WILFRED_T._FRY_LIMITED - Accounts

The directors present the strategic report and financial statements for the year ended 31 March 2016.

The directors report a fall in turnover against prior year by 10% to £5.7m with an operating loss for the year of £95k against a profit last year of £455k as shown on page 7. The fall in turnover and operating margin are mainly due to a re-structure of group commissions receivable from subsidiaries as well as increased costs in setting up an overseas subsidiary. The directors remain satisfied with the trading performance of the company as a whole.

The directors have controlled costs as far as possible, but continue to see significant expenditure required for operations, together with the completion of the renovation of head office. The company continues to update some of its computer systems with the goal of a more effective and efficient workplace with better internal controls.

The principal risk and uncertainty affecting the company is the pension scheme deficit. This year has seen the deficit decrease, in the main due to changes in the actuarial assumptions, as shown by the actuarial gain in the statement of other comprehensive income, but also as a result of further retirements in the year.

The position of the company at the year end is shown on page 9.

The accounting disclosure of the FRS102 ‘Retirement Benefits’ continues to have an effect on the balance sheet of the company. The pension scheme deficit, which can no longer be shown net of deferred tax under the new accounting standards totals at the year end of £12,798k (2015 - £13,561k).

On behalf of the board

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £105,000. The directors do not recommend payment of a final dividend. The directors note the unlawful dividends approved during the year as the company does not have sufficient reserves to distribute dividends. The directors have informed the shareholders that dividends voted since Financial Reporting Standard 17 'Retirement Benefits' was published in November 2000 (now included in Financial Reporting Standard 102) may need to be repaid in the event of the company entering liquidation.

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

The company's principal foreign currency exposures arise from trading with overseas companies and branches. The company's policy permits but does not demand that these exposures may be hedged in order to fix the costs in sterling.

In accordance with the company's articles, a resolution proposing that Carpenter Box be reappointed as auditors of the company will be put at a General Meeting.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditors are unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditors are aware of that information.

The directors are responsible for preparing the Annual Report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: •    select suitable accounting policies and then apply them consistently; •    make judgements and accounting estimates that are reasonable and prudent; •    prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Wilfred T. Fry Limited for the year ended 31 March 2016 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement Of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102.

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 an auditor's report 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.

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

In our opinion the financial statements: •    give a true and fair view of the state of the company's affairs as at 31 March 2016 and of its loss 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.

• give a true and fair view of the state of the company's affairs as at 31 March 2016 and of its loss 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.

In our opinion the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.true

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: •    adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or •    the financial statements are not in agreement with the accounting records and returns; or •    certain disclosures of directors' remuneration specified by law are not made; or •    we have not received all the information and explanations we require for our audit.

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

The income statement has been prepared on the basis that all operations are continuing operations.

Wilfred T. Fry Limited is a company limited by shares incorporated in England and Wales. The registered office is Crescent House, Crescent Road, Worthing, West Sussex, BN11 1RN.

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.

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 on the historical cost convention, modified to include the revaluation of certain fixed assets and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

These financial statements for the year ended 31 March 2016 are the first financial statements of Wilfred T. Fry Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 April 2014. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 33.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Wilfred T. Fry Limited is a wholly owned subsidiary of Fry Wealth Limited and the results of Wilfred T. Fry Limited are included in the consolidated financial statements of Fry Wealth Limited which are available from Companies House.

The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

The directors consider it appropriate for the treatment despite the negative retained earnings. This position is due to the disclosures for the defined benefit pension scheme liability. The assessment of this liability is over the very long term. The directors believe the cash position of the group is very healthy and future forecasts are satisfactory to ensure the going concern basis of accounting is appropriate.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. Rendering of services Revenue from services is recognised by reference to the stage of completion. Stage of completion is measured by reference to labour hours incurred to date as a percentage of total estimated labour hours for each contract. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. Commissions Revenue from commissions is based on a fixed percentage, which is received from a subsidiary of this company. is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

Rendering of services

Revenue from services is recognised by reference to the stage of completion. Stage of completion is measured by reference to labour hours incurred to date as a percentage of total estimated labour hours for each contract. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Commissions

Revenue from commissions is based on a fixed percentage, which is received from a subsidiary of this company.

Service charge receivable

Revenue is recognised based on managements time spent at subsidiary companies.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents 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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset , with the net amounts presented in the financial statements , when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade receivables , loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition., loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.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 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 income statement, 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.

