
	Leasing and hire purchase commitments
	Rentals paid under operating leases are charged to income on a straight line basis over the lease term.
	Deferred taxation
	Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred tax is calculated at the tax rates which are expected to apply in the periods when the timing differences will reverse, and discounted to reflect the time value of money using rates based on the post-tax yields to maturity that could be obtained at the balance sheet date on government bonds with similar maturity dates.
	Pensions
	The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. The company is a member of the Farnham Castle Newspapers Limited Pension and Life Assurance Scheme, a defined benefit scheme operated by Tindle Newspapers Limited. The company has continued to account for the defined benefit scheme as if it were a defined contribution scheme, as permitted under FRS 17, as the defined benefit scheme is a multi-employer scheme where the assets of the scheme relating to the company cannot be separately identified on a reasonable basis.
2	Analysis of turnover					2014		2013
£							£
	By activity:
	Newspaper publishing					779,829		818,864
	By geographical market:
	UK					779,829		818,864
3	Operating profit					2014		2013
£							£
	This is stated after charging:
	Depreciation of owned fixed assets					1,804		2,563
	Operating lease rentals - other assets					13,869		14,830
	Operating lease rentals - land buildings					8,000		8,000
	Auditor's remuneration for audit services					2,600		2,500
4	Staff costs					2014		2013
£							£
	Wages and salaries					322,082		331,593
	Social security costs					24,333		25,322
	Other pension costs (see below)					18,967		19,280
						365,382		376,195
	Pension costs
	Payments to defined contribution scheme					509		1,097
	Payments to defined benefit scheme					18,458		18,183
						18,967		19,280
	Average number of employees during the year					Number	Number
	Management and administration					5		5
	Editorial and production					9		9
	Sales and marketing					10		10
						24		24
	Directors' remuneration is borne by another group undertaking.
5	Taxation					2014		2013
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					12,100		22,000
	Adjustments in respect of previous periods					(516)		(579)
						11,584		21,421
	Tax on profit on ordinary activities					11,584		21,421
	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
						2014		2013
£							£
	Profit on ordinary activities before tax					51,043		87,902
	Standard rate of corporation tax in the UK					23%		24%
£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					11,740		21,096
	Effects of:
	Expenses not deductible for tax purposes					55		73
	Capital allowances for period in excess of depreciation					231		385
	Provision based tax charge					74		446
	Adjustments to tax charge in respect of previous periods					(516)		(579)
	Current tax charge for period					11,584		21,421
	Factors that may affect future tax charges
	There are no known factors that would affect the future tax charges.
6	Tangible fixed assets
				Short leasehold land and buildings		Fixtures, fittings and equipment		Total
£					£		£
	Cost
	At 1 April 2013			77,000		48,034		125,034
	Additions			-		350		350
	At 31 March 2014			77,000		48,384		125,384
	Depreciation
	At 1 April 2013			39,270		46,678		85,948
	Charge for the year			1,155		649		1,804
	At 31 March 2014			40,425		47,327		87,752
	Net book value
	At 31 March 2014			36,575		1,057		37,632
	At 31 March 2013			37,730		1,356		39,086
7	Stocks					2014		2013
£							£
	Finished goods and goods for resale					380		380
	The difference between purchase price or production cost of stocks and their replacement cost is not material.
