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REGISTERED NUMBER: 00916058 (England and Wales)












STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Statement of Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021







DIRECTORS: M A K Styles
S N Goldring





REGISTERED OFFICE: Arterial Road
Eastwood
Leigh on Sea
Essex
SS9 4XX





REGISTERED NUMBER: 00916058 (England and Wales)





AUDITORS: Goldwyns Limited
Statutory Auditors and Chartered Accountants
Rutland House
90-92 Baxter Avenue
Southend on Sea
Essex
SS2 6HZ

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS
The year under review commenced inauspiciously on the second day of trading, by virtue of the mandated closing to clients of the BMW, MINI and Billericay showrooms.

This scenario lasted until being permitted to reopen on 12 April 2021.

Despite this impediment, however, Fairfield again proved its resilience by continuing to build upon its expertise in remote client care.

Profitable new and used vehicle sales thrived, only being limited by the lack of new car availability resultant from component shortages and supply chain logistics which in turn, had a consequent impact on the number of high quality used vehicles which could be purchased for stock.

The increase in residual values throughout the industry is well documented and permitted exceptional margins to be retained.

The fledgling used vehicle operation based in Billericay developed, despite its initial pandemic related limitations, outperforming its target nearly fourfold, producing a positive contribution of £143,000 which represents 6.7% of the company's total profit.

The company was also still able to capitalise upon all available Government assistance in the form of maximising the Job Retention Scheme receipts, holidays and discounts for business rates and Local Authority grants.

Job Retention Scheme funding passed to employees amounted to £291,000, business rates assistance added £446,000, whilst Local Authority grants contributed a further £73,000.

A successful rating appeal produced further refunds of £75,000 making the total of these items £885,000.

Although the above noted items all contributed to the 2021 level of profitability, conversely, as reported previously, this year was the first for which the group property restructure had taken place, resulting in additional rent of £769,000 being charged, based upon market property valuations.

Trading conditions throughout the year and each element of the business, remained buoyant with demand exceeding supply in both vehicle sales and labour sales arenas with, as per the global economy, an element of inflationary pressure upon salary levels and expenses.This situation is intensifying in the current year, with a degree of shortages of skilled staff.

During the year the company also continued its property development interests, with an interim crystallisation of profit.

As further opportunities arise, they are now being undertaken within an alternative group company.

These various factors culminated in an exceptional year end pre-tax result at £2.17 million, doubling the 2020 performance and outperforming the anticipated profitability more than threefold.

Comparing Fairfield with other retailers within the network is now more consistent due to the property restructure and sees Fairfield being over the national average in terms of profit by £190,000 (5.3%) with return on sales of 3.8% against the average of only 3.2% with the 0.6% difference representing an additional 18.75%. This indicates that the company is operating in a highly efficient manner.


FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

REVIEW OF BUSINESS
Since the financial year end there has been further geopolitical uncertainty resultant from the breakout of war between Russia and Ukraine on 24 February 2022.

This has placed further constraints upon the supply of new vehicles due to component manufacturing within Ukraine and is an industry wide issue.

Whilst this is limiting in terms of volume it is nevertheless beneficial in terms of retained profit margins.

In summary, as before, the company remains exceptionally well-funded, despite having chosen to economise by reducing the available overdraft facility in order to minimise bank charges.

The business produces a strong positive cash flow and retains the availability of considerable borrowing reserves and credit lines.

Early indications for the 2022 calendar year are extremely encouraging with the first trimester exceeding the same period in 2021 more than twofold, by £531,000.

PRINCIPAL RISKS AND UNCERTAINTIES
As with all businesses, there is an inherent level of risk and uncertainty associated with constantly evolving and fluctuating market conditions. This applies within the motor industry itself, to government economic policy and the economic climate both within the United Kingdom and, indeed, globally.

SECTION 172(1) STATEMENT
Stakeholder engagement
The board of directors have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company's success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board outwork this responsibility.

Decision making
Regular operational and strategic meetings are held by the directors and core management team. The attendance of appropriate individuals at each meeting ensures the board has access to the key factors affecting all areas of the business, shorter term or longer.

Furthermore, the company is in constant communication with BMW (UK) Limited, the wider franchise network and various industry specific news sources. This enables the directors to keep abreast of all longer-term shifts in the company's operating markets, ensuring the company's future is never compromised for the sake of its immediate needs.

