Limited Liability Partnership registration number OC389496 (England and Wales)
CHRONICLE PARTNERS LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
CHRONICLE PARTNERS LLP
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
CHRONICLE PARTNERS LLP
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
33,158,674
33,566,085
Current assets
Debtors
4
3,051,704
1,686,378
Cash at bank and in hand
75,908
382,411
3,127,612
2,068,789
Creditors: amounts falling due within one year
5
(842,446)
(21,745,951)
Net current assets/(liabilities)
2,285,166
(19,677,162)
Total assets less current liabilities
35,443,840
13,888,923
Creditors: amounts falling due after more than one year
6
(21,818,685)
-
Net assets attributable to members
13,625,155
13,888,923
Represented by:
Loans and other debts due to members within one year
7
Amounts due in respect of profits
1,367,013
2,077,797
Other amounts
(1,348,468)
(2,022,322)
18,545
55,475
Members' other interests
7
Members' capital classified as equity
6,500,000
6,500,000
Revaluation reserve
7,106,610
7,333,448
13,625,155
13,888,923
Total members' interests
7
Amounts due from members
(1,587,230)
(1,403,943)
Loans and other debts due to members
18,545
55,475
Members' other interests
13,606,610
13,833,448
12,037,925
12,484,980

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

CHRONICLE PARTNERS 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 7 November 2023 and are signed on their behalf by:
07 November 2023
Supercity Limited
Designated member
Limited Liability Partnership Registration No. OC389496
CHRONICLE PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Limited liability partnership information

Chronicle Partners LLP is a limited liability partnership incorporated in England and Wales. The registered office is 25 Furnival Street, London, EC4A 1JT.

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 and are modified to include the revaluation of freehold properties. 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

Revenue is recognised when the significant risks and rewards of the goods or services provided have transferred to the buyer, the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the LLP.

Revenue from serviced apartments and other guest services is recognised when rooms are occupied and as services are provided.

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.

CHRONICLE PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -

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.

1.5
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.

Tangible fixed assets other than land and buildings are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Freehold buildings
Buildings are depreciated over 100 years
Plant and machinery
Straight line over 5 years
Computer equipment
Straight line over 3 years

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.

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.

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 and 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 and 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.

CHRONICLE PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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.

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 and 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 and 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.

CHRONICLE PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities

Basic financial liabilities, including trade creditors, bank loans and other creditors, 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.

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the limited liability partnership.

1.10
Retirement benefits and post retirement payments to members

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

1.11
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.

1.12

Allocation of profit and drawings

Members from time to time make drawings. The level and timing of these distributions is determined by management taking into account the LLP’s cash requirements with all sums to be credited and debited against the Member’s Current Account. If the amount to be debited is greater than the value of the Current Account, then the balance of the amount to be debited shall be deducted from such Member’s capital contribution from time to time and his Member’s Share reduced accordingly.

1.13

Taxation

No taxation is reflected in the accounts as tax is borne by the individual members in a personal capacity on their attributable profit share and not the Limited Liability Partnership.

2
Employees

The average number of persons employed by the partnership during the year was 17 (2022: 14)

CHRONICLE PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 April 2022
34,211,000
152,197
34,363,197
Additions
-
23,110
23,110
Revaluation
(163,000)
-
(163,000)
At 31 March 2023
34,048,000
175,307
34,223,307
Depreciation and impairment
At 1 April 2022
711,000
86,112
797,112
Depreciation charged in the year
237,000
30,521
267,521
At 31 March 2023
948,000
116,633
1,064,633
Carrying amount
At 31 March 2023
33,100,000
58,674
33,158,674
At 31 March 2022
33,500,000
66,085
33,566,085

The fair value of the freehold property has been arrived at on the basis of a valuation made by the members. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties at that time.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

Land and buildings
2023
2022
£
£
Cost
26,690,297
26,690,297
Accumulated depreciation
(749,788)
(576,626)
Carrying value
25,940,509
26,113,671
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
360
14,337
Amounts owed by members
1,587,230
1,403,943
Other debtors
1,452,465
255,215
Prepayments and accrued income
11,649
12,883
3,051,704
1,686,378
CHRONICLE PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loan
-
18,771,149
Trade creditors
4,589
3,215
Other taxation and social security
102,869
96,188
Other creditors
6,988
2,124,149
Accruals and deferred income
728,000
751,250
842,446
21,745,951

The bank loan is secured by a legal charge over the LLP's land and buildings. The bank loan of £18.77m was fully repaid in March 2023.

6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other loan
21,818,685
-

The other loan is secured by a fixed and floating charge over the Limited Liability Partnership's freehold property and all other assets.

CHRONICLE PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
7
Reconciliation of Members' Interests
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
£
£
£
£
£
£
£
Amounts due to members
55,475
Amounts due from members
(1,403,943)
Members' interests at 1 April 2022
6,500,000
7,333,448
-
13,833,448
(1,348,468)
(1,348,468)
12,484,980
Profit for the financial year available for discretionary division among members
-
-
487,296
487,296
-
-
487,296
Members' interests after profit for the year
6,500,000
7,333,448
487,296
14,320,744
(1,348,468)
(1,348,468)
12,972,276
Allocation of profit for the financial year
-
-
(487,296)
(487,296)
487,296
487,296
-
Deficit arising on revaluation of fixed assets
-
(163,000)
-
(163,000)
-
-
(163,000)
Other movements
-
(63,838)
-
(63,838)
(707,513)
(707,513)
(771,351)
Members' interests at 31 March 2023
6,500,000
7,106,610
-
13,606,610
(1,568,685)
(1,568,685)
12,037,925
Amounts due to members
18,545
Amounts due from members, included in debtors
(1,587,230)
(1,568,685)
CHRONICLE PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
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
Revaluation reserve
2023
2022
£
£
At beginning of year
7,333,448
5,386,286
Revaluation surplus/(deficit) arising in the year
(163,000)
2,011,000
Other movements
(63,838)
(63,838)
At end of year
7,106,610
7,333,448
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.

Senior Statutory Auditor:
Engin Zekia FCA
Statutory Auditor:
Gerald Edelman LLP
11
Financial commitments, guarantees and contingent liabilities

The Limited Liability Partnership has provided a security over its assets for a loan from a related entity amounting to £19.625m.

12
Related party transactions

Included in other loan is a balance of £21.819m (2022: £Nil) due to Bothwall Finance Ltd, a company in which R Walters is a director. Interest of £118,976 (2022: £Nil) was charged in the year.

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