The members of the limited liability partnership have elected not to include a copy of the profit and loss account within the financial statements.
TLM Purfleet LLP is a limited liability partnership incorporated in England and Wales. The registered office is 76 New Bond Street, London, England, W1S 1RX.
The limited liability partnership's principal activities are disclosed in the Members' Report.
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, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
As at the date of signing these accounts, the partnership has not been impacted by the prolonged effects of the COVID-19 pandemic nor the increase of interest rates. This is because the loan rate is fixed. The current and forecasted demand for light industrial unit remain high, and the Members do not expect to be significantly impacted in the near future, therefore the Members remains confident that the Partnership will carry on its business in the next 12 months.
Turnover represents the amounts receivable for property rental services. Turnover is recognised in the period to which the properties are rented, and is shown net of VAT.
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.
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. The surplus or deficit on revaluation is recognised in the profit or loss account.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are expensed over the term of the loan.
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, which include debtors and cash and bank balances, are 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, 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.
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.
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.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are 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.
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.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The investment property is shown in the accounts at its fair value. This value is determined to be the value that could be achieved if the property was sold at the period end. The valuation has been determined by the members based on their knowledge of the industry and all the information available to them at the time. The members may obtain a valuation from an expert to assist them when determining the value.
The LLP had no employees during the period.
Investment property comprises freehold land and building. The fair value of the investment property has been arrived at on the basis of a valuation carried out by an independent expert. The valuation was made on an open market value basis.
Bank loans and overdrafts shown here and within creditors falling due after more than one year, represent a loan of £22,366,687 (2022: £22,805,083), payable to the bank, less finance costs incurred upfront which are being amortised over the length of the loan. At the year end, £305,981 (2022: £389,972) of these finance costs have yet to be recognised in the profit and loss account. The loan is secured by a fixed and floating charge over all the assets of the LLP, including the Investment Property.
Bank loans and overdrafts shown here and within creditors falling due after more than one year, represent a loan of £22,366,687 (2022: £22,805,083), payable to the bank, less finance costs incurred upfront which are being amortised over the length of the loan. At the period end, £305,981 (2022: £389,972) of these finance costs remain. This loan is a joint facility with TLM Gemini LLP, TLM Romford Ltd and TLM Feltham LLP; related parties by virtue of common ownership. The LLP is jointly and severally liable for the loan which is secured by a fixed and floating charge over all the assets of the LLP, including the Investment Property. As at 31 March 2023, the total balance outstanding on the joint loan was £33,633,307 (2022: £31,664,805).
Loans received from members do not accrue any interest. In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.
Amounts owed to members can be repaid at the discretion of the members, where distributable cash exists and any Priority loans have first been repaid.
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 immediate controlling party is TLM Master LLP by virtue of it holding more than 50% of the voting rights to TLM Purfleet LLP.
It is considered that there is no ultimate controlling party, as no individual has controlling voting rights over the LLP.