Shareholder engagement
The company is a family owned business with a very successful trading history. The Styles family continues to maintain an active interest in the business' activities and are personally represented on the board of directors.

ENGAGEMENT WITH EMPLOYEES
The company maintains an enviable workforce of local employees spanning all aspects of a busy dealership. Staff are rewarded in line with comparable local markets, provided with specific training relevant to their needs and given the constant opportunity for development. The board also fosters a positive, engaging, attitude across all staff levels, and employee consultation is a key part of any significant operational changes.


FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
Business relationships
Over its many years of operations, the company has fostered very strong relationships with its key suppliers and local customer base.

The company's primary supplier remains BMW (UK) Limited, with whom the company keeps a close working relationship at all times. Other suppliers are not neglected, however, and the directors continue to deal with all suppliers openly, fairly and with integrity.

The company maintains a wide customer base, both personal and corporate. Regular mystery shopper visits and brand operational standards ensure Fairfield's customers receive the best service the company can offer, at all times. Furthermore, the company is pleased to repeatedly welcome back customers it has been serving for decades.

Community and environmental impact
The directors remain ever conscious of the impact their business has on the local community and environment. As well as being a significant local employer, the company also gives back to the surrounding community via a number of sponsorship and support schemes. It is also mindful of the disruption it causes its immediate neighbours (residential and commercial) and therefore remains considerate in its activities and operational hours.

Environmentally, the company is at the forefront of vehicular advancements - Fairfield was originally one of the flagship dealerships for the BMW electric range and incorporates various hybrid and low emission vehicles into its range. Operationally, the company processes all waste and hazardous material in accordance with prevailing legislation and guidance.

Business conduct
The directors continually assess the company's activities to ensure at all times the business is offering a high standard of business conduct, in accordance with the premium, high quality, marques of vehicle which forms its core business.


FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

STREAMLINED ENERGY AND CARBON REPORTING
During the course of the year, the company consumed approximately 1,760 (2020 - 1,551) MWh of energy. This is made up of:
(a) electricity 690 (2020 - 643) MWh;
(b) gas 309 (2020 - 244) MWh; and
(c) road fuel 761 (2020 - 664) MWh.

Given the wide variety of vehicles (business owned and reimbursed personal) utilised by the company over the course of the year, it is inherently difficult to obtain precise consumption data particularly for road fuel. For the purposes of this reporting, the company has therefore extrapolated its total fuel costs against an average fuel price of £1.33 (2020 - £1.17) per litre and an average energy content of 10kWh (2020 - 10kWh) per litre of fuel (petrol and diesel).

Using Department for Business, Energy and Industrial Strategy published conversion factors, the company calculates its total greenhouse gas emissions amount to 397 (2020 -368) tonnes of CO2. This is made up of:
(a) electricity 147 (2020 - 137) tonnes;
(b) gas 63 (2020 - 50) tonnes; and
(c) road fuel 188 (2020 - 181) tonnes.

This therefore equates to an approximate emission intensity of 5.9 (2020 - 6.8) tonnes of CO2 per £1m of sales revenue.

ON BEHALF OF THE BOARD:





S N Goldring - Director


17 August 2022

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

DIVIDENDS
Interim dividends per share were paid during the year as follows:
"A" Ordinary £1 - £0.11p
"B" Ordinary £1 - £0.11p

The total distribution of dividends for the year ended 31 December 2021 will be £4,445.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

M A K Styles
S N Goldring

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), 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 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2021


AUDITORS
The auditors, Goldwyns Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S N Goldring - Director


17 August 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED

Opinion
We have audited the financial statements of Fairfield Garage (Leigh-on-Sea) Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 company's affairs as at 31 December 2021 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.

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED


Opinions 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED


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 a Report of the Auditors 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 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.

In order to address the risks of misstatements in respect of irregularities, including fraud, we have:

- obtained an understanding of the key laws and regulations applicable to the company, including the Companies Act 2006, its BMW franchise agreement and applicable taxation legislation;
- assessed the company's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate;
- determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur;
- considered our own involvement in the preparation of the company's statutory financial statements and taxation returns;
- conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and
- reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity.

We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud.

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 Report of the Auditors.

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 a Report of the Auditors 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.




