REGISTERED NUMBER: 02510535 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
FOR |
FAIRPORT HOLDINGS LIMITED |
REGISTERED NUMBER: 02510535 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
FOR |
FAIRPORT HOLDINGS LIMITED |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
FAIRPORT HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2022 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
1st Floor Waterside House |
Waterside Drive |
Wigan |
Lancashire |
WN3 5AZ |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2022 |
The directors are pleased to present their report and financial statements for the financial year to 31 March 22. |
Review of business |
The group's principal activities during the year were as follows: |
- Specialist refurbishment, maintenance and modification of industrial and commercial metal waste containers, four wheeled trade waste containers and recycling banks for the waste and associated industries and charities. |
- Buying, refurbishing and selling of waste containers and recycling banks. |
- Mobile repair and maintenance of waste containers and recycling banks. |
- The provision of handling and storage facilities. |
- Commercial vehicle repairs, maintenance and hire. |
- Facilities management. |
- Rental and management of commercial property. |
The demand for Fairport Containers Ltd's refurbishment services returned to pre-covid levels by Spring 2021 and turnover increased due to a significant increase in demand from two major customers, together with increased demand from new customers. The high price of steel considerably increased the cost of new containers which further increased the demand for refurbished containers. |
The commercial vehicle repair and maintenance division performed satisfactorily throughout the year and increased its customer base. |
Fairport Properties Ltd provided management and facilities services to enable the individual trading companies to concentrate on their core commercial activities. The company also provided management and facilities services to companies outside of the group. Following a fire at the Group's Market Street, Adlington, Chorley, Lancashire premises in February 2019, for which the Group's insurers have accepted liability, it has now been agreed to reinstate the premises in a different form than what was destroyed. Construction of the new buildings commenced in February 2022 with completion anticipated by December 2022. |
Fairport Storage Ltd provided storage and handling services and also hired out fork lifts and equipment. The company performed satisfactorily throughout the year. |
The Holding company provided management services to its subsidiary companies and administered central costs, including administering a multi-employer Final Salary Pension Scheme for a number of employees both past and present. |
The directors are satisfied with the performance of the group and in particular the turnaround from the previous financial year. |
Key performance indicators |
The directors consider the key performance indicators of the business to be turnover, liquidity as per the current ratio, the average number of employees and turnover per employee. Compared to the previous year, turnover was up by 56% and the number of employees was up by 16%. The group maintained generally healthy liquidity with a current ratio of 1.40 and, although this has fallen slightly from the previous period, this is due to the group using surplus funds to reduce long term debt as part of is long term strategy. |
2022 | 2021 |
Turnover | £9,525,940 | £6,118,022 |
Current ratio | 1.40 | 1.53 |
Average number of employees | 86 | 74 |
Future developments |
The group is experiencing a significant increase in demand from two major customers, together with increased demand from new customers. Demand is further enhanced by the high cost of steel considerably increasing the costs of new containers resulted in more demand for refurbished containers. This has resulted in the group achieving record turnover figures in recent months and the directors are forecasting that this will continue. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2022 |
Personnel |
The group's Finance Director retired on 31 December 2021. However, the group expects to retain the knowledge, skills and experience required due to the long period of succession planning that has taken place. Succession planning is also in place for other senior staff members / directors who will be of retirement age in the next few years. The group is an equal opportunities employer which often promotes from within. |
Employee matters |
The group sees its people as its primary asset to achieving its business plan and has established policies for reviewing, training and development. It is committed to achieving excellence in Health & Safety, welfare and protection of its employees. |
