RSHP LLP
Year Ended 31 December 2023
LLP registration number:
RSHP LLP
Financial Statements
Year Ended 31 December 2023
Contents
| Page |
|
|
LLP Information | 1 |
Members' Report | 2 |
Independent Auditor's Report | 4 |
Consolidated Profit and Loss Account | 7 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
LLP Balance Sheet | 10 |
Consolidated Reconciliation of Members' Interests | 11 |
LLP Reconciliation of Members' Interests | 13 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 |
RSHP LLP
LLP Information
Year Ended 31 December 2023
LLP registration number | OC365477 |
|
|
Members | |
| |
|
|
Registered office | |
| |
| |
| London |
| |
|
|
Auditor | |
| 1 Poultry |
| London |
| EC2R 8EJ |
|
|
Solicitor | |
| 85 King William Street |
| London |
| EC4N 7BL |
|
|
Bankers | |
| Kings Mall |
| King Street |
| Hammersmith |
| London |
| W6 0QF |
RSHP LLP
Members' Report
Year Ended 31 December 2023
Principal activities
The principal activity of the LLP and its group remained that of architects and design consultants. The work undertaken by the practice covers the full range of architecture services, working on master planning, the design and construction of residential schemes, commercial office developments, museums and transportation infrastructure.
Overseas establishments
The RSHP group of entities has a global presence, maintaining overseas offices in Australia, China and France. We also have staff seconded to client premises in Taiwan.
Designated members
The following members were designated members during the year:
RSHP Architects Limited
Members' drawings and amounts subscribed or otherwise contributed by members
Each member's subscription to the capital of the LLP is determined by the Group constitution and is repayable following retirement from the LLP, subject to a vote of the members being passed authorising the payment. Repayment of member's capital cannot be unreasonably withheld by the remaining members.
Details of changes to members' capital in the year ended 31 December 2023 are set out in the financial statements.
Members are remunerated from the profits of the LLP and are required to make their own provision for pensions and other benefits. Profits are allocated and divided between members in accordance with the Group's constitution. Members draw a proportion of their profit shares monthly during the year in which it is made, with the balance of profits being distributed after the year, subject to the cash requirements of the business.
Members' responsibilities
The members are responsible for preparing 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 Group and parent limited liability partnership and the profit or loss of the Group for that period.
In preparing these financial statements, the members are required to:
• | select suitable accounting policies and then apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business. |
RSHP LLP
Members' Report (continued)
Year Ended 31 December 2023
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 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 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.
On behalf of the members
RSHP Architects Limited, Designated member
Acting by the Director I Birtles
Independent Auditor's Report to the Members of RSHP LLP
Year Ended 31 December 2023
Opinion
We have audited the financial statements of RSHP LLP (the ‘parent limited liability partnership') and its subsidiaries (the ‘Group') for the year ended 31 December 2023 which comprise the Consolidated Profit and Loss Account, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the LLP Balance Sheet, the Consolidated and LLP Reconciliations of Members' Interests, the Consolidated 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:
• | give a true and fair view of the state of the Group and the parent limited liability partnership's affairs as at 31 December 2023, and of the Group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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.
Emphasis of matter: Financial statements prepared on a basis other than going concern
We draw attention to Note 1 (b) to the financial statements which explains that the members intend to restructure the Group and transfer the majority of its assets, liabilities and its business to a company under common control and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1(a). Our opinion is not modified in this respect of this matter.
Other information
The members are responsible for the other information. The other information comprises the information included in the annual 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.
Independent Auditor's Report to the Members of RSHP LLP
Year Ended 31 December 2023
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 by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent limited liability partnership, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent limited liability partnership's financial statements are not in agreement with the accounting records and returns; or |
• | we have not received all the information and explanations we require for our audit |
Responsibilities of members
As explained more fully in the members' responsibilities statement set out on page 2, 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 Group and 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:
We obtained an understanding of the legal and regulatory frameworks within which the limited liability partnership and Group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the SORP on Accounting by Limited Liability Partnerships. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the limited liability partnerships and the Group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the limited liability partnership and the Group for fraud. The laws and regulations we considered in this context for the UK operations were, architectural laws and regulations, General Data Protection Regulation (GDPR), and employment legislation.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and sample testing on the posting of journals. We also conducted procedures to detect systematic bias in the current and prior period assessments of the stage of completion of long-term contracts.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.
