Limited Liability Partnership registration number OC322793 (England and Wales)
PCB BYRNE LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PCB BYRNE LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
T A Mascarenhas
A J Riem
S T Teasdale
Members
N J Boulton (resigned 31 July 2024)
B P Davies
M P Frankland
M J Potts
N D Ratcliff
E A Seborg
E C Brooks (appointed 1 June 2024)
O Bischof (appointed 1 June 2024)
Burford Capital Holdings (UK) Limited
LLP registration number
OC322793
Registered office
5th Floor, 1 Plough Place
London
England
EC4A 1DE
Auditor
Goodman Jones LLP
29/30 Fitzroy Square
London
W1T 6LQ
Business address
5th Floor, 1 Plough Place
London
EC4A 1DE
PCB BYRNE LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Reconciliation of members' interests
8 - 9
Statement of cash flows
10
Notes to the financial statements
11 - 20
PCB BYRNE LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Principal activities

The principal activity of the limited liability partnership continues to be that of solicitors.

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. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

Members

The members who held office during the year and up to the date of signature of the financial statements were as follows:

Designated members
T A Mascarenhas
A J Riem
S T Teasdale
Members
N J Boulton (resigned 31 July 2024)
B P Davies
M P Frankland
M J Potts
N D Ratcliff
E A Seborg
E C Brooks (appointed 1 June 2024)
O Bischof (appointed 1 June 2024)
Burford Capital Holdings (UK) Limited
Financial instruments

The LLP's financial instruments comprise borrowings, cash and liquid resources, and various net working capital items, such as trade receivables and trade payables. The main purpose of these financial instruments is to fund that part of the LLP's operations not financed by way of members' interests.

 

It is the LLP's policy not to trade in financial or derivative instruments.

 

The main risks in providing funds for the LLP relate to interest rates and liquidity.

Auditor

The auditor, Goodman Jones LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

PCB BYRNE LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Statement of members' responsibilities

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

As far as the members are aware, there is no relevant audit information of which the LLP’s auditors are unaware. Additionally, the members have taken all the necessary steps that they ought to have taken as members in order to make themselves aware of all relevant audit information and to establish that the LLP’s auditors are aware of that information.

Going concern

The members have a reasonable expectation that the partnership has adequate resources to continue in operational existence for the foreseeable future. The members have prepared cash flow and profit forecasts that have also been sensitised to reflect adverse changes in revenue. These show that the partnership has sufficient cash reserves to enable it to meet its financial obligations as they fall due. Thus the members continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Approved by the members on 26 September 2024 and signed on behalf by:
26 September 2024
T A Mascarenhas
S T Teasdale
Designated Member
Designated Member
PCB BYRNE LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PCB BYRNE LLP
- 3 -
Opinion

We have audited the financial statements of PCB Byrne LLP (the 'limited liability partnership') for the year ended 31 March 2024 which comprise the income statement, the statement of financial position, 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

PCB BYRNE LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PCB BYRNE LLP
- 4 -
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. 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.

 

Based on our understanding of the limited liability partnership and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006)Regulations 2008 and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:

 

• Discussions with management, including consideration of known or suspected instances of non-compliance with laws, regulations, and fraud;

• Reading minutes of meetings of those charged with governance;

• Obtaining and reading correspondence from legal and regulatory bodies including HMRC;

• Identifying and testing journal entries;

• Challenging assumptions and judgements made by management in their significant accounting

estimates.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above. The further removed instances of noncompliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

PCB BYRNE LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PCB BYRNE LLP
- 5 -

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

Use of our report

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

Sarf Malik
Senior Statutory Auditor
For and on behalf of Goodman Jones LLP
26 September 2024
Chartered Accountants
Statutory Auditor
29/30 Fitzroy Square
London
W1T 6LQ
PCB BYRNE LLP
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
Notes
£
£
Revenue
3
18,440,319
11,002,040
Administrative expenses
(8,897,517)
(7,690,456)
Operating profit
4
9,542,802
3,311,584
Investment income
7
137,615
35,198
Finance costs
8
(280,954)
(225,732)
Profit for the financial year before members' remuneration and profit shares
9,399,463
3,121,050
Members' remuneration charged as an expense
6
(9,399,463)
(3,121,050)
Result for the financial year available for discretionary division among members
-
-

The income statement has been prepared on the basis that all operations are continuing operations.