Employment within the group is based on the person's ability to work and not on the basis of race, individual characteristics, creed or political opinion. |
The group would like to thank all employees for their efforts throughout the year. |
Principal risks and uncertainties |
Financial Risks |
The group's risk to not receiving payment from its customers is low, as all new and existing customers are credit checked on a regular basis in conjunction with its credit insurance policy. To assist with the group's growth, and to reduce the risk of exposure, it has continued with its ID facility secured against its assets. |
Non-Financial Risks |
As a group, managing risk effectively is fundamental to our strategy and to operating successfully. The principal risk to the group is competition. To guard against this risk, the group focuses on providing exceptional quality of service on a national basis at competitive prices. The group continues to invest in high capital cost in trucks and specialist handling equipment in order to offer services that few competitors can offer. |
The group's risk of exposure to fluctuations in raw material prices and other costs has increased following Brexit and during the pandemic. It continues to mitigate this due to agreements in place with all its major customers, allowing for regular price reviews. |
To guard against the risk of shortage in supplies, whether materials or labour, the group has continued to strengthen its relationship with its supply chains and has the experience and expertise within its personnel to proactively minimise these risks. |
Operational |
The group's policies, procedures and systems are reviewed regularly to ensure they remain current and appropriate. |
On behalf of the board: |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2022. |
Principal activities |
The principal activities of the group are set out in the Group Strategic Report. |
Dividends |
No dividends will be distributed for the year ended 31 March 2022. |
Directors |
The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report. |
Other changes in directors holding office are as follows: |
Disclosure in the strategic report |
The disclosures in respect of the business review, future developments and the financial risk management, objectives and policies are included in the Group Strategic Report.The principal activities of the group companies are also disclosed in the Strategic Report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2022 |
Auditors |
The auditors, NR Barton, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FAIRPORT HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Fairport Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 March 2022 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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. |
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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FAIRPORT HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FAIRPORT HOLDINGS 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below : |
- Consideration was given to the entity's susceptibility to material misstatement at all times during the audit including consideration of how fraud could occur. This involved consideration of the nature of the entity's activities and transactions with the potential identification of fraud |
- Identification of key laws and regulations considered central to the entity, including a review of any policies and procedures in place to ensure compliance. Key laws and regulations identified include the UK Companies Act, tax legislation and health and safety regulations |
- Ensured that the engagement team had the necessary competence and capabilities to identify any examples of non-compliance at all stages |
- Audit work was completed in all relevant areas that were deemed to be appropriate for the client and the associated risks in respect of potential misstatements, including fraud. Our audit work was designed to assess these risks in all areas and included enquiry of management, testing the appropriateness of journal entries, reviewing financial statement disclosures and tracing to relevant documentation as well as the consideration of the risk of potential management override |
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
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. |
for and on behalf of |
1st Floor Waterside House |
Waterside Drive |
Wigan |
Lancashire |
WN3 5AZ |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 9,525,940 | 6,118,022 |
Cost of sales | 6,816,277 | 5,708,893 |
GROSS PROFIT | 2,709,663 | 409,129 |
