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Registered number: OC389623









Lincoln Private Investment Office LLP









Annual Report and Financial Statements

For the Period Ended 31 March 2024

 
Lincoln Private Investment Office LLP
 

Information




Designated Members

R Elder
R Robbins

LLP registered number
OC389623

Registered office
32 Grosvenor Gardens
London
SW1W 0DH

Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Railway Road
Stockport
Cheshire
 SK1 3GG


 
Lincoln Private Investment Office LLP
 

Contents



Page
Members' report
 
1 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10 - 11
Statement of changes in equity
 
12
Statement of cash flows
 
13
Notes to the financial statements
 
14 - 26


 
Lincoln Private Investment Office LLP
 
  
Members' Report
For the Period Ended 31 March 2024

The members present their annual report together with the audited financial statements of Lincoln Private Investment Office LLP (the "LLP") for the period ended 31 March 2024. During the period, the members elected to change the year end from 31 December to 31 March. The results to 31 March 2024 are therefore for a 15 month period, whereas the comparative figures cover 12 months to 31 December 2022.
 

Principal activities and review of the business
 
 
Lincoln Private Investment Office LLP ("Lincoln") is a private investment office, offering our clients truly independent wealth management services. We were established in December 2013 and have been managing investments for clients since June 2014. Lincoln’s aim is to deliver exceptional service and investment performance to our clients. Our future goals remain the same as our starting goals, to look after our current clients as well as we possibly can.
Our primary focus is on investment management, centred on Discretionary and Advisory services. Discretionary Portfolios are high conviction, individually asset allocated portfolios with exposure to equities, bonds and absolute return strategies, which are managed centrally as a firm. To complement the Discretionary service and provide diversification from public markets, we offer access to intelligent, interesting Alternative Investments on an Advisory basis. We also offer Family Office Services so we can help clients with a wider range of financial requirements.
As a result of the impact of Basis Period Reform, we took the decision to extend our financial year to align with the tax year. This financial period therefore consisted of 15 months ended 31 March 2024.
Assets under management increased significantly during the period, driven by new assets and with the support of positive market performance. This had the knock-on effect of management revenues increasing over the period. Advisory upfront fees were lower in comparison to 2022, which is not something we specifically target nor are concerned about. Instead, we aim to find the best opportunities for our clients. 
We were pleased with the progress we made throughout the period. With an excellent team and high conviction in our investment philosophy, we feel extremely positive about the outlook and will continue to search for additional ways to improve and deliver exceptional service and performance for our clients. 
During the year we have also processed some adjustments to our capital accounts and other reserves, to more accurately reflect the positions of individual members. The details of this are described in note 14, and include some restatements of comparative figures.
 
 
There have been no changes in the objectives since the last annual report.
 
 
Designated Members
 
 
R Elder and R Robbins were designated members of the LLP throughout the period.
 

 
Members' capital and interests
 
 
The member's subscription to the capital of the LLP is determined by the member's share of the profit and is repayable following retirement from the LLP.
 
 
Details of changes in members' capital in the period ended 31 March 2024 are set out in the financial statements.
 
 
Members are remunerated from the profits of the LLP and are required to make their own provision for pensions and other benefits. Profits are allocated and divided between members after finalisation of the financial statements. Members draw a proportion of their profit shares monthly during the year in which it is made, with the balance of profits being distributed after the year, subject to the cash requirements of the business.
 

