REGISTERED NUMBER: 03607854 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FAIRFIELD LIMITED AND SUBSIDIARIES |
REGISTERED NUMBER: 03607854 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FAIRFIELD LIMITED AND SUBSIDIARIES |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 9 |
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 | 17 |
FAIRFIELD LIMITED AND SUBSIDIARIES |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Chartered Accountants |
Rutland House |
90-92 Baxter Avenue |
Southend on Sea |
Essex |
SS2 6HZ |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REVIEW OF BUSINESS |
During the preceding year, the group sold Fairfield Garage (Leigh on Sea) Limited to Group 1 Automotive UK Limited on 31 August 2022. That represented a disposal of the group's major trading interests and, since which, the proceeds have primarily been reinvested into various further properties held for a mixture of development and investment on an ongoing basis. |
The directors have also been trialling a number of investment portfolios, whilst they take time to refresh their medium to longer term strategy for the business. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Following the disposal of the primary BMW dealership within the group, the primary risk to which the business is now exposed are fluctuations in the property market. This is primarily mitigated by the group's diverse property interests, which comprise a mixture of residential and commercial interests, of varying sizes. |
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 group'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 group 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. |
Shareholder engagement |
The group 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 |
Since the disposal of Fairfield Garage (Leigh on Sea Limited), the business' employees are entirely represented by its directors. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
Business relationships |
Over its many years of operations, the group has fostered very strong relationships with its key suppliers and local customer base. The directors continue to deal with all customers and suppliers openly, fairly and with integrity. |
Community and environmental impact |
Since the divesting of the primary trading dealership, the group has substantially reduced its direct impact on the community and environment. It does not overlook its obligations, however, keeping its properties well maintained and ensuring its tenants likewise keep a high standard of cleanliness about its properties. |
Business conduct |
As above, the directors continue to deal with all of the business' stakeholders openly, fairly and with integrity. |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STREAMLINED ENERGY AND CARBON REPORTING |
Following the sale of Fairfield Garage (Leigh on Sea) Limited, the group's energy output has substantially reduced. Indeed, the group itself consumes barely any energy at all with the majority borne by the properties' occupiers and hence, in the opinion of the directors, the tenants' consumption. |
Consequently, the group no longer consumes in excess of 40 MWh per annum and chooses not to present its energy and carbon reporting for the year ended 31 December 2023. |
During the course of the preceding period, the group consumed approximately 1,187 (2021 - 1,760) MWh of energy. This was made up of: |
(a) electricity 470 MWh; |
(b) gas 202 MWh; and |
(c) road fuel 515 MWh. |
Given the wide variety of vehicles (business owned and reimbursed personal) utilised by the group over the course of the year, it was inherently difficult to obtain precise consumption data particularly for road fuel. For the purposes of this reporting, the group therefore extrapolated its total fuel costs against an average fuel price of £1.71 per litre and an average energy content of 10kWh per litre of fuel (petrol and diesel). |
Using Department for Business, Energy and Industrial Strategy published conversion factors, the group also estimated its total greenhouse gas emissions amounted to 260 tonnes of CO2. This was made up of: |
(a) electricity 91 tonnes; |
(b) gas 41 tonnes; and |
(c) road fuel 128 tonnes. |
This therefore equated to an approximate emission intensity of 4.9 tonnes of CO2 per £1m of sales revenue. |
ON BEHALF OF THE BOARD: |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
