Limited Liability Partnership Registration No. OC369340 (England and Wales)
VGC PARTNERS LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
VGC PARTNERS LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Mr P Basran
Mr H W Chamberlain
LLP registration number
OC369340
Registered office
2 Portman Street
Portman House
London
W1H 6DU
Auditor
Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
OX2 7DY
VGC PARTNERS LLP
CONTENTS
Page
Members' report
1 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 22
VGC PARTNERS LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The members present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the LLP continued to be investment fund management relating to several venture and growth capital funds. The LLP is authorised and regulated by the Financial Conduct Authority (Firm ref: FRN 602730).

Business review

Key measures used to assess performance include revenue and profit.

Revenue for the year was £3.3m (2022: £2.2m) and profit was £0.3m (2022: £0.3m). Net liabilities were £2.8m (2022: £0.2m), as a result of fundraising and one-off transactions during the year.

The results for the year are shown in the statement of comprehensive income and the balance sheet in pages 6-7.

There are no subsequent events to report.

Principal risks and uncertainties

The LLP has exposure through its operations to the following principal risks: credit risk, liquidity risk and market risk. Economic conditions may also create some uncertainty.

Credit risk

Credit risk represents the potential for loss due to the default or deterioration in the credit quality of a counterparty. Credit risk is managed by reviewing the credit quality of the counterparties relating to cash at bank and trade & other receivables.

Liquidity risk

Liquidity risk is the risk that the LLP will not be able to meet its financial obligations as they fall due. The LLP’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the LLP’s position.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The LLP does not have significant exposure to foreign exchange risk or price risk or cashflow or fair value interest rate risk.

The primary objectives of the financial risk management by the Members is to establish appropriate risk limits, and then ensure that exposure to risks stays within these limits. The Members take appropriate steps to monitor and minimise the impact of the financial and operating risks faced by the LLP through their day-to-day oversight and management of the business. This includes appropriate consideration of credit, liquidity and market risk which are mitigated as much as possible through budgeting, forecasting and review of the external environment that the LLP operates in.

Going concern

In preparing these financial statements, the members have reviewed trading and cash forecasts for the next 12 months and consider that these appropriately demonstrate the ability of the partnership to meet its obligations.

After considering the forecasts, the members have a reasonable expectation that the partnership has adequate resources to continue in operation for the foreseeable future. For these reasons, the members continue to adopt the going concern basis in preparing the financial statements and have a positive outlook to growth.

 

VGC PARTNERS LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

A member's capital requirement is linked to their share of profit and the financing requirement of the LLP. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P Basran
Mr H W Chamberlain
Auditor

In accordance with the LLP's membership agreement, a notice proposing that Shaw Gibbs (Audit) Limited be reappointed as auditor of the LLP will be put at a general meeting.

Statement of members' responsibilities

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:

 

 

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 to 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.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

VGC PARTNERS LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Approved by the members on 9 August 2024 and signed on behalf by:
09 August 2024
Mr P  Basran
Designated Member
VGC PARTNERS LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VGC PARTNERS LLP
- 4 -
Opinion

We have audited the financial statements of VGC Partners LLP (the 'limited liability partnership') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, 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).

In our opinion the financial statements:

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.

VGC PARTNERS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VGC PARTNERS LLP
- 5 -
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:

 

Responsibilities of members

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.

Auditor's 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 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.

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.

1. At the planning stage of the audit, we gain an understanding of the laws & regulations which apply to the limited liability partnership and how the management seek to comply with those laws & regulations and the FCA. This helps us to plan appropriate risk assessments.

 

2. During the audit, we focus on relevant risk areas and review the compliance with the laws & regulations and the FCA by making relevant enquiries and undertaking corroboration, for example by reviewing partners' minutes, the FCA submissions and correspondence, and other documentation.

 

3. We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including:

    a. Reviewing the controls set in place by management;

    b. Making enquiries of management as to whether they consider fraud or other irregularity may have     taken place, or where such opportunity might exist;

    c. Challenging management assumptions with regard to accounting estimates; and

    d. Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

VGC PARTNERS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VGC PARTNERS LLP
- 6 -

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.