Administrative expenses | 1,999,150 | 2,504,096 |
710,513 | (2,094,967 | ) |
Other operating income | 5 | 43,041 | 652,697 |
753,554 | (1,442,270 | ) |
Interest receivable and similar income | 31,802 | 80,439 |
785,356 | (1,361,831 | ) |
Fair value gain on investment property | (794 | ) | 50,000 |
784,562 | (1,311,831 | ) |
Interest payable and similar expenses | 8 | 91,853 | 95,808 |
Other finance costs | 25 | 9,000 | - |
100,853 | 95,808 |
PROFIT/(LOSS) BEFORE TAXATION | 9 | 683,709 | (1,407,639 | ) |
Tax on profit/(loss) | 10 | 185,740 | (208,383 | ) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 497,969 | (1,199,256 | ) |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 497,969 | (1,199,256 | ) |
OTHER COMPREHENSIVE INCOME/(LOSS) |
Actuarial (losses)/gains on pension |
scheme liabilities | 530,000 | (545,000 | ) |
Unrealised (losses)/gains on freehold |
property revaluation | 96,850 | 259,500 |
Income tax relating to components of other comprehensive income/(loss) |
(134,230 |
) |
94,620 |
OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF INCOME TAX |
492,620 |
(190,880 |
) |
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR |
990,589 |
(1,390,136 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 990,589 | (1,390,136 | ) |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 11,047 | 11,967 |
Tangible assets | 13 | 3,996,449 | 4,267,359 |
Investments | 14 | - | - |
Investment property | 15 | 310,000 | 275,000 |
4,317,496 | 4,554,326 |
CURRENT ASSETS |
Stocks | 16 | 373,338 | 265,503 |
Debtors | 17 | 6,744,182 | 5,135,573 |
Cash at bank and in hand | 253,191 | 100,936 |
7,370,711 | 5,502,012 |
CREDITORS |
Amounts falling due within one year | 18 | 5,249,201 | 3,596,365 |
NET CURRENT ASSETS | 2,121,510 | 1,905,647 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,439,006 |
6,459,973 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(1,069,311 |
) |
(1,562,303 |
) |
PROVISIONS FOR LIABILITIES | 23 | (148,436 | ) | - |
PENSION ASSET/(LIABILITY) | 26 | 125,000 | (542,000 | ) |
NET ASSETS | 5,346,259 | 4,355,670 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 235,501 | 235,501 |
Revaluation reserve | 25 | 1,916,886 | 1,820,036 |
Capital redemption reserve | 25 | 77,999 | 77,999 |
Retained earnings | 25 | 3,115,873 | 2,222,134 |
SHAREHOLDERS' FUNDS | 5,346,259 | 4,355,670 |
The financial statements were approved by the Board of Directors and authorised for issue on 6 September 2022 and were signed on its behalf by: |
Mr A L J Porter - Director |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
COMPANY BALANCE SHEET |
31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
19 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 23 | ( |
) |
PENSION ASSET/(LIABILITY) | 26 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 68,457 | 392,162 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2022 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2020 | 235,501 | 3,871,770 | 1,560,536 | 77,999 | 5,745,806 |
Changes in equity |
Total comprehensive loss | - | (1,649,636 | ) | 259,500 | - | (1,390,136 | ) |
Balance at 31 March 2021 | 235,501 | 2,222,134 | 1,820,036 | 77,999 | 4,355,670 |
Changes in equity |
Total comprehensive income | - | 893,739 | 96,850 | - | 990,589 |
Balance at 31 March 2022 | 235,501 | 3,115,873 | 1,916,886 | 77,999 | 5,346,259 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2020 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2022 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2022 |
31.3.22 | 31.3.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 565,593 | (404,090 | ) |
Interest paid | (65,648 | ) | (74,158 | ) |
Interest element of hire purchase payments paid |
(26,205 |
) |
(21,650 |
) |
Other finance costs | (9,000 | ) | - |
Tax paid | 16,806 | (32,565 | ) |
Net cash from operating activities | 481,546 | (532,463 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (83,891 | ) | (55,296 | ) |
Purchase of investment property | (35,794 | ) | - |
Sale of tangible fixed assets | 201,165 | 51,467 |
Interest received | 31,802 | 80,439 |
Net cash from investing activities | 113,282 | 76,610 |
Cash flows from financing activities |
New loans in year | - | 750,000 |
Loan repayments in year | (168,670 | ) | (7,881 | ) |
Hire purchase repayments in year | (273,903 | ) | (259,294 | ) |
Net cash from financing activities | (442,573 | ) | 482,825 |
Increase in cash and cash equivalents | 152,255 | 26,972 |
Cash and cash equivalents at beginning of year |
2 |
100,936 |
73,964 |
Cash and cash equivalents at end of year | 2 | 253,191 | 100,936 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2022 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.22 | 31.3.21 |
£ | £ |
Profit/(loss) before taxation | 683,709 | (1,407,639 | ) |