Interim dividends totalling £73.99 per share were paid during the year. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 December 2023 will be £1,363,328. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this 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). 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; |
- | 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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, Goldwyns Limited, 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 |
FAIRFIELD LIMITED AND SUBSIDIARIES |
Opinion |
We have audited the financial statements of Fairfield Limited and subsidiaries (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of 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 December 2023 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 |
FAIRFIELD LIMITED AND SUBSIDIARIES |
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. |
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 group, including the Companies Act 2006 and applicable taxation legislation; |
- | assessed the group'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 group'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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FAIRFIELD LIMITED AND SUBSIDIARIES |
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 |
Statutory Auditors and Chartered Accountants |
Rutland House |
90-92 Baxter Avenue |
Southend on Sea |
Essex |
SS2 6HZ |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 849,140 | - | 849,140 |
Cost of sales | (318,975 | ) | - | (318,975 | ) |
GROSS PROFIT | 530,165 | - | 530,165 |
Administrative expenses | (124,533 | ) | - | (124,533 | ) |
405,632 | - | 405,632 |
Other operating income | 3,299 | - | 3,299 |
OPERATING PROFIT | 4 | 408,931 | - | 408,931 |
Interest receivable and similar income | 6 | 795,288 | - | 795,288 |
Amounts written off investments | 7 | (11,752 | ) | - | (11,752 | ) |
Gain/loss on revaluation of assets | 124,374 | - | 124,374 |
Interest payable and similar expenses | 8 | (769,353 | ) | - | (769,353 | ) |
PROFIT BEFORE TAXATION | 547,488 | - | 547,488 |
Tax on profit | 9 | (93,113 | ) | - | (93,113 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
454,375 |
Profit attributable to: |
Owners of the parent | 454,375 |
Total comprehensive income attributable to: |
Owners of the parent | 454,375 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2022 | 2022 | 2022 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 3,395,649 | 49,108,020 | 52,503,669 |
Cost of sales | (3,055,862 | ) | (45,557,993 | ) | (48,613,855 | ) |
GROSS PROFIT | 339,787 | 3,550,027 | 3,889,814 |
Administrative expenses | (132,957 | ) | (1,785,123 | ) | (1,918,080 | ) |
206,830 | 1,764,904 | 1,971,734 |
Other operating income | 27,369 | - | 27,369 |
OPERATING PROFIT | 4 | 234,199 | 1,764,904 | 1,999,103 |
Profit on disposal of |
operations | 5 | - | 12,379,614 | 12,379,614 |
234,199 | 14,144,518 | 14,378,717 |
Interest receivable and similar income | 6 | 130,154 | 46,071 | 176,225 |
Gain/loss on revaluation of assets | (62,776 | ) | - | (62,776 | ) |
Interest payable and similar expenses | 8 | (99 | ) | (75,124 | ) | (75,223 | ) |
PROFIT BEFORE TAXATION | 301,478 | 14,115,465 | 14,416,943 |
Tax on profit | 9 | 463,194 | (334,756 | ) | 128,438 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
14,545,381 |
Profit attributable to: |
Owners of the parent | 14,545,381 |
Total comprehensive income attributable to: |
Owners of the parent | 14,545,381 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | - | 26,199 |
Tangible assets | 13 | 33,794 | - |
Investments | 14 | - | - |
Investment property | 15 | 11,606,366 | 12,596,593 |
11,640,160 | 12,622,792 |
CURRENT ASSETS |
Stocks | 16 | 5,417,174 | 1,902,835 |
Debtors | 17 | 4,403,551 | 3,463,254 |
Investments | 18 | 1,604,830 | 1,476,971 |
Cash at bank and in hand | 13,130,987 | 16,940,424 |
24,556,542 | 23,783,484 |
CREDITORS |
Amounts falling due within one year | 19 | 8,490,074 | 7,790,695 |
NET CURRENT ASSETS | 16,066,468 | 15,992,789 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
27,706,628 |
28,615,581 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 18,426 | 18,426 |
Share premium | 22 | 506,576 | 506,576 |
Revaluation reserve | 22 | 124,374 | - |
Retained earnings | 22 | 27,057,252 | 28,090,579 |
SHAREHOLDERS' FUNDS | 27,706,628 | 28,615,581 |