Page 1

 
Lincoln Private Investment Office LLP
 
 
Members' Report (continued)
For the Period Ended 31 March 2024
 
 
Disclosure required under the Investment Firms Prudential Regime
The following section does not form part of the statutory members' report and has not been independently verified by the firm's auditors
.
Background
Lincoln Private Investment Office LLP is require to make annual disclosures in accordance with MIFIDPRU 8. Lincoln is a SNI firm and its core business involves providing discretionary and advisory services to retail and professional clients.
Risk Management Objectives
The Executive Committee is the governing body of the Firm and, as such, is ultimately responsible for the application of a robust internal risk management regime. The Executive Committee is aware of the potential harms to clients, market and the Firm arising from its business activities, principally those being related to the advisory and investment management services Lincoln provides to clients. In order to manage risks, the Executive Committee receives regular management information on the Firm’s financial and operational performance.
In addition, the Executive Committee continuously monitors and, if necessary, enhances, the Firm’s Business Model, directs the Internal Capital Adequacy and Risk Assessment (‘ICARA’) process and receives other significant regulatory intelligence which, in aggregate, provide the requisite information to identify trends and issues particularly in relation to:
 1.  The adequacy of its own funds; and
 2. The adequacy of its liquid resources enabling the firm to meet its liabilities as they fall due.
In each of these areas the Executive Committee’s approach is risk averse in order to ensure that the Firm has sufficient capital and liquidity to remain in business. To this end, Lincoln monitors its actual and near-term capital and liquidity positions on a monthly basis and carries out stress testing of its medium-term financial plans as part of its ICARA process in order to validate the adequacy of its forecast capital and liquidity resources.
Governance Arrangements
The partners of Lincoln recognise and accept that the Executive Committee, as the governing body of the Firm, has responsibility for the implementation of governance arrangements that assure its effective and prudent management. Lincoln considers that the existing arrangement whereby the Executive Committee meets quarterly satisfies this requirement. Whilst the Executive Committee readily acknowledges its collective risk management responsibility, it should be noted that the partners are also held accountable for specific areas of delivery under the Senior Managers and Certification Regime. The Executive Committee implements its collective responsibility through the policies and procedures that it approves and cascades to the employees of Lincoln. The implementation of these policies and procedures not only protects the reputation of the Firm but also serves to promote market integrity and the interests of LPIO clients. The effectiveness and accuracy of their execution is validated by ongoing compliance monitoring which either validates their successful practical application or identifies failures that can be promptly remediated. The Executive Committee frequently reviews and updates the Firm’s harms register, and it carries out an extensive ICARA process at least annually.
Remuneration 
Lincoln is a MIFID investment firm, authorised by the Financial Conduct Authority (‘FCA’) to carry on the regulated activities of dealing in investments as agent, advising on investments, managing investments and arranging deals in investments. A consequence of its regulatory status is that the Firm must comply with the relevant provisions of the MIFIDPRU Remuneration Code set out in SYSC 19g of the FCA Handbook, a key element of which is that its remuneration practices are consistent with responsible risk management. 
Lincoln’s Approach to Remuneration 
Lincoln remunerates its employees through payment of fixed and variable remuneration. The levels of fixed remuneration are determined by the Executive Committee and relate to basic wages and salaries plus proportionate pension contributions. In setting levels of fixed remuneration for particular categories of employee, it is the partners’ intention that the amounts paid should properly reflect the complexity and responsibility of the roles performed and be consistent with the rates of pay for similar positions in peer group competitor firms. 
 
Page 2

 
Lincoln Private Investment Office LLP
 
 
Members' Report (continued)
For the Period Ended 31 March 2024
 
 
Lincoln’s Approach to Remuneration (continued)
Lincoln operates a variable remuneration scheme in the form of a staff bonus pool that is intended to incentivise superior performance across the business without creating a conflicting motivation for reckless or inappropriate behaviour. Lincoln defines ‘variable remuneration’ as non-contractual payments or provision of benefits made directly to Lincoln employees. All employees are eligible to receive variable remuneration, subject to acceptable individual performance and the performance of the firm. The levels of variable remuneration paid are determined by the Executive Committee. Payment of variable remuneration is made in cash and is discretionary for all employees. Lincoln does not guarantee payment of variable remuneration and it is Lincoln’s policy that no variable remuneration is paid if it would inappropriately dilute the Firm’s liquid or capital resources.
 
