Limited Liability Partnership Registration No. OC306894 (England and Wales)
FENWICK ELLIOTT LLP
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2022
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
FENWICK ELLIOTT LLP
CONTENTS
Page
LLP information
1
Members' report
2 - 3
Members' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10 - 11
Reconciliation of members' interests
12 - 13
Statement of cash flows
14
Notes to the financial statements
15 - 24
FENWICK ELLIOTT LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
- 1 -
Designated members
Mr N L Elliot
Mr A W Francis
Mr S J A Tolson
Limited liability partnership number
OC306894
Registered office
Aldwych House
71 - 91 Aldwych
London
WC2B 4HN
Auditor
TC Group
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
FENWICK ELLIOTT LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -

The members present their annual report and financial statements for the year ended 31 March 2022.

Principal activities

The principal activity of the limited liability partnership continued to be that of solicitors.

Fair review of the business

The firm had another record year, with marked increases in both turnover and profit. The split between domestic and international work was similar to that of last year, with a small sway towards domestic work.  The firm continues to invest in its staff and infrastructure to ensure that it remains the market leader in the construction and energy sectors.

 

Fenwick Elliott LLP has a branch, as defined in Section 1046(3) of the Companies Act 2006, outside the UK in Dubai.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership.

Designated members

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

Mr N L Elliot
Mr A W Francis
Mr S J A Tolson
Financial instruments
Liquidity risk

The limited liability partnership manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the limited liability partnership has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The limited liability partnership is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The limited liability partnership uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

FENWICK ELLIOTT LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
Foreign currency risk

The limited liability partnership’s principal foreign currency exposures arise from trading with overseas companies. The limited liability partnership's policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the members.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

TC Group was appointed as auditor to the limited liability partnership and in accordance with section 485 of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

Approved by the members on 9 September 2022 and signed on behalf by:
09 September 2022
Mr A W Francis
Mr S J A Tolson
Designated Member
Designated Member
FENWICK ELLIOTT LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FENWICK ELLIOTT LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FENWICK ELLIOTT LLP
- 5 -
Opinion

We have audited the financial statements of Fenwick Elliott LLP (the 'limited liability partnership') for the year ended 31 March 2022 which comprise the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the limited liability opartnership's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

FENWICK ELLIOTT LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FENWICK ELLIOTT LLP
- 6 -

Other information

The members are responsible for the other information. The other information comprises the information included in the members' report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the members are responsible for assessing the limited liability partnership’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

 

 

FENWICK ELLIOTT LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FENWICK ELLIOTT LLP
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

FENWICK ELLIOTT LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FENWICK ELLIOTT LLP
- 8 -

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership'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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Chris Checkley FCCA (Senior Statutory Auditor)
for and on behalf of TC Group
Statutory Auditor
Office: Steyning
12 September 2022
FENWICK ELLIOTT LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
2022
2021
Notes
£
£
Turnover
3
18,471,434
20,289,748
Administrative expenses
(10,799,682)
(10,899,365)
Other operating income
718
34,994
Operating profit
4
7,672,470
9,425,377
Interest receivable and similar income
155
1,013
Interest payable and similar expenses
8
(52,534)
(103,758)
Profit for the financial year before members' remuneration and profit shares
7,620,091
9,322,632
Profit for the financial year before members' remuneration and profit shares
7,620,091
9,322,632
Members' remuneration charged as an expense
7
(1,543,944)
(1,793,268)
Profit for the financial year available for discretionary division among members
6,076,147
7,529,364

The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.

