The members present their annual report and financial statements for the year ended 30 April 2023.
The principal activity of the limited liability partnership is the provision of legal services.
Hodge Jones & Allen LLP was incorporated on 14 May 2021.
The business of Hodge Jones & Allen commenced in 1977 and has been running for 46 years. The firm remains true to its founding ethos which means acting primarily for individuals who wish to defend or assert their rights against corporate opponents including government, local authorities, insurance companies and other corporate bodies.
The firm acts for clients involved in high profile cases, such as group actions and for clients with a wide range of other personal legal matters. Initially much of the work of the business was funded by legal aid but this has declined steadily over the years, with a significant amount of the business performed under conditional fee arrangements.
On 15 October 2021, Hodge Jones & Allen LLP purchased the non-legal aid business from Hodge Jones & Allen Solicitors Limited, a company under common control, and commenced trading on this date.
Members are remunerated solely out of the profits of the LLP and are personally responsible for funding their pensions. The Management Committee sets members’ profit shares and reviews allocations on an annual basis.
Members’ profit shares comprise interest on members’ capital accounts, a fixed profit share element and a balance based on service and performance.
The members’ drawing policy allows each member to draw a proportion of their profit share on a monthly basis, subject to the cash requirements of the business.
The taxation payable on the LLP’s profits is a personal liability of the members during the year. Retention from profits earned up to the balance sheet date is made to fund the payment of taxation on members’ behalf.
Capital is subscribed by the members as agreed by them with the LLP from time to time. On exit from the LLP, capital and current accounts are repaid in 72 equal instalments.
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Rayner Essex LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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. 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:
select suitable accounting policies and then apply them consistently;
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 limited liability partnership will continue in business.
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and 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 Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal risk and uncertainties have been divided into three categories, market and regulatory risk, staff retention and recruitment and liquidity.
Market and regulatory risk
There have been changes over the last 12 years introduced by government to the recovery of costs in civil proceedings particularly under no-win no fee arrangements. The firm has adjusted to those changes. Further changes are expected with the raising of the small claims limit. The firm is adjusting to these changes by concentrating on multi-track personal injury work.
Staff retention and recruitment
The firm continues to attract and retain high quality staff and the performance of staff through the year has been exceptional. We will continue to focus on our staff to provide appropriate reward and support so they can continue to deliver a first class service to our clients.
Liquidity
A significant proportion of the business is undertaken under conditional fee arrangements, which results in a significant upfront investment of time with the timing of quantum of revenue on each case being unpredictable. The associated liquidity risk continues to be addressed and managed through the financial support from its bank as well as backing from Patrick Allen. The bank has indicated that they will continue to provide support with the extension of the overdraft facility, and Patrick Allen has confirmed he will also provide financial support, if required, for a period of at least 12 months from the date of signing the Financial Statements, subject to no change in ownership.
Key Performance Indicators
The key performance indicators of the LLP include the monitoring of Work in Progress along with recovery rates. Fee earners are expected to monitor their time and fee targets, the firm also continually review the type and level of cases that are taken on.
The directors are confident that Hodge Jones & Allen LLP will continue to deliver a strong business.
The firm continues to attract high-profile multi-party actions. The firm is engaged in respect of the Essex Mental Health Inquiry. The successful outcome of this multi-party action will improve the cash position of the firm for the next two to three years.
Post year end, the firm has undertaken an exercise to streamline costs within the business to improve both cash flow and profitability.
We have audited the financial statements of Hodge Jones & Allen LLP (the 'limited liability partnership') for the year ended 30 April 2023 which comprise the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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).
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 limited liability partnership’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 auditor's report thereon. The members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 to report that fact.
We have nothing to report in this regard.
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.
As explained more fully in the members' responsibilities statement, 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 limited liability partnership'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 limited liability partnership or to cease operations, or have no realistic alternative but to do so.
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 auditor's 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.
The extent to which the audit was considered capable of detecting irregularities including fraud
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 engagement partner 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 limited liability partnership through discussions with the members and other management, and from our commercial knowledge and experience of the sector they operate in;
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 limited liability partnership, including the Companies Act 2006, SRA compliance, taxation legislation, data protection, anti money laundering, anti-bribery, employment and GDPR regulations;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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 limited liability partnership's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
the engagement partner ensuring that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
making enquiries of management as to where they considered there was a 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;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; 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
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, the SRA and the limited liability partnership's management.
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 limited the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members and other management and 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's 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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
Hodge Jones & Allen LLP is a limited liability partnership incorporated in England and Wales. The registered office is 180 North Gower Street, London, NW1 2NB.
The principal activity of the limited liability partnership is the provision of legal services.
This reporting period covers the full year to 30 April 2023. The prior year was the first reporting period from incorporation on 14 May 2021 to 30 April 2022.
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.
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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The bank has indicated that they will continue to provide support with the extension of the overdraft facility, and Patrick Allen has confirmed he will also provide financial support, if required, for a period of at least 12 months from the date of signing the Financial Statements, subject to no change in ownership.
Post year end, the firm has undertaken an exercise to streamline costs within the business to improve both cash flow and profitability.
