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REGISTERED NUMBER: OC398390 (England and Wales)










REPORT OF THE MEMBERS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

HIGHGATE CAPITAL MANAGEMENT LLP

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

General Information 1

Report of the Members 2

Report of the Independent Auditors 4

Statement of Comprehensive Income 7

Statement of Financial Position 8

Reconciliation of Members' Interests 9

Statement of Cash Flows 10

Notes to the Financial Statements 11


HIGHGATE CAPITAL MANAGEMENT LLP

GENERAL INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DESIGNATED MEMBERS: A Kruglykhin
P Moutchiev





REGISTERED OFFICE: 1 Kings Avenue
London
N21 3NA





REGISTERED NUMBER: OC398390 (England and Wales)





INDEPENDENT AUDITORS: AGK Partners
Chartered Accountants & Statutory Auditors
1 Kings Avenue
London
N21 3NA

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

REPORT OF THE MEMBERS
FOR THE YEAR ENDED 31 DECEMBER 2023

The members present their report with the financial statements of the LLP for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the LLP during the period was the provision of investment advisory and investment management services. The LLP is authorised by the Financial Conduct Authority to provide investment management services.

REVIEW OF BUSINESS
The LLP is primarily focused on the so-called "co-investment" business model where suitable investors are sought for specific investment opportunities that have been identified, analysed and diligenced by the LLP. The success of the business will depend in the LLP's ability to find such investment opportunities and correspondingly increase the size of its assets under management. At this stage, there are no relevant KPIs to report.

DESIGNATED MEMBERS
The designated members during the year under review were:

A Kruglykhin
P Moutchiev

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS
The profit for the year before members' remuneration and profit shares was £43,312 (2022 - £88,647 profit).

MEMBERS' INTERESTS
The member's subscription to capital is as determined by the members from time to time, having regard to the short, medium and long-term needs of the business and also in accordance with the members' agreement dated 5 May 2015. Members are remunerated from profits of the LLP, which are allocated between members in accordance with the members' agreement.

Members draw a proportion of their profit share 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 LLP.

Members' capital is returned solely at the discretion of the LLP.

EVENTS SINCE THE STATEMENT OF FINANCIAL POSITION DATE
There are no events after the statement of financial position date that require adjustments or disclosures to be made to the financial statements.

STATEMENT OF MEMBERS' RESPONSIBILITIES
The members are responsible for preparing the Report of the Members and the financial statements in accordance with applicable law and regulations.

Legislation applicable to limited liability partnerships requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under legislation applicable to limited liability partnerships 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006 as applied to LLPs 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 LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the LLP's auditors are unaware, and each member has taken all the steps that he ought to have taken as a member in order to make himself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

REPORT OF THE MEMBERS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, AGK Partners, have signified their willingness to continue in office as auditors.

ON BEHALF OF THE MEMBERS:





P Moutchiev - Designated member


23 April 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HIGHGATE CAPITAL MANAGEMENT LLP

Opinion
We have audited the financial statements of Highgate Capital Management LLP (the 'LLP') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Reconciliation of Members' Interests, Statement of Cash Flows and Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the LLP's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006 as applied to LLPs 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 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 LLP's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The members are responsible for the other information. The other information comprises the information in the Report of the Members, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 where the Companies Act 2006 as applied to LLPs 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 Statement of Members' Responsibilities set out on page two, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HIGHGATE CAPITAL MANAGEMENT LLP


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 a Report of the Auditors 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:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations.

- we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the electronic money institution sector.

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery and employment.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of
potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities, including fraud and non-compliance with laws and regulations, we designed
procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HIGHGATE CAPITAL MANAGEMENT LLP


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 to LLPs 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 LLP's members those matters we are required to state to them in a Report of the Auditors 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.