S T Blundell FCA (Senior Statutory Auditor)
for and on behalf of Goldwyns Limited
Statutory Auditors and Chartered Accountants
Rutland House
90-92 Baxter Avenue
Southend on Sea
Essex
SS2 6HZ

17 August 2022

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £    £   

TURNOVER 67,230,639 53,831,746

Cost of sales 62,947,115 51,510,282
GROSS PROFIT 4,283,524 2,321,464

Administrative expenses 2,773,836 2,604,102
1,509,688 (282,638 )

Other operating income 730,989 1,355,604
OPERATING PROFIT 4 2,240,677 1,072,966

Profit on sale of freehold
property 5 - 5,878,112
Loss on sale of investment
property 5 - (352,631 )
2,240,677 6,598,447

Interest receivable and similar income 6 57,145 77,017
2,297,822 6,675,464

Interest payable and similar expenses 7 120,487 114,557
PROFIT BEFORE TAXATION 2,177,335 6,560,907

Tax on profit 8 398,270 764,316
PROFIT FOR THE FINANCIAL YEAR 1,779,065 5,796,591

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,779,065

5,796,591

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

BALANCE SHEET
31 DECEMBER 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 2,033,201 2,199,349
Investment property 12 276,705 1,645,539
2,309,906 3,844,888

CURRENT ASSETS
Stocks 13 7,329,709 7,882,443
Debtors 14 15,223,694 13,879,741
Cash at bank and in hand 610 512,494
22,554,013 22,274,678
CREDITORS
Amounts falling due within one year 15 8,972,230 11,992,566
NET CURRENT ASSETS 13,581,783 10,282,112
TOTAL ASSETS LESS CURRENT
LIABILITIES

15,891,689

14,127,000

PROVISIONS FOR LIABILITIES 19 100,398 110,329
NET ASSETS 15,791,291 14,016,671

CAPITAL AND RESERVES
Called up share capital 20 39,304 39,304
Share premium 21 44,889 44,889
Capital redemption reserve 21 38,828 38,828
Retained earnings 21 15,668,270 13,893,650
SHAREHOLDERS' FUNDS 15,791,291 14,016,671

The financial statements were approved by the Board of Directors and authorised for issue on 17 August 2022 and were signed on its behalf by:





S N Goldring - Director


FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021

Called up
share Retained Share
capital earnings premium
£    £    £   

Balance at 1 January 2020 39,304 12,780,491 44,889

Changes in equity
Dividends - (5,000,000 ) -
Total comprehensive income - 6,113,159 -
Balance at 31 December 2020 39,304 13,893,650 44,889

Changes in equity
Dividends - (4,445 ) -
Total comprehensive income - 1,779,065 -
Balance at 31 December 2021 39,304 15,668,270 44,889
Capital
Revaluation redemption Total
reserve reserve equity
£    £    £   

Balance at 1 January 2020 316,568 38,828 13,220,080

Changes in equity
Dividends - - (5,000,000 )
Total comprehensive income (316,568 ) - 5,796,591
Balance at 31 December 2020 - 38,828 14,016,671

Changes in equity
Dividends - - (4,445 )
Total comprehensive income - - 1,779,065
Balance at 31 December 2021 - 38,828 15,791,291

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1. STATUTORY INFORMATION

Fairfield Garage (Leigh-on-Sea) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
Exemption has been taken from preparing a cash flow statement on the grounds that the parent company includes the subsidiary in its published financial statements.

Turnover
Turnover represents the net accrued income of a motor group, including a BMW and MINI retailer, excluding value added tax. Income from the sale of cars, parts, associated goods and commissions are recognised in the period in which the customer takes legal responsibility for the goods. Income receivable for the provision of services, including bodyshop repair work, is recognised in the period to which entitlement is incurred.

Tangible fixed assets
Depreciation is provided on all tangible assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life as follows:

Freehold property- fifty years
Leasehold property- evenly over the lease term
Plant and machinery- four to twenty years
Fixtures and fittings- two to twenty years
Computer equipment- three years

Where substantial dealership refurbishment works have been apportioned to other fixed asset categories, the depreciation has instead been charged over the remaining period of the building's life.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Current asset investments
The company has a policy of investing surplus reserves into short term property development agreements which are anticipated to return a higher yield than fixed term cash deposits.

When undertaking property development the properties are recognised at cost, less any necessary provision for impairment. Once the development is complete and the property is available for sale, the current asset investment is then recognised at market value with any gains or losses accruing reflected in the profit and loss account. At the final disposal of the current asset, the total surplus or deficit is recognised in the profit and loss account.