 
Page 3

 
Lincoln Private Investment Office LLP
 
 
Members' Report (continued)
For the Period Ended 31 March 2024
 
 
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 has 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;
 
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 him 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)He is 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
 
 
The 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.
 

Auditors
 
 
The auditorsHurst Accountants Limited, were appointed in the year and have indicated their willingness to continue in office. The Designated members will propose a motion re-appointing the auditors at a meeting of the members.
 

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




................................................
R Elder
Designated member

Date: 24 July 2024
Page 4

 
Lincoln Private Investment Office LLP
 
 
 
Independent Auditors' Report to the Members of Lincoln Private Investment Office LLP
 

Opinion
 

We have audited the financial statements of Lincoln Private Investment Office LLP (the 'LLP') for the period ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity 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 March 2024 and of its result for the period 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's 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.


Page 5

 
Lincoln Private Investment Office LLP
 
 
 
Independent Auditors' Report to the Members of Lincoln Private Investment Office LLP (continued)


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 is 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 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 is 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 determines 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 is 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.


Page 6

 
Lincoln Private Investment Office LLP
 
 
 
Independent Auditors' Report to the Members of Lincoln Private Investment Office LLP (continued)


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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business     performance including key drivers for performance targets.
• The outcome of enquiries of management, including whether management was aware of any instances of non-   compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged   fraud. 
• Supporting documentation relating to the Company's policies and procedures for:
 - Identifying, evaluating, and complying with laws and regulations
 - Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the    financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which    have a direct effect on the financial statements, such as the Companies Act 2006, tax legislation, or which had a    fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-   bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with    the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with laws  and regulations and fraud.
• Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect    irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of    material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. 
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the    judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the rationale of any significant transactions that are unusual or outside the normal course of business.

 
Page 7

 
Lincoln Private Investment Office LLP
 
 
 
Independent Auditors' Report to the Members of Lincoln Private Investment Office LLP (continued)


We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.


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.





Helen Besant-Roberts (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Railway Road
Stockport
Cheshire
SK1 3GG

24 July 2024
Page 8

 
Lincoln Private Investment Office LLP
 
 
Statement of Comprehensive Income
For the Period Ended 31 March 2024

15 months
31 March
As restated
12 months
31 December
2024
2022
Note
£
£

  

Turnover
 4 
6,378,521
4,426,577

Cost of sales
  
(948,404)
(747,135)

Gross profit
  
 
5,430,117
 
3,679,442

Administrative expenses
  
(2,396,230)
(1,617,691)

Other operating income
 5 
68,163
54,530

Operating profit
 6 
 
3,102,050
 
2,116,281

Profit for the period before members' remuneration and profit shares
  
 
3,102,050
 
2,116,281

Profit for the period before members' remuneration and profit shares
  
3,102,050
2,116,281

Members' remuneration charged as an expense
 14 
(3,102,050)
(2,116,281)

Results for the period available for discretionary division among members
  
 
-
 
-

Other comprehensive income for the period
  

Movement on provisions in respect of amounts due from members
 14 
(162,110)
(34,436)

Total comprehensive income for the period
  
(162,110)
(34,436)

The notes on pages 14 to 26 form part of these financial statements.

Page 9

 
Lincoln Private Investment Office LLP
Registered number: OC389623

Balance Sheet
As at 31 March 2024

31 March
As restated
31 December
2024
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
104,259
118,464

Current assets
  

Debtors: amounts falling due within one year
 11 
2,103,204
1,543,292

Cash at bank and in hand
 12 
413,106
1,175,522

  
2,516,310
2,718,814

Creditors: amounts falling due within one year
  
(752,226)
(602,549)

Net current assets
  
 
 
1,764,084
 
 
2,116,265

Total assets less current liabilities
  
1,868,343
2,234,729

  

  

  

