Company registration number 11102920 (England and Wales)
FAIRFAX INVESTMENTS (MORLEY) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
PAGES FOR FILING WITH REGISTRAR
FAIRFAX INVESTMENTS (MORLEY) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
4 - 7
FAIRFAX INVESTMENTS (MORLEY) LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
4
1,845,000
1,500,000
Current assets
Cash at bank and in hand
1,253
149,705
Creditors: amounts falling due within one year
5
(335,767)
(168,927)
Net current liabilities
(334,514)
(19,222)
Total assets less current liabilities
1,510,486
1,480,778
Creditors: amounts falling due after more than one year
6
(832,527)
(828,848)
Provisions for liabilities
(185,480)
(185,480)
Net assets
492,479
466,450
Capital and reserves
Called up share capital
2
2
Fair Value Reserve
543,443
585,002
Profit and loss reserves
(50,966)
(118,554)
Total equity
492,479
466,450
FAIRFAX INVESTMENTS (MORLEY) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
28 FEBRUARY 2024
28 February 2024
- 2 -
For the financial year ended 28 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 27 November 2024 and are signed on its behalf by:
Mr D Pickles
Director
Company registration number 11102920 (England and Wales)
FAIRFAX INVESTMENTS (MORLEY) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
Share capital
Fair Value Reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2022
2
210,062
(23,256)
186,808
Year ended 28 February 2023:
Profit
-
-
279,642
279,642
Other comprehensive income:
Revaluation of tangible fixed assets
-
374,940
-
374,940
Total comprehensive income
-
374,940
279,642
654,582
Transfers
-
(374,940)
(374,940)
Balance at 28 February 2023
2
585,002
(118,554)
466,450
Year ended 28 February 2024:
Profit
-
-
26,029
26,029
Other comprehensive income:
Revaluation of tangible fixed assets
-
(41,559)
-
(41,559)
Total comprehensive income
-
(41,559)
26,029
(15,530)
Transfers
-
41,559
41,559
Balance at 28 February 2024
2
543,443
(50,966)
492,479
FAIRFAX INVESTMENTS (MORLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 4 -
1
Accounting policies
Company information
Fairfax Investments (Morley) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 22 Westfield Grove, Ackworth, Pontefract, WF7 7HF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
1.3
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of comprehensive income.
Investment property is valued at fair value by the directors. Gains are recognised in the income statement. Deferred tax is provided on those gains at the rate expected to apply when the property is sold.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
FAIRFAX INVESTMENTS (MORLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 5 -
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
FAIRFAX INVESTMENTS (MORLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
2
2
4
Investment property
2024
£
Fair value
At 1 March 2023
1,500,000
Additions
1,004,878
Disposals
(618,319)
Revaluations
(41,559)
At 28 February 2024
1,845,000
The directors have reviewed the valuation of the property at the year end and have concluded that the valuation above reflects market value.
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
10,108
10,108
Amounts owed to group undertakings and undertakings in which the company has a participating interest
233,759
68,019
Other creditors
91,900
90,800
335,767
168,927
Bank loans are secured by way of a fixed charge on the investment property held by the company. The full balance of the bank loan due within one year has been repaid after the year end.
FAIRFAX INVESTMENTS (MORLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
832,527
828,848
Bank loans are secured by way of a fixed charge on the investment property held by the company.
7
Related party transactions
At the year end the company owed £222,758, £5,000 and £6,000 (2023 - £57,019, £5,000 and £6,000) to Fairfax Investments Ltd, Fairfax Investments (Ackworth) Ltd and Fairfax Property Management Ltd respectively, companies under common control.