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES - continued

Stocks
Stock is valued at the lower of cost and net realisable value, as follows:

Vehicles - actual cost of purchase
Parts, oil and consumables - actual cost of purchase
Work in progress - cost of direct materials and labour

Due allowance has been made for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 4,152,928 4,158,702
Social security costs 403,796 390,124
Other pension costs 85,540 89,223
4,642,264 4,638,049

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2021 2020

Sales 35 47
Service 39 49
Parts 13 16
Bodyshop 10 13
Accounts and administration 20 22
Directors 2 2
119 149

2021 2020
£    £   
Directors' remuneration 82,030 77,521
Directors' pension contributions to money purchase schemes 5,508 11,201

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2021 2020
£    £   
Depreciation - owned assets 192,153 238,108
(Profit)/loss on disposal of fixed assets (129,366 ) 14,194
Auditors' remuneration 30,000 33,000
Auditors' remuneration - non-audit services 4,500 9,800
Operating leases - land and buildings 1,021,200 360,000

5. EXCEPTIONAL ITEMS
2021 2020
£    £   
Profit on sale of freehold
property - 5,878,112
Loss on sale of investment
property - (352,631 )
- 5,525,481

During 2020, the company transferred all of its freehold property and most of its investment property to fellow subsidiaries at market rate.

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

6. INTEREST RECEIVABLE AND SIMILAR INCOME
2021 2020
£    £   
Other interest received 57,145 77,017

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£    £   
Bank interest 1,212 6,519
Loan interest 119,275 108,038
120,487 114,557

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2021 2020
£    £   
Current tax:
UK corporation tax 408,201 205,493

Deferred tax (9,931 ) 558,823
Tax on profit 398,270 764,316

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£    £   
Profit before tax 2,177,335 6,560,907
Profit multiplied by the standard rate of corporation tax in the UK of
19% (2020 - 19%)

413,694

1,246,572

Effects of:
Income not taxable for tax purposes (24,579 ) (1,047,144 )
properties
Depreciation not deductible for tax purposes 9,155 (27,152 )


Tax cost reimbursed to other group companies - 592,040
Total tax charge 398,270 764,316

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

9. DIVIDENDS
2021 2020
£    £   
"A" Ordinary shares of £1 each
Interim 3,403 3,828,109
"B" Ordinary shares of £1 each
Interim 1,042 1,171,891
4,445 5,000,000

10. OTHER INCOME

During the year, the company was in receipt of Government support, specifically in relation to the Covid-19 pandemic. Within operating income is £290,671 (2020 - £855,785) in respect of Coronavirus Job Retention Scheme and £73,070 (2020 - £10,500) in respect of local authority business grants.

11. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and Computer
leasehold machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2021 1,314,597 1,697,255 1,072,922 285,546 4,370,320
Additions - 17,793 3,127 9,085 30,005
Disposals - - (15,845 ) - (15,845 )
At 31 December 2021 1,314,597 1,715,048 1,060,204 294,631 4,384,480
DEPRECIATION
At 1 January 2021 230,372 1,229,910 475,976 234,713 2,170,971
Charge for year 52,659 54,503 57,928 27,063 192,153
Eliminated on disposal - - (11,845 ) - (11,845 )
At 31 December 2021 283,031 1,284,413 522,059 261,776 2,351,279
NET BOOK VALUE
At 31 December 2021 1,031,566 430,635 538,145 32,855 2,033,201
At 31 December 2020 1,084,225 467,345 596,946 50,833 2,199,349

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

12. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 January 2021 1,645,539
Additions 1,034,260
Disposals (2,403,094 )
At 31 December 2021 276,705
NET BOOK VALUE
At 31 December 2021 276,705
At 31 December 2020 1,645,539

The investment property is carried at its cost value at the year-end.

13. STOCKS
2021 2020
£    £   
Vehicle stock 7,124,956 7,654,542
Parts stock 124,952 172,470
Oil and consumable stock 11,834 9,862
Work-in-progress 67,967 45,569
7,329,709 7,882,443

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade debtors 2,643,707 2,844,377
Amounts owed by group undertakings 11,098,299 9,590,545
Other debtors 1,345,464 1,329,735
Prepayments and accrued income 136,224 115,084
15,223,694 13,879,741

Although there are no formal terms deferring repayment, the majority of the balance owed by group undertakings is unlikely to be recovered within the next twelve months.

