Company No:
Contents
Note | 2023 | 2022 | ||
£ | £ | |||
Fixed assets | ||||
Tangible assets | 3 |
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13,713 | 46,347 | |||
Current assets | ||||
Debtors | 4 |
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Cash at bank and in hand |
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1,419,634 | 1,692,867 | |||
Creditors: amounts falling due within one year | 5 | (
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Net current assets | 1,154,908 | 1,432,638 | ||
Total assets less current liabilities | 1,168,621 | 1,478,985 | ||
Creditors: amounts falling due after more than one year | 6 |
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Provision for liabilities | 7 | (
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Net assets attributable to members |
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Represented by | ||||
Loans and other debts due to members within one year | ||||
Members' capital classified as a liability | 445,000 | 370,000 | ||
Other amounts | 648,621 | 1,039,631 | ||
1,093,621 | 1,409,631 | |||
Members' other interests | ||||
0 | 0 | |||
1,093,621 | 1,409,631 | |||
Total members' interests | ||||
Loans and other debts due to members | 9 | 1,093,621 | 1,409,631 | |
1,093,621 | 1,409,631 |
Members' responsibilities:
The financial statements of Freedman + Hilmi LLP (registered number:
D Freedman
Designated member |
M D Hilmi
Designated member |
DEBT Loans and other debts due to members less any amounts due from members in debtors |
Total members' interests | |||
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Members' capital (classified as debt) | Other amounts | Total | Total | |
£ | £ | £ | £ | |
Amounts due to members | 405,000 | 1,520,046 | 1,925,046 | |
Balance at 01 April 2021 | 405,000 | 1,520,046 | 1,925,046 | 1,925,046 |
Members' remuneration charged as an expense, including employment and retirement benefit costs | 0 | 3,025,255 | 3,025,255 | 3,025,255 |
Members' interest after result for the financial year | 405,000 | 4,545,301 | 4,950,301 | 4,950,301 |
Repayment of capital | (35,000) | 0 | (35,000) | (35,000) |
Drawings | 0 | (3,604,251) | (3,604,251) | (3,604,251) |
Amounts introduced by members | 0 | 101,896 | 101,896 | 101,896 |
Transfer to creditors on resignation | 0 | (3,315) | (3,315) | (3,315) |
Amounts due to members | 370,000 | 1,039,631 | 1,409,631 | |
Balance at 31 March 2022 | 370,000 | 1,039,631 | 1,409,631 | 1,409,631 |
Members' remuneration charged as an expense, including employment and retirement benefit costs | 0 | 2,218,472 | 2,218,472 | 2,218,472 |
Members' interest after result for the financial year | 370,000 | 3,258,103 | 3,628,103 | 3,628,103 |
Introduced by members | 75,000 | 0 | 75,000 | 75,000 |
Drawings | 0 | (2,614,867) | (2,614,867) | (2,614,867) |
Amounts introduced by members | 0 | 5,385 | 5,385 | 5,385 |
Amounts due to members | 445,000 | 648,621 | 1,093,621 | |
Balance at 31 March 2023 | 445,000 | 648,621 | 1,093,621 | 1,093,621 |
There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Freedman + Hilmi LLP is a limited liability partnership, incorporated in the United Kingdom under the Limited Liability Partnerships Act 2000 and is registered in England and Wales. The address of the LLP's registered office is 9th Floor, 101 Wigmore Street, London, W1U 1QU, England, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ ["FRS 102"] issued by the Financial Reporting Council and the requirements of the Limited Liability Partnerships Act 2000 as applicable to companies subject to the small companies regime and the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships issued in December 2021 (SORP 2022).
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
Services provided to clients during the year, which at the Statement of Financial Position date have not been billed to clients, have been recognised as turnover in accordance with Section 23 of FRS102: Revenue. Turnover recognised in this manner is based on an assessment of the fair value of services provided at the Statement of Financial Position date. Unbilled revenue is included in debtors.
Defined contribution schemes
The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid the LLP has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the LLP in independently administered funds.
A division of profits is the mechanism by which the profits of an LLP become a debt due to members. A division may be automatic or discretionary, may relate to some or all of the profits for a financial period and may take place during or after the end of a financial period.
An automatic division of profits is one where the LLP does not have an unconditional right to avoid making a division of an amount of profits based on the members' agreement in force at the time, whereas a discretionary division of profits requires a decision to be made by the LLP, which it has the unconditional right to avoid making.
The LLP divides profits automatically. Automatic divisions of profits are recognised as 'Members' remuneration charged as an expense' in the Statement of Comprehensive Income.
Depreciation is provided on the following basis:
Vehicles |
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Fixtures and fittings |
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Computer equipment |
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Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Comprehensive Income over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
The LLP only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and amounts owed to members.
Financial assets
Basic financial assets, including trade and other debtors and accrued income are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade and other creditors, accruals and amounts owed to members 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
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.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the LLP becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
2023 | 2022 | ||
Number | Number | ||
Average monthly number of persons (including members with contracts of employment) employed during the year |
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Vehicles | Fixtures and fittings | Computer equipment | Total | ||||
£ | £ | £ | £ | ||||
Cost | |||||||
At 01 April 2022 |
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Additions |
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Disposals | (
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At 31 March 2023 |
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Accumulated depreciation | |||||||
At 01 April 2022 |
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Charge for the financial year |
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Disposals | (
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At 31 March 2023 |
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Net book value | |||||||
At 31 March 2023 |
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At 31 March 2022 |
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2023 | 2022 | ||
£ | £ | ||
Trade debtors |
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Other debtors |
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2023 | 2022 | ||
£ | £ | ||
Trade creditors |
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Other taxation and social security |
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Other creditors |
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2023 | 2022 | ||
£ | £ | ||
Other creditors |
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2023 | 2022 | ||
£ | £ | ||
Other provisions |
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Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2023 | 2022 | ||
£ | £ | ||
within one year |
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between one and five years |
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Pensions
The LLP operates a defined contribution pension scheme for the members and employees. The assets of the scheme are held separately from those of the entity in an independently administered fund. The contributions payable to the fund at the reporting date are:
2023 | 2022 | ||
£ | £ | ||
Unpaid contributions due to the fund (inc. in other creditors) |
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2023 | 2022 | ||
£ | £ | ||
Members capital treated as debt | 445,000 | 370,000 | |
Other amounts due to members | 648,621 | 1,039,631 | |
1,093,621 | 1,409,631 |
Loans and other debts due to members may be further analysed as follows:
2023 | 2022 | ||
£ | £ | ||
Falling due within one year | 1,093,621 | 1,409,631 |
There is an automatic division of the profits to members of the LLP and these amounts have been charged to the Statement of Comprehensive Income as an expense.
Loans and other debts due to members rank equally with debts due to ordinary creditors.
The amount of capital each member is required to subscribe is determined, from time to time, by the designated members of the LLP and under the Members' Agreement, capital is repayable on retirement. Liabilities to former members are shown within other creditors.
The designated members of the LLP are considered to be key management responsible for planning, directing and controlling the activities of the LLP. Transactions with these individuals and balances at the year-end were as follows:
2023 | 2022 | ||
£ | £ | ||
Profits allocated to designated members | 1,516,198 | 2,301,911 | |
Amounts withdrawn by designated members | 1,914,884 | 2,861,032 | |
Amounts introduced by designated members | 5,385 | 101,896 | |
Amounts due to designated members | 893,508 | 1,286,810 |