Depreciation charges | 537,946 | 698,044 |
Profit on disposal of fixed assets | (172,666 | ) | (18,671 | ) |
Loss/(gain) on revaluation of fixed assets | 794 | (50,000 | ) |
Defined benefit pension adjustment | (137,000 | ) | (47,000 | ) |
Finance costs | 100,853 | 95,808 |
Finance income | (31,802 | ) | (80,439 | ) |
981,834 | (809,897 | ) |
(Increase)/decrease in stocks | (107,835 | ) | 106,445 |
(Increase)/decrease in trade and other debtors | (1,796,949 | ) | 870,845 |
Increase/(decrease) in trade and other creditors | 1,488,543 | (571,483 | ) |
Cash generated from operations | 565,593 | (404,090 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 253,191 | 100,936 |
Year ended 31 March 2021 |
31.3.21 | 1.4.20 |
£ | £ |
Cash and cash equivalents | 100,936 | 73,964 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.4.21 | Cash flow | changes | At 31.3.22 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 100,936 | 152,255 | 253,191 |
100,936 | 152,255 | 253,191 |
Debt |
Finance leases | (784,910 | ) | 273,903 | (113,874 | ) | (624,881 | ) |
Debts falling due |
within 1 year | (167,138 | ) | (45,353 | ) | - | (212,491 | ) |
Debts falling due |
after 1 year | (1,031,907 | ) | 214,023 | - | (817,884 | ) |
(1,983,955 | ) | 442,573 | (113,874 | ) | (1,655,256 | ) |
Total | (1,883,019 | ) | 594,828 | (113,874 | ) | (1,402,065 | ) |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2022 |
1. | STATUTORY INFORMATION |
Fairport Holdings Limited is a |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historic cost convention, modified for the revaluation of certain assets and the inclusion of certain items at fair value. |
The financial statements are presented in sterling (£) |
In preparing its financial statements, which are presented alongside the consolidated financial statements, Fairport Holdings Limited has taken advantage of the disclosure exemptions available in respect of financial instruments, presentation of a cash flow statement and remuneration of key management personnel. |
Going concern |
The directors have reviewed the group's forecasts and projections and, in particular, have considered the group's recovery from the impact of Covid-19, The directors are confident that the group is in a position to make a good recovery from the various issues caused by the pandemic. |
The group continues to have significant liquidity headroom on existing facilities and the directors have a reasonable expectation that the group is well placed to manage their financing and other business risks satisfactorily, and have a reasonable expectation they will have adequate funding and resources to continue in operation for at least 12 months from the signing date of these financial statements. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The results of subsidiaries acquired or sold are consolidated from or to the date on which control passes. On consolidation, all intra-group transactions and balances are eliminated in full. |
Business combinations are accounted for using the purchase method. The consideration in respect of the business combination is measured at the aggregate of the fair values of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the subsidiary undertaking. |
Significant judgements and estimates |
Valuation of freehold property |
As described in note 13, freehold property is included at a revalued amount. The property was valued as at 31 March 2022 by a qualified valuer. |
Fair value of investment property |
The fair value of investment property is shown in note 15. The value is assessed annually by a qualified valuer. |
Valuation of pension scheme |
As set out in note 26, the calculations in respect of the defined benefit scheme are produced by a qualified actuary and are subject to estimates and assumptions. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Sale of goods |
Turnover from the sale of goods is stated net of VAT and is recognised when the goods are delivered to the customer. It is recorded at the fair value of consideration received or receivable. |
Rendering of services |
Turnover relating to the rendering of services is stated net of VAT and represents the value of services provided to the extent that there is a right to consideration and is recorded at the fair value of consideration received or receivable. |
Rental of property |
Turnover relating to the rental of property is stated net of VAT and represents the rental payments due for the period. It is recorded at the fair value of the consideration received or receivable. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property is stated at the revalued amount. The revalued amount equates to the value of the property at the date of revaluation less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so that the carrying amounts do not materially differ from current values. |