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Bank loans and overdrafts (see note 16) 192,898 -
Finance leases (see note 17) 1,657,864 894,358
Trade creditors 4,345,497 6,874,427
Tax 118,935 205,493
Social security and other taxes 470,221 1,042,016
Other creditors 394,385 867,495
Directors' loan accounts 1,629,611 1,907,500
Accrued expenses 162,819 201,277
8,972,230 11,992,566

16. LOANS

An analysis of the maturity of loans is given below:

2021 2020
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 192,898 -

17. LEASING AGREEMENTS

Minimum lease payments under finance leases fall due as follows:

Finance leases
2021 2020
£    £   
Net obligations repayable:
Within one year 1,657,864 894,358

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

18. SECURED DEBTS

The following secured debts are included within creditors:

2021 2020
£    £   
Bank overdraft 192,898 -
Director's loan account 1,629,611 1,907,500
Stocking loans 3,078,941 3,469,852
4,901,450 5,377,352

In support of the company's banking arrangements, Barclays PLC hold a debenture and first legal charge over a property held by Fairfield Real Estate Limited, a fellow subsidiary. A cross guarantee also exists in support of the same, given by Fairfield Real Estate Limited and Fairfield Limited.

Fairfield Real Estate Limited, a fellow subsidiary, has given a fixed charge over one of its investment properties, known as Unit 6, Airborne Industrial Estate, in support of the amounts owed by the company to M A K Styles, a director.

BMW Group retain title of the funded vehicle stock until settlement of the stocking loans.

19. PROVISIONS FOR LIABILITIES
2021 2020
£    £   
Deferred tax 100,398 110,329

Deferred
tax
£   
Balance at 1 January 2021 110,329
Provided during year (9,931 )
Balance at 31 December 2021 100,398

Deferred tax provision consists mainly of capital allowances exceeding depreciation and revaluations of fixed asset investments, less a number of other short term timing differences.

At the balance sheet date, the company also had in excess of £0.7million of capital losses it will be able to offset against future chargeable gains, although no deferred tax asset has been recognised in respect of these.

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
30,092 "A" Ordinary £1 30,092 30,092
9,212 "B" Ordinary £1 9,212 9,212
39,304 39,304

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED (REGISTERED NUMBER: 00916058)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

21. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2021 13,893,650 44,889 38,828 13,977,367
Profit for the year 1,779,065 1,779,065
Dividends (4,445 ) (4,445 )
At 31 December 2021 15,668,270 44,889 38,828 15,751,987

22. PENSION COMMITMENTS

The company operates a defined contribution scheme in respect of its employees. During the year premiums paid by the company amounted to £80,032 (2020 - £78,022). There were premiums of £16,252 (2020 - £15,193) outstanding at the year end.

23. ULTIMATE PARENT COMPANY

The directors consider the ultimate parent company to be Fairfield Limited, a company registered in England and Wales. Fairfield Limited is the parent company of the largest and smallest group of which Fairfield Garage (Leigh-on-Sea) Limited is a member and for which group accounts are prepared. Group accounts are available from Companies House.

24. CONTINGENT LIABILITIES

Fairfield Limited and its subsidiaries (Fairfield Garage (Leigh-on-Sea) Limited, Fairfield Real Estate Limited and Fairfield Investment Properties Limited) have jointly entered into a VAT group and a corporation tax group payment arrangement. Fairfield Garage (Leigh-on-Sea) Limited is the representative member for both taxes. Members of the VAT group are jointly and severally liable for the debts of any party within it, whilst members of the corporation tax group only implicitly bear financial obligations of their associates.

The tax grouping arrangements were undertaken to ease the administrative burden of all parties involved. Other than the timing of payments, it is estimated there is no financial effect (positive or negative) to any party and in the unlikely event one party found itself bearing the cost of another it is anticipated the loss would be reimbursed accordingly.

25. RELATED PARTY DISCLOSURES

During the year, the company's total compensation to key management personnel (including directors) amounted to £184,870 (2020 - £177,538). The company was also charged rent of £300,000 and interest of £106,482 (2020 - £336,000 and £86,579 respectively) by key management personnel. At the balance sheet date, the company owed key management personnel £1,629,611 (2020 - £1,907,500).

During the year, the company was charged interest of £658 (2020 - £223) by close members of the directors' families and, at the balance sheet date, the company owed them £119,786 (2020 - £119,128).

26. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is M A K Styles.