Independent Auditor's Report to the Members of RSHP LLP
Year Ended 31 December 2023
This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located 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.
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 to limited liability partnerships 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.
Senior Statutory Auditor
For and on behalf of Praxis, Statutory Auditor
1 Poultry
London
EC2R 8EJ
RSHP LLP
Consolidated Profit and Loss Account
Year Ended 31 December 2023
|
| Year ended | Year ended |
|
| 31 | 31 |
|
| December | December |
|
| 2023 | 2022 |
| Note | £ | £ |
Turnover | 2 | 24,078,123 | 23,644,854 |
|
|
|
|
Cost of sales |
| (10,433,335) | (10,492,325) |
|
|
|
|
Gross profit |
| 13,644,788 | 13,152,529 |
|
|
|
|
Administrative expenses |
| (11,255,225) | (9,719,950) |
Other operating income |
| 1,399 | 1,361 |
|
|
|
|
Operating profit |
| 2,390,962 | 3,433,940 |
|
|
|
|
Interest receivable and similar income | 6 | 8,499 | 3,273 |
Interest payable and similar expenses | 6 | (33,685) | (42,707) |
|
|
|
|
Profit before tax |
| 2,365,776 | 3,394,506 |
|
|
|
|
Tax on profit in corporate subsidiaries | 7 | (74,255) | (87,465) |
|
|
|
|
Profit for the period before members' | 3 | 2,291,521 | 3,307,041 |
remuneration and profit shares |
|
|
|
|
|
|
|
Members' remuneration charged as an |
| (2,446,474) | (3,304,192) |
expense |
|
|
|
|
|
|
|
Profit/(loss) for the period available for discretionary division among members |
| (154,953) | 2,849 |
RSHP LLP
Consolidated Statement of Comprehensive Income
Year Ended 31 December 2023
| 2023 | 2022 |
| £ | £ |
Profit for the period available for discretionary division among | (154,953) | 2,849 |
members |
|
|
|
|
|
Foreign exchange differences on subsidiaries | (14,881) | 13,940 |
|
|
|
Total comprehensive income for the period | (169,834) | 16,789 |
|
|
|
Total comprehensive income attributable to: |
|
|
Owners of the parent LLP | (169,834) | 16,789 |
|
|
|
| (169,834) | 16,789 |
RSHP LLP
Consolidated Balance Sheet
Year Ended 31 December 2023
|
| 2023 | 2022 |
| Note | £ | £ |
Fixed assets |
|
|
|
Tangible assets | 8 | 887,189 | 1,230,817 |
|
|
|
|
|
| 887,189 | 1,230,817 |
Current assets |
|
|
|
Debtors | 10 | 16,439,339 | 17,294,529 |
Cash at bank and in hand |
| 2,064,077 | 1,421,343 |
|
|
|
|
|
| 18,503,416 | 18,715,872 |
|
|
|
|
Creditors: amounts falling due within one year | 11 | (12,547,594) | (11,368,503) |
|
|
|
|
Net current assets |
| 5,955,822 | 7,347,369 |
|
|
|
|
Total assets less current liabilities |
| 6,843,011 | 8,578,186 |
|
|
|
|
Creditors: amounts falling due after more than one year | 12 | (73,086) | (281,654) |
|
|
|
|
Net assets attributable to members |
| 6,769,925 | 8,296,532 |
|
|
|
|
Represented by: |
|
|
|
|
|
|
|
Loans and other debts due to members |
|
|
|
Other amounts |
| 488,219 | 1,844,992 |
|
|
|
|
|
| 488,219 | 1,844,992 |
Members' other interests |
|
|
|
Members' capital classified as equity |
| 6,391,558 | 6,391,558 |
Other reserves classified as equity |
| (109,852) | 59,982 |
|
|
|
|
|
| 6,769,925 | 8,296,532 |
|
|
|
|
Total members' interests |
|
|
|
Amounts due from members (included in debtors) | 10 | (5,092,338) | (5,722,156) |
Loans and other debts due to members | 14 | 488,219 | 1,844,992 |
Members' other interests |
| 6,281,706 | 6,451,540 |
|
|
|
|
|
| 1,677,587 | 2,574,376 |
The financial statements were approved and authorised for issue by the Members on 7 October 2024.