The notes on pages 15 to 24 form part of these financial statements
FENWICK ELLIOTT LLP
BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
9
398,966
268,501
Current assets
Debtors
10
7,572,701
7,761,250
Cash at bank and in hand
1,426,027
2,376,446
8,998,728
10,137,696
Creditors: amounts falling due within one year
12
(3,675,450)
(4,717,879)
Net current assets
5,323,278
5,419,817
Total assets less current liabilities
5,722,244
5,688,318
Provisions for liabilities
13
(561,482)
(350,000)
Net assets attributable to members
5,160,762
5,338,318
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
2,941,273
2,673,522
Taxation provision accounts
1,781,189
2,226,496
4,722,462
4,900,018
Members' other interests
Members' capital classified as equity
438,300
438,300
5,160,762
5,338,318
Total members' interests
Loans and other debts due to members
4,722,462
4,900,018
Members' other interests
438,300
438,300
5,160,762
5,338,318
FENWICK ELLIOTT LLP
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2022
31 March 2022
- 11 -
The financial statements were approved by the members and authorised for issue on 9 September 2022 and are signed on their behalf by:
09 September 2022
Mr A W Francis
Mr S J A Tolson
Designated member
Designated Member
Limited Liability Partnership Registration No. OC306894
FENWICK ELLIOTT LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2022
- 12 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2022
£
£
£
£
£
£
Amounts due to members
4,900,018
Members' interests at 1 April 2021
438,300
-
438,300
4,900,018
4,900,018
5,338,318
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
-
-
1,543,944
1,543,944
1,543,944
Profit for the financial year available for discretionary division among members
-
6,076,147
6,076,147
-
-
6,076,147
Members' interests after profit and remuneration for the year
438,300
6,076,147
6,514,447
6,443,962
6,443,962
12,958,409
Allocation of profit for the financial year
-
(6,076,147)
(6,076,147)
6,076,147
6,076,147
-
Introduced by members
18,629
-
18,629
-
-
18,629
Repayments of capital
(18,629)
-
(18,629)
-
-
(18,629)
Drawings
-
-
-
(7,352,340)
(7,352,340)
(7,352,340)
Taxation
-
-
-
(445,307)
(445,307)
(445,307)
Members' interests at 31 March 2022
438,300
-
438,300
4,722,462
4,722,462
5,160,762
Amounts due to members
4,722,462
FENWICK ELLIOTT LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 13 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2021
£
£
£
£
£
£
Amounts due to members
3,903,652
Members' interests at 1 April 2020
438,300
-
438,300
3,903,652
3,903,652
4,341,952
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
-
-
1,793,268
1,793,268
1,793,268
Profit for the financial year available for discretionary division among members
-
7,529,364
7,529,364
-
-
7,529,364
Members' interests after profit and remuneration for the year
438,300
7,529,364
7,967,664
5,696,920
5,696,920
13,664,584
Allocation of profit for the financial year
-
(7,529,364)
(7,529,364)
7,529,364
7,529,364
-
Drawings
-
-
-
(9,193,269)
(9,193,269)
(9,193,269)
Taxation
-
-
-
867,003
867,003
867,003
Members' Interests at 31 March 2020
438,300
-
438,300
4,900,018
4,900,018
5,338,318
Amounts due to members
4,900,018
4,900,018
FENWICK ELLIOTT LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
7,760,902
10,333,824
Interest paid
(52,534)
(103,758)
Net cash inflow from operating activities
7,708,368
10,230,066
Investing activities
Purchase of tangible fixed assets
(276,597)
(51,709)
Interest received
155
1,013
Net cash used in investing activities
(276,442)
(50,696)
Financing activities
Repayment of capital or debt to members
(18,629)
-
Payments to members that represent a return on amounts subscribed or otherwise contributed
(7,779,018)
(8,326,266)
Movement of borrowings
(584,698)
(462,801)
Payment of finance leases obligations
-
(38,650)
Net cash used in financing activities
(8,382,345)
(8,827,717)
Net (decrease)/increase in cash and cash equivalents
(950,419)
1,351,653
Cash and cash equivalents at beginning of year
2,376,446
1,024,793
Cash and cash equivalents at end of year
1,426,027
2,376,446
The notes on pages 15 to 24 form part of these financial statements
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 15 -
1
Accounting policies
Limited liability partnership information

Fenwick Elliott LLP is a limited liability partnership incorporated in England and Wales. The registered office is Aldwych House, 71 - 91 Aldwych, London, WC2B 4HN.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

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 January 2017, 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.

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, 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

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 16 -
1.4
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.

 

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.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment. Amounts payable to members under employment contracts and unavoidable interest on members capital are charged to “members remuneration charged as an expense” in the relevant year.

1.5
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:

Leasehold improvements
over term of lease
Fixtures and fittings
25% or 33% straight line
Computers
3 year 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 profit and loss account.

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 17 -
1.6
Cash at bank and in hand

Cash at bank and in hand 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.

1.7
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.

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.

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 though 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.

Derecognition of financial liabilities

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

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 18 -
1.8
Provisions

Provisions are recognised when the limited liability partnership has a legal or constructive present obligation as a result of a past event, it is probable that the limited liability partnership will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.9
Retirement benefits and post retirement payments to members

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10
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.

1.11
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.

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.

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
Key sources of estimation uncertainty
Work In Progress

Work in progress is recognised in line with the LLP’s accounting policies disclosed in its financial statements. Management assess the work undertaken to date in order to establish when revenue should be recognised. Where there is uncertainly about the recoverability, the amount is restricted to reflect this.