Net assets
  
1,868,343
2,234,729


Capital and reserves
  

Loans and other debts due to members within one year
  

Members' capital classified as a liability
 14 
117,809
239,089

Members' other interests
  

Members' capital classified as equity
 14 
2,513,332
2,596,328

Other reserves classified as equity
 14 
(762,798)
(600,688)

  
 
1,750,534
 
1,995,640

  
1,868,343
2,234,729


Total members' interests
  

Amounts due from members (included in debtors)
 11 
(100,000)
(100,000)

Loans and other debts due to members
 14 
117,809
239,089

Members' other interests
 14 
1,750,534
1,995,640

  
1,768,343
2,134,729


Page 10

 
Lincoln Private Investment Office LLP
Registered number: OC389623
    
Balance Sheet (continued)
As at 31 March 2024

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




................................................
R Elder
................................................
R Robbins
Designated member
Designated member


Date: 24 July 2024

The notes on pages 14 to 26 form part of these financial statements.

Page 11

 
Lincoln Private Investment Office LLP
 

Statement of Changes in Equity
For the Period Ended 31 March 2024


Members capital (classified as equity)
Other reserves
Total equity

£
£
£


At 1 January 2022
2,341,328
(566,252)
1,775,076


Comprehensive income for the year

Movements on provisions in respect of amounts due from members
-
(34,436)
(34,436)


Contributions by and distributions to members

Capital introduced by members
255,000
-
255,000



At 1 January 2023
2,596,328
(600,688)
1,995,640



Movements on provisions in respect of amounts due from members
-
(162,110)
(162,110)


Contributions by and distributions to members

Transfer to debt capital
(82,996)
-
(82,996)


At 31 March 2024
2,513,332
(762,798)
1,750,534

The notes on pages 14 to 26 form part of these financial statements.

Page 12

 
Lincoln Private Investment Office LLP
 

Statement of Cash Flows
For the Period Ended 31 March 2024

15 months
31 March
12 months
31 December
2024
2022
£
£


Profit for the financial period
-
-

Adjustments for:

Members' remuneration charged as an expense
3,102,050
2,116,281

Depreciation of tangible assets
70,195
38,841

(Increase) in debtors
(559,916)
(36,372)

Increase in creditors
149,680
45,158

Net cash generated from operating activities before transactions with members

2,762,009
2,163,908


Members' remuneration - paid in year
(3,468,436)
(2,254,782)

Net cash generated from operating activities
(706,427)
(90,874)

Cash flows from investing activities

Purchase of tangible fixed assets
(55,989)
(118,126)

Net cash from investing activities

(55,989)
(118,126)

Cash flows from financing activities

Members' capital contributed
-
255,000

Net cash used in financing activities
-
255,000

Net (decrease)/increase in cash and cash equivalents
(762,416)
46,000

Cash and cash equivalents at beginning of period
1,175,522
1,129,522

Cash and cash equivalents at the end of period
413,106
1,175,522


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
413,106
1,175,522


The notes on pages 14 to 26 form part of these financial statements.

Page 13

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

1.


General information

Lincoln Private Investment Office LLP is a limited liability partnership limited by members capital, incoroporated in the United Kingdom.
The LLP's registered office and its principal place of business is 32 Grosvenor Gardens, London, England, SW1W 0DH.
The principal activity of the LLP is that of a Wealth Manager. 

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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies (see note 3).

Management have elected to reclassify certain items of income, expenditure, as well as within current assets. Therefore some figures are different to those in the prior year financial statements.
Details of prior year restatements are given in note 14, notably to:
  - Amounts due from members
  - Amounts due to members
  - Other reserves
  - Allocation of profits/members' remuneration charged as an expense

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the LLP and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Fees receivable for services as a Wealth Manager
Revenue is generated as fees receivable for services as a Wealth Manager. Income is recognised as it falls due, typically on a monthly basis based on the fee arrangements agreed with its clients.