The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2024 and were signed on its behalf by: |
M A K Styles - Director |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Debtors | 17 |
CREDITORS |
Amounts falling due within one year | 19 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 26,188 | 22,437,811 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 18,426 | 15,546,923 | 506,576 | 49,287 | 16,121,212 |
Changes in equity |
Dividends | - | (2,051,012 | ) | - | - | (2,051,012 | ) |
Total comprehensive income | - | 14,594,668 | - | (49,287 | ) | 14,545,381 |
Balance at 31 December 2022 | 18,426 | 28,090,579 | 506,576 | - | 28,615,581 |
Changes in equity |
Dividends | - | (1,363,328 | ) | - | - | (1,363,328 | ) |
Total comprehensive income | - | 330,001 | - | 124,374 | 454,375 |
Balance at 31 December 2023 | 18,426 | 27,057,252 | 506,576 | 124,374 | 27,706,628 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (919,164 | ) | 3,054,881 |
Interest paid | (769,353 | ) | (75,223 | ) |
Tax paid | (60,080 | ) | (591,677 | ) |
Net cash from operating activities | (1,748,597 | ) | 2,387,981 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (26,199 | ) |
Purchase of tangible fixed assets | (42,242 | ) | (58,716 | ) |
Purchase of investment property | (2,009,774 | ) | (8,893,370 | ) |
Sale of tangible fixed assets | - | 8,591,266 |
Sale of investment property | - | 1,675,684 |
Purchase of current asset investment | - | (1,000,000 | ) |
Profit on disposal of operations | - | 12,819,363 |
Impairment of intangible fixed assets | 26,199 | - |
Interest received | 795,288 | 176,225 |
Net cash from investing activities | (1,230,529 | ) | 13,284,253 |
Cash flows from financing activities |
Hire purchase financing | - | (1,657,864 | ) |
Amount introduced by directors | 533,017 | 5,169,253 |
Equity dividends paid | (1,363,328 | ) | (2,051,012 | ) |
Net cash from financing activities | (830,311 | ) | 1,460,377 |
(Decrease)/increase in cash and cash equivalents | (3,809,437 | ) | 17,132,611 |
Cash and cash equivalents at beginning of year |
2 |
16,940,424 |
(192,187 |
) |
Cash and cash equivalents at end of year |
2 |
13,130,987 |
16,940,424 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 547,488 | 14,416,943 |
Depreciation charges | 8,448 | 124,294 |
(Gain)/loss on revaluation of fixed assets | (127,859 | ) | 68,147 |
Profit on disposal of operations | - | (12,379,614 | ) |
Finance costs | 769,353 | 75,223 |
Finance income | (795,288 | ) | (176,225 | ) |
402,142 | 2,128,768 |
(Increase)/decrease in stocks | (514,338 | ) | 5,426,876 |
(Increase)/decrease in trade and other debtors | (940,296 | ) | 679,148 |
Increase/(decrease) in trade and other creditors | 133,328 | (5,179,911 | ) |
Cash generated from operations | (919,164 | ) | 3,054,881 |
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 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 13,130,987 | 16,940,424 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 16,940,424 | 711 |
Bank overdrafts | - | (192,898 | ) |
16,940,424 | (192,187 | ) |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 16,940,424 | (3,809,437 | ) | 13,130,987 |
16,940,424 | (3,809,437 | ) | 13,130,987 |
Liquid resources |
Current asset investments | 1,476,971 | 127,859 | 1,604,830 |
1,476,971 | 127,859 | 1,604,830 |
Total | 18,417,395 | (3,681,578 | ) | 14,735,817 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Fairfield Limited and subsidiaries is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents the net accrued income of a motor group, including a BMW and MINI retailer and finance commission, excluding value added tax. Income from the sale of cars, parts and associated goods 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. |
Rental income and recharges represents net invoiced rental of property, excluding value added tax and is recognised in the period to which it relates. |
Development sales represents income from property development, excluding discounts, rebates, retentions, value added tax and other sales tax and is recognised when the development sale is complete. |
Goodwill |
Positive goodwill arising on acquisitions is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. |
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 |
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 |
Motor vehicles | - straight line over 5 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. |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