Nikolaos Ioannidis (Senior Statutory Auditor)
For and on behalf of Shaw Gibbs (Audit) Limited
9 August 2024
Chartered Certified Accountants
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY
VGC PARTNERS LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
3,340,589
2,175,185
Cost of sales
(76,407)
(82,812)
Gross profit
3,264,182
2,092,373
Administrative expenses
(2,925,589)
(1,708,897)
Operating profit
4
338,593
383,476
Interest receivable and similar income
8
4,416
1,179
Interest payable and similar expenses
9
(5,117)
(3,788)
Profit on disposal of investments
20,000
-
Impairment of fixed asset investments
(98,829)
(80,000)
Profit for the financial year before members' remuneration and profit shares available for discretionary division among members
259,063
300,867

The profit and loss account has been prepared on the basis that all operations are continuing operations.

VGC PARTNERS LLP
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
81,696
97,180
Investments
11
436,883
725,712
518,579
822,892
Current assets
Debtors
13
503,609
598,148
Cash at bank and in hand
374,441
1,041,615
878,050
1,639,763
Creditors: amounts falling due within one year
14
(4,171,475)
(2,674,965)
Net current liabilities
(3,293,425)
(1,035,202)
Total assets less current liabilities and net liabilities attributable to members
(2,774,846)
(212,310)
Represented by:
Loans and other debts due from members within one year
17
Amounts due from members in respect of drawings in excess of amounts introduced and profits allocated
(2,863,373)
(300,837)
Members' other interests
17
Members' capital classified as equity
88,527
88,527
(2,774,846)
(212,310)
The financial statements were approved by the members and authorised for issue on 9 August 2024 and are signed on their behalf by:
09 August 2024
Mr P  Basran
Designated member
Limited Liability Partnership Registration No. OC369340
VGC PARTNERS LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
1,858,664
992,982
Interest paid
(5,117)
(3,788)
Net cash inflow from operating activities
1,853,547
989,194
Investing activities
Purchase of tangible fixed assets
(5,115)
(105,615)
Proceeds from disposal of tangible fixed assets
-
1,015
Proceeds from disposal of investments
210,000
-
Interest received
4,416
1,179
Net cash generated from/(used in) investing activities
209,301
(103,421)
Financing activities
Capital introduced by members (classified as debt or equity)
-
948,495
Payments to members
(2,821,599)
(1,473,536)
Net cash used in financing activities
(2,821,599)
(525,041)
Net (decrease)/increase in cash and cash equivalents
(758,751)
360,732
Cash and cash equivalents at beginning of year
1,041,584
680,852
Cash and cash equivalents at end of year
282,833
1,041,584
Relating to:
Cash at bank and in hand
374,441
1,041,615
Bank overdrafts included in creditors payable within one year
(91,608)
(31)
VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Limited liability partnership information

VGC Partners LLP is a limited liability partnership incorporated in England and Wales. The registered office is 2 Portman Street, Portman House, London, W1H 6DU.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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. The principal accounting policies adopted are set out below.

1.2
Consolidation
The provisions of Companies Act 2006 require the LLP to prepare consolidated financial statements. The members of the LLP are of the opinion that the inclusion of the LLP's subsidiaries, individually and collectively, is immaterial to the financial statements and they have therefore not been consolidated. The financial statements present information about the company as an individual entity and not about its group.
1.3
Going concern

In preparing these financial statements, the members have reviewed trading and cash forecasts for the next 12 months and consider that these appropriately demonstrate the ability of the partnership to meet its obligations.

 

After considering the forecasts, the members have a reasonable expectation that the partnership has adequate resources to continue in operation for the foreseeable future. For these reasons, the members continue to adopt the going concern basis in preparing the financial statements and have a positive outlook to growth.

1.4
Turnover

Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.5
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

 

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

Fixtures and fittings
25% on reducing balance
Computers
25% on reducing balance
Motor vehicles
20% on reducing balance

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.

VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.7
Fixed asset investments

Fixed asset investments comprise of shareholdings in participating interests and high value collectable assets.

The shareholdings in participating interests were initially measured at their deemed cost, which is equal to their market value at the point that they were transferred to the LLP. Subsequently, they are measured at the deemed cost less any accumulated impairment losses. The relevant holdings are assessed for impairment at each reporting date and any impairment losses are recognised immediately in profit or loss.

The high value collectable assets were initially measured at their deemed cost, which is equal to their market value at the point that they were transferred to the LLP. Subsequently, they are measured at the deemed cost less any accumulated impairment losses. The relevant assets are assessed for impairment at each reporting date (based on professional valuations) and any impairment losses are recognised immediately in profit or loss. These assets are expected to at least hold their value over time and are not considered to have an identifiable lifespan given their collectable nature. The Members, therefore, do not consider there to be a consistent basis on which to depreciate the assets.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the profit and loss account.

