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Registered number: OC403105










XP INVESTMENTS UK LLP










FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


 
XP INVESTMENTS UK LLP
 


INFORMATION



Designated Members
XP Holding UK Ltd
XP Inc.

LLP registered number
OC403105

Registered office
Birchin Court
5th Floor
19-25 Birchin Lane
London
United Kingdom
EC3V 9DU

Independent auditors
ZEDRA Corporate Reporting Services (UK) Limited



 
XP INVESTMENTS UK LLP
 


CONTENTS



Page
Members' report
 
1 - 2
Independent auditors' report
 
3 - 6
Statement of comprehensive income
 
7
Balance sheet
 
8 - 9
Reconciliation of members' interests
 
10
Notes to the financial statements
 
11 - 19



 
XP INVESTMENTS UK LLP
 

  
MEMBERS' REPORT INCORPORATING THE ENERGY AND CARBON REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The members present their annual report together with the audited financial statements of XP Investments UK LLP (the "LLP") for the year ended 31 December 2023
 

Principal activities
 
 
The principal activities of the LLP is to provide order transmission services acting as an inter-dealer broker. 
 
 
Designated Members
 
 
XP Holding UK Ltd was a designated member of the LLP throughout the year. 
XP Investimentos S.A resigned as a designated member on 2 November 2023 and XP Inc., was appointed on the same date. 
 

 
Members' capital and interests
 
 
Each member's subscription to the capital of the LLP is determined by their share of the profit and is repayable following retirement from the LLP, as long as an equal capital amount is contributed by a new or existing member.
 
 
Details of changes in members' capital in the ended 31 December 2023 are set out in the Reconciliation of members' interests (page 10).
 
 
Profits are allocated and divided between members after finalisation of the financial statements. 
 

Energy and carbon report
 
 
The LLP has not disclosed information in respect of greenhouse gas emissions, energy consumption and energy efficiency action as its energy consumption in the United Kingdom for the year is 40,000kWh or lower.


Return on assets
 
 
For the year ended 31 December 2023, the return on assets for the LLP was a gain of 43% (2022: 65%).
 
 
Members' responsibilities statement
 
 
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
 
 
Company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and of the profit or loss of the LLP for that period.

In preparing these financial statements, the members are required to:
 
select suitable accounting policies and then apply them consistently;
 
Page 1


 
XP INVESTMENTS UK LLP
 

 
MEMBERS' REPORT INCORPORATING THE ENERGY AND CARBON REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
 
 
make judgements and accounting estimates that are reasonable and prudent;
 
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
 
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008)They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
 
Disclosure of information to auditors
 
 
Each of the persons who are members at the time when this Members' report is approved has confirmed that:

so far as that member is aware, there is no relevant audit information of which the LLP's auditors are unaware, and

that member has taken all the steps that ought to have been taken as a member in order to be aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.
 

This report was approved by the members and signed on their behalf by: 



F Almeida
On behalf of XP Holding UK Ltd
Designated member

Date: 22 April 2024
Page 2


 
XP INVESTMENTS UK LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XP INVESTMENTS UK LLP

Opinion
 

We have audited the financial statements of XP Investments UK LLP (the 'LLP') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Reconciliation of members' interests and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the LLP's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006, as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern
 

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the LLP's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.


Other information
 

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The members are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required
Page 3


 
XP INVESTMENTS UK LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XP INVESTMENTS UK LLP (CONTINUED)

to report that fact.


We have nothing to report in this regard.


Matters on which we are required to report by exception
 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006, as applied to limited liability partnerships, requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.


Responsibilities of members
 

As explained more fully in the Members' responsibilities statement set out on page 1, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the members are responsible for assessing the LLP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
 
the responsible individual ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the LLP through discussions with members and other management, and from our commercial knowledge and experience;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the LLP, including the Companies Act 2006, the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" and FCA regulations;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
 
Page 4


 
XP INVESTMENTS UK LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XP INVESTMENTS UK LLP (CONTINUED)

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the LLP’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance; 
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, the LLP’s legal advisors and relevant regulators.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 5


 
XP INVESTMENTS UK LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF XP INVESTMENTS UK LLP (CONTINUED)

Use of our report
 

This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed.



