Farmington Natural Stone Limited - Period Ending 2023-06-30

Farmington Natural Stone Limited

(Registration number: 03126135)
Balance Sheet as at 30 June 2023

	Note	2023  £	2022  £
Fixed assets
Tangible assets	4	1,829,611	1,721,649
Investment property	5	4,126,500	4,126,500
Investments	6	776	776
		5,956,887	5,848,925
Current assets
Stocks		251,947	205,707
Debtors	7	1,097,243	664,101
Cash at bank and in hand		246,026	388,992
		1,595,216	1,258,800
Creditors: Amounts falling due within one year	8	(1,641,941)	(1,154,025)
Net current (liabilities)/assets		(46,725)	104,775
Total assets less current liabilities		5,910,162	5,953,700
Creditors: Amounts falling due after more than one year	8	(362,888)	(653,260)
Deferred tax liabilities		(825,156)	(819,623)
Net assets		4,722,118	4,480,817
Capital and reserves
Called up share capital		355	355
Revaluation reserve		1,261,651	1,261,651
Profit and loss account		3,460,112	3,218,811
Total equity		4,722,118	4,480,817

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 26 March 2024 and signed on its behalf by:
 

R Barrow
Director

Farmington Natural Stone Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Farmington Natural Stone Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land and buildings	50 years straight line basis
Plant and machinery	10% and 25% on cost per annum
Motor vehicles	25% on cost per annum

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Dividends on equity securities are recognised in income when receivable.

Farmington Natural Stone Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Farmington Natural Stone Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2022 - 3).

Farmington Natural Stone Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

4

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 July 2022	1,470,507	1,413,608	140,788	3,024,903
Additions	187,725	243,425	28,369	459,519
Disposals	-	(286,000)	(14,101)	(300,101)
At 30 June 2023	1,658,232	1,371,033	155,056	3,184,321
Depreciation
At 1 July 2022	346,851	857,675	98,728	1,303,254
Charge for the year	25,933	141,083	18,572	185,588
Eliminated on disposal	-	(120,031)	(14,101)	(134,132)
At 30 June 2023	372,784	878,727	103,199	1,354,710
Carrying amount
At 30 June 2023	1,285,448	492,306	51,857	1,829,611
At 30 June 2022	1,123,656	555,933	42,060	1,721,649

Included within the net book value of land and buildings above is £1,285,448 (2022 - £1,123,656) in respect of freehold land and buildings.
 

5

Investment properties

	2023 £
At 1 July 2022 and 30 June 2023	4,126,500

The value of investment properties has been estimated by the directors based on information provided by an external valuation expert.

6

Investments

	2023 £	2022 £
Investments in subsidiaries	776	776

Farmington Natural Stone Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2023	2022
Subsidiary undertakings
Farmington Services Limited		Ordinary	100%	100%
	England
Farmington Masonry Services Limited		Ordinary	100%	100%
	England
Farmington Estates Limited		Ordinary	100%	100%
	England

Interest in Limited Liability Partnership
Farmington Masonry LLP		Designated member	50%	50%
	England

Subsidiary undertakings

Farmington Services Limited The principal activity of Farmington Services Limited is a service company.

Farmington Masonry Services Limited The principal activity of Farmington Masonry Services Limited is dormant.

Farmington Estates Limited The principal activity of Farmington Estates Limited is dormant.

Interest in partnership

Farmington Masonry LLP The principal activity of Farmington Masonry LLP is the sale and fixing of stone products.

7

Debtors

	2023  £	2022  £
Trade debtors	761,032	268,748
Amounts owed by related parties	255,335	349,864
Other debtors	31,715	17,592
Prepayments	49,161	27,897
	1,097,243	664,101

Farmington Natural Stone Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

8

Creditors

	Note	2023  £	2022  £
Due within one year
Loans and borrowings	10	164,511	338,755
Trade creditors		446,785	205,408
Amounts due to related parties		788,599	359,378
Other creditors		90,900	88,629
Accrued expenses		21,529	5,150
Corporation tax liability		129,617	156,705
		1,641,941	1,154,025
Due after one year
Loans and borrowings	10	362,888	653,260

9

Deferred tax

Deferred tax assets and liabilities

2023	Liability £
Accelerated capital allowances	148,993
Gains on property	676,163
	825,156

2022	Liability £
Accelerated capital allowances	143,460
Gains on property	676,163
	819,623

10

Loans and borrowings

	2023 £	2022 £
Current loans and borrowings
Bank borrowings	96,500	131,387
Bank overdrafts	5,643	-
HP and finance lease liabilities	57,004	183,639
Other borrowings	5,364	23,729
	164,511	338,755

	2023 £	2022 £
Non-current loans and borrowings
Bank borrowings	362,888	653,260

Farmington Natural Stone Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

11

Related party transactions

The company sold supplies and received a management charge from Farmington Masonry LLP, a limited liability partnership in which the company is a designated member of £2,033,457 (2022 - £2,107,638) and £230,000 (2022 - £230,000) respectively in the year. At the year end the limited liability partnership was owed £737,091 (2022 - £349,378) on its members loan account and was owed £761,032 (2022 - £268,748) in trade debtors in relation with the LLP.

During the year, the company incurred management charges of £825,849 (2022 - £910,908), received management charges of £20,000 (2022 - 20,000) and received a dividend of £56,000 (2022 - £63,000) from Farmington Services Limited. At the balance sheet date the amount due to Farmington Services Limited was £41,508 (2022 - due from Farmington Services Limited £94,529).