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REGISTERED NUMBER: OC320005 (England and Wales)
















Report of the Members and

Unaudited Financial Statements for the Year Ended 31 May 2023

for

Essential Property (UK) LLP

Essential Property (UK) LLP (Registered number: OC320005)






Contents of the Financial Statements
for the Year Ended 31 May 2023




Page

General Information 1

Report of the Members 2

Income Statement 3

Abridged Balance Sheet 4

Reconciliation of Members' Interests 6

Notes to the Financial Statements 8


Essential Property (UK) LLP

General Information
for the Year Ended 31 May 2023







DESIGNATED MEMBERS: Mr Jason Kitchener
Mrs Susan Kitchener





REGISTERED OFFICE: 1 Butterfield Court
Hitchin Street
Baldock
SG7 6XS





REGISTERED NUMBER: OC320005 (England and Wales)





ACCOUNTANTS: Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

Essential Property (UK) LLP (Registered number: OC320005)

Report of the Members
for the Year Ended 31 May 2023

The members present their report with the financial statements of the LLP for the year ended 31 May 2023.

PRINCIPAL ACTIVITY
The principal activity of the LLP in the year under review was that of property rental.

DESIGNATED MEMBERS
The designated members during the year under review were:

Mr Jason Kitchener
Mrs Susan Kitchener

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS
The profit for the year before members' remuneration and profit shares was £7,981 (2022 - £221,608 profit).

MEMBERS' INTERESTS
Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such drawings is agreed between the members at the beginning of the financial year, taking into account the anticipated cash needs of the LLP. Any variation will be agreed by the members.

New members are required to subscribe a minimum level of capital and in subsequent years members may be invited to subscribe further capital, the amounts of which are determined by the performance and seniority of those members. On retirement, capital is repaid to the member.

ON BEHALF OF THE MEMBERS:





Mr Jason Kitchener - Designated member


18 October 2023

Essential Property (UK) LLP (Registered number: OC320005)

Income Statement
for the Year Ended 31 May 2023

31.5.23 31.5.22
Notes £    £   

TURNOVER 52,106 72,922

Cost of sales 17,563 33,927
GROSS PROFIT 34,543 38,995

Administrative expenses 14,562 (7,613 )
OPERATING PROFIT 4 19,981 46,608

Gain/loss on revaluation of investment
property

(12,000

)

175,000
PROFIT FOR THE FINANCIAL YEAR
BEFORE MEMBERS' REMUNERATION
AND PROFIT SHARES


7,981


221,608

PROFIT FOR THE FINANCIAL YEAR
BEFORE MEMBERS' REMUNERATION
AND PROFIT SHARES


7,981


221,608

Members' remuneration charged as an
expense

5

(19,981

)

(46,608

)
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR AVAILABLE FOR
DISCRETIONARY DIVISION AMONG
MEMBERS



(12,000



)



175,000

Essential Property (UK) LLP (Registered number: OC320005)

Abridged Balance Sheet
31 May 2023

31.5.23 31.5.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 6 5,119 5,759
Investment property 7 700,000 980,000
705,119 985,759

CURRENT ASSETS
Debtors 177,050 1,498
Cash at bank 9,290 24,965
186,340 26,463
CREDITORS
Amounts falling due within one year 346,223 345,418
NET CURRENT LIABILITIES (159,883 ) (318,955 )
TOTAL ASSETS LESS CURRENT LIABILITIES
and
NET ASSETS ATTRIBUTABLE TO
MEMBERS

545,236

666,804

LOANS AND OTHER DEBTS DUE TO
MEMBERS

8

76,232

107,800

MEMBERS' OTHER INTERESTS
Capital accounts 4 4
Other reserves 469,000 559,000
545,236 666,804

TOTAL MEMBERS' INTERESTS
Loans and other debts due to members 8 76,232 107,800
Members' other interests 469,004 559,004
Amounts due from members (175,451 ) -
369,785 666,804

The LLP is entitled to exemption from audit under Section 477 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 for the year ended 31 May 2023.

The members acknowledge their responsibilities for:
(a)ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the LLP as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to financial statements, so far as applicable to the LLP.

Essential Property (UK) LLP (Registered number: OC320005)

Abridged Balance Sheet - continued
31 May 2023


The financial statements have been prepared in accordance with the provisions applicable to LLPs subject to the small LLPs regime.

All the members have consented to the preparation of an abridged Balance Sheet for the year ended 31 May 2023 in accordance with Section 444(2A) of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

The financial statements were approved by the members of the LLP and authorised for issue on 18 October 2023 and were signed by:





Mr Jason Kitchener - Designated member

Essential Property (UK) LLP (Registered number: OC320005)

Reconciliation of Members' Interests
for the Year Ended 31 May 2023


EQUITY
Members' other interests
Members'
capital
(classified
as Other
equity) reserves Total
£    £    £   
Balance at 1 June 2022 4 559,000 559,004
Members' remuneration charged as an expense,
including employment and retirement benefit costs

-

-

-
Loss for the financial year available for
discretionary division among members

-

(12,000

)

(12,000

)
Members' interests after loss for the year 4 547,000 547,004
Revaluation - (78,000 ) (78,000 )
Introduced by members - - -
Drawings on account and distributions of profit - - -
Balance at 31 May 2023 4 469,000 469,004

DEBT TOTAL
Loans and other debts due to MEMBERS'
members less any amounts due INTERESTS
from members in debtors
Other
amounts Total
£    £   
Amount due to members 107,800
Amount due from members -
Balance at 1 June 2022 107,800 666,804
Members' remuneration charged as an expense,
including employment and retirement benefit costs

19,981

19,981

Loss for the financial year available for
discretionary division among members

-

(12,000

)