Dominic King FCA (Senior statutory auditor)
for and on behalf of
ZEDRA Corporate Reporting Services (UK) Limited
Chartered Accountants and Statutory Auditors
Birchin Court
5th Floor
19-25 Birchin Lane
London
United Kingdom
EC3V 9DU


23 April 2024
Page 6


 
XP INVESTMENTS UK LLP
 

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,216,019
7,630,349

Cost of sales
  
(1,791,670)
(692,959)

Gross profit
  
 
9,424,349
 
6,937,390

Administrative expenses
  
(3,261,742)
(1,938,629)

Operating profit
 5 
 
6,162,607
 
4,998,761

Interest receivable and similar income
  
557
5

Profit for the year before members' remuneration and profit shares available for discretionary division among members
  
 
6,163,164
 
4,998,766

There was no other comprehensive income for 2023 (2022£NIL).

The notes on pages 11 to 19 form part of these financial statements.

Page 7


 
XP INVESTMENTS UK LLP
REGISTERED NUMBER:OC403105


BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 7 
4,222
-

  
4,222
-

Current assets
  

Debtors: amounts falling due after more than one year
 8 
1,005,032
911,465

Debtors: amounts falling due within one year
 8 
1,942,434
1,274,370

Bank and cash balances
  
11,370,612
5,531,512

  
14,318,078
7,717,347

Creditors: Amounts Falling Due Within One Year
 9 
(1,099,414)
(668,619)

Net current assets
  
 
 
13,218,664
 
 
7,048,728

Total assets less current liabilities
  
13,222,886
7,048,728

  

Net assets
  
13,222,886
7,048,728

Page 8


 
XP INVESTMENTS UK LLP
REGISTERED NUMBER:OC403105

    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Represented by:
  

Loans and other debts due to members within one year
  

Other amounts
 11 
(1,978,190)
(8,141,354)

  
(1,978,190)
(8,141,354)

Members' other interests
  

Members' capital classified as equity
  
15,150,000
15,150,000

Other reserves classified as equity
  
51,076
40,082

  
 
15,201,076
 
15,190,082

  
13,222,886
7,048,728


Total members' interests
  

Loans and other debts due to members
 11 
(1,978,190)
(8,141,354)

Members' other interests
  
15,201,076
15,190,082

  
13,222,886
7,048,728


The financial statements were approved and authorised for issue by the members and were signed on their behalf by:


F Almeida
On behalf of XP Holding UK Ltd
Designated member

Date: 22 April 2024

The notes on pages 11 to 19 form part of these financial statements.

Page 9


 
XP INVESTMENTS UK LLP


RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2023







EQUITY
Members' other interests
DEBT
Loans and other debts due to members less any amounts due from members in debtors
Total members' interests
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total

£
£
£
£
£
£

Amounts due to members 
(13,140,120)
(13,140,120)


Balance at 1 January 2022 
15,150,000
6,516
15,156,516
(13,140,121)
(13,140,121)
2,016,395

Profit for the year available for discretionary division among members
 
-
4,998,766
4,998,766
-
-
4,998,766

Members' interests after profit for the year
15,150,000
5,005,282
20,155,282
(13,140,121)
(13,140,121)
7,015,161

Other division of profits
-
(4,998,767)
(4,998,767)
4,998,767
4,998,767
-

Vesting expense of restricted stock units
-
33,566
33,566
-
-
33,566

Amounts due to members
(8,141,354)
(8,141,354)

Balance at 31 December 2022
15,150,000
40,082
15,190,082
(8,141,354)
(8,141,354)
7,048,728