Signed on behalf of the Members.
RSHP Architects Limited, Designated member
Acting by the Director I Birtles
The notes on pages 16 to 30 form part of these financial statements.
LLP registration number: OC365477
RSHP LLP
LLP Balance Sheet
Year Ended 31 December 2023
|
| 2023 | 2022 |
| Note | £ | £ |
Fixed assets |
|
|
|
Investments | 9 | ||
|
|
|
|
|
| ||
Current assets |
|
|
|
Debtors | 10 | ||
Cash at bank and in hand |
| ||
|
|
|
|
|
| ||
|
|
|
|
Creditors: amounts falling due within one year | 11 | ( | ( |
|
|
|
|
Net current assets |
| ||
|
|
|
|
Total assets less current liabilities |
| ||
|
|
|
|
Creditors: amounts falling due after more than one year | 12 | ( | ( |
|
|
|
|
Net assets attributable to members |
| ||
|
|
|
|
Represented by: |
|
|
|
|
|
|
|
Loans and other debts due to members |
|
|
|
Other amounts |
| ||
|
|
|
|
|
| ||
Members' other interests |
|
|
|
Members' capital classified as equity |
| ||
|
|
|
|
|
| ||
|
|
|
|
Total members' interests |
|
|
|
Amounts due from members (included in debtors) | 10 | ( | ( |
Loans and other debts due to members | 14 | ||
Members' other interests |
| ||
|
|
|
|
|
| 1,787,439 | 2,514,394 |
|
|
|
|
LLP's profit for the period available for discretionary division |
| - | - |
The financial statements were approved and authorised for issue by
Signed on behalf of the Members.
RSHP Architects Limited, Designated member
Acting by the Director I Birtles
The notes on pages 16 to 30 form part of these financial statements.
LLP registration number: OC365477
RSHP LLP
Consolidated Reconciliation of Members' Interests
Year Ended 31 December 2023
| Equity |
| Debt | Total members' | ||
| Members' other interests |
| Loans and other debts due to | interests | ||
|
|
|
| members less an amounts due |
| |
|
|
|
| from members in debtors |
| |
| Members' |
|
|
|
|
|
| Capital | Other |
| Other |
|
|
| (Classified as | Reserves | Total | Amounts | Total | Total 2023 |
| equity) |
|
|
|
|
|
Amounts due to |
|
|
|
|
|
|
members |
|
|
| 1,844,992 | 1,844,992 |
|
Amounts due from |
|
|
|
|
|
|
members |
|
|
| (5,722,156) | (5,722,156) |
|
At 31 December 2022 |
|
|
|
|
|
|
and 1 January 2023 | 6,391,558 | 59,982 | 6,451,540 | (3,877,164) | (3,877,164) | 2,574,376 |
Members' |
|
|
|
|
|
|
remuneration charged | - | - |
| 2,446,474 | 2,446,474 | 2,446,474 |
as an expense |
|
|
|
|
|
|
Profit for the year |
|
|
|
|
|
|
available for |
|
|
|
|
|
|
discretionary division | - | (169,834) | (169,834) | - | - | (169,834) |
among members |
|
|
|
|
|
|
|
|
|
|
|
|
|
Members' interests |
|
|
|
|
|
|
after profit for the year | 6,391,558 | (109,852) | 6,281,706 | (1,430,690) | (1,430,690) | 4,851,016 |
Expenses charged to |
|
|
|
|
|
|
members | - | - | - | 568,709 | 568,709 | 568,709 |
Drawings | - | - | - | (3,742,138) | (3,742,138) | (3,742,138) |
Other movements | - | - | - | - | - | - |
|
|
|
|
|
|
|
Amounts due to |
|
|
|
|
|
|
members |
|
|
| 488,219 | 488,219 |
|
|
|
|
|
|
|
|
Amounts due from |
|
|
|
|
|
|
members |
|
|
| (5,092,338) | (5,092,338) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 | 6,391,558 | (109,852) | 6,281,706 | (4,604,119) | (4,604,119) | 1,677,587 |
RSHP LLP
Consolidated Reconciliation of Members' Interests
Year Ended 31 December 2023
| Equity |
| Debt | Total members' | ||
| Members' other interests |
| Loans and other debts due to | interests | ||
|
|
|
| members less any amounts due |
| |
|
