Limited Liability Partnership registration number OC345374 (England and Wales)
BHM THREE LLP
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
BHM THREE LLP
CONTENTS
Page
Balance sheet
1 - 2
Reconciliation of members' interests
3 - 4
Notes to the financial statements
5 - 9
BHM THREE LLP
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investment property
4
10,520,000
10,500,000
Current assets
Debtors
5
13,333,062
4,476
Cash at bank and in hand
53,799
75,902
13,386,861
80,378
Creditors: amounts falling due within one year
6
(71,916)
(4,777,430)
Net current assets/(liabilities)
13,314,945
(4,697,052)
Total assets less current liabilities
23,834,945
5,802,948
Creditors: amounts falling due after more than one year
7
(16,879,000)
-
Net assets attributable to members
6,955,945
5,802,948
Represented by:
Loans and other debts due to members within one year
Other amounts
1,220,749
67,752
Members' other interests
Members' capital classified as equity
902,166
902,166
Revaluation reserve
4,833,030
4,833,030
6,955,945
5,802,948

The members of the limited liability partnership have elected not to include a copy of the profit and loss account within the financial statements.

For the financial year ended 31 March 2023 the limited liability partnership was entitled to exemption from audit under section 477 of the Companies Act 2006 (as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) relating to small limited liability partnerships.

The members acknowledge their responsibilities for complying with the requirements of the Act (as applied to limited liability partnerships) with respect to accounting records and the preparation of accounts.

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.

BHM THREE LLP
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 2 -
The financial statements were approved by the members and authorised for issue on 2 October 2023 and are signed on their behalf by:
02 October 2023
Mr M A Posner
Designated member
Limited Liability Partnership registration number OC345374 (England and Wales)
BHM THREE LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
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
Revaluation
reserve
Other reserves
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
£
Members' interests at 1 April 2022
902,166
4,833,030
-
5,735,196
67,752
67,752
5,802,948
Profit for the financial year available for discretionary division among members
-
-
288,373
288,373
-
-
288,373
Members' interests after profit for the year
902,166
4,833,030
288,373
6,023,569
67,752
67,752
6,091,321
Allocation of profit for the financial year
-
-
(288,373)
(288,373)
-
-
(288,373)
Amounts introduced by members
-
-
-
-
1,176,324
1,176,324
1,176,324
Drawings
-
-
-
-
(311,700)
(311,700)
(311,700)
Members' remuneration charged as an expense
-
-
-
-
288,373
288,373
288,373
Members' interests at 31 March 2023
902,166
4,833,030
-
5,735,196
1,220,749
1,220,749
6,955,945
BHM THREE LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
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
Revaluation
reserve
Other reserves
Total
Other amounts
Total
Total
2022
£
£
£
£
£
£
£
Members' interests at 1 April 2021
902,166
2,583,030
-
3,485,196
123,363
123,363
3,608,559
Profit for the financial year available for discretionary division among members
-
-
2,588,989
2,588,989
-
-
2,588,989
Members' interests after profit for the year
902,166
2,583,030
2,588,989
6,074,185
123,363
123,363
6,197,548
Allocation of profit for the financial year
-
-
(2,588,989)
(2,588,989)
-
-
(2,588,989)
Amounts introduced by members
-
-
-
-
1,400
1,400
1,400
Drawings
-
-
-
-
(396,000)
(396,000)
(396,000)
Members' remuneration charged as an expense
-
2,250,000
-
2,250,000
338,989
338,989
2,588,989
Members' interests at 31 March 2022
902,166
4,833,030
-
5,735,196
67,752
67,752
5,802,948
BHM THREE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
1
Accounting policies
Limited liability partnership information

BHM Three LLP is a limited liability partnership incorporated in England and Wales. The registered office is 4th Floor 115 Baker Street, London, W1U 6RT.

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 2021, 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, except for investment properties which are held at fair value.

1.2
Turnover

Revenue comprises rental income from tenants of the LLP’s investment property net of value added tax. Rental income is recognised on an accruals basis in the period in which it is earned, in accordance with the terms of the lease.

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.

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.

1.4
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

BHM THREE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.5
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.

1.6
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.

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.

BHM THREE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
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 payments 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.

Derecognition of financial liabilities

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

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 LLP has no employees.

BHM THREE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
4
Investment property
2023
£
Fair value
At 1 April 2022
10,500,000
Additions through external acquisition
20,000
At 31 March 2023
10,520,000

Investment property comprises of the property known as Benbow House, 24 New Globe Walk, London, SE1 9DS. A valuation of the property was assessed at £10,520,000 by reference to valuation yields and similar market rents.

 

5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,974
4,199
Amounts owed by group undertakings
13,311,663
-
Other debtors
16,148
-
Prepayments and accrued income
277
277
13,333,062
4,476

The other debtors includes amounts due from connected LLPs as detailed in the related party transactions note.

 

6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,707
614
Other taxation and social security
18,851
19,428
Other creditors
20,000
4,700,273
Accruals and deferred income
30,358
57,115
71,916
4,777,430

The other creditors include amounts due to connected LLPs as detailed in the related party transactions note.

BHM THREE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
16,879,000
-

The bank loan is secured by way of fixed charge over the assets of the following LLP's: BHM Two LLP, BHM Three LLP, BHM Five LLP, BHM Seven LLP, BHM Nine LLP, BHM Ten LLP, BHM Thirteen LLP, BHM Fourteen LLP and BHM Seventeen LLP. The charge extends to the assets of the LLP's, both present and future.

 

8
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.

9
Related party transactions

During the year the LLP entered into the following transactions with related parties:

 

At the balance sheet date the following amounts were owed by the LLP to the LLPs with the same designated members :

 

BHM One LLP        £Nil        2022 : £3,938,953

BHM Six LLP            £Nil        2022 : £741,320

 

At the balance sheet date the following amounts were owed to the LLP by the LLPs with the common members :

 

BHM Two LLP            £1,040,782    2022 : £Nil

BHM Four LLP        £273        2022 : £Nil

BHM Five LLP        £2,344,719    2022 : £Nil

BHM Seven LLP        £1,394,595    2022 : £Nil

BHM Eight LLP        £273        2022 : £NIl

BHM Nine LLP        £2,116,770    2022 : £Nil

BHM Ten LLP            £1,455,534    2022 : £Nil

BHM Eleven LLP        £273        2022 : £Nil

BHM Twelve LLP        £248        2022 : £Nil

BHM Thirteen LLP        £1,387,318    2022 : £Nil

BHM Fourteen LLP        £2,824,369    2022 : £Nil

BHM Fifteen LLP        £273        2022 : £Nil

BHM Sixteen LLP        £273        2022 : £Nil

BHM Seventeen LLP        £749,733    2022 : £Nil

BHM Eighteen LLP        £273        2022 : £Nil

 

Additionally, as at the balance sheet date, the following amount was owed by the LLP to a company under common control:

 

BHM Three Limited        £12,106        2022 : £Nil

 

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