PCB BYRNE LLP
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 7 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
49,246
36,000
Current assets
Trade and other receivables
10
9,698,781
6,467,322
Cash and cash equivalents
4,101,120
2,201,017
13,799,901
8,668,339
Current liabilities
11
(4,919,263)
(3,862,111)
Net current assets
8,880,638
4,806,228
Total assets less current liabilities
8,929,884
4,842,228
Non-current liabilities
12
-
(210,604)
Net assets attributable to members
8,929,884
4,631,624
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
4,416,906
1,171,507
Members' other interests
Members' capital classified as equity
4,512,978
3,460,117
8,929,884
4,631,624
The financial statements were approved by the members and authorised for issue on 26 September 2024 and are signed on their behalf by:
26 September 2024
T A Mascarenhas
S T Teasdale
Designated member
Designated Member
Limited Liability Partnership registration number OC322793 (England and Wales)
PCB BYRNE LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
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
Other amounts
Total
Total
2024
£
£
£
£
Members' interests at 1 April 2023
3,460,117
1,171,507
1,171,507
4,631,624
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
9,399,463
9,399,463
9,399,463
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after result and remuneration for the year
3,460,117
10,570,970
10,570,970
14,031,087
Transfers
1,052,861
(1,052,861)
(1,052,861)
-
Drawings on account and distributions of profit
-
(5,101,203)
(5,101,203)
(5,101,203)
Members' interests at 31 March 2024
4,512,978
4,416,906
4,416,906
8,929,884
PCB BYRNE LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
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
Other amounts
Total
Total
2023
£
£
£
£
Members' interests at 1 April 2022
2,684,596
2,392,475
2,392,475
5,077,071
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
3,121,050
3,121,050
3,121,050
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after result and remuneration for the year
2,684,596
5,513,525
5,513,525
8,198,121
Transfers
775,521
(775,521)
(775,521)
-
Drawings on account and distributions of profit
-
(3,566,497)
(3,566,497)
(3,566,497)
Members' interests at 31 March 2023
3,460,117
1,171,507
1,171,507
4,631,624
PCB BYRNE LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
8,499,736
2,643,013
Interest paid
(280,954)
(225,732)
Net cash inflow from operating activities
8,218,782
2,417,281
Investing activities
Purchase of property, plant and equipment
(39,300)
(37,272)
Interest received
137,615
35,198
Net cash generated from/(used in) investing activities
98,315
(2,074)
Financing activities
Payments to members
(5,101,203)
(3,566,497)
Repayment of borrowings
(1,315,791)
(114,760)
Net cash used in financing activities
(6,416,994)
(3,681,257)
Net increase/(decrease) in cash and cash equivalents
1,900,103
(1,266,050)
Cash and cash equivalents at beginning of year
2,201,017
3,467,067
Cash and cash equivalents at end of year
4,101,120
2,201,017
PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Limited liability partnership information

PCB Byrne LLP is a limited liability partnership incorporated in England and Wales. The registered office is 5th Floor, 1 Plough Place, London, England, EC4A 1DE.

 

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

The members have a reasonable expectation that the partnership has adequate resources to continue in operational existence for the foreseeable future. The members have prepared cash flow and profit forecasts that have also been sensitised to reflect adverse changes in revenue. These show that the partnership has sufficient cash reserves to enable it to meet its financial obligations as they fall due. Thus the members continue to adopt the going concern basis of accounting in preparing the annual financial statements.

1.3
Revenue

Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.

 

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

 

Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.

If, at the statement of financial position date, completion of contractual obligations is dependent on external factors (and thus outside the control of the Limited Liability Partnership), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the statement of financial position date are carried forward as work in progress.

PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
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.

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.

1.5
Property, plant and equipment

Property, plant and equipment 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 land and buildings
over the term of the lease
Plant and equipment
straight line over 36 months
Fixtures and fittings
straight line over 36 months

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 income statement.

1.6
Impairment of non-current assets

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

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

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

 

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

1.7
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.

1.8
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 payables 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 payables 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 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.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits and post retirement payments to members

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

PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.11
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.

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.