Any revaluation increase or decrease on freehold property is included in the revaluation reserve. Once freehold property is sold, the attributable surplus that is remaining in the revaluation reserve is transferred to retained earnings. |
Depreciation on revalued freehold property is charged to the income statement to write off the value, less any residual value, over its estimated useful life at a rate of 1% on a straight line basis. |
Depreciation on plant and equipment is charged to the income statement so as to write off their cost less any residual value over their estimated useful lives of between 3 and 10 years on a straight line basis. |
At each balance sheet date, carrying amounts of tangible are reviewed to determine whether there are any indications that any item has suffered an impairment loss. If such an indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, an estimation is made of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment losses are recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Investment property |
Investment properties for which fair value can be measured reliably without undue cost or effort on an ongoing basis are measured at fair value annually with any change recognised in the income statement. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
3. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stock is valued at the lower of cost and net realisable value. Cost is calculated by reference to the most recent purchase price. |
Taxation |
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. |
Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. |
Deferred tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases in the computation of taxable profit.The carrying amount of any deferred tax assets is reviewed at the end of each reporting period 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 liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates and laws that have been enacted or substantially enacted by the end of the reporting period. |
Fixed asset investments |
In the company balance sheet investments in subsidiaries are measured at cost. |
Government grants |
Government grants are recognised at the amount received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them. Grants are accounted for under the accrual model. |
Pension costs and other post-retirement benefits |
Defined contribution scheme |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. The assets of the scheme are held separately from those of the company in an independently administered fund. |
Defined benefit scheme |
The group operates a defined benefit plan. There is no stated policy or contractual agreement for charging the net defined benefit cost of the plan as a whole to individual group entities. Therefore, as the employer responsible, Fairport Holdings Limited, recognises the entire net defined benefit cost. The other group entities recognise a cost equal to their share of the contribution payable for the period. |
Full details of the scheme are shown in note 26. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets .Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charges allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
3. | ACCOUNTING POLICIES - continued |
Trade and other debtors |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect if discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at the transaction price and are thereafter sated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
4. | TURNOVER |
The turnover and profit (2021 - loss) before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
31.3.22 | 31.3.21 |
£ | £ |
Sale of goods | 709,408 | 748,526 |
Rendering of services | 8,704,221 | 5,253,585 |
Rental of property | 112,311 | 115,911 |
9,525,940 | 6,118,022 |
All turnover arises in United Kingdom. |
5. | OTHER OPERATING INCOME |
31.3.22 | 31.3.21 |
£ | £ |
Sundry receipts | - | 64,000 |
Government grants | 43,041 | 588,697 |
43,041 | 652,697 |
Government grant income of £43,041 includes £31,458 in respect of claims made under the Coronavirus Job Retention Scheme and £11,583 in respect of Business Interruption Payments to cover interest charges on a loan obtained under the Coronavirus Business Interruption Loan Scheme. |
6. | EMPLOYEES AND DIRECTORS |
31.3.22 | 31.3.21 |
£ | £ |
Wages and salaries | 2,577,725 | 2,525,021 |
Social security costs | 278,449 | 262,193 |
Other pension costs | 71,163 | 111,940 |
2,927,337 | 2,899,154 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
6. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.3.22 | 31.3.21 |
Manufacturing and operational | 67 | 54 |