Profit for the year available for discretionary division among members
 
-
6,163,164
6,163,164
-
-
6,163,164

Members' interests after profit for the year
15,150,000
6,203,246
21,353,246
(8,141,354)
(8,141,354)
13,211,892

Other division of profits
-
(6,163,164)
(6,163,164)
6,163,164
6,163,164
-

Vesting of restricted stock units
-
10,994
10,994
-
-
10,994

Amounts due to members
(1,978,190)
(1,978,190)

Balance at 31 December 2023 
15,150,000
51,076
15,201,076
(1,978,190)
(1,978,190)
13,222,886

Members' interests can be reduced subject to the specifications set out in clause 12 to the membership agreement.

Page 10 


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

XP Investments UK LLP is a limited liability partnership domiciled and incorporated in England and Wales. The registered office is Birchin Court, 5th Floor, 19-25 Birchin Lane, London, United Kingdom, EC3V 9DU.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".

The following principal accounting policies have been applied:

 
2.2

Financial reporting standard 102 - reduced disclosure exemptions

The LLP has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of XP Inc. as at 31 December 2023 and these financial statements may be obtained from www.xpinc.com.

 
2.3

Going concern

In preparing these financial statements, the members have considered the cashflow projections which indicate that the LLP will be self-sufficient and no longer require capital injections from its parent company. The members have considered the ability of the LLP to continue for a period of at least 12 months from the date of signing the financial statements. In doing so, they have considered the cash position at 31 December 2023 of £11.3m and the profitability of the LLP of £6.2m which serve to demonstrate the continued success of the business. 
Management are required by the Financial Conduct Authority regulations to prepare stress tests and forecasts covering a period until the end of 2026, they have modelled different scenarios and have determined that appropriate capital is in place for the LLP to continue operating for the foreseeable future. 
For these reasons, the members continue to adopt the going concern basis in preparing the financial statements. 

Page 11


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.4

Turnover

The LLP acts as an intermediary for trading transactions between clients and liquidity providers in two circumstances. It operates as a risk-less principal in interest rate swaps and as an agent for foreign exchange transactions. 
In each case, revenue is recognised as the differences between two offsetting transactions, the buying and selling of derivative instruments. 
Revenue is recognised in full at the date of the transaction, deviations resulting from the duration of the transaction are not considered to be material. The entity bears no liquidity or settlement risk from engaging in the activity. 
The LLP also have service agreements with XP Investimentos S.A and XP Investments US LLC., which receives the benefits of services provided by the LLP and requires the allocation among the parties of employees expenses. 

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Computer equipment
-
3
years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Debtors

Short term debtors are measured at transaction price, less any impairment. Deposits held with financial institutions are recognised at cost and subsequently amortised cost. Long term debtors are measured initially at fair value and then subsequently at amortised cost in the profit and loss account.

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash held on deposit by service providers is included within bank and cash balances, as these amounts are highly liquid and repayable without penalty on notice of not more than 24 hours. 

Page 12


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Financial instruments

The LLP only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans to members. 

 
2.9

Creditors

Short term creditors are measured at the transaction price.

 
2.10

Foreign currency translation

Functional and presentation currency

The LLP's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

 
2.11

Division and distribution of profits

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 discretionarily. Discretionary divisions of profits are recognised as amounts due to members, although may be used to offset amounts which have been drawn by members, which are recognised as loan assets repayable.

Profits of the LLP which are not yet divided among the members are shown under 'Other amounts' on the Balance sheet, pending a discretionary decision to divide the profits.

Page 13


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Restricted stock units

Where restricted stock options ("RSU's") are awarded to employees, the fair value of the RSU at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of RSU's that eventually vest. Market vesting conditions are factored into the fair value of the RSU's granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the LLP keeping the scheme open or the employee maintaining any contributions required by the scheme).

