Limited Liability Partnership registration number OC306894 (England and Wales)
FENWICK ELLIOTT LLP
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
FENWICK ELLIOTT LLP
CONTENTS
Page
LLP Information
1
Members' report
2 - 3
Members' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Reconciliation of members' interests
11 - 12
Statement of cash flows
13
Notes to the financial statements
14 - 25
FENWICK ELLIOTT LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
- 1 -
Designated members
Mr N L Elliot
Mr A W Francis
Mr S J A Tolson
LLP registration number
OC306894
Registered office
Aldwych House
71 - 91 Aldwych
London
WC2B 4HN
Auditor
TC Group
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
Business address
Aldwych House
71 - 91 Aldwych
London
WC2B 4HN
FENWICK ELLIOTT LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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 solicitors.

Fair review of the business

The firm had a record year for both turnover and profit.  The split between domestic and international work swung further towards domestic work.  The firm continues to invest in its staff and infrastructure to ensure that it remains the market leader in the construction and energy sectors.

 

Fenwick Elliott LLP has a branch, as defined in Section 1046(3) of the Companies Act 2006, outside the UK in Dubai.

Members' drawings, contributions and repayments

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

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership.

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 N L Elliot
Mr A W Francis
Mr S J A Tolson
Financial instruments
Liquidity risk

The limited liability partnership manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the limited liability partnership has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The limited liability partnership is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The limited liability partnership uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

FENWICK ELLIOTT LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Foreign currency risk

The limited liability partnership’s principal foreign currency exposures arise from trading with overseas companies. The limited liability partnership's policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the members.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

TC Group was appointed as auditor to the limited liability partnership and in accordance with section 485 of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), a resolution proposing that they be re-appointed will be put at a General Meeting.

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 4 September 2024 and signed on behalf by:
04 September 2024
Mr A W Francis
Mr S J A Tolson
Designated Member
Designated Member
FENWICK ELLIOTT LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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.

FENWICK ELLIOTT LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FENWICK ELLIOTT LLP
- 5 -
Opinion

We have audited the financial statements of Fenwick Elliott 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

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the limited liability partnership’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

FENWICK ELLIOTT LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FENWICK ELLIOTT LLP
- 6 -

Other information

The members are responsible for the other information. The other information comprises the information included in the members' report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

 

 

FENWICK ELLIOTT LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FENWICK ELLIOTT LLP
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

•    We identified areas of laws and regulations that could reasonably be expected to have a material effect     on the financial statements from our general commercial and sector experience, and through discussion     with those charged with governance of the entity and other management (as required by auditing     standards), and discussed with those charged with governance of the entity and other management the     policies and procedures regarding compliance with laws and regulations;

•    We considered the legal and regulatory frameworks directly applicable to the financial statements     reporting framework (FRS 102 and the Companies Act 2006 as applied to limited liability partnerships);

•    We considered the nature of the industry, the control environment and business performance, including     the key drivers for members' remuneration and distributions;

•    We communicated identified laws and regulations throughout our team and remained alert to any     indications of non-compliance throughout the audit;

•    We considered the procedures and controls that the limited liability partnership has established to     address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management     monitors those programmes and controls.

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

 

FENWICK ELLIOTT LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FENWICK ELLIOTT LLP
- 8 -

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.

Chris Checkley FCCA (Senior Statutory Auditor)
for and on behalf of TC Group
Statutory Auditor
Office: Steyning
5 September 2024
FENWICK ELLIOTT LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
22,833,224
19,811,187
Administrative expenses
(12,847,606)
(11,881,678)
Other operating income
57
683
Operating profit
4
9,985,675
7,930,192
Interest receivable and similar income
4,399
4,221
Interest payable and similar expenses
8
(144,948)
(63,451)
Profit for the financial year before members' remuneration and profit shares
9,845,126
7,870,962
Members' remuneration charged as an expense
7
(1,633,890)
(1,932,348)
Profit for the financial year available for discretionary division among members
8,211,236
5,938,614

