Limited Liability Partnership registration number OC340779 (England and Wales)
TAYLOR & EMMET LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TAYLOR & EMMET LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Mr R W C Moore
Mrs M T Evans
Mr N C Riley
LLP registration number
OC340779
Registered office
20 Arundel Gate
Sheffield
South Yorkshire
S1 2PP
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
National Westminster Bank plc
42 High Street
Sheffield
S1 2GE
TAYLOR & EMMET LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7 - 8
Reconciliation of members' interests
9 - 10
Statement of cash flows
11
Notes to the financial statements
12 - 23
TAYLOR & EMMET LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The members present their annual report and financial statements for the year ended 31 March 2024.

Principal activities
The principal activity of the limited liability partnership continued to be that of the provision of legal services.
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, level of seniority and the financing requirement of the company. 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". On leaving the limited liability partnership a member's capital is repayable over a period of time as determined by the members' agreement.

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 R W C Moore
Mrs M T Evans
Mr N C Riley
Auditor

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008).

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 by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TAYLOR & EMMET LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Statement of disclosure to auditor

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

 

Approved by the members on 15 August 2024 and signed on behalf by:
15 August 2024
Mr N C Riley
Designated Member
TAYLOR & EMMET LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TAYLOR & EMMET LLP
- 3 -
Opinion

We have audited the financial statements of Taylor & Emmet LLP (the 'limited liability partnership') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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.

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:

 

TAYLOR & EMMET LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TAYLOR & EMMET LLP
- 4 -
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.

 

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the limited liability partnership’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

TAYLOR & EMMET LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TAYLOR & EMMET LLP
- 5 -

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

 

 

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

 

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Terri Pierpoint
Senior Statutory Auditor
For and on behalf of BHP LLP
15 August 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
TAYLOR & EMMET LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
Notes
£
£
Turnover
3
17,462,996
16,250,757
Cost of sales
(11,312,579)
(9,566,806)
Gross profit
6,150,417
6,683,951
Administrative expenses
(4,896,702)
(4,610,835)
Other operating income
6,000
8,800
Operating profit
4
1,259,715
2,081,916
Interest receivable and similar income
7
2,901,837
852,008
Interest payable and similar expenses
8
(379,271)
(237,347)
Profit for the financial year before members' remuneration and profit shares
3,782,281
2,696,577
Profit for the financial year before members' remuneration and profit shares
3,782,281
2,696,577
Profit for the financial year available for discretionary division among members
3,782,281
2,696,577

The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.

