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Information
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Contents
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Members' report
for the year ended 31 December 2023
The members present their report together with the audited financial statements of Marsham Investment Management LLP ('the LLP') for the year ended 31 December 2023.
The LLP is authorised and regulated by the Financial Conduct Authority.
Principal activities
The principal activity of the LLP in the period under review was the provision of investment advisory and multi-family office services.
Designated Members
The designated members of the LLP who were in office during the year and up to the date of the signing the financial statements were:
E Lozovik M Lozovik
Policy for members' drawings, subscriptions and repayments of members' capital
During the year, members contributed £nil (2022: £nil) to the LLP. Members may contribute further capital with the agreement of the founding members. No member is entitled to interest on his/her capital contribution. No member may be required to contribute any further capital on the insolvency of the LLP.
No member has the right to withdraw or receive back any part of the amount standing to the credit of his/her capital account. The LLP shall have discretion to return some or all of the amount standing to the credit of a member's capital account subject to agreement from the FCA or on cessation of being a member when an equal amount of capital is contributed by the LLP or another member. Profit shall be divided between the members as per the LLP agreement. The founding members have discretion to determine the level of drawing that members can take in anticipation of their profit entitlement. Members are entitled to withdraw from the LLP any amounts standing to the credit of that member's distribution account. Should the annual accounts of the LLP show that in a relevant accounting period any member was distributed amounts in excess of his/her share of the profits then this excess will become repayable on demand of the LLP.
Members' responsibilities statement
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 (United Kingdom Accounting Standards and applicable law). 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 LLP and of the profit or loss of the LLP for that period.
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Members' report (continued)
for the year ended 31 December 2023
Members' responsibilities statement (continued)
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 UK 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 to 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 the 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.
This report was approved by the members on 23 April 2024 and signed on their behalf by:
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Independent auditor's report to the members of Marsham Investment Management LLP
for the year ended 31 December 2023
We have audited the financial statements of Marsham Investment Management LLP (the 'LLP') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Reconciliation of members' interests, the Statement of cash flows and the related notes, 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).
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 LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The members are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
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Independent auditor's report to the members of Marsham Investment Management LLP (continued)
for the year ended 31 December 2023
Other information (continued)
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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:
∙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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Independent auditor's report to the members of Marsham Investment Management LLP (continued)
for the year ended 31 December 2023
Auditor's responsibilities for the audit of the financial statements (continued)
How the audit was considered capable of detecting irregularities including fraud
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 Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, including knowledge specific to auditing regulated investment advisory firms;
∙we made enquiries of management as to where they considered there was susceptibility to fraud, and their knowledge of actual, suspected and alleged fraud;
∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial statements of the LLP through discussions with members and other management at the planning stage, and from our knowledge and experience of regulated investment advisory firms;
∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to misstatement, including with respect to fraud and non-compliance with laws and regulations; and
∙we focused our planned audit work on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the LLP including the Companies Act 2006 as applied to LLPs, The Financial Services and Markets Act 2000 and employment legislation.
We assessed the extent of compliance with the laws and regulations identified above through:
∙making enquiries of management;
∙reviewing legal expenditure and correspondence throughout the year for any potential litigation or claims; and
∙considering the internal controls in place that are designed 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:
∙determined the susceptibility of the LLP to management override of controls by checking the implementation of controls and enquiring of individuals involved in the financial reporting process;
∙reviewed journal entries throughout the year to identify unusual transactions;
∙performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any large variances from the prior period;
∙reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias on the part of the LLP’s management;
∙tested the completeness and existence of revenue by obtaining third party confirmations over management and performance fees earned from the fund administrators; and
∙carried out substantive testing to check the occurrence and cut-off of expenditure.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included:
∙agreeing financial statement disclosures to underlying supporting documentation; and
∙enquiring of management as to actual and potential litigation and claims.