|
|
| from members in debtors |
| |
| Members' |
|
|
|
|
|
| Capital | Other | Total | Other | Total | Total 2022 |
| (Classified as | Reserves |
| Amounts |
|
|
| equity) |
|
|
|
|
|
Amounts due to |
|
|
|
|
|
|
members |
|
|
| 3,450,182 | 3,450,182 |
|
Amounts due from |
|
|
|
|
|
|
members |
|
|
| (1,390,686) | (1,390,686) |
|
At 31 December 2021 |
|
|
|
|
|
|
and 1 January 2022 | 6,391,558 | 43,193 | 6,434,751 | 2,059,496 | 2,059,496 | 8,494,247 |
Members' |
|
|
|
|
|
|
remuneration charged | - | - | - | 3,304,192 | 3,304,192 | 3,304,192 |
as an expense |
|
|
|
|
|
|
Profit for the year |
|
|
|
|
|
|
available for |
|
|
|
|
|
|
discretionary division | -- | 16,789 | 16,789 | - | - | 16,789 |
among members |
|
|
|
|
|
|
|
|
|
|
|
|
|
Members' interests |
|
|
|
|
|
|
after profit for the year | 6,391,558 | 59,982 | 6,451,540 | 5,363,688 | 5,363,688 | 11,815,228 |
Expenses charged to |
|
|
|
|
|
|
members | - | - | - | (5,220,789) | (5,220,789) | (5,220,789) |
|
|
|
|
|
|
|
Drawings | - | - | - | (4,020,063) | (4,020,063) | (4,020,063) |
Other movements | - | - | - | - | - | - |
|
|
|
|
|
|
|
Amounts due to |
|
|
|
|
|
|
members |
|
|
| 1,844,992 | 1,844,992 |
|
|
|
|
|
|
|
|
Amounts due from |
|
|
|
|
|
|
members |
|
|
| (5,722,156) | (5,722,156) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2022 | 6,391,558 | 59,982 | 6,451,540 | (3,877,164) | (3,877,164) | 2,574,376 |
RSHP LLP
Reconciliation of Members' Interests
Year Ended 31 December 2023
| Equity |
| Debt | Total members' | ||
| Members' other interests |
| Loans and other debts due to | interests | ||
|
|
|
| members less any amounts due |
| |
|
|
|
| from members in debtors |
| |
| Members' |
|
|
|
|
|
| Capital | Other | Total | Other | Total | Total 2023 |
| (Classified as | Reserves |
| Amounts |
|
|
| equity) |
|
|
|
|
|
Amounts due to |
|
|
|
|
|
|
members |
|
|
| 1,844,992 | 1,844,992 |
|
Amounts due from |
|
|
|
|
|
|
members |
|
|
| (5,722,156) | (5,722,156) |
|
|
|
|
|
|
|
|
At 1 January 2023 | - | 6,391,558 | (3,877,164) | (3,877,164) | 2,514,394 | |
Members' |
|
|
|
|
|
|
remuneration charged |
|
|
| 2,446,474 | 2,446,474 | 2,446,474 |
as an expense |
|
|
|
|
|
|
Members' interests |
|
|
|
|
|
|
after profit for the year | - | (1,430,690) | (1,430,690) | 4,960,868 | ||
Expenses charged to |
|
|
|
|
|
|
members | - | - | - | 568,709 | 568,709 | 568,709 |
Drawings | - | - | - | (3,742,138) | (3,742,138) | (3,742,138) |
Other movements | - | - | - |
|
|
|
|
|
|
|
|
|
|
Amounts due to |
|
|
|
|
|
|
members |
|
|
| 488,219 | 488,219 |
|
Amounts due from |
|
|
|
|
|
|
members |
|
|
| (5,092,338) | (5,092,338) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2023 | - | 6,391,558 | (4,604,119) | (4,604,119) | 1,787,439 |
RSHP LLP
Reconciliation of Members' Interests
Year Ended 31 December 2023
| Equity |
| Debt | Total members' | ||
| Members' other interests |
| Loans and other debts due to | interests | ||
|
|
|
| members less any amounts due |
| |
|
|
|
| from members in debtors |
| |
| Members' |
|
|
|
|
|
| Capital | Other |
| Other |
|
|
| (Classified as | Reserves | Total | Amounts | Total | Total 2022 |
| equity) |
|
|
|
|
|
Amounts due to |
|
|
|
|
|
|
members |
|
|
| 3,450,182 | 3,450,182 |
|
|
|
|
|
|
|
|
Amounts due from |
|
|
|
|
|
|
members |
|
|
| (1,390,686) | (1,390,686) |
|
At | - | 2,059,496 | 2,059,496 | 8,451,054 | ||
Members' |
|
|
|
|
|
|
remuneration charged |