 
2.3

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.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

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Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)

 
2.4

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.

 
2.5

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 automatically. Automatic divisions of profits are recognised as 'Members' remuneration charged as an expense in the Statement of Comprehensive Income.

In the event of the LLP making losses, the loss is recognised as a credit amount of 'Members' remuneration charged as an expense where it is automatically divided or as a debit within equity under 'Other reserves' if not divided automatically.

The LLP classifies distributions of profits linked to members' remuneration as operating cash flows in the Statement of Cash Flows, as these are linked to the performance of the LLP. 
During the year, the LLP made profits of £3,102,050 (
2022: £2,116,281). Of this, £2,688,329 (2022: £1,880,251) was deemed to be fixed profit share, including fixed drawings and bonuses, with a balance of £413,721 (2022: £236,030) being automatically distributed to all partners based on their participation rights.
Members entitlement to profits are shown within Member's interests and are treated as a liability Where a partner has made drawings in excess of his or her profit entitlement, these amounts are included as debtors under "Amounts due from Members." It has been agreed that all such amounts will be impaired in full to "other reserves" as they arise, and as such a charge or credit is displayed within the statement of other comprehensive income each year.

 
2.6

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.

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Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

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.

Depreciation is provided on the following basis:

Long-term leasehold property
-
20%
straight line
Fixtures and fittings
-
33%
straight line
Computer equipment
-
33%
straight line

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.

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

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 equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the LLP's cash management.

 
2.9

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 16

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)

 
2.10

Financial instruments

The LLP has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the LLP's Balance Sheet when the LLP becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The LLP's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the LLP after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 17

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The Members have concluded that there are no significant judgements or key sources of estimation uncertainty that impact numbers in the financial statements.


4.


Turnover

The whole of the turnover is attributable to the LLP's principal activity as described in note 1.

All turnover arose within the United Kingdom.


5.


Other operating income

15 months
31 March
12 months
31 December
2024
2022
£
£

Other operating income
9,738
7,790

Net rents receivable
58,425
46,740

68,163
54,530



6.


Operating profit

The operating profit is stated after charging:

15 months
31 March
12 months
31 December
2024
2022
£
£

Other operating lease rentals
229,314
183,732


7.


Auditors' remuneration

During the period, the LLP obtained the following services from the LLP's auditors and their associates:


15 months
31 March
12 months
31 December
2024
2022
£
£

Fees payable to the LLP's auditors and their associates for the audit of the LLP's financial statements
18,750
11,500
Page 18

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

8.


Employees

Staff costs were as follows:


15 months
31 March
12 months
31 December
2024
2022
£
£

Wages and salaries
1,025,835
647,687

Social security costs
112,430
66,458

Cost of defined contribution scheme
24,890
23,353

1,163,155
737,498


The average monthly number of persons (including members with contracts of employment) employed during the period was as follows:


       15 months
       31 March
       12 months
      31 December
        2024
        2022
            No.
            No.







Advisers and administrative staff
11
10


9.


Information in relation to members

31 March
31 December
2024
2022
Number
Number


Average number of members (executive and non-executive) during the period
27
27

31 March
31 December
2024
2022
£
£


The average members remuneration during the period was
114,063
81,395






The amount of profit attributable to the member with the largest entitlement was
656,096
444,841


Page 19

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

10.


Tangible fixed assets







Leasehold property
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost


At 1 January 2023
96,510
36,096
102,186
234,792


Additions
-
13,144
42,845
55,989



At 31 March 2024

96,510
49,240
145,031
290,781



Depreciation


At 1 January 2023
35,300
27,616
53,412
116,328


Charge for the period on owned assets
18,738
7,858
43,598
70,194



At 31 March 2024

54,038
35,474
97,010
186,522



Net book value



At 31 March 2024
42,472
13,766
48,021
104,259



At 31 December 2022
61,210
8,480
48,774
118,464


11.