Provisions

Included within provision is an amount in respect of dilapidations with regard to the current premises. The amount provided has been given by a 3rd party and adjusted for inflationary increases. Management assess this amount each year and adjust accordingly.

3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
10,573,716
9,856,555
United States of America
187,837
48,789
Rest of the World
7,502,212
10,329,538
Disbursements
207,669
54,866
18,471,434
20,289,748
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
18,478
-
Government grants
-
(34,348)
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
24,000
23,000
Depreciation of owned tangible fixed assets
146,132
117,802
Depreciation of tangible fixed assets held under finance leases
-
38,650
Operating lease charges
1,195,581
1,140,684

 

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 20 -
5
Auditor's remuneration
2022
2021
Fees payable to the LLP's auditor and associates:
£
£
For audit services
Audit of the financial statements of the LLP
24,000
23,000
6
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2022
2021
Number
Number
Fee earners and administrative
68
66

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
5,503,861
6,508,176
Pension costs
434,953
390,209
5,938,814
6,898,385
7
Members' remuneration
2022
2021
Number
Number
Average number of members during the year
21
20
2022
2021
£
£
Profit attributable to the member with the highest entitlement
791,367
1,107,766
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 21 -
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
52,534
103,758
9
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2021
350,000
881,449
192,194
1,423,643
Additions
211,482
9,267
55,848
276,597
Disposals
-
-
(64,392)
(64,392)
At 31 March 2022
561,482
890,716
183,650
1,635,848
Depreciation and impairment
At 1 April 2021
175,000
837,536
142,606
1,155,142
Depreciation charged in the year
73,451
25,206
47,475
146,132
Eliminated in respect of disposals
-
-
(64,392)
(64,392)
At 31 March 2022
248,451
862,742
125,689
1,236,882
Carrying amount
At 31 March 2022
313,031
27,974
57,961
398,966
At 31 March 2021
175,000
43,913
49,588
268,501
10
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
6,851,102
7,195,923
Other debtors
4,951
260
Prepayments and accrued income
716,648
565,067
7,572,701
7,761,250
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 22 -
11
Loans and overdrafts
2022
2021
£
£
Other loans
1,254,068
1,838,766
Payable within one year
1,254,068
1,838,766

The bank overdraft and loan is secured by a debenture over the LLP's assets.

 

12
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Other borrowings
11
1,254,068
1,838,766
Trade creditors
1,111,779
1,382,299
Other taxation and social security
504,186
489,137
Deferred income
14
407,000
-
Other creditors
200,000
-
Accruals and deferred income
198,417
1,007,677
3,675,450
4,717,879
13
Provisions for liabilities
2022
2021
£
£
Dilapidation provision
561,482
350,000
Movements on provisions:
Dilapidation provision
£
At 1 April 2021
350,000
Additional provisions in the year
211,482
At 31 March 2022
561,482
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 23 -
14
Deferred income
2022
2021
£
£
Other deferred income
407,000
-
15
Retirement benefit schemes
Defined contribution schemes

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

The charge to profit or loss in respect of defined contribution schemes was £434,953 (2021 - £390,209).

16
Loans and other debts due to members
2022
2021
£
£
Analysis of loans
Amounts falling due within one year
4,722,462
4,900,018

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

17
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, which fall due as follows:

2022
2021
£
£
Within one year
727,740
727,740
Between two and five years
2,547,090
2,910,960
In over five years
-
363,870
3,274,830
4,002,570
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 24 -
18
Cash generated from operations
2022
2021
£
£
Profit for the year
7,620,091
9,322,632
Adjustments for:
Finance costs recognised in profit or loss
52,534
103,758
Investment income recognised in profit or loss
(155)
(1,013)
Depreciation and impairment of tangible fixed assets
146,132
156,452
Increase in provisions
211,482
-
Movements in working capital:
Decrease in debtors
188,549
191,495
(Decrease)/increase in creditors
(864,731)
560,500
Increase in deferred income
407,000
-
Cash generated from operations
7,760,902
10,333,824
19
Analysis of changes in net funds
1 April 2021
Cash flows
31 March 2022
£
£
£
Cash at bank and in hand
2,376,446
(950,419)
1,426,027
Borrowings excluding overdrafts
(1,838,766)
584,698
(1,254,068)
Balances before members' debt
537,680
(365,721)
171,959
Loans and other debts due to members:
- Other amounts due to members
(4,900,018)
177,556
(4,722,462)
Balances including members' debt
(4,362,338)
(188,165)
(4,550,503)
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