Alekos Christofi (FCCA) (Senior Statutory Auditor)
for and on behalf of AGK Partners
Chartered Accountants & Statutory Auditors
1 Kings Avenue
London
N21 3NA

23 April 2024

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

REVENUE 3 127,906 297,770

Administrative expenses 94,434 209,123
OPERATING PROFIT 5 33,472 88,647

Interest receivable and similar income 9,840 -
PROFIT FOR THE FINANCIAL YEAR
BEFORE MEMBERS' REMUNERATION AND
PROFIT SHARES AVAILABLE FOR
DISCRETIONARY DIVISION AMONG
MEMBERS




43,312




88,647


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

43,312

88,647

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 7 5,364 1,610

CURRENT ASSETS
Debtors 8 1,082,178 1,060,469
Investments 9 94,840 -
Cash at bank 8,859 78,167
1,185,877 1,138,636
CREDITORS
Amounts falling due within one year 10 16,514 8,831
NET CURRENT ASSETS 1,169,363 1,129,805
TOTAL ASSETS LESS CURRENT LIABILITIES
and
NET ASSETS ATTRIBUTABLE TO
MEMBERS

1,174,727

1,131,415

LOANS AND OTHER DEBTS DUE TO
MEMBERS

11

1,174,727

1,131,415

TOTAL MEMBERS' INTERESTS
Loans and other debts due to members 11 1,174,727 1,131,415

The financial statements were approved by the members of the LLP and authorised for issue on 23 April 2024 and were signed by:





P Moutchiev - Designated member

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

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


Members'
Capital
Other reserves Total
members'
other reserves
Amount due
from members
in debtors
Total
£ £ £ £ £
As at 1 January 2023 2,199,001 (1,067,587 ) 1,131,415 (1,060,468 ) 70,946
Members' capital contribution for the year
Profit/ (Loss) for the
year before members'
remuneration and
profit shares
43,312 43,312 43,312
Amounts due from
members
(171 ) (171 )
As at 31 December
2023
2,199,001 (1,024,275 ) 1,174,727 ( 1,060,639 ) 114,088


Members'
Capital
Other reserves Total
members'
other reserves
Amount due
from members
in debtors
Total
£ £ £ £ £
As at 1 January 2022 2,186.001 (1,156,234 ) 1,029,768 (974,107 ) 55,660
Members' capital
contribution for the
year
13,000 13,000 13,000
Profit/ (Loss) for the
year before members'
remuneration and
profit shares
88,647 88,647 88,647
Amounts due from
members
(86,361 ) (86,361 )
As at 31 December
2022
2,199,001 (1,067,587 ) 1,131,415 (1,060,468 ) 70,946

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 12 20,860 12,924
Net cash from operating activities 20,860 12,924

Cash flows from investing activities
Purchase of tangible fixed assets (5,168 ) (790 )
Interest received 9,840 -
Deep discount note (94,840 ) -
Net cash from investing activities (90,168 ) (790 )

Cash flows from financing activities
Transactions with members and former members
Contributions by members - 13,000
Net cash from financing activities - 13,000

(Decrease)/increase in cash and cash equivalents (69,308 ) 25,134
Cash and cash equivalents at beginning
of year

13

78,167

53,033

Cash and cash equivalents at end of year 13 8,859 78,167

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

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

1. STATUTORY INFORMATION

Highgate Capital Management LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page.

The presentation and functional currency of the LLP is the Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention.

The principal activity of the LLP during the period was the provision of investment advisory and investment management services.

The members have reasonable expectation that the LLP and the group have adequate resources to continue in operational existence for the foreseeable future and to continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates
In the application of the LLP'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.

There are no significant judgements and estimates in the accounts for the year ended 31 December 2022.

Revenue
Revenue represents the investment management fees earned on funds under management net of value added tax.

Revenue is measured at the fair value of the consideration received or receivable, taking into account the contractually defined terms of payment. Management fees are recognised in the income statement over the period for which these investment management services are provided, regardless of when the payment is due.

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

Depreciation is provided on the following basis:
Improvements to property - over period of lease
Fixtures and fittings - 25% straight line
Plant and machinery - 25% 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.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the income statement.

Classification of share of profits in the cash flow statement
Discretionary or automatic distribution of profits are classified within operating cash flows.

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

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

2. ACCOUNTING POLICIES - continued

Short term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Income Statement in other operating expenses.

Financial instruments
The LLP 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 LLP's statement of financial position when the LLP becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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

Impairment of financial assets
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 LLP 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. An equity instrument is any contract that evidences a residual interest in the assets of the LLP after deducting all of its liabilities.

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

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

2. ACCOUNTING POLICIES - continued

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

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

Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied, and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities
Financial liabilities are derecognised when the LLP's contractual obligations expire or are discharged or cancelled.