1.8
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit 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.

VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits and post retirement payments to members

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

1.11
Leases

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.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.13

Members' profit allocations, drawings and capital

Profit allocations are recognised in reserves in the year in which they are declared and allocated to members, as agreed between members. Drawings represent payments on account of profits which may be allocated to members. Drawings are set by the members each year with consideration of forecasts for the business. Capital contributions of each of the members are recognised separately and repayment, if any, is in accordance with the LLP agreement.

2
Judgements and key sources of estimation uncertainty

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Agency relationship

There is an agency relationship between the LLP and the funds it manages, as the members are of the view that the LLP does not have significant exposure to significant risks and rewards associated with the rendering of the services arranged on behalf of the funds by the LLP. Hence, the relevant costs incurred under agency relationship have been offset against the corresponding turnover in the profit and loss account.

Key sources of estimation uncertainty

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.

Impairment of fixed asset investments

The members carry out an annual review of the carrying value of the fixed asset investments based on professional valuations and own assessments. When identified, impairments are recognised as necessary.

3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
3,340,589
2,125,285
Europe
-
49,900
3,340,589
2,175,185
2023
2022
£
£
Other significant revenue
Interest income
4,416
1,179
VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,576
(4,285)
Depreciation of owned tangible fixed assets
20,599
15,497
Profit on disposal of tangible fixed assets
-
(123)
Operating lease charges
196,994
131,602
5
Auditor's remuneration
2023
2022
Fees payable to the LLP's auditor and associates:
£
£
For audit services
Audit of the financial statements of the LLP
9,680
8,800
For other services
All other non-audit services
22,070
14,200
6
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2023
2022
Number
Number
8
6

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
951,446
592,456
Social security costs
112,049
73,402
Pension costs
25,132
15,334
1,088,627
681,192
VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
7
Information in relation to members
2023
2022
Number
Number
Average number of members during the year
2
2
2023
2022
£
£
Profit attributable to the member with the highest entitlement
259,063
300,867
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
4,416
1,179
9
Interest payable and similar expenses
2023
2022
£
£
Interest payable:
Interest on bank overdrafts and loans
5,117
3,788
10
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
2,592
16,799
98,458
117,849
Additions
4,156
959
-
5,115
At 31 December 2023
6,748
17,758
98,458
122,964
Depreciation and impairment
At 1 January 2023
257
7,284
13,128
20,669
Depreciation charged in the year
1,089
2,444
17,066
20,599
At 31 December 2023
1,346
9,728
30,194
41,268
Carrying amount
At 31 December 2023
5,402
8,030
68,264
81,696
At 31 December 2022
2,335
9,515
85,330
97,180
VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
11
Fixed asset investments
2023
2022
Notes
£
£
Shares in participating interests
14,093
112,922
High value collectible items
422,790
612,790
436,883
725,712
Movements in fixed asset investments
Shares in participating interests
High value collectible items
Total
£
£
£
Cost or valuation
At 1 January 2023
112,922
692,790
805,712
Disposals
-
(270,000)
(270,000)
At 31 December 2023
112,922
422,790
535,712
Impairment
At 1 January 2023
-
80,000
80,000
Impairment losses
98,829
-
98,829
Disposals
-
(80,000)
(80,000)
At 31 December 2023
98,829
-
98,829
Carrying amount
At 31 December 2023
14,093
422,790
436,883
At 31 December 2022
112,922
612,790
725,712
12
Subsidiaries

Details of the limited liability partnership's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
VGC Member I Limited
United Kingdom
Holding company
Ordinary shares
100.00
-
VGC Member II Limited
United Kingdom
Holding company
Ordinary shares
100.00
-
VGC GP (Scotland) Limited
United Kingdom
Investment partner
Ordinary shares
100.00
-
VGC GP I LLP
United Kingdom
Investment partner
Members' interest
-
100.00
VGC GP II LLP
United Kingdom
Investment partner
Members' interest
-
100.00
VGC Partners II (Scotland) LP
United Kingdom
Investment partner
Members' interest
-
100.00
VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
203,117
283,132
Amounts owed by undertakings in which the LLP has a participating interest
192,916
221,923
Other debtors
26,660
26,390
Prepayments and accrued income
80,916
66,703
503,609
598,148
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
91,608
31
Trade creditors
354,711
190,431
Amounts owed to undertakings in which the LLP has a participating interest
3,099,107
2,321,144
Other taxation and social security
155,457
52,483
Other creditors
1,841
1,441
Accruals and deferred income
468,751
109,435
4,171,475
2,674,965
15
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
91,608
31
Payable within one year
91,608
31
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
25,132
15,334

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.

VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
17
Reconciliation of Members' Interests
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other reserves
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
Members' interests at 1 January 2023
88,527
-
88,527
(300,837)
(300,837)
(212,310)
Profit for the financial year available for discretionary division among members
-
259,063
259,063
-
-
259,063
Members' interests after profit for the year
88,527
259,063
347,590
(300,837)
(300,837)
46,753
Allocation of profit for the financial year
-
(259,063)
(259,063)
259,063
259,063
-
Drawings on account and distributions of profit
-
-
-
(2,821,599)
(2,821,599)
(2,821,599)
Members' interests at 31 December 2023
88,527
-
88,527
(2,863,373)
(2,863,373)
(2,774,846)
VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
18
Operating lease commitments
Lessee

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:

2023
2022
£
£
Within one year
117,976
108,110
19
Related party transactions
Transactions with related parties

During the year the limited liability partnership entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
VGC Partners I LP
3,099,107
2,321,144

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Twenty Ten Capital Limited
33,680
50,550
W8 Consulting Limited
16,720
84,070
Twenty Ten Capital (Iconic Images) Limited
78,021
54,563
Twenty Ten Capital (1966) Limited
12,645
12,160
Twenty Ten Capital (Superawesome) LLP
11,160
19,410
VGCP Nominees Limited
1,620
1,170
VGC Partners II LP
39,070
-
VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Related party transactions
(Continued)
- 21 -

In accordance with Section 33.1A of FRS 102, related party transactions and outstanding balances have not been disclosed with and between wholly owned subsidiaries within the group.

 

Twenty Ten Capital (Superawesome) LLP: -

 

During the year, sales were made of £nil (2022: £10,000) to Twenty Ten Capital (Superawesome) LLP. Twenty Ten Capital (Superawesome) LLP is a related party as Mr P Basran is a designated member and VGC Partners LLP has a non-controlling stake.

 

Twenty Ten Capital Limited:-

 

During the year, sales were made of £nil (2022: £5,000) to Twenty Ten Capital Limited. Twenty Ten Capital Limited is a related party as Mr P Basran is a director and the sole shareholder.

 

Twenty Ten Capital (Iconic Images) Limited:-

 

During the year, sales were made of £25,000 (2022: £nil) to Twenty Ten Capital (Iconic Images) Limited. Twenty Ten Capital (Iconic Images) Limited is a related party as Mr P Basran is a director and VGC Partners LLP has a non-controlling stake.

 

VGC Partners I LP:-

 

During the year, sales were made of £25,717 (2022: £100,816) to VGC Partners I LP. This amount is net of expenditure recharged to VGC Partners I LP. VGC Partners I LP is a related party as VGC Partners LLP has a participating interest.

 

VGC Partners II LP:-

 

During the year, sales were made of £1,246,309 (2022: £nil) to VGC Partners II LP. This amount is net of expenditure recharged to VGC Partners II LP. VGC Partners II LP is a related party as VGC Partners LLP has a participating interest.

20
Loans and other debts due to members

In the event of a winding up, the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

VGC PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
21
Cash generated from operations
2023
2022
£
£
Profit for the year
259,063
300,867
Adjustments for:
Finance costs recognised in profit or loss
5,117
3,788
Investment income recognised in profit or loss
(4,416)
(1,179)
Gain on disposal of tangible fixed assets
-
(123)
Provision for impairment of investments
98,829
80,000
Depreciation and impairment of tangible fixed assets
20,599
15,497
Gain on sale of investments
(20,000)
-
Movements in working capital:
Decrease/(increase) in debtors
94,539
(41,570)
Increase in creditors
1,404,933
635,702
Cash generated from operations
1,858,664
992,982
22
Analysis of changes in net debt
2023
£
Opening net funds
Cash and cash equivalents
1,041,584
Changes in net debt arising from:
Cash flows of the entity
(758,751)
Closing net funds as analysed below
282,833
Closing net funds
Cash and cash equivalents
282,833
23
Ultimate controlling party

In the members' opinion, the ultimate controlling party of the LLP is Parminder Basran.

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