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Independent auditor's report to the members of Marsham Investment Management LLP (continued)
for the year ended 31 December 2023
Auditor's responsibilities for the audit of the financial statements (continued)
There are inherent limitations in our audit procedures described above. Irregularities that result from fraud might be
inherently more difficult to detect than irregularities that result from error as they may involve deliberate concealment or
collusion. Auditing standards also limit the audit procedures required to identify non-compliance with laws and
regulations to enquiry of the members and other management and the inspection of regulatory and legal
correspondence, if any.
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 Auditor's 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 by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications 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 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 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
Statutory Auditor
130 Wood Street
EC2V 6DL
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Statement of comprehensive income
for the year ended 31 December 2023
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Statement of financial position
as at
The financial statements were approved and authorised for issue by the members and were signed on their behalf by
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Reconciliation of members' interests
for the year ended 31 December 2023
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Statement of cash flows
for the year ended 31 December 2023
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Notes to the financial statements
for the year ended 31 December 2023
Marsham Management Investment LLP is a limited liability partnership incorporated in England & Wales. The address of the registered office and its principal place of business is 28 Bolton Street, London, W1J 8BP. Its registered number is OC407363.
2.Significant accounting policies
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies (see note 3). The following principal accounting policies have been applied consistently throughout the year:
After reviewing the forecasts and projections the members have reasonable expectations that the LLP has
adequate resources to continue in operational existence for the foreseeable future. The LLP therefore continues to adopt the going concern basis in preparing its financial statements. Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
All expenses have been accounted for on an accruals basis.
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Notes to the financial statements
for the year ended 31 December 2023
2.Significant accounting policies (continued)
The taxation payable on the LLP profits is the personal liability of the members and consequently neither taxation nor related deferred taxation are accounted for in the financial statements. Amounts retained for tax are treated in the same way as other profits of the LLP and are included in 'Members' interests' or in 'Loans and other debts due to members' depending on whether or not division of profits has occurred.
Tangible assets 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 charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
repayable without penalty on notice and other short term highly liquid investments with original maturity of 3 months or less and bank overdrafts.
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Notes to the financial statements
for the year ended 31 December 2023
2.Significant accounting policies (continued)
The LLP only enters into transactions that result in the recognition of basic financial instruments like trade
debtors, creditors and loans to related parties. Debt instruments, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
Basic financial liabilities include trade and other payables. Creditors are measured at the transaction price. Other financial creditors are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Members capital represents the value of capital contributed by the members.
The members of the LLP are remunerated based on the profit of the LLP in respect of each
financial year. It is allocated amongst the members in accordance with the limited liability partnership
agreement.
Loans and debts due to members comprises of residual profit share and balances due in respect of expenses
incurred and settled on behalf of the LLP.
These balances are due for repayment within one year.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership of the leased asset to the LLP. All other leases are classified as operating leases.
Rentals payable under operating leases are charged to the Statement of comprehensive income on a straight
line basis over the lease term. The aggregate benefit of lease incentives are recognised as a reduction to the
expense recognised over the lease term on a straight line basis.
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Notes to the financial statements
for the year ended 31 December 2023
There were no significant estimates or judgements made in the year.
The whole of the turnover is attributable to the LLP's principal activity and arose from activities performed within the United Kingdom.
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Notes to the financial statements
for the year ended 31 December 2023
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Notes to the financial statements
for the year ended 31 December 2023
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Notes to the financial statements
for the year ended 31 December 2023
An analysis of changes in net debt has not been presented as all of the LLP’s cash flows relate to movements
in cash, and the LLP has no items to include in such an analysis.
Other reserves classified as equity
Includes all LLP reserves relating to current and prior periods not allocated to members. Other amounts Includes all movements in amounts due from members.
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Notes to the financial statements
for the year ended 31 December 2023
There were no contingent liabilities at 31 December 2023 or 31 December 2022.
The entity operates a defined contributions pension scheme. The pension cost charge represents contributions payable by the entity to the fund and amounted to £9,104 (2022: £36,543). Contributions totalling £nil (2022: £1,692) were payable to the fund at the reporting date and are included in creditors.
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