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

FENWICK ELLIOTT LLP
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
268,559
346,363
Current assets
Debtors
10
11,093,899
8,172,484
Cash at bank and in hand
182,916
453,485
11,276,815
8,625,969
Creditors: amounts falling due within one year
12
(5,663,509)
(3,280,059)
Net current assets
5,613,306
5,345,910
Total assets less current liabilities
5,881,865
5,692,273
Provisions for liabilities
Provisions
13
(631,635)
(611,454)
Net assets attributable to members
5,250,230
5,080,819
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
2,369,529
2,879,694
Other amounts
2,442,401
1,762,825
4,811,930
4,642,519
Members' other interests
Members' capital classified as equity
438,300
438,300
5,250,230
5,080,819
The financial statements were approved by the members and authorised for issue on 4 September 2024 and are signed on their behalf by:
04 September 2024
Mr A W Francis
Mr S J A Tolson
Designated member
Designated Member
Limited Liability Partnership registration number OC306894 (England and Wales)
FENWICK ELLIOTT LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
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
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2024
£
£
£
£
£
£
Amounts due to members
4,642,519
Members' interests at 1 April 2023
438,300
-
438,300
4,642,519
4,642,519
5,080,819
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
-
-
1,633,890
1,633,890
1,633,890
Profit for the financial year available for discretionary division among members
-
8,211,236
8,211,236
-
-
8,211,236
Members' interests after profit and remuneration for the year
438,300
8,211,236
8,649,536
6,276,409
6,276,409
14,925,945
Allocation of profit for the financial year
-
(8,211,236)
(8,211,236)
8,211,236
8,211,236
-
Drawings
-
-
-
(10,355,291)
(10,355,291)
(10,355,291)
Taxation
-
-
-
679,576
679,576
679,576
Members' interests at 31 March 2024
438,300
-
438,300
4,811,930
4,811,930
5,250,230
Amounts due to members
4,811,930
FENWICK ELLIOTT LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
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
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
Amounts due to members
4,722,462
Members' interests at 1 April 2022
438,300
-
438,300
4,722,462
4,722,462
5,160,762
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
-
-
1,932,348
1,932,348
1,932,348
Profit for the financial year available for discretionary division among members
-
5,938,614
5,938,614
-
-
5,938,614
Members' interests after profit and remuneration for the year
438,300
5,938,614
6,376,914
6,654,810
6,654,810
13,031,724
Allocation of profit for the financial year
-
(5,938,614)
(5,938,614)
5,938,614
5,938,614
-
Drawings
-
-
-
(7,932,541)
(7,932,541)
(7,932,541)
Taxation
-
-
-
(18,364)
(18,364)
(18,364)
Members' Interests at 31 March 2020
438,300
-
438,300
4,642,519
4,642,519
5,080,819
Amounts due to members
4,642,519
FENWICK ELLIOTT LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
8,653,734
7,011,655
Interest paid
(144,948)
(63,451)
Net cash inflow from operating activities
8,508,786
6,948,204
Investing activities
Purchase of tangible fixed assets
(63,988)
(99,033)
Interest received
4,399
4,221
Net cash used in investing activities
(59,589)
(94,812)
Financing activities
Payments to members that represent a return on amounts subscribed or otherwise contributed
(9,675,715)
(7,950,905)
Proceeds from borrowings
3,415,556
3,089,653
Movement of borrowings
(2,894,710)
(2,964,682)
Net cash used in financing activities
(9,154,869)
(7,825,934)
Net decrease in cash and cash equivalents
(705,672)
(972,542)
Cash and cash equivalents at beginning of year
453,485
1,426,027
Cash and cash equivalents at end of year
(252,187)
453,485
Relating to:
Cash at bank and in hand
182,916
453,485
Bank overdrafts included in creditors payable within one year
(435,103)
-
The notes on pages 14 to 25 form part of these financial statements
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Limited liability partnership information

Fenwick Elliott LLP is a limited liability partnership incorporated in England and Wales. The registered office is Aldwych House, 71 - 91 Aldwych, London, WC2B 4HN.

 

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

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. 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 limited liability partnership 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

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

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).

 

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

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

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

 

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

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

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment. Amounts payable to members under employment contracts and unavoidable interest on members capital are charged to “members remuneration charged as an expense” in the relevant year.

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.

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:

Leasehold improvements
over term of lease
Fixtures and fittings
25% or 33% straight line
Computers
3 year straight line

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
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
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.

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.

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 fair value through 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 limited liability partnership’s obligations expire or are discharged or cancelled.

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.8
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.

1.9
Retirement benefits and post retirement payments to members

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

1.10
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.11
Foreign exchange

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

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.