TAYLOR & EMMET LLP
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 7 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
289,081
307,990
Investments
11
250,000
-
539,081
307,990
Current assets
Debtors
13
7,175,550
6,277,240
Cash at bank and in hand
1,555,348
335,952
8,730,898
6,613,192
Creditors: amounts falling due within one year
14
(3,174,488)
(2,139,974)
Net current assets
5,556,410
4,473,218
Total assets less current liabilities
6,095,491
4,781,208
Creditors: amounts falling due after more than one year
15
(266,667)
(466,667)
Provisions for liabilities
Provisions
17
(91,500)
(71,100)
Net assets attributable to members
5,737,324
4,243,441
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
1,050,000
1,050,000
Other amounts
905,043
496,864
1,955,043
1,546,864
Members' other interests
Other reserves classified as equity
3,782,281
2,696,577
5,737,324
4,243,441
Total members' interests
Amounts due from members
-
(31,388)
Loans and other debts due to members
1,955,043
1,546,864
Members' other interests
3,782,281
2,696,577
5,737,324
4,212,053
TAYLOR & EMMET LLP
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 8 -
The financial statements were approved by the members and authorised for issue on 15 August 2024 and are signed on their behalf by:
15 August 2024
Mr N C Riley
Designated member
Limited Liability Partnership registration number OC340779 (England and Wales)
TAYLOR & EMMET LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Other reserves
Members' capital
Other amounts
Total
Total
2024
£
£
£
£
Amounts due to members
496,864
Amounts due from members
(31,388)
Members' interests at 1 April 2023
2,696,577
1,050,000
465,476
1,515,476
4,212,053
Profit for the financial year available for discretionary division among members
3,782,281
-
-
-
3,782,281
Members' interests after profit for the year
6,478,858
1,050,000
465,476
1,515,476
7,994,334
Other divisions of profits
(2,696,577)
-
2,696,577
2,696,577
-
Drawings on account and distributions of profit
-
-
(2,257,010)
(2,257,010)
(2,257,010)
Members' interests at 31 March 2024
3,782,281
1,050,000
905,043
1,955,043
5,737,324
TAYLOR & EMMET LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Other reserves
Members' capital
Other amounts
Total
Total
2023
£
£
£
£
Members' interests at 1 April 2022
3,153,716
1,050,000
(331,591)
718,409
3,872,125
Profit for the financial year available for discretionary division among members
2,696,577
-
-
-
2,696,577
Members' interests after profit for the year
5,850,293
1,050,000
(331,591)
718,409
6,568,702
Other divisions of profits
(3,153,716)
-
3,153,716
3,153,716
-
Drawings on account and distributions of profit
-
-
(2,356,649)
(2,356,649)
(2,356,649)
Members' interests at 31 March 2023
2,696,577
1,050,000
465,476
1,515,476
4,212,053
Amounts due to members
496,864
Amounts due from members, included in debtors
(31,388)
465,476
TAYLOR & EMMET LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,492,256
1,564,711
Interest paid
(379,271)
(237,347)
Net cash inflow from operating activities
1,112,985
1,327,364
Investing activities
Purchase of tangible fixed assets
(202,350)
(242,913)
Purchase of subsidiary
(250,000)
-
Interest received
2,901,837
852,008
Net cash generated from investing activities
2,449,487
609,095
Financing activities
Payments to members
(2,257,010)
(2,356,649)
Proceeds from borrowings
456,720
-
Repayment of borrowings
(649,822)
(99,114)
Proceeds from new bank loans
1,020,000
-
Repayment of bank loans
(912,964)
(200,000)
Net cash used in financing activities
(2,343,076)
(2,655,763)
Net increase/(decrease) in cash and cash equivalents
1,219,396
(719,304)
Cash and cash equivalents at beginning of year
335,952
1,055,256
Cash and cash equivalents at end of year
1,555,348
335,952
TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Limited liability partnership information

Taylor & Emmet LLP is a limited liability partnership incorporated in England and Wales. The registered office is 20 Arundel Gate, Sheffield, South Yorkshire, S1 2PP.

 

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 on the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue recognised represents that due from the normal activities of the practice to the extent that the practice obtains a right to consideration in exchange for its performance of those activities, exclusive of value added tax.

 

The revenue recognised is measured by reference to the amounts likely to be chargeable to clients, less a suitable allowance to recognise the uncertainties remaining in the completion of those obligations. Contingent income is only recognised in the accounting period in which the contingent element is assured.

If, at the Balance Sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the Limited Liability Partnership), then revenue is recognised only when the event occurs.

1.4
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).

Profits are divided only after a decision by the LLP or its representative, so the LLP has an unconditional right to refuse payment. Such profits are classed as equity rather than as liabilities. They are therefore shown as a residual amount available for discretionary division among members in arriving at the result for the year and are shown as appropriations of equity when they are allocated.

1.5
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.

TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

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:

Improvements to short leasehold properties
over the term of the lease
Electronic office machinery
over 3/5 years
Office furniture, fixtures & fittings
over  5/10/12 years

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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the limited liability partnership. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.9
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.

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 trade and other payables and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.10
Provisions

Provisions are recognised when the limited liability partnership has a legal or constructive present obligation as a result of a past event, it is probable that the limited liability partnership will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
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.

1.12
Retirement benefits and post retirement payments to members
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
Members' remuneration
A member's share of the profit or loss for the year is accounted for as an allocation of profits.  Unallocated profits and losses are included within 'other reserves'.
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.