8	Debtors					2014		2013
£							£
	Trade debtors					113,593		131,656
	Amounts owed by parent and fellow subsidiary undertakings					492,475		576,558
	Other debtors					1,571		(25)
	Prepayments and accrued income					10,875		27,256
						618,514		735,445
9	Creditors: amounts falling due within one year					2014		2013
£							£
	Trade creditors					38,710		19,518
	Amounts owed to parent and fellow subsidiary undertakings					7,985		12
	Corporation tax					12,100		22,000
	Other taxes and social security costs					23,915		34,205
	Accruals and deferred income					15,834		16,005
						98,544		91,740
10	Share capital	Nominal		2014		2014		2013
value			Number		£		£
	Allotted, called up and fully paid:
	Deferred ordinary shares	£1 each		8,000		8,000		8,000
	'A' ordinary shares	10p each		8,000		800		800
						8,800		8,800
11	Revaluation reserve					2014
£
	At 1 April 2013					28,861
	Arising on revaluation during the year					-
	At 31 March 2014					28,861
12	Capital redemption reserve					2014
£
	At 1 April 2013					46,623
	Transfer from the profit and loss account					-
	At 31 March 2014					46,623
13	Profit and loss account					2014
£
	At 1 April 2013					770,006
	Profit for the financial year					39,459
	Dividends					(40,000)
	At 31 March 2014					769,465
14	Dividends					2014		2013
£							£
	Dividends for which the company became liable during the year:
	Dividends paid					40,000		50,000
15	Reconciliation of movement in shareholders' funds					2014		2013
£							£
	At 1 April					854,290		837,809
	Profit for the financial year					39,459		66,481
	Dividends					(40,000)		(50,000)
	At 31 March					853,749		854,290
16	Financial commitments
	At the year end the company had annual commitments under non-cancellable operating leases as set out below:
		Land and buildings		Land and buildings		Other		Other
		2014		2013		2014		2013
£			£		£		£
	Operating leases which expire:
	within one year	-		-		2,664		1,253
	within two to five years	-		-		10,306		14,720
		-		-		12,970		15,973
17	Related party transactions
						2014		2013
	Tindle Press Holdings Group					£	£
	Group company
	The company has taken advantage of the exemption in Financial Reporting Standard No 8 from the requirement to disclose transactions with wholly owned group undertakings.
	Devon and Cornwall Newspapers Limited
	Fellow subsidiary
	Setting £ 897 (2013 - £ Nil)
	Amount due to the related party					(259)		-
	Tavistock Newspapers Limited
	Fellow subsidiary
	Accountancy services £ Nil (2013 - £ 1,080) Mobile phone costs £ 4 (2013 - £ 24)
	Amount due to the related party					-		(12)
	Tavy Typesetting Limited
	Fellow subsidiary
	IT support £ 5,000 (2013 - £ 4,000) Computer consumables £ 366 (2013 - £ 544)
	Amount due to the related party					(1,200)		-
	Tindle Newspapers Limited
	Parent company
	Management charges £ 43,187 (2013 - £45,219) Management services £ 26,000 (2013 - £ Nil) Corporation tax £ 21,484 (2013 - £ 35,421) Audit £ 2,500 (2013 - £ 2,500) Insurance £ 7,484 (2013 - £ 7,104) Computer running costs £ 1,210 (2013 - £ 1,505) Subscriptions £ 1,759 (2013 - £ 1,291) Interest received £( 6,110) (2013 - £ (6,894)) Payroll services £ 1,040 (2013 - £ 1,040) Legal and professional £ 96 (2013 - £ 993) Building repairs £ 340 (2013 - £ Nil)
	Amount due from the related party					490,150		574,536
	Wellington Weekly News Limited
	Fellow subsidiary
	Net group advertising £ 5,050 (2013 - £ 9,676) Advertising commission £ Nil (2013 - £ (312)) Editorial services £(13,880) (2013 - £ (13,390))
	Amount due from the related party					2,325		1,477
	West Country Community Newspapers Limited
	Fellow subsidiary
	Book-keeping services £ 15,480 (2013 - £ 8,740)
	Amount due to the related party					(6,526)		-
18	Ultimate controlling party
	The ultimate parent company is Tindle Press Holdings Limited, a company registered in England and Wales. The ultimate controlling party of that company is Sir Ray Tindle by virtue of his 100% interest, direct and indirect, in the ordinary shares of that company. The parent company is Tindle Newspapers Limited, a company registered in England and Wales. Tindle Press Holdings Limited and Tindle Newspapers Limited prepare group financial statements, copies of which can be obtained from the Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.