Debtors

31 March
As restated
31 December
2024
2022
£
£


Trade debtors
1,570,426
1,141,987

Other debtors
145,543
45,543

Prepayments and accrued income
287,235
255,759

Amounts due from members (see note 14)
100,000
100,000

2,103,204
1,543,289


Management have reviewed the prior year debtor balances, and have elected to re-classify certain figures to different categories to enable better comparisions with the current year.
An amount of £100,000 previously included in other debtors has been re-designated as amounts due from members/ Further information is disclosed in note 14.

Page 20

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

12.


Cash and cash equivalents

31 March
31 December
2024
2022
£
£

Cash at bank and in hand
413,106
1,175,522



13.


Creditors: Amounts falling due within one year

31 March
As restated
31 December
2024
2022
£
£

Trade creditors
151,096
35,282

Other taxation and social security
227,340
153,414

Other creditors
16,606
16,473

Accruals and deferred income
357,184
397,380

752,226
602,549


Management have reviewed the prior year creditor balances, and have elected to re-classify certain figures to different categories to enable better comparisions with the current year.

Page 21

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

14.


Reconciliation of members' interests 








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

£
£
£
£
£
£

Balance at 1 January 2022 (as restated) 
2,341,328
(566,252)
1,775,076
343,156
(100,000)
243,156

Members' remuneration - overdrawn accounts
-
-
-
-
1,048,212
1,048,212

Members' remuneration - capital accounts
-
-
-
1,068,066
-
1,068,066

Movements on provisions
-
(34,436)
(34,436)
-
-
-

Amounts introduced by members
255,000
-
255,000
-
-
-

Drawings
-
-
-
(1,172,133)
-
(1,172,133)

Drawings
-
-
-
-
(1,082,648)
(1,082,648)

Movements on provisions
-
-
-
-
34,436
34,436

Amounts due to members
239,089
-
239,089

Amounts due from members
 




(100,000)
(100,000)

Balance at 31 December 2022 (as restated)
2,596,328
(600,688)
1,995,640
239,089
(100,000)
139,089

Members' remuneration - overdrawn accounts
-
-
-
-
2,341,828
2,341,828

Members' remuneration - capital accounts
-
-
-
760,222
-
760,222

Movements on provisions
-
(162,110)
(162,110)
-
-
-

Drawings
-
-
-
(891,543)
-
(891,543)

Transfer to debt capital
(82,996)
-
(82,996)
10,041
-
10,041

Drawings
-
-
-
-
(2,576,893)
(2,576,893)

Transfer from fixed capital
-
-
-
-
72,955
72,955

Movements on provisions
-
-
-
-
162,110
162,110

Amounts due to members
117,809
-
117,809

Amounts due from members
 




(100,000)
(100,000)

Balance at 31 March 2024 
2,513,332
(762,798)
1,750,534
117,809
(100,000)
17,809
Page 22

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

14.Reconciliation of members' interests  (continued)


Total members' interests
Total

£

Balance at 1 January 2022 (as restated) 
2,018,232

Members' remuneration - overdrawn accounts
1,048,212

Members' remuneration - capital accounts
1,068,066

Movements on provisions
(34,436)

Amounts introduced by members
255,000

Drawings
(1,172,133)

Drawings
(1,082,648)

Movements on provisions
34,436

Amounts due to members

Amounts due from members
 


Balance at 31 December 2022 (as restated)
2,134,729

Members' remuneration - overdrawn accounts
2,341,828

Members' remuneration - capital accounts
760,222

Movements on provisions
(162,110)

Drawings
(891,543)

Transfer to debt capital
(72,955)

Drawings
(2,576,893)

Transfer from fixed capital
72,955

Movements on provisions
162,110

Amounts due to members

Amounts due from members
 


Balance at 31 March 2024 
1,768,343
Page 23

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

14.Reconciliation of members' interests  (continued)