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Key sources of estimation uncertainty
Work In Progress

Work in progress is recognised in line with the LLP’s accounting policies disclosed in its financial statements. Management assess the work undertaken to date in order to establish when revenue should be recognised. Where there is uncertainly about the recoverability, the amount is restricted to reflect this.

Provisions

Included within provision is an amount in respect of dilapidations with regard to the current premises. The amount provided has been given by a 3rd party and adjusted for inflationary increases. Management assess this amount each year and adjust accordingly.

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
3
Turnover

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

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,910,871
11,864,800
United States of America
-
72,388
Rest of the World
7,793,414
7,765,203
Disbursements
128,939
108,796
22,833,224
19,811,187
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
39,120
(54,596)
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
30,500
30,680
Depreciation of owned tangible fixed assets
141,792
151,636
Operating lease charges
1,184,492
1,191,425
5
Auditor's remuneration
2024
2023
Fees payable to the LLP's auditor and associates:
£
£
For audit services
Audit of the financial statements of the LLP
30,500
30,680
6
Employees

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

2024
2023
Number
Number
Fee earners and administrative
64
61
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,490,776
6,181,135
Pension costs
553,359
521,026
7,044,135
6,702,161
7
Members' remuneration
2024
2023
Number
Number
Average number of members during the year
23
21
2024
2023
£
£
Profit attributable to the member with the highest entitlement
962,120
758,865
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
144,948
63,451
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
9
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2023
611,454
902,469
193,258
1,707,181
Additions
20,181
8,937
34,870
63,988
Disposals
-
(273,721)
(51,445)
(325,166)
At 31 March 2024
631,635
637,685
176,683
1,446,003
Depreciation and impairment
At 1 April 2023
333,007
882,008
145,803
1,360,818
Depreciation charged in the year
90,322
8,253
43,217
141,792
Eliminated in respect of disposals
-
(273,721)
(51,445)
(325,166)
At 31 March 2024
423,329
616,540
137,575
1,177,444
Carrying amount
At 31 March 2024
208,306
21,145
39,108
268,559
At 31 March 2023
278,447
20,461
47,455
346,363
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
9,787,881
7,523,851
Other debtors
321,265
5,247
Prepayments and accrued income
984,753
643,386
11,093,899
8,172,484
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
11
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
435,103
-
Other loans
1,899,885
1,379,039
2,334,988
1,379,039
Payable within one year
2,334,988
1,379,039

The bank overdraft and loan is secured by a debenture over the LLP's assets.

 

12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
11
435,103
-
Other borrowings
11
1,899,885
1,379,039
Trade creditors
2,162,955
1,127,284
Other taxation and social security
645,670
463,607
Accruals and deferred income
519,896
310,129
5,663,509
3,280,059
13
Provisions for liabilities
2024
2023
£
£
Dilapidation provision
631,635
611,454
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Provisions for liabilities
(Continued)
- 23 -
Movements on provisions:
Dilapidation provision
£
At 1 April 2023
611,454
Additional provisions in the year
20,181
At 31 March 2024
631,635
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
553,359
521,026

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.

15
Loans and other debts due to members
2024
2023
£
£
Analysis of loans
Amounts falling due within one year
4,811,930
4,642,519

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

FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
16
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
727,740
727,740
Between two and five years
1,091,610
1,819,350
1,819,350
2,547,090
17
Cash generated from operations
2024
2023
£
£
Profit for the year
9,845,126
7,870,962
Adjustments for:
Finance costs recognised in profit or loss
144,948
63,451
Investment income recognised in profit or loss
(4,399)
(4,221)
Depreciation and impairment of tangible fixed assets
141,792
151,636
Increase in provisions
20,181
49,972
Movements in working capital:
Increase in debtors
(2,921,415)
(599,783)
Increase/(decrease) in creditors
1,427,501
(113,362)
Decrease in deferred income
-
(407,000)
Cash generated from operations
8,653,734
7,011,655
FENWICK ELLIOTT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
18
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
453,485
(270,569)
182,916
Bank overdrafts
-
(435,103)
(435,103)
453,485
(705,672)
(252,187)
Borrowings excluding overdrafts
(1,379,039)
(520,846)
(1,899,885)
Balances before members' debt
(925,554)
(1,226,518)
(2,152,072)
Loans and other debts due to members:
- Other amounts due to members
(4,642,519)
(169,411)
(4,811,930)
Balances including members' debt
(5,568,073)
(1,395,929)
(6,964,002)
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