Revenue Recognition

In assessing whether unbilled time in respect of contingent matters is recognised as accrued income in accordance with FRS102, management are required to make judgements in determining the point at which the contingency is resolved and when the fair value of consideration can be measured reliably.

TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
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.

Valuation of accrued income

Revenue in relation to unbilled time, excluding contingent fee matters, is recognised in the financial statements based upon the judgement of members and fee earners in respect of expected ultimate recoverability. In undertaking this assessment, historical recovery rates are considered and applied.

Settlement Claim Provision

The provision for settlement claims is recognised in the financial statements based upon the judgement of members and the risk compliance team that there is a legal present obligation as a result of past events and that payment is probable. In undertaking this assessment, the current status of the matter for each element making up the year end provision balance has been considered to ensure the estimate is reliable.

Dilapidation provision

The Limited Liability Partnership has recognised a post-balance sheet event concerning one of its property leases. Specifically, the event pertains to the potential necessity for a dilapidation provision related to the leased premises. As of the balance sheet date, the Limited Liability Partnership is actively assessing the future status of the lease in question. A final decision regarding the renewal of the lease has not yet been concluded and there is an estimation uncertainty in determining the dilapidation amount.

3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Fees delivered
17,462,996
16,250,757
2024
2023
£
£
Other significant revenue
Interest income
2,901,837
852,008
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the LLP's auditors for the audit of the LLP's annual accounts
17,700
16,700
Depreciation of owned tangible fixed assets
214,468
212,729
Operating lease rentals - land and buildings
410,482
420,616
TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
5
Employees

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

2024
2023
Number
Number
Fee earners
137
134
Support, accounts and administration
127
114
Total
264
248

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
9,511,878
7,829,742
Social security costs
904,394
829,610
Pension costs
373,095
342,185
10,789,367
9,001,537
6
Members' remuneration
2024
2023
Number
Number
Average number of members during the year
7
7
2024
2023
£
£
Profit attributable to the member with the highest entitlement
558,322
397,289
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,246,663
904,847
Other interest income
(344,826)
(52,839)
Total income
2,901,837
852,008
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,246,663
904,847
TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
44,687
96,014
Interest on invoice finance arrangements
334,584
141,333
379,271
237,347
9
Tangible fixed assets
Improvements to short leasehold properties
Electronic office machinery
Office furniture, fixtures & fittings
Total
£
£
£
£
Cost
At 1 April 2023
311,233
2,734,521
777,891
3,823,645
Additions
40,295
162,055
-
202,350
Disposals
(53,600)
(1,931,749)
(89,777)
(2,075,126)
At 31 March 2024
297,928
964,827
688,114
1,950,869
Depreciation and impairment
At 1 April 2023
281,723
2,532,240
701,692
3,515,655
Depreciation charged in the year
9,793
185,078
19,597
214,468
Eliminated in respect of disposals
(53,600)
(1,931,749)
(82,986)
(2,068,335)
At 31 March 2024
237,916
785,569
638,303
1,661,788
Carrying amount
At 31 March 2024
60,012
179,258
49,811
289,081
At 31 March 2023
29,510
202,281
76,199
307,990
10
Financial instruments

All financial assets and liabilities are measured at amortised cost.

 

 

11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
250,000
-
TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Fixed asset investments
(Continued)
- 19 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
-
Additions
250,000
At 31 March 2024
250,000
Carrying amount
At 31 March 2024
250,000
At 31 March 2023
-
12
Subsidiaries

These financial statements are separate limited liability partnership financial statements for Taylor & Emmet LLP.

Details of the limited liability partnership's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Taylor & Emmet Trustees Limited
20 Arundel Gate, Sheffield, England, S1 2PP
Ordinary
100.00

On 23 November 2023, Taylor & Emmet LLP purchased 100% of the share capital within Taylor & Emmet Trustees Limited.

