Limited Liability Partnership registration number OC337678 (England and Wales)
BEECHBROOK CAPITAL LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
BEECHBROOK CAPITAL LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Nick Fenn
Paul Shea
LLP registration number
OC337678
Registered office
43 - 45 Dorset Street
London
W1U 7NA
Auditor
Fisher, Sassoon & Marks
43 - 45 Dorset Street
London
W1U 7NA
BEECHBROOK CAPITAL LLP
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 10
BEECHBROOK CAPITAL LLP
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
5
14,511
33,156
Investments
6
66,462
1,034,503
80,973
1,067,659
Current assets
Debtors
7
509,194
363,339
Cash at bank and in hand
607,299
505,851
1,116,493
869,190
Creditors: amounts falling due within one year
8
(564,129)
(1,400,459)
Net current assets/(liabilities)
552,364
(531,269)
Total assets less current liabilities and net assets attributable to members
633,337
536,390
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
114,532
7,050
Members' other interests
Members' capital classified as equity
518,805
529,340
633,337
536,390

The members of the limited liability partnership have elected not to include a copy of the income statement within the financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

The financial statements were approved by the members and authorised for issue on 29 June 2022 and are signed on their behalf by:
29 June 2022
Nick Fenn
Paul Shea
Designated member
Designated Member
Limited Liability Partnership Registration No. OC337678
BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
1
Accounting policies
Limited liability partnership information

Beechbrook Capital LLP is a limited liability partnership incorporated in England and Wales. The registered office is 43 - 45 Dorset Street, London, W1U 7NA.

 

The limited liability partnerships's principal activities are that of managing and advising funds on behalf of third party investors.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together 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 limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The limited liability partnership 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 limited liability partnership as an individual entity and not about its group.

 

1.2
Turnover

Turnover represents fee income receivable for the provision of advisory fees.

Fee income is recognised by reference to the stage of completion of a transaction at the end of the reporting period.

 

 

 

 

1.3
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 3 -

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

1.4
Tangible fixed assets

Tangible fixed assets 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:

Land and buildings Leasehold
20% Straight Line
Fixtures, fittings & equipment
20% Straight Line
Computer equipment
33 1/3% Straight Line

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 recognised in the income statement.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible 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 limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -

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) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

1.8
Financial instruments

The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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

Basic financial assets, which include debtors 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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 publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 5 -
Impairment of financial assets

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership 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.

Classification of financial liabilities

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 limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, 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. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 6 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.9
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.10
Employee benefits

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 fixed assets.

 

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

1.11
Retirement benefits and post retirement payments to members

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leased asset are consumed.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14
Foreign exchange

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 in the period are included in profit or loss.

BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -
2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members 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 number of persons (excluding members) employed by the partnership during the year was:

2022
2021
Number
Number
Total
15
14
4
Members' remuneration
2022
2021
Number
Number
Average number of members during the year
6
7
2022
2021
£
£
Profit attributable to the member with the highest entitlement
225,000
225,000
Average members' remuneration
215,809
201,809
2022
2021
Members' remuneration comprises:
£
£
Remuneration under participation rights
1,294,854
1,412,662
BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2021
90,427
129,460
219,887
Additions
665
8,885
9,550
At 31 March 2022
91,092
138,345
229,437
Depreciation and impairment
At 1 April 2021
77,926
108,805
186,731
Depreciation charged in the year
12,501
15,694
28,195
At 31 March 2022
90,427
124,499
214,926
Carrying amount
At 31 March 2022
665
13,846
14,511
At 31 March 2021
12,501
20,655
33,156
6
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
66,462
187,837
Loans to group undertakings and participating interests
-
846,666
66,462
1,034,503

 

Movements in fixed asset investments
Shares in subsidiaries
Loans to subsidiaries
Total
£
£
£
Cost or valuation
At 1 April 2021
187,837
846,666
1,034,503
Disposals
(121,375)
(846,666)
(968,041)
At 31 March 2022
66,462
-
66,462
Carrying amount
At 31 March 2022
66,462
-
66,462
At 31 March 2021
187,837
846,666
1,034,503
BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
15,088
190,041
Other debtors
494,106
173,298
509,194
363,339
8
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
10,622
14,403
Taxation and social security
14,116
766
Other creditors
539,391
1,385,290
564,129
1,400,459
9
Loans and other debts due to members

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Jonathan Marks and the auditor was Fisher, Sassoon & Marks.
11
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2022
2021
£
£
81,156
448,557

As at the year end, the firm has lease commitment as shown above. The LLP is also a covenantor to its subsidiary Beechbrook UK SME Credit Limited with regards to the entity's lease commitment until September 2023.

BEECHBROOK CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
12
Events after the reporting date
There are no matters to report.
13
Subsidiaries

Details of the limited liability partnership's subsidiaries at 31 March 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Beechbrook Mezzanine II General Partner Limited
Scotland
Ordinary
100.00
Beechbrook UK SME Credit I GP Limited
Scotland
Ordinary
100.00
Beechbrook UK SME Credit Ltd
England & Wales
Ordinary
61.00
Beechbrook Private Debt III General Partner Ltd
Scotland
Ordinary
100.00
Beechbrook Mezzanine GP Ltd
Scotland
Ordinary
100.00
Beechbrook Capital Germany UG
Germany
Ordinary
100.00
Beechbrook UK SME Credit II GP Ltd
Scotland
Ordinary
100.00
Beechbrook Private Debt IV General Partners S.a.r.l
Luxembourg
Ordinary
100.00
Beechbrook Private Debt General Parter Ltd
Scotland
Ordinary
100.00
Beechbrook Ireland SME I GP Ltd
Republic of Ireland
Ordinary
100.00
Beechbrook UK SME Credit III GP Limited
Scotland
Ordinary
100.00
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Beechbrook Mezzanine II General Partner Limited
974
(1,465)
Beechbrook UK SME Credit I GP Limited
4,331
3,768
Beechbrook UK SME Credit Ltd
414,085
(84,764)
Beechbrook Private Debt III General Partner Ltd
638
67
Beechbrook Mezzanine GP Ltd
(27,138)
784
Beechbrook Capital Germany UG
31,017
15,250
Beechbrook UK SME Credit II GP Ltd
3,155
2,115
Beechbrook Private Debt IV General Partners S.a.r.l
8,518
-
Beechbrook Private Debt General Parter Ltd
(3,730)
(3,730)
Beechbrook Ireland SME I GP Ltd
1
-
Beechbrook UK SME Credit III GP Limited
(4,458)
(4,459)
14
Parent company

The limited liability partnership is controlled by N Fenn and P Shea equally.

2022-03-312021-04-01false29 June 2022CCH SoftwareCCH Accounts Production 2022.200This audit opinion is unqualifiedOC3376782021-04-012022-03-31OC337678bus:PartnerLLP12021-04-012022-03-31OC337678bus:PartnerLLP22021-04-012022-03-31OC3376782022-03-31OC3376782020-01-042021-03-31OC337678bus:LimitedLiabilityPartnershipLLP2021-04-012022-03-31OC337678bus:SmallCompaniesRegimeForAccounts2021-04-012022-03-31OC337678bus:FRS1022021-04-012022-03-31OC337678bus:Audited2021-04-012022-03-31OC337678bus:FullAccounts2021-04-012022-03-31xbrli:purexbrli:sharesiso4217:GBP