REGISTERED NUMBER: |
REPORT OF THE MEMBERS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
HIGHGATE CAPITAL MANAGEMENT LLP |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
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: |
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: |
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. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
1 Kings Avenue |
London |
N21 3NA |
HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE | 3 |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
HIGHGATE CAPITAL MANAGEMENT LLP (REGISTERED NUMBER: OC398390) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 7 |
CURRENT ASSETS |
Debtors | 8 |
Investments | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
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 |
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 |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Deep discount note | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
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 | ( |
) |
Cash and cash equivalents at beginning of year |
13 |
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 |
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 |
£ | £ |
An analysis of revenue by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
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 |
Auditors' remuneration |
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 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
Other debtors |
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 |
Accrued expenses |
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 |
Finance income | (9,840 | ) | - |
34,886 | 89,399 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 | ( |
) | 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. |