Restrictions or liminations on reducting the amounts of members' other interests
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.
Prior year adjustment
A partner was advanced £100,000 during a previous year. This had previously been disclosed within other debtors in the financial statements.
It was agreed that it would be more appropriate to present this within partner's debt capital and therefore the members' interests above have been reduced by £100,000 for both the year ended 31 December 2021 and 31 December 2022.
Restatement of reserves from prior years
At the start of prior year, the LLP held total current accounts of £223,098, split as follows:
 - Other reserves within equity  (1,119,584)
 - Debts due to members   896,486
Other reserves is the aggregate of profit shares allocated amongst partners, less amounts where the total debt due from partners fell below zero, since the inception of the LLP.
During the year, management have reviewed the current account position and decided that the total current account position of £223,098 should be revised as follows:
 - Amounts due from members  (566,252)
 - Debts due to members  343,156
Furthermore, it was agreed that provisions against amounts due from members should remain, charged to other reserves within equity. Other reserves was therefore re-stated to £566,252, with amounts due from members reduced to £Nil.
The same exercise was undertaken for the position as at the end of the prior year. The previous accounts contained current accounts of £361,599, displayed as follows:
 - Other reserves within equity  (883,554)
 - Debts due to members  521,955
The total of £361,599 was restated as follows, with drawings and profit shares being allocated accordingly:
 - Amounts due from members  (600,688)
 - Debts due to members  239,089
Provisions against amounts due from members were also processed, thus restating other reserves to £600,688.
Furthermore, as residual profit shares after fixed partner allocations are allocated automatically based on each partner's relevant share, it has been decided that all profits of the LLP shall be treated as "members remuneration charged as an expense." As a result, this figure increased from £1,880,251 to £2,116,281 in the prior year statement of comprehensive income.
Transfers from fixed capital
In the prior year, an amount of £82,996 was transferred from other reserves to fixed capital. It was agreed that this was in error and therefore the transaction has been reversed in the current period.

Page 24

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

15.


Analysis of net debt






At 1 January 2023
Arising from cash flows
Profit share
Other non-cash changes
At 31 March 2024
£

£

£

£

£

Cash at bank and in hand

1,175,522

(762,416)

-

-

413,106

Net debt (before members' debt)
1,175,522
(762,416)
-
-
413,106

Loans and other debts due to members






Members' capital

(239,089)

891,543

(760,222)

(10,041)

(117,809)

Net debt


936,433
129,127
(760,222)
(10,041)
295,297


16.


Pension commitments

The entity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the entity  in an independently administered fund. The pension cost charge represents contributions payable by the entity  to the fund and amounted to £24,890 (2022: £23,853) . Contributions totalling £4,948 (2022: £4,815) were payable to the fund at the balance sheet date and are included in creditors.


17.


Commitments under operating leases

At 31 March 2024 the LLP had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 March
31 December
2024
2022
£
£


Not later than 1 year
197,534
179,294

Later than 1 year and not later than 5 years
623,354
782,656

Later than 5 years
-
81,527

820,888
1,043,477


18.


Transactions with members

A member has received a loan of £100,000 from the LLP. Following the restatement as explained in note 14, this amount is included in amounts owed to members in the current and prior period. The maximum amount outstanding at all times was £100,000 (2022: £100,000). No interest has been charged on this balance. The loan is due to be repaid in full in 2026. 
Other amounts due from members in respect of amounts drawn in excess of profits totalled £762,798 (
2022: £600,688). These amounts have been fully impaired in other reserves within equity, as agreed by the LLP's members and as authorised by the Managing Member as defined by the LLP deed. 

Page 25

 
Lincoln Private Investment Office LLP
 
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

19.


Related party transactions

Total fees charged to the executive members in respect of transactions in the ordinary course of business came to £94,971 (2022: £85,031). The LLP was owed £20,199 (2022: £20,166) in respect of these fees at the period end.

Page 26