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 group 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. |
Basis of consolidation |
The group accounts consolidate the accounts of Fairfield Limited and all its subsidiary undertakings drawn to 31 December each year. No profit and loss account is presented for Fairfield Limited as permitted by section 408 of the Companies Act 2006. |
Fairfield Real Estate Limited and Fairfield Investment Properties Limited have been included in the group accounts using the acquisition method of accounting. |
Fairfield Garage (Leigh-on-Sea) Limited left the group on 31 August 2022. |
Fairfield Investment Property Limited disposed of its trading subsidiary Taylors (Hockley) Limited as part of the company being place into voluntary liquidation on 23 June 2023. |
Listed investments |
Listed investments are measured at their fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in the profit and loss account. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | - | 2,963,330 |
Social security costs | - | 306,653 |
Other pension costs | 10,000 | 59,989 |
10,000 | 3,329,972 |
The average monthly number of employees during the year was as follows: |
2023 | 2022 |
Sales | - | 29 |
Service | - | 27 |
Parts | - | 9 |
Bodyshop | - | 7 |
Accounts and administration | - | 13 |
Directors | 3 | 2 |
3 | 87 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
£ | £ |
Directors' remuneration | - | 64,942 |
Directors' pension contributions to money purchase schemes | 10,000 | 4,739 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 2 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 8,448 | 124,294 |
Auditors' remuneration | 10,000 | 40,000 |
Auditors' remuneration for non audit work | 28,279 | 24,293 |
5. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Profit on disposal of |
operations | - | 12,379,614 |
Fairfield Limited disposed of its primary trading subsidiary Fairfield Garage (Leigh on Sea) Limited on 31 August 2022 for a total consideration of £23.66m, resulting in a profit on disposal of £12.38m. |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Other interest received | 795,288 | 176,225 |
7. | AMOUNTS WRITTEN OFF INVESTMENTS |
2023 | 2022 |
£ | £ |
Impairment of fixed asset | 11,752 | - |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | - | 88 |
Other interest | 769,020 | 75,036 |
Interest payable | 333 | 99 |
769,353 | 75,223 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 93,113 | 411,709 |
Deferred tax | - | (540,147 | ) |
Tax on profit | 93,113 | (128,438 | ) |
UK corporation tax has been charged at 25 % (2022 - 19 %). |
Reconciliation of total tax charge/(credit) 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: |
2023 | 2022 |
£ | £ |
Profit before tax | 547,488 | 14,416,943 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
136,872 |
2,739,219 |
Effects of: |
Expenses not deductible for tax purposes | 2,409 | - |
Income not taxable for tax purposes | (6,902 | ) | - |
Capital allowances in excess of depreciation | (9,773 | ) | - |
Depreciation not deductible for tax purposes | - | 3,992 |
Profit on disposal of operations | - | (2,883,577 | ) |
Fair value adjustment | (31,094 | ) | 11,928 |
Impairment of fixed asset | 7,800 | - |
Marginal relief | (322 | ) | - |
Effect of tax rate change in year | (5,877 | ) | - |
Total tax charge/(credit) | 93,113 | (128,438 | ) |
In the preceding period, although the parent company made a substantial profit on the disposal of Fairfield Garage (Leigh on Sea) Limited, the proceeds are covered by substantial shareholding exemption and hence attracted no direct tax charge. |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
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. |
The profit and loss account for the parent shows a profit of £26,188 (2022 - £22,437,811). |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 1,363,328 | 2,051,012 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 | 26,199 |
Impairments | (26,199 | ) |
At 31 December 2023 | - |
NET BOOK VALUE |
At 31 December 2023 | - |
At 31 December 2022 | 26,199 |
13. | TANGIBLE FIXED ASSETS |
Group |
Motor |
vehicles |
£ |
COST |
Additions | 42,242 |
At 31 December 2023 | 42,242 |
DEPRECIATION |
Charge for year | 8,448 |
At 31 December 2023 | 8,448 |
NET BOOK VALUE |
At 31 December 2023 | 33,794 |
14. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: Flat 30, Eden Point, 87 Rectory Grove, Leigh on Sea, Essex, SS9 2BF |
Nature of business: |
% |
Class of shares: | holding |
Fairfield Real Estate Limited is currently inactive. |
Registered office: Flat 30, Eden Point, 87 Rectory Grove, Leigh on Sea, Essex, SS9 2BF |
Nature of business: |
% |
Class of shares: | holding |
Fairfield Limited disposed of its trading subsidiary Fairfield Garage (Leigh on Sea) Limited on 31 August 2022. |
Fairfield Investment Properties Limited disposed of its trading subsidiary Taylors (Hockley) Limited as part of the company being placed into voluntary liquidation on 23 June 2023. |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2023 | 12,596,593 |
Additions | 2,009,774 |
Disposals | (3,000,001 | ) |
At 31 December 2023 | 11,606,366 |
NET BOOK VALUE |
At 31 December 2023 | 11,606,366 |
At 31 December 2022 | 12,596,593 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2020 | 87,471 |
Cost | 11,518,895 |
11,606,366 |
The investment property was valued based on current market value. |
16. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Property development projects | 5,417,174 | 1,902,835 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 37,299 | 22,057 |
Amounts owed by group undertakings | - | - |
Other debtors | 1,000,480 | 459,193 |
VAT | - | 671,241 | - | - |
Prepayments and accrued income | 27,045 | 11,685 |
1,064,824 | 1,164,176 |
Amounts falling due after more than one | year: |
Other debtors | 3,338,727 | 2,299,078 | 1,046,666 | 1,011,667 |
Aggregate amounts | 4,403,551 | 3,463,254 |
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. |
18. | CURRENT ASSET INVESTMENTS |
Group |
2023 | 2022 |
£ | £ |
Listed investments | 1,604,830 | 1,476,971 |
Market value of listed investments held by the group at 31 December 2023 - £1,604,830 (2022 - £1,476,971). |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 44,544 | 35,793 |
Tax | 94,987 | 61,954 |
VAT | 3,670 | - | - | - |
Other creditors | 790,704 | 816,645 |
Credit card | 7,986 | 429 | - | - |
Directors' loan accounts | 7,331,881 | 6,798,864 | - | - |
Accrued expenses | 216,302 | 77,010 |
8,490,074 | 7,790,695 |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Director's loan account | 5,301,800 | 5,998,864 |
The group has given a fixed charge over two of its investment properties, known as Units 3 and 4 - Cabinet Way, and Flat 10 Oak Lodge, in support of the amounts owed to M A K Styles (a director). The charge encompasses all amounts owed to M A K Styles, which at the balance sheet date totalled £5,301,800 (2022 - £5,998,864). |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 18,426 | 18,426 |
22. | RESERVES |
Group |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 28,090,579 | 506,576 | - | 28,597,155 |
Profit for the year | 454,375 | 454,375 |
Dividends | (1,363,328 | ) | (1,363,328 | ) |
Transfer between reserves | (124,374 | ) | - | 124,374 | - |
At 31 December 2023 | 27,057,252 | 506,576 | 124,374 | 27,688,202 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 26,271,233 |
23. | PENSION COMMITMENTS |
The group operated a defined contribution scheme in respect of its employees. During the year premiums paid by the group amounted to £10,000 (2022 - £59,989). There were no premiums outstanding at the year end for either years. |
FAIRFIELD LIMITED AND SUBSIDIARIES (REGISTERED NUMBER: 03607854) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
24. | CONTINGENT LIABILITIES |
Fairfield Limited and its subsidiaries Fairfield Real Estate Limited and Fairfield Investment Properties Limited have jointly entered into a VAT group and a corporation tax group payment arrangement. Fairfield Investment Properties 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 group's total compensation to key management personnel (including directors) amounted to £10,000 (2022 - £132,932). The group was also charged rent of £nil and interest of £761,170 (2022 - £222,875 and £56,986 respectively) by key management personnel. At the balance sheet date, the group owed key management personnel £7,331,880 (2022 - £6,798,864). |
During the year, the group was charged interest of £1,262 (2022 - £740) by close members of the directors' families and, at the balance sheet date, the group owed them £100,000 (2022 - £nil) |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is M A K Styles. |