Bad debt provision

A review of the underlying balances is carried out at the end of each month. Whilst every attempt is made to ensure that any provisions are as accurate as possible, there remains a slight risk that the provisions may not match the amounts which ultimately prove to be uncollectable.

 

Amounts recoverable on long term contracts

The statement of financial position includes unbilled revenue of £2,558,809 (2023: £1,461,619) at the year end. A review of the underlying balances is carried out each month. Whilst every attempt is made to ensure that any provisions are as accurate as possible, there remains a slight risk that the provisions may not match the amounts which ultimately prove to be uncollectable.

3
Revenue

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

2024
2023
£
£
Revenue analysed by class of business
Office fees
18,440,319
11,002,040
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
18,440,319
11,002,040
2024
2023
£
£
Other significant revenue
Interest income
137,615
35,198
PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
8,063
12,489
Depreciation of owned property, plant and equipment
26,054
216,261
Operating lease charges
550,499
714,832
5
Employees

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

2024
2023
Number
Number
Professional and support staff
54
53

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,869,036
3,620,771
Social security costs
486,027
269,028
Pension costs
133,025
154,747
4,488,088
4,044,546
6
Members' remuneration
2024
2023
Number
Number
Average number of members during the year
10
10
2024
2023
£
£
Profit attributable to the member with the highest entitlement
1,972,748
382,946

The members represent the key management of the LLP. Their aggregate compensation, which represents their aggregate profit shares, amounted to £9,399,463 (2023: £3,121,050).

7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
137,615
35,198
PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Investment income
(Continued)
- 17 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
137,615
35,198
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest
280,954
225,732
9
Property, plant and equipment
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2023
129,500
303,310
286,027
718,837
Additions
-
39,300
-
39,300
At 31 March 2024
129,500
342,610
286,027
758,137
Depreciation and impairment
At 1 April 2023
129,500
268,947
284,390
682,837
Depreciation charged in the year
-
24,819
1,235
26,054
At 31 March 2024
129,500
293,766
285,625
708,891
Carrying amount
At 31 March 2024
-
48,844
402
49,246
At 31 March 2023
-
34,363
1,637
36,000
10
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
4,734,526
3,725,919
Gross amounts owed by contract customers
2,558,809
1,461,619
Other receivables
1,153,178
447,658
Prepayments
1,252,268
832,126
9,698,781
6,467,322
PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
11
Current liabilities
2024
2023
Notes
£
£
Other borrowings
13
210,600
1,315,787
Trade payables
3,054,004
1,923,088
Other taxation and social security
320,226
109,077
Other payables
121,553
65,802
Accruals and deferred income
1,212,880
448,357
4,919,263
3,862,111
12
Non-current liabilities
2024
2023
Notes
£
£
Other borrowings
13
-
210,604
13
Borrowings
2024
2023
£
£
Loans from related parties
210,600
1,526,391
Payable within one year
210,600
1,315,787
Payable after one year
-
210,604

 

The loan provided by Burford Capital Holdings (UK) Limited, a designated member, has been secured against the assets of the company. Interest of 15% is being charged per annum.

 

14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
133,025
154,747

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.

PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
15
Loans and other debts due to members
2024
2023
£
£
Analysis of loans
Amounts falling due within one year
4,416,906
1,171,507

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

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
401,060
401,060
Between two and five years
100,265
100,265
501,325
501,325
17
Ultimate controlling party

The entity is controlled by the members.

18
Cash generated from operations
2024
2023
£
£
Profit for the year
9,399,463
3,121,050
Adjustments for:
Finance costs recognised in profit or loss
280,954
225,732
Investment income recognised in profit or loss
(137,615)
(35,198)
Depreciation and impairment of property, plant and equipment
26,054
216,261
Movements in working capital:
Increase in trade and other receivables
(3,231,459)
(1,155,556)
Increase in trade and other payables
2,162,339
270,724
Cash generated from operations
8,499,736
2,643,013
PCB BYRNE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
19
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
2,201,017
1,900,103
4,101,120
Borrowings excluding overdrafts
(1,526,391)
1,315,791
(210,600)
Balances before members' debt
674,626
3,215,894
3,890,520
Loans and other debts due to members:
- Other amounts due to members
(1,171,507)
(3,245,399)
(4,416,906)
Balances including members' debt
(496,881)
(29,505)
(526,386)
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