Members' interests after loss for the year 127,781 674,785
Revaluation - (78,000 )
Introduced by members 78,000 78,000
Drawings on account and distributions of profit (305,000 ) (305,000 )
Amount due to members 76,232
Amount due from members (175,451 )
Balance at 31 May 2023 (99,219 ) 369,785

Essential Property (UK) LLP (Registered number: OC320005)

Reconciliation of Members' Interests
for the Year Ended 31 May 2023

EQUITY
Members' other interests
Members'
capital
(classified
as Other
equity) reserves Total
£    £    £   
Balance at 1 June 2021 4 384,000 384,004
Members' remuneration charged as an expense,
including employment and retirement benefit costs

-

-

-
Profit for the financial year available for
discretionary division among members

-

175,000

175,000
Members' interests after profit for the year 4 559,000 559,004
Drawings on account and distributions of profit - - -
Balance at 31 May 2022 4 559,000 559,004

DEBT TOTAL
Loans and other debts due to MEMBERS'
members less any amounts due INTERESTS
from members in debtors
Other
amounts Total
£    £   
Amount due to members 226,192
Amount due from members -
Balance at 1 June 2021 226,192 610,196
Members' remuneration charged as an expense,
including employment and retirement benefit costs

46,608

46,608

Profit for the financial year available for
discretionary division among members

-

175,000

Members' interests after profit for the year 272,800 831,804
Drawings on account and distributions of profit (165,000 ) (165,000 )
Amount due to members 107,800
Amount due from members -
Balance at 31 May 2022 107,800 666,804

Essential Property (UK) LLP (Registered number: OC320005)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

1. STATUTORY INFORMATION

Essential Property (UK) LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The functional currency of the financial statements is pound sterling.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the reported amounts of assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The revaluation of investment property is on the basis of a valuation carried out by the directors of the company. The valuation was made on an open market basis by reference to professional advice.

Turnover
Turnover comprises the fair value of the rents receivable. Turnover is shown net of returns, rebates and discount.

Turnover is recognised over the period which the rental period relates.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to freehold property 10% straight line depreciation

Improvements to freehold property are depreciated from the point which they are bought into use.

Investment property
Investment property is shown at the most recent valuation. Any aggregate surplus or deficit arising from changes in the fair value is recognised in the profit or loss account.

Essential Property (UK) LLP (Registered number: OC320005)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' 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.

Basic financial assets
Basic financial assets, which include debtors, 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.

Basic financial liabilities
Basic financial liabilities, including creditors and loans 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.

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.

Members' remuneration and division of profits
The SORP recognises that the basis of calculating profits for allocation may differ from the profits reflected through the financial statements prepared in compliance with recommended practice, given the established need to seek to focus profit allocation on ensuring equity between different generations and populations of members.

Consolidation of the results of certain subsidiary undertakings, the provision for annuities to current and former members, pension scheme charges, the spreading of acquisition integration costs and the treatment of long leasehold interests are all items which may generate differences between profits calculated for the purpose of allocation and those reported within the financial statements. Where such differences arise, they have been included within other amounts in the balance sheet.

Members' fixed shares of profits (excluding discretionary fixed share bonuses) and interest earned on members' balances are automatically allocated and, are treated as members' remuneration charged as an expense to the profit and loss account in arriving at profit available for discretionary division among members.
The remainder of profit shares, which have not been allocated until after the balance sheet date are treated in these financial statements as unallocated at the balance sheet date and included within other reserves.

Taxation
The taxation payable on the partnership's profits is the personal liability of the members, although payment of such liabilities is administered by the partnership on behalf of its members. Consequently, neither partnership taxation nor related deferred taxation is accounted for in these financial statements. Sums set aside in respect of members' tax obligations are included in the balance sheet within loans and other debts due to members, or are set against amounts due from members as appropriate.

Members' interests
Amounts due to members after more than one year comprise provisions for annuities to current members and certain loans from members which are not repayable within twelve months of the balance sheet date.

3. EMPLOYEE INFORMATION

The average number of employees during the year was 2 (2022 - 2 ) .

Essential Property (UK) LLP (Registered number: OC320005)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

4. OPERATING PROFIT

The operating profit is stated after charging:

31.5.23 31.5.22
£    £   
Depreciation - owned assets 640 640

5. INFORMATION IN RELATION TO MEMBERS

No members' remuneration has been charged as an expense in 2023 (2022: Nil).

6. TANGIBLE FIXED ASSETS
Totals
£   
COST
At 1 June 2022
and 31 May 2023 6,399
DEPRECIATION
At 1 June 2022 640
Charge for year 640
At 31 May 2023 1,280
NET BOOK VALUE
At 31 May 2023 5,119
At 31 May 2022 5,759

7. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 June 2022 980,000
Disposals (268,000 )
Revaluations (12,000 )
At 31 May 2023 700,000
NET BOOK VALUE
At 31 May 2023 700,000
At 31 May 2022 980,000

Essential Property (UK) LLP (Registered number: OC320005)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

7. INVESTMENT PROPERTY - continued

Fair value at 31 May 2023 is represented by:

Valuation pre 2018 60,000
Valuation in 2018 29,000
Valuation in 2020 355,000
Valuation in 2022 175,000
Valuation in 2023 (280,000 )
Cost 361,000
700,000


The investment properties are revalued by the director on an annual basis based on professional advice received.

If they had not been revalued they would have been included at the total cost of £361,000.

8. LOANS AND OTHER DEBTS DUE TO MEMBERS
31.5.23 31.5.22
£    £   
Amounts owed to members in respect of profits 76,232 107,800

Falling due within one year 76,232 107,800

If present, repayment of Members debt will take preference over equity due to Members but not before all other creditors have been settled.