|
|
| 3,304,192 | 3,304,192 | 3,304,192 |
as an expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Members' interests |
|
|
|
|
|
|
after profit for the year | - | 6,391,558 | 5,363,688 | 5,363,688 | 11,755,246 | |
|
|
|
|
|
|
|
Expenses charged to |
|
|
|
|
|
|
members | - | - | - | (5,220,789) | (5,220,789) | (5,220,789) |
Drawings | - | - | - | (4,020,063) | (4,020,063) | (4,020,063) |
Other movements | - | - | - | - | - | - |
|
|
|
|
|
|
|
Amounts due to |
|
|
|
|
|
|
members |
|
|
| 1,844,992 | 1,844,992 |
|
|
|
|
|
|
|
|
Amounts due from |
|
|
|
|
|
|
members |
|
|
| (5,722,156) | (5,722,156) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At | - | 6,391,558 | (3,877,164) | (3,877,164) | 2,514,394 |
RSHP LLP
Consolidated Statement of Cash Flows
Year Ended 31 December 2023
|
| 2023 | 2022 |
| Note | £ | £ |
|
|
|
|
Cash flow from operating activities | 15 | 7,296,490 | 1,546,172 |
Members' drawings |
| (3,742,138) | (4,020,063) |
|
|
|
|
Net cash flow from operating activities |
| 3,554,352 | (2,473,891) |
|
|
|
|
Cash used in investing activities |
|
|
|
Payments to acquire tangible fixed assets |
| (191,251) | (169,703) |
Dividends received |
| - | - |
Interest received |
| 8,499 | 3,273 |
|
|
|
|
Net cash used in investing activities |
| (182,752) | (166,430) |
|
|
|
|
Cash used in financing activities |
|
|
|
Repayment of long-term loans |
| - | (2,421,462) |
Repayment of finance lease liabilities |
| (696,124) | (360,540) |
Interest paid |
| (33,685) | (42,707) |
|
|
|
|
Net cash used in financing activities |
| (729,809) | (2,824,709) |
|
|
|
|
Net increase / (decrease) in cash and cash equivalents |
| 2,641,791 | (5,465,030) |
|
|
|
|
Cash and cash equivalents at the start of the period |
| (980,041) | 4,484,989 |
|
|
|
|
Cash and cash equivalents at the end of the period |
| 1,661,750 | (980,041) |
|
|
|
|
Cash and cash equivalents consists of: |
|
|
|
|
|
|
|
Cash at bank and in hand |
| 2,064,077 | 1,421,343 |
Bank overdrafts |
| (402,327) | (2,401,384) |
|
|
|
|
Cash and cash equivalents at the end of the period |
| 1,661,750 | (980,041) |
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
1 Summary of significant accounting policies
(a) General information and basis of preparation
RSHP LLP is a Limited Liability Partnership (LLP) incorporated in England, within the
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
(b) Going concern
On 18 December 2023, the LLP's members approved a plan to restructure the business as a corporate group. On 1 January 2024, the LLP transferred the majority of its assets, liabilities and its business to a company under common control. From this date the LLP will cease to trade, and accordingly the designated members do not consider the LLP to be a going concern. The LLP's assets and liabilities have been tested and it has been established that the carrying values in the financial statements accord with the recoverable or realisable values. The business of the Group continues within a new corporate group.
(c) Basis of consolidation
The consolidated financial statements present the results of the LLP and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 1 July 2014.
The LLP has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 as applied to LLPs by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and has not presented its own Profit and loss account in these financial statements.