Office and management | 19 | 20 |
7. | DIRECTORS' EMOLUMENTS |
The directors received total remuneration in the year of £115,444 (2021 : £150,270) |
In addition, the group has made pension contributions totalling £8,746 (2021 : £21,981) on behalf of the directors. One director is accruing benefits under a defined contribution scheme. One director transferred out of the defined benefit scheme during the year. |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.22 | 31.3.21 |
£ | £ |
Other interest | 34,732 | 37,870 |
Bank loan interest and fees | 30,916 | 36,288 |
Hire purchase | 26,205 | 21,650 |
91,853 | 95,808 |
9. | PROFIT/(LOSS) BEFORE TAXATION |
The profit (2021 - loss) is stated after charging/(crediting): |
31.3.22 | 31.3.21 |
£ | £ |
Depreciation - owned assets | 306,239 | 520,084 |
Depreciation - assets on hire purchase contracts | 230,787 | 175,707 |
Profit on disposal of fixed assets | (172,666 | ) | (18,671 | ) |
Goodwill amortisation | - | 1,333 |
Patents and licences amortisation | 920 | 920 |
Auditors' remuneration | 19,388 | 20,275 |
10. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
31.3.22 | 31.3.21 |
£ | £ |
Current tax: |
Tax underpaid in prior years | 10,644 | - |
Deferred tax | 175,096 | (208,383 | ) |
Tax on profit/(loss) | 185,740 | (208,383 | ) |
UK corporation tax was charged at 19 %) in 2021. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
10. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.22 | 31.3.21 |
£ | £ |
Profit/(loss) before tax | 683,709 | (1,407,639 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
129,905 |
(267,451 |
) |
Effects of: |
Expenses not deductible for tax purposes | (26,426 | ) | 49,335 |
Depreciation in excess of capital allowances | 59,579 | 51,550 |
Brought forward losses utilised in the year | (172,824 | ) | - |
Unrelieved losses in the year | 9,766 | 166,566 |
Deferred tax movement | 175,096 | (208,383 | ) |
Amounts understated in prior years | 10,644 | - |
Total tax charge/(credit) | 185,740 | (208,383 | ) |
Tax effects relating to effects of other comprehensive income |
31.3.22 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial (losses)/gains on pension |
scheme liabilities | 530,000 | (134,230 | ) | 395,770 |
Unrealised (losses)/gains on freehold |
property revaluation | 96,850 | - | 96,850 |
626,850 | (134,230 | ) | 492,620 |
31.3.21 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial (losses)/gains on pension |
scheme liabilities | (545,000 | ) | 94,620 | (450,380 | ) |
Unrealised (losses)/gains on freehold |
property revaluation | 259,500 | - | 259,500 |
(285,500 | ) | 94,620 | (190,880 | ) |
The tax effects of comprehensive income relate entirely to deferred tax. |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 April 2021 |
and 31 March 2022 | 19,996 | 37,449 | 57,445 |
AMORTISATION |
At 1 April 2021 | 19,996 | 25,482 | 45,478 |
Amortisation for year | - | 920 | 920 |
At 31 March 2022 | 19,996 | 26,402 | 46,398 |
NET BOOK VALUE |
At 31 March 2022 | - | 11,047 | 11,047 |
At 31 March 2021 | - | 11,967 | 11,967 |
13. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2021 | 2,685,000 | 6,116,652 | 8,801,652 |
Additions | - | 197,765 | 197,765 |
Disposals | - | (983,712 | ) | (983,712 | ) |
Revaluations | 96,850 | - | 96,850 |
At 31 March 2022 | 2,781,850 | 5,330,705 | 8,112,555 |
DEPRECIATION |
At 1 April 2021 | - | 4,534,293 | 4,534,293 |
Charge for year | 26,850 | 510,176 | 537,026 |
Eliminated on disposal | - | (955,213 | ) | (955,213 | ) |
At 31 March 2022 | 26,850 | 4,089,256 | 4,116,106 |
NET BOOK VALUE |
At 31 March 2022 | 2,755,000 | 1,241,449 | 3,996,449 |
At 31 March 2021 | 2,685,000 | 1,582,359 | 4,267,359 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31 March 2022 is represented by: |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
Valuation in 2021 | 1,373,034 | - | 1,373,034 |
Cost | 1,408,816 | 5,330,705 | 6,739,521 |
2,781,850 | 5,330,705 | 8,112,555 |
The group's freehold property was valued as at 31 March 2022 by H. Ellis MRICS. |
Plant and machinery include assets held under finance leases or hire purchase contracts. The net book value of these at the year-end was £542,852 (2021 : £655,156) and the depreciation charge on the assets for the year was £230,787 (2021 : £175,707). |
Company |
Plant and |
machinery |
£ |
COST |
At 1 April 2021 |
Additions |
At 31 March 2022 |
DEPRECIATION |
At 1 April 2021 |
Charge for year |
At 31 March 2022 |
NET BOOK VALUE |
At 31 March 2022 |
At 31 March 2021 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2021 |
and 31 March 2022 |
NET BOOK VALUE |
At 31 March 2022 |
At 31 March 2021 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
14. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: No1 Market Place, Adlington, Chorley, Lancashire PR7 4EZ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: No1 Market Place, Adlington, Chorley, Lancashire, PR7 4EZ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: No1 Market Place, Adlington, Chorley, Lancashire PR7 4EZ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: No1 Market Place, Adlington, Chorley, Lancashire PR7 4EZ |
Nature of business: |
% |
Class of shares: | holding |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 April 2021 | 275,000 |
Additions | 35,794 |
Revaluations | (794 | ) |
At 31 March 2022 | 310,000 |
NET BOOK VALUE |
At 31 March 2022 | 310,000 |
At 31 March 2021 | 275,000 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
15. | INVESTMENT PROPERTY - continued |
Group |
Fair value at 31 March 2022 is represented by: |
£ |
Valuation in 2022 | 63,711 |
Cost | 246,289 |
310,000 |
The fair value of the group's investment properties was assessed as at 31 March 2022 by Mr H Ellis MRICS. |
16. | STOCKS |
Group |
31.3.22 | 31.3.21 |
£ | £ |
Stocks | 373,338 | 265,503 |
17. | DEBTORS |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 2,257,432 | 1,649,786 |
Amounts owed by group undertakings | - | - |
Other debtors | 3,480,643 | 2,291,340 |
Corporation tax | 59,428 | 86,878 |
Deferred tax asset | - | 160,890 | - | 102,980 |
5,797,503 | 4,188,894 |
Amounts falling due after more than one | year: |
Other debtors | 946,679 | 946,679 |
Aggregate amounts | 6,744,182 | 5,135,573 |
Deferred tax asset |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Deferred tax | - | 160,890 | - | 102,980 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 212,491 | 167,138 |
Hire purchase contracts (see note 21) | 373,454 | 254,514 |
Trade creditors | 1,902,832 | 1,001,966 |
Social security and other taxes | 296,458 | 561,243 |
Other creditors | 2,463,966 | 1,611,504 |
5,249,201 | 3,596,365 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Bank loans (see note 20) | 817,884 | 1,031,907 |
Hire purchase contracts (see note 21) | 251,427 | 530,396 |
1,069,311 | 1,562,303 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 212,491 | 167,138 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 172,014 | 212,696 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 314,158 | 436,251 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 331,712 | 382,960 | 331,712 | 382,960 |
Included within both the consolidated and company balance sheets is an amount of £439,563 relating to a 20 year bank loan. Repayments of this loan are due on a monthly basis, with the final repayment date being 1 November 2037. Interest is charged at 2.55% over base rate. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.3.22 | 31.3.21 |
£ | £ |
Net obligations repayable: |
Within one year | 373,454 | 254,514 |
Between one and five years | 251,427 | 530,396 |
624,881 | 784,910 |
Group |
Non-cancellable operating | leases |
31.3.22 | 31.3.21 |
£ | £ |
Within one year | 151,520 | 104,176 |
Between one and five years | 461,080 | 366,080 |
In more than five years | 45,760 | 137,280 |
658,360 | 607,536 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.3.22 | 31.3.21 |
£ | £ |
Bank loans | 1,030,375 | 1,199,045 |
Hire purchase contracts | 624,881 | 784,910 |
Invoice discounting creditor | 693,153 | 468,592 |
2,348,409 | 2,452,547 |
Bank loans and overdrafts are secured on the assets of the group, with a right of set-off between the group companies. |
Hire purchase agreements are secured on the assets to which they relate. |
The invoice discounting creditor is included within other creditors and is secured against the assets of the group company, Fairport Containers Limited, to which it relates. |
23. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.3.22 | 31.3.21 | 31.3.22 | 31.3.21 |
£ | £ | £ | £ |
Deferred tax | 148,436 | - | 31,250 | - |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
23. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2021 | (160,890 | ) |
Accelerated capital allowances | (47,439 | ) |
Unused tax losses | 194,411 |
Changes in tax rates | 28,124 |
Pension scheme asset | 134,230 |
Balance at 31 March 2022 | 148,436 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2021 | ( |
) |
Pension scheme liability | 134,230 |
Balance at 31 March 2022 |
The deferred tax provision of £148,436 includes a credit balance of £141,894 in respect of accelerated capital allowances, a credit balance of £31,250 in respect of the pension scheme asset and a debit balance of £24,708 in respect of unused trading losses. |
24. | CALLED UP SHARE CAPITAL |
All shares rank equally. |
25. | RESERVES |
The Retained Earnings of the Group include a non distributable amount of £63,711. |
26. | EMPLOYEE BENEFIT OBLIGATIONS |