Based on the above support and reviewing profit and cash flow forecasts for the period to 30 April 2025, the directors have concluded that the company has adequate available cash resources to pay its debts as they fall due for the foreseeable future and, as a result, have prepared the accounts on the going concern basis.
Turnover represents the fair value of professional services provided to clients during the period. Turnover is recognised as contract activity progresses and the right to consideration based on time spent, and expertise provided and expenses incurred, exclusive of VAT. Any unbilled work in progress is recognised and based on actual average historical recovery rate over the past 2 years.
Turnover in respect of contingent fee assignments is recognised in the period in which the contingent event occurs and once the fee is assured i.e. once a settlement has been agreed. The valuation of accrued income is based on actual average historical recovery rate over the past 2 years.
Members' participation rights are the rights of a member against the LLP that arise under the members' agreement.
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.
Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment. Amounts payable to members under employment contracts and unavoidable interest on members' capital are charged to 'Members remuneration charged as an expense' in the relevant year.
Remuneration that is paid under a contract to provide services to the LLP, which may be referred to as a contract of employment are classified within Operating Cash Flow in the cash flow statement. In addition drawings on account and distribution of profits are also classified as operating cash flows
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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.
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible and intangible 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.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
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.
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.
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 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.
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.
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.
Basic financial liabilities, including creditors, bank loans, loans from related parties and preference shares 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.
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.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
Provisions are recognised when the limited liability partnership has a legal or constructive present obligation as a result of a past event, it is probable that the limited liability partnership will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
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 partnership's revenue recognition policies are central to how the business values work carried out in each financial year. These policies require estimates to be made in respect of work in progress and accrued income which require assessments and judgements. Work in progress is valued based on actual average recovery rates, this is calculated based on cases settled during the previous 2 years and excludes contingent fee arrangement cases. Once a case is settled the work in progress value is transferred to accrued income based on a fee earners assessment using the external cost drafters for support in calculating the estimate. Contingent fee arrangement cases are recognised when the case is settled and the revenue can be reliably estimated.
Change in accounting estimate
During the year the LLP changed the way in which they estimated the value of accrued income for those cases which had been settled, including contingent fee arrangement cases. Previously the estimate was based on the fee earners assessment which was very judgemental. Therefore this has now been changed to be based on actual average recovery rates so that it remains in line with the Work in Progress estimation technique and is less judgemental. There has been no change in the recognition criteria, just a change in the valuation estimation technique. The change in estimate has resulted in an increase in profit of £360,468.
Provisions are recognised at the statement of financial position date at management’s best estimate of the expenditure required to settle the present obligation. The carrying amounts of provisions are regularly reviewed and adjusted for new facts or changes in law, technology or financial markets
An analysis of the limited liability partnership's turnover is as follows:
The average number of persons (excluding members) employed by the partnership during the year was:
Their aggregate remuneration comprised:
On 15 October 2021, Hodge Jones & Allen LLP purchased the non-legal aid business from Hodge Jones & Allen Solicitors Limited, a company under common control, for £12,816,691 based on an external valuation. The goodwill represents the difference between the amount paid and the net assets acquired.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £5,419 for the year.
The investment represents 100% of the share capital of a dormant subsidiary, Hodge Jones & Allen Trust Corporation Limited, a company incorporated in the United Kingdom.
The debtor due in greater than one year is in relation to amounts owing from Hodge Jones & Allen Solicitors Limited representing their contribution to the dilapidations provision.
Included in trade creditors is £2,907,299 (2022: £3,442,473) relating to disbursements for which there is a corresponding balance included within trade debtors.
Bank loans are secured by fixed and floating charges over the LLP's assets.
Bank overdrafts and loans are secured by fixed and floating charges over the LLP's assets.
Finance lease payments represent rentals payable by the limited liability partnership for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Provisions comprise the partners estimate, based on a third party report, for dilapidations on the rented office premises that may fall due at the end of the lease term. The lease is due to expire in December 2023.
The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.
At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
On 15 October 2021, Hodge Jones & Allen LLP purchased the non-legal aid business from Hodge Jones & Allen Solicitors Limited, a company under common control, for a total consideration of £12,816,691 including assets, liabilities and goodwill.
In the year, the limited liability partnership recharged Hodge Jones & Allen Solicitors Limited for shared costs for a net amount of £3,529,567 (2022: £1,131,624).
At the year end, Hodge Jones & Allen Solicitors Limited owed the limited liability partnership £33,976 (2022: £383,465) in relation to recharged expenses, and £294,378 (2022: £256,878) in relation to a contribution towards dilapidations due in greater than 1 year.
At the year end, the limited liability partnership owed Hodge Jones & Allen Solicitors Limited £767,250 (2022: £560,124) in relation to intercompany loans.
The bank holds cross guarantees with Hodge Jones & Allen Solicitors Limited.
Members of the limited liability partnership have provided guarantees as follows:
P Allen £2,300,000
R Chada £200,000
J Kunwardia £200,000
C Wong £200,000
A Usewicz £200,000
L Williams £200,000
All guarantees accrue interest at 5%.
P Allen's guarantee contains a fixed and floating charge over the assets of the partnership.
Other loans outstanding of £536,419 have been guaranteed by members.
The ultimate controlling party is Patrick Allen.