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
1 Summary of significant accounting policies (continued)
(d) Tangible fixed assets
Tangible fixed 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, on the following bases:
Land and buildings, leasehold | |
Motor vehicles | Over |
Fixtures & fittings | Over |
Computer equipment | Over |
Computer equipment, leased |
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 the Consolidated profit and loss account.
(e)
Investments in subsidiaries are measured at cost less accumulated impairment.
(f) Debtors and creditors receivable / payable within one year
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
(g) Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
(h) Provisions for liabilities
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
1 Summary of significant accounting policies (continued)
Provisions are charged as an expense to the Consolidated profit and loss account in the year that the Group becomes aware of the obligation and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
(I) Financial instruments
Financial assets and financial liabilities are recognised in the balance sheet when the Group becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the Group will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the Group's cash management.
Financial liabilities and equity instruments issued by the Group are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all its liabilities. Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
(j) Foreign currency translation
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. |Non-monetary | items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated profit and loss account.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Consolidated profit and loss account within 'Administrative expenses'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
(k) Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
1 Summary of significant accounting policies (continued)
Rendering of services
Revenue 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:
• | the amount of revenue can be measured reliably; |
• | it is probable that the Group will receive the consideration due under the contract; |
• | the stage of completion of the contract at the end of the period can be measured reliably; and |
• | the costs incurred and the costs to complete the contract can be measured reliably. |
(l) Operating leases: the Group as lessee
Rentals paid under operating leases are charged to the Consolidated profit and loss account on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straightline basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
(m) Interest income
Interest income is recognised in the Consolidated profit and loss account using the effective interest method.
(n) Finance costs
Finance costs are charged to the Consolidated profit and loss account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
(o) Pensions
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.
(p) Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
1 Summary of significant accounting policies (continued)
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the LLP and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
• | The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; |
• | Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and |
• | Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
(r) Judgements and key sources of estimation uncertainty
The LLP engages in projects that can take many years to complete. The partners therefore must make estimations in terms of the level of revenue to recognise within each set of annual financial statements. Such estimations are by their nature judgemental but are backed by reviews of correspondence and resourcing forecasts performed post year end and so are not considered to be subject to significant estimation uncertainty.
2 Turnover
The analysis of turnover by activity and geographical area is as follows:
| 2023 | 2022 |
| £ | £ |
|
|
|
Rendering of architectural services | 24,078,123 | 23,644,854 |
|
|
|
| 24,078,123 | 23,644,854 |
|
|
|
| 2023 | 2022 |
| £ | £ |
|
|
|
United Kingdom | 8,007,840 | 8,783,841 |
Europe | 2,066,751 | 2,164,147 |
North America | 1,186,304 | 709,143 |
Australia | 2,768,377 | 4,421,995 |
Asia Pacific | 3,175,483 | 3,123,787 |
Rest of World | 6,873,368 | 4,441,941 |
|
|
|
| 24,078,123 | 23,644,854 |
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
3 Profit before taxation and members' remuneration and profit shares
Profit before taxation and members' remuneration and profit shares is stated after charging:
| 2023 | 2022 |
| £ | £ |
|
|
|
Auditor's remuneration (including expenses and benefits) | 93,500 | 80,000 |
|
|
|
Depreciation of tangible fixed assets | 534,605 | 622,270 |
|
|
|
Defined contribution pension cost | 218,701 | 232,901 |
|
|
|
Net (gains)/losses on foreign exchange | (50,350) | 38,307 |
4 Particulars of members
| 2023 | 2022 |
|
|
|
Average number of members | 11 | 11 |
|
|
|
| £ | £ |
|
|
|
Profit attributable to the member with the largest entitlement to profit | 280,970 | 707,315 |
The Group's constitution divides profits automatically between partners, staff and the Group's charity.