 
2.13

Operating leases: the LLP as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

 
2.14

Pensions

Defined contribution pension plan

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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the LLP in independently administered funds.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. 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 members have considered the estimates and assumptions that could have a significant risk of causing material adjustment to the carrying amount of assets and liabilities and have considered that there are no significant sources of estimation uncertainty. 

Page 14


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Interest rate swap revenue
7,800,684
5,953,792

Foreign exchange revenue
1,937,669
690,699

Other revenue
1,477,666
985,858

11,216,019
7,630,349


Interest rate swap and foreign exchange revenue arose within the United Kingdom. 
Other revenue arose from intercompany services provided to a Brazilian group entity and a US group entity. 


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange losses / (gains)
489,908
(21,975)

Operating lease rentals
10,564
-

Depreciation - computer equipment
92
4,697

Fees payable to the LLP's auditors in relation to the audit of these financial statements
15,120
16,740

Fees payable to the LLP's auditors in relation to non audit services
2,460
-

Page 15


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Employees

2023
2022
£
£

Wages and salaries
1,922,782
1,295,547

Social security costs
377,426
277,855

Cost of defined contribution scheme
72,695
65,236

2,372,903
1,638,638


The average monthly number of persons employed during the year was as follows:


        2023
        2022
            No.
            No.







Average number of employees
4
4


7.


Tangible fixed assets





Computer equipment

£



Cost or valuation


At 1 January 2023
44,549


Additions
4,314



At 31 December 2023

48,863



Depreciation


At 1 January 2023
44,549


Charge for the year on owned assets
92



At 31 December 2023

44,641



Net book value



At 31 December 2023
4,222



At 31 December 2022
-

Page 16


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
1,005,032
911,465

1,005,032
911,465


2023
2022
£
£

Due within one year

Amounts owed by group undertakings
1,095,641
639,978

Other debtors
846,544
625,490

Prepayments and accrued income
250
8,902

1,942,435
1,274,370


Included within other debtors due after more than one year are amounts recognised from interest rate swap sales for which the cashflows are expected to be received in future periods. 
£911,465 has been reclassified within the comparatives from trade debtors due after more than one year to other debtors due after more than one year to better reflect the nature of this balance.  


9.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
74,375
52,703

Other taxation and social security
16,158
12,754

Other creditors
4,752
5,565

Accruals and deferred income
1,004,129
597,597

1,099,414
668,619


Page 17


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at amortised cost
16,296,021
15,849,799


Financial liabilities


Financial liabilities measured at amortised cost
79,127
58,268


Financial assets measured at amortised cost comprise cash in hand, other debtors and amounts due from members. 


Financial liabilities measured at amortised cost comprise trade creditors and other creditors. 


11.


Loans and other debts due from members


2023
2022
£
£



Other amounts due from members
1,978,190
8,141,354

1,978,190
8,141,354

Loans and other amounts due from members are repayable on demand from XP Inc.

Loans and other debts due from members rank equally with debts due to ordinary creditors in the event of a winding up.


12.


Restricted stock units

Certain employees of the LLP have been granted restricted stock options ("RSU's") in XP Inc., a member of the LLP. The RSU's are granted at the closing value of XP Inc., shares on the grant date and 25% of the RSU's are exercisable one year after the date of the grant, vesting continues monthly thereafter.
An expense equal to the fair value of the RSU's granted is recognised evenly over the vesting period with a corresponding amount being recognised in other reserves.

Page 18


 
XP INVESTMENTS UK LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Commitments under operating leases

At 31 December 2023 the LLP had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
19,440
-

Later than 1 year and not later than 5 years
14,580
-

34,020
-


14.


Controlling party

XP Holding UK Ltd is considered to be the controlling member by virtue of its voting rights. XP Inc. is the parent company of the smallest group for which consolidated financial statements are prepared of which the LLP is a member. 


15.


Post balance sheet events

There were no adjusting or non-adjusting events occurring between the end of the reporting period and the date these financial statements were approved.

 
Page 19