 

The results of Taylor & Emmet Trustees Limited have not been consolidated on the grounds that the company is immaterial to the group.

13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,904,725
2,324,128
Amounts owed by members
-
31,388
Other debtors
18,745
21,781
Prepayments and accrued income
4,252,080
3,899,943
7,175,550
6,277,240
TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
507,036
200,000
Other borrowings
16
211,784
404,886
Trade creditors
334,824
178,855
Amounts owed to group undertakings
250,000
-
Other taxation and social security
758,254
709,712
Accruals and deferred income
1,112,590
646,521
3,174,488
2,139,974

See note 16 for details of security.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
266,667
466,667

See note 16 for details of security.

16
Loans and overdrafts
2024
2023
£
£
Bank loans
773,703
666,667
Other loans
211,784
404,886
985,487
1,071,553
Payable within one year
718,820
604,886
Payable after one year
266,667
466,667

The bank loans are secured by way of a debenture over all of the LLP's assets.

17
Provisions for liabilities
2024
2023
£
£
Settlement claims provision
91,500
71,100
TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Provisions for liabilities
(Continued)
- 21 -
Movements on provisions:
Settlement claims provision
£
At 1 April 2023
71,100
Additional provisions in the year
(78,276)
Utilisation of provision
98,676
At 31 March 2024
91,500

The settlement claims provision is the anticipated cost to settle claims made against the firm based on information and conditions at the year end.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
373,095
342,185

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.

19
Financial commitments, guarantees and contingent liabilities

After the year end the LLP has identified a post-balance sheet event related to one of its property leases. This event relates to the potential requirement for a dilapidation provision associated with the leased premises.

 

The LLP is currently in the process of evaluating the future status of the lease in question and at the balance sheet date, a decision regarding lease renewal has not been finalised. Consequently, the determination of the estimated dilapidation amount remains uncertain.

20
Operating lease commitments

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:

2024
2023
£
£
Within one year
386,305
380,850
Between two and five years
338,097
625,667
In over five years
495,000
495,000
1,219,402
1,501,517
TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
21
Related party transactions
Remuneration of key management personnel

 

The remuneration of key management personnel is as follows
2024
2023
£
£
Aggregate compensation
734,460
525,775

Certain members and key management personnel of the LLP control Outward Searches Limited.

 

Purchases in the year from Outward Searches Limited amounted to £600,019 (2023: £557,841).

 

A management charge of £6,000 (2023: £8,800) was charged to Outward Searches Limited in the year. At the year end there was a balance within other debtors of £6,000 (2023: £8,800) relating to this charge.

 

Within trade debtors at the year end there was a balance of £nil (2023: £2,400) with Outward Searches.

 

Included in rent is £nil (2023: £36,667) paid for the rent of the Banner Cross premises, which is owned by separate property partnerships in which two of the members of Taylor & Emmet LLP are the partners.

 

22
Cash generated from operations
2024
2023
£
£
Profit for the year
3,782,281
2,696,577
Adjustments for:
Finance costs recognised in profit or loss
379,271
237,347
Investment income recognised in profit or loss
(2,901,837)
(852,008)
Loss on disposal of tangible fixed assets
6,791
-
Depreciation and impairment of tangible fixed assets
214,468
212,729
Increase/(decrease) in provisions
20,400
(67,000)
Movements in working capital:
Increase in debtors
(929,698)
(772,528)
Increase in creditors
920,580
109,594
Cash generated from operations
1,492,256
1,564,711
TAYLOR & EMMET LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
23
Analysis of changes in net funds/(debt)
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
335,952
1,219,396
1,555,348
Borrowings excluding overdrafts
(1,071,553)
86,066
(985,487)
Balances before members' debt
(735,601)
1,305,462
569,861
Loans and other debts due to members:
- Members' capital
(1,050,000)
-
(1,050,000)
- Other amounts due to members
(496,864)
(408,179)
(905,043)
Balances including members' debt
(2,282,465)
897,283
(1,385,182)
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