5 Staff costs
The average monthly number of employees, including members with contracts of employment, during the period was as follows:
| 2023 | 2022 |
| Number | Number |
|
|
|
Architects | 100 | 98 |
Modelshop | 3 | 3 |
Office and administration | 52 | 48 |
|
|
|
| 155 | 149 |
The aggregate remuneration of such employees was as follows:
| 2023 | 2022 |
| £ | £ |
|
|
|
Wages and salaries | 8,390,521 | 7,878,832 |
Social security | 1,138,080 | 931,228 |
Other pension costs | 218,701 | 232,901 |
|
|
|
| 9,737,702 | 9,042,961 |
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
6 Interest and other finance income and expenses
a) Interest receivable and similar income
| 2023 | 2022 |
| £ | £ |
|
|
|
Bank interest receivable | 8,499 | 3,273 |
|
|
|
| 8,499 | 3,273 |
b) Interest payable and similar expenses
| 2023 | 2022 |
| £ | £ |
|
|
|
Finance lease interest | 32,378 | 32,449 |
Other interest | 1,307 | 10,258 |
|
|
|
| 33,685 | 42,707 |
7 Tax
a) Tax on profit
| 2023 | 2022 |
| £ | £ |
Current tax: |
|
|
UK corporation tax | 52,858 | 41,673 |
Foreign corporate tax | 49,768 | 91,720 |
Total current tax | 102,626 | 133,393 |
|
|
|
Deferred tax | (28,371) | (45,928) |
|
|
|
| 74,255 | 87,465 |
b) Reconciliation of tax charge
The difference between the tax on profit (note 7(a) above) and the profit before tax multiplied by the applicable rate of corporation tax in the UK is reconciled below:
| 2023 | 2022 |
| £ | £ |
|
|
|
Profit before tax | 2,365,776 | 3,394,506 |
|
|
|
Profit multiplied by average rate of corporation tax in the UK for the year | 556,431 | 644,956 |
of 23.52% (using the previous rate of 19% for 90 days and the current |
|
|
rate of 25% for 275 days) (2022: 19%) |
|
|
|
|
|
Effects of: |
|
|
LLP profits taxable on the members | (575,411) | (627,796) |
Expenses not deductible for tax purposes | 58,825 | - |
Foreign tax net of credits given | 39,130 | 6,190 |
Other tax adjustments | (4,720) | 64,115 |
|
|
|
Tax on profit on ordinary activities (note 7(a)) | 74,255 | 87,465 |
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
8 Tangible fixed assets
Group
| Leasehold | Motor vehicles | Fixtures and | Computer |
|
| Property |
| fittings | equipment) | Total |
| £ | £ | £ | £ | £ |
Cost or valuation: |
|
|
|
|
|
At 1 January 2023 | 1,863,078 | 48,377 | 589,097 | 3,945,402 | 6,445,954 |
Additions | - | 15,018 | 70,877 | 105,356 | 191,251 |
Disposals | - | (6,713) | (251,780) | (995,446) | (1,253,939) |
Exchange adjustments | - | (2,452) | - | (334) | (2,786) |
At 31 December 2023 | 1,863,078 | 54,230 | 408,194 | 3,054,978 | 5,380,480 |
|
|
|
|
|
|
Depreciation: |
|
|
|
|
|
At 1 January 2023 | 1,409,916 | 47,198 | 562,573 | 3,195,450 | 5,215,137 |
Charge for the year | 201,405 | 3,331 | 18,272 | 311,596 | 534,605 |
Exchange adjustments | - | (2,393) | - | (118) | (2,511) |
Eliminated on disposals | - | (6,713) | (251,780) | (995,446) | (1,253,939) |
At 31 December 2023 | 1,611,321 | 41,423 | 329,065 | 2,511,482 | 4,493,291 |
|
|
|
|
|
|
Net book value: |
|
|
|
|
|
At 31 December 2023 | 251,757 | 12,807 | 79,129 | 543,496 | 887,189 |
|
|
|
|
|
|
At 31 December 2022 | 453,162 | 1,179 | 26,524 | 749,952 | 1,230,817 |
The net book value of assets held under finance leases is £265,786 (2022: £472,959).