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 income statement, 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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The company operates an employee share ownership plan (ESOP) trust and has de facto control of the shares held by the trust and bears their benefits and risks. The company records assets and liabilities of the trust as its own. Consideration paid by the ESOP scheme for shares of the company is deducted from equity. Finance costs and administrative expenses incurred by the company in relation to the ESOP are recognised on an accruals basis.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The group also operates a defined benefit scheme. The pension costs are assessed using the projected unit credit method, the cost of providing pensions is charged to the profit and loss account so as to spread the regular costs over the service lives of employees. The pension obligation is measured at the present value of the estimated future cash flows using interest rates on government securities that have terms to maturity approximating the terms of the related liability. When the benefits of a scheme are improved, past service costs is recognised as an expense on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits are already vested immediately, following the introduction of, or changes to, a defined benefit plan, the past service cost is recognised as an expense immediately. The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost. Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods. The defined net benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The defined net benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term. Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.

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.

An analysis of the company's revenue is as follows:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2015 - 4).

Investment income includes the following:

The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

The unlisted investment has been revalued based on a formal valuation of the investment as at 31 March 2016. The investment under historical cost would have been valued at £15,000.

Fixed asset investments at fair value

The directors' have valued the company's holdings in its subsidiaries at fair value. The method used for the personal financial planning subsidiaries was in line with industry standards of valuing financial service companies, based on level of funds under administration and renewal income and applying multiples or percentages as appropriate based on current market conditions and discounted where necessary.

The method used for valuing other subsidiaries was based on the recurring fee income and discounted where necessary.

Bank loans and overdrafts are secured by an unlimited guarantee and letter of set off.

Bank loans and overdrafts are secured by an unlimited guarantee and letter of set off.

Borrowings are repayable initially over ten years at an interest rate of the Bank of England's Base Rate plus 1.8%.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

The deferred tax asset in relation to tax losses, as set out above, is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

The remaining deferred tax assets and liabilities, as set out above, are expected to reverse over a period of greater than one year.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The charge to profit and loss in respect of defined contribution schemes was £527,044 (2015 - £431,357).

Introduction

The company operates a defined benefit pension scheme which is closed to new entrants. The most recent full actuarial valuation was on 31 March 2014 and was carried out by a qualified independent actuary.

The roll forward method has been used, based on the most recent comprehensive actuarial valuation. Adjustments were made to reflect benefits paid out, in addition to, differences between the assumptions used at the year end and those in the comparatives.

The assets of the scheme are invested in a M&G Prudential Absolute Return Fund and a Phoenix Fund Services Accumulation Fund. At 31 March 2016 the fair value of the assets has been determined as the market value of the policy. M&G have provided a market value as at 31 March 2016 of £6,365,785 (2015 - £6,531,252), Phoenix have provided a market value as at 31 March 2016 of £7,269,934 (2015 - £8,087,258) and as at 31 March 2016 the scheme's bank balance was £48,987 (2015 - £55,511).

The defined benefit plan is currently underfunded, and so is in deficit. As a result, the Trustees' have agreed with the company, deficit payment contributions of £55,000 per month, rising by 5% per annum compound from each April until 31 October 2034.

The expected total contributions for the year ending 31 March 2017 has been estimated to by £690,000.

These payments are designed to eliminate the deficit, pay the expenses of running the Scheme and meet the costs of future accrual for remaining active members.

The total current service cost represents the cost of the pension rights accrued in the coming year (net of employee contributions), pension scheme administration costs and the Pension Protection Levy.

The assumed life expectations on retirement at age 65 are:

Future pension increases     2016     2015

     %     %

Pre88 GMP (3.0% fixed)*     3.00     3.00

Post88 GMP (3.0% fixed)     3 00     3.00

Pre 01/04/1993 excess over GMP (3.0% fixed)*     3.00     3.00

Post 01/01/1993 excess over GMP (5.0% fixed)     5.00     5.00

Post 01/04/1997 (LPI min 3.0%, max 5.0%)**     3.50/3.30     3.50/3.30

Post 06/03/2006 (LPI max 2.5%)***     1.70/1.50     1.70/1.50

Statutory increases in deferment CPI 2.20 2.20

Statutory increases in deferment RPI 2.90 2.90

*Prior to 2012 assumed to be 0.0% and LPI minimum of 3.0% respectively. Now fixed 3.0% as per legal advice.

**For service post 01/04/1997 previously assumed to be LPI max 5.0%. Now LPI min 3.0% max 5.0% as per legal advice. Lower figures based on CPI pension increases and higher figures based on RPI pension increases.

***For service post 06/03/2006 previously assumed to be post 05/04/2005. Changed as per legal advice. Lower figures based on CPI pension increases and higher figures based on RPI pension increases.