Going concern
The members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the forseeable future. The members regard the forseeable future as no less than twelve months following the publication of its annual financial statements. The members have considered the LLP's working capital forecasts and projections, taking account of reasonably possible changes in the performance of the LLP and the current state of its operating market, and are satisfied that the LLP should be able to attract investment and remain in operational existence. Accordingly, they have adopted the going concern basis in preparing the financial information.

Profit allocations
Profit allocations are recognised in the year in which they are declared and become a present obligation of the LLP. The net profits for each accounting period are allocated between the Members in accordance with the profit - sharing formula agreed between the Members by special majority but in default of such an agreement, the profits shall be shared in the same proportions as their contributions to Capital. The share of the profit for the year is credited to Members current account and represents a debt payable by the LLP. Unallocated profits if any are recognised in equity ('other reserves'). Any losses are not allocated to members but must be eliminated by future profits before profit allocations recommence.

Drawings
Drawings represent payments on account of profits which may be allocated to members. The Members shall be paid (as Drawings) an amount of his share of profit as determined from time to time by the Members. If at the end of an accounting period a Members current account shows a deficit on account of excess withdrawals, then the Member shall repay to the LLP such excess withdrawals forthwith.

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

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

3. REVENUE

The revenue and profit for the financial year before members' remuneration and profit shares are attributable to the one principal activity of the LLP.

An analysis of revenue by class of business is given below:

2023 2022
£    £   
Management fees 127,906 297,770
127,906 297,770

An analysis of revenue by geographical market is given below:

2023 2022
£    £   
United Kingdom 127,906 297,770
127,906 297,770

4. EMPLOYEE INFORMATION

There were no staff costs for the year ended 31 December 2023 nor for the year ended 31 December 2022.

The average number of employees during the year was NIL (2022 - NIL).

5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 1,414 752
Auditors' remuneration 3,675 3,500

6. INFORMATION IN RELATION TO MEMBERS

2023 2022

The average number of members during the year was 3 3

7. PROPERTY, PLANT AND EQUIPMENT
Office
equipment
£   
COST
At 1 January 2023 9,660
Additions 5,168
At 31 December 2023 14,828
DEPRECIATION
At 1 January 2023 8,050
Charge for year 1,414
At 31 December 2023 9,464
NET BOOK VALUE
At 31 December 2023 5,364
At 31 December 2022 1,610

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

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

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 21,539 -
Other debtors 1,060,639 1,060,469
1,082,178 1,060,469

9. CURRENT ASSET INVESTMENTS
2023 2022
£    £   
Deep Discount note 94,840 -

The current asset invesment was measured using the amortised cost method.

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
VAT 4,115 1,831
Other creditors 5,399 -
Accrued expenses 7,000 7,000
16,514 8,831

11. LOANS AND OTHER DEBTS DUE TO MEMBERS
2023 2022
£    £   
Amounts owed to members in respect of profits 1,174,727 1,131,415

Falling due within one year 1,174,727 1,131,415

12. RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND
PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS TO CASH
GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit for the financial year before members' remuneration and profit
shares available for discretionary division among members

43,312

88,647
Depreciation charges 1,414 752
Finance income (9,840 ) -
34,886 89,399
Increase in trade and other debtors (21,709 ) (81,398 )
Increase in trade and other creditors 7,683 4,923
Cash generated from operations 20,860 12,924

HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390)

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

13. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 8,859 78,167
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 78,167 53,033


14. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.1.23 Cash flow changes At 31.12.23
£    £    £    £   
Net cash
Cash at bank 78,167 (69,308 ) 8,859
78,167 (69,308 ) 8,859

Liquid resources
Current asset
investments - 94,840 - 94,840
- 94,840 - 94,840
Net funds (before
members' debt) 78,167 25,532 - 103,699

Loans and other debts
due to members
Other amounts
due to members (1,131,415 ) - (43,312 ) (1,174,727 )
Net debt (1,053,248 ) 25,532 (43,312 ) (1,071,028 )

15. RELATED PARTY TRANSACTIONS

Included in debtors, amounts falling due within one year, is a balance of £1,060,639 (2022: £1,060,468) due from the designated members. The balance is interest free.

16. CONTROLLING PARTY

Andrey Kruglykhin is considered to be the ultimate controlling party.