The company has applied Section 28 of FRS102 and the following disclosures apply to this standard. |
The company operates a defined benefit scheme that pays out pensions at retirement based on service and final pay. |
The company recognises any gains or losses in each period in Other Comprehensive Income |
The pension scheme assets include no assets from the company's own financial instruments. The pension scheme assets include no property occupied by, or other assets used by, the company. |
The funding policy is agreed between the scheme trustees and the company and is formally set out in a Statement of Funding Principles, Schedule of Contributions and Recovery Plan following each full actuarial valuation. |
The liabilities in respect of the scheme at 31 March 2022 have been calculated using the projected cost method and by rolling forward the initial results of the 31 March 2021 triennial valuation using actuarial techniques, allowing for cashflows and interest over the period and differences between the asumptions used to set the technical provisions and those selected for accounting under FRS102. |
A qualified actuary has carried out various calculations as at 31 March 2022 and the results are set out below : |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
26. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in the balance sheet are as follows: |
Defined benefit |
pension plans |
31.3.22 | 31.3.21 |
£ | £ |
Present value of funded obligations | (2,686,000 | ) | (4,308,000 | ) |
Fair value of plan assets | 2,811,000 | 3,766,000 |
125,000 | (542,000 | ) |
Present value of unfunded obligations | - | - |
Surplus/(Deficit) | 125,000 | (542,000 | ) |
Net asset/(liability) | 125,000 | (542,000 | ) |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
31.3.22 | 31.3.21 |
£ | £ |
Current service cost | 28,000 | 58,000 |
Net interest from net defined benefit asset/liability |
9,000 |
- |
Past service cost | - | - |
Scheme administration expenses | 14,000 | 49,000 |
51,000 | 107,000 |
Actual return on plan assets | 95,000 | (221,000 | ) |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
31.3.22 | 31.3.21 |
£ | £ |
Opening defined benefit obligation | 4,308,000 | 3,879,000 |
Current service cost | 28,000 | 58,000 |
Contributions by scheme participants | 5,000 | 14,000 |
Interest cost | 64,000 | 85,000 |
Actuarial losses/(gains) | (435,000 | ) | 324,000 |
Benefits paid | (1,284,000 | ) | (52,000 | ) |
2,686,000 | 4,308,000 |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
26. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
31.3.22 | 31.3.21 |
£ | £ |
Opening fair value of scheme assets | 3,766,000 | 3,835,000 |
Contributions by employer | 188,000 | 154,000 |
Contributions by scheme participants | 5,000 | 14,000 |
Interest income | 55,000 | 85,000 |
Expected return | 95,000 | (221,000 | ) |
Benefits paid | (1,284,000 | ) | (52,000 | ) |
Administration fee paid from scheme assets | (14,000 | ) | (49,000 | ) |
2,811,000 | 3,766,000 |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
31.3.22 | 31.3.21 |
£ | £ |
Actuarial gains/(losses)on pension scheme | 530,000 | (545,000 | ) |
Deferred tax movement in respect of pension scheme |
(134,230 |
) |
94,620 |
395,770 | (450,380 | ) |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
31.3.22 | 31.3.21 |
Utilised With-Profits policy | 99.00% | 99.50% |
Cash | 1.00% | 0.50% |
100.00% | 100.00% |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
31.3.22 | 31.3.21 |
Discount rate | 2.65% | 1.95% |
RPI inflation assumption | 3.65% | 3.30% |
CPI inflation assumption | 2.65% | 2.30% |
Future salary increases | 0.50% | 0.50% |
Pension increases in payment : fixed 3% | 3.00% | - |
Pension increases in payment:max 5%RPI | 3.50% | 3.20% |
Pension increases in payment:3%-5%RPI | 3.80% | 3.65% |
Pension increases in payment:max 2.5%RPI | 2.35% | 2.25% |
Contributions payable by the group in the year ended 31 March 2022 amounted to £188,000. |
FAIRPORT HOLDINGS LIMITED (REGISTERED NUMBER: 02510535) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2022 |
27. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of FRS 102 not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
At the year-end, the group owed an amount of £140,000 (2021 - £190,000) to directors and shareholders. |
Group transactions with associated entities in the year were as follows : |
Group | Group |
2022 | 2021 |
£ | £ |
Sales and recharges to associated entities | 805,220 | 742.374 |
Purchases, expenses and fixed assets from associated entities |
188,388 |
73,750 |
Amounts owed by associated entities | 1,182,851 | 1,213,767 |
Amounts owed to associated entities | 27,456 | - |
28. | CONTROL |
The company was under the control of the Porter family for the entire current and prior year. |