# For members who left the scheme before 10 February 2010, members' deferred pensions in excess of GMP increase before retirement in line with RPI up to 1 January 2011 and CPI from 1 January 2011 although the total increase over the whole period between leaving and retirement is restricted so that it does not exceed 5.0% per annum compound. The assumption of 2.2% per annum in respect of future revaluation is calculated in this way. For members who left the scheme on or after 10 February 2010, members' deferred pensions in excess of GMP increase before retirement in line with RPI, again the total increase over the whole period between leaving and retirement is restricted so that it does not exceed 5.0% per annum compound. The assumption this year for this type of revaluation is 2.9% per annum.

The expected return on annuity policies is taken to be the discount rate used to value the pensioner liabilities.

The overall expected return on all the scheme assets is 3.6% (2015 - 3.3%) which is set at the same rate as the discount rate as required by the standard.

Amounts recognised in the income statement:

Amounts taken to other comprehensive income:

The amounts included in the statement of financial position arising from the company's obligations in respect of defined benefit plans are as follows:

Movements in the present value of defined benefit obligations:

The defined benefit obligations arise from plans which are partly funded.

Movements in the fair value of plan assets:

The actual return on plan assets was £684,000 (2015 - £2,161,000).

The fair value of plan assets at the reporting period end was as follows:

Each share is entitled to one vote in any circumstances and each share is also entitled pari passu to dividend payments or any other distribution, including a distribution arising from a winding up of the company.

Includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

The directors continue to separate revaluation reserves in order to distinguish between unrealised reserves which are not available from distribution.

Other reserves represents the advance to the Wilfred T. Fry Limited Staff Share Trust which has been shown as a reduction from reserves. The results of the Wilfred T. Fry Limited Staff Share Trust are not material for consolidation.

Includes all current and prior year retained profits and losses.

The directors note that they have paid unlawful dividends during the period, as the company does not have sufficient reserves to distribute any dividends. The directors have informed the shareholders that dividends may need to be repaid in the event of the company entering liquidation.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

After the balance sheet date dividends of £30,000 have been approved for the year ended 31 March 2017.

The remuneration of key management personnel, who are also directors, is as follows.

The company has taken advantage of the exemption available whereby it has not disclosed transactions with the immediate parent company or any wholly owned subsidiary undertaking of the group.

During the year under review £118,013 (2015 - £48,600) was repaid on the Wilfred T. Fry Limited Staff Share Trust.

At the balance sheet date, included in other debtors, the group and company was owed £2,733 (2015 - £7,622) by the Wilfred T. Fry Limited Retirement Benefit Scheme.

During the year management charges amounting to £1,800,000 (2015 - £1,840,000) were charged and dividends of £75,259 (2015 - £64,418) were paid to Fry Wealth Limited.

The company is a 72% subsidiary of Fry Wealth Limited. Fry Wealth prepares consolidated financial statements which are available from Companies House, Cardiff.

These financial statements are separate company financial statements for Wilfred T Fry Limited.

Details of the company's subsidiaries at 31 March 2016 are as follows:

Deferred tax is now recognised on revalued assets and is recorded on the statement of financial position. The movement of £8,000 is as a result of changes in the tax rates. At the date of transition this was 23% and this has subsequently fallen to 21% at 31 March 2015.

Under previous UK GAAP, these were not recognised in the financial statements in the relevant reporting period, but only disclosed in the notes to the accounts.

The deferred tax asset on the actuarial losses in the defined benefit scheme can no longer be netted off against the pension scheme deficit, therefore this is now recognised as an asset within trade and other receivables (Note 19).

Under previous UK GAAP, this balance would have been netted against the pension scheme liability, and shown as a net pension scheme liability in the balance sheet and notes to the accounts.

Under FRS 102 a net interest expense, based on the net defined benefit liability, is recognised in the profit and loss account. There has been no change in the defined benefit liability at 1 April 2014 or 31 March 2015. The effect of the change has been to increase the credit to the profit and loss account in the year to 31 March 2015 by £95,000 and decrease the credit in other comprehensive income by an equivalent amount.

Under previous UK GAAP the company recognised an expected return on defined benefit plan assets in the profit and loss account.

Under FRS102, the directors have chosen to adopt a new accounting policy for investments in subsidiaries in stating these investments at fair value with any movements recognised in Other Comprehensive Income. As stated in note (a) above, deferred tax is also to be recognised on the revalued assets.

Under previous UK GAAP the subsidiary companies were recognised at cost.