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
9 Fixed asset investments
LLP
| Investment in |
|
| subsidiary | Total |
| £ | £ |
Cost or valuation |
|
|
At 1 January 2023 | 1 | 1 |
|
|
|
At 31 December 2023 | 1 | 1 |
|
|
|
Carrying amount: |
|
|
At 31 December 2023 | ||
|
|
|
At 31 December 2022 |
The following were subsidiary undertakings of the LLP:
Name | Country of | Class of | Holding | Principal activity | |
| Incorporation | shares |
|
|
|
|
|
|
|
|
|
% | |||||
RSHP Taiwan Ltd1* | England & Wales | Ordinary | 100 | % | Dormant |
RSHP Barangaroo Limited1* | England & Wales | Ordinary | 100 | % | Project management services |
RSHP1 Limited1* | England & Wales | Ordinary | 100 | % | Project management services |
RSHP2 Limited1* | England & Wales | Ordinary | 100 | % | Dormant |
RSHP3 Limited1* | England & Wales | Ordinary | 100 | % | Dormant |
RSHP4 Limited1* | England & Wales | Ordinary | 100 | % | Leasing of equipment |
RSHP US Inc. 2* | USA | Capital stock | 100 | % | Project support services |
Rogers Stirk Harbour + Partners S.L. 3* | Spain | Ordinary | 100 | % | Architects and design consultants |
RSHP Australia Pty Ltd4* | Australia | Ordinary | 100 | % | Project support services |
RSHP Switzerland GmbH5* | Switzerland | Ordinary | 100 | % | Project support services |
RSHP Colombia SAS6* | Colombia | Ordinary | 100 | % | Dormant |
|
|
|
|
|
|
Rogers Stirk Harbour Consulting Company Ltd7* | Taiwan | Ordinary | 100 | % | Project support services |
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
9 Fixed asset investments (continued)
Registered offices of subsidiaries:
1. | |
2. | c/o Peter Hessellund-Jensen, Tower 45, Suite 2801, 120 West 45th Street, New York, NY 10036-4041 |
3. | c/o BDO, Paseo de Recoletos 37-41, Madrid 28004 |
4. | c/o Grant Thornton, Level 17, 383 Kent St, Sydney NSW 2000 |
5. | c/o BDO SA Route de Meyrin 123 - CP 24 - 1219 Chatelaine, Geneva, Switzerland |
6. | TV 21 No. 98 05, Bogota, DC |
7. | 27F, No 9, Songgao Road, Xinyi District, Taipei City 110, Taiwan R.O.C |
• (*) Held indirectly by RSHP Holdings Limited.
For the year ending 31 December 2023 RSHP4 Limited (company registration number 10248844), a subsidiary company, was entitled to exemption from audit under Section 479A of the Companies Act 2006 relating to subsidiary companies.
10 Debtors
Group
| 2023 | 2022 |
| £ | £ |
|
|
|
Trade debtors | 2,820,606 | 4,125,487 |
Amounts owed by connected parties | 69,508 | 194,349 |
Amounts owed by corporate member | 5,092,338 | 5,722,156 |
Corporation tax | 456 | 27,040 |
Other debtors | 186,529 | 196,873 |
Prepayments and accrued income | 8,195,073 | 6,982,167 |
Deferred taxation | 74,829 | 46,457 |
|
|
|
| 16,439,339 | 17,294,529 |
LLP
| 2023 | 2022 |
| £ | £ |
Trade debtors | ||
Amounts owed by group undertakings | ||
Amounts owed by corporate member | ||
Amounts owed by connected parties | ||
Other debtors | ||
Prepayments and accrued income | ||
|
|
|
|
Amounts owed by group undertakings and connected parties are non-interest bearing and repayable on demand.
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
11 Creditors: amounts falling due within one year
Group
| 2023 | 2022 |
| £ | £ |
|
|
|
Bank loans and overdrafts (secured) | 402,327 | 2,401,384 |
Trade creditors | 2,120,961 | 1,852,529 |
Amounts owed to connected parties | 2,887,777 | 2,260,909 |
Corporation tax | 73,225 | 50,415 |
Other tax and social security | 505,695 | 609,644 |
Finance leases | 541,585 | 529,157 |
Other creditors | 236,916 | 314,463 |
Accruals and deferred income | 5,779,108 | 3,350,002 |
|
|
|
| 12,547,594 | 11,368,503 |
The bank overdraft of £402,327 (2022: £2,401,384) is secured by a fixed and floating charge over the assets of the LLP and its group arising now or in the future.
LLP
| 2023 | 2022 |
| £ | £ |
|
|
|
Bank loans and overdrafts (secured) | ||
Trade creditors | ||
Amounts owed to group undertakings | ||
Amounts owed to connected parties | ||
Other tax and social security | ||
Finance leases | ||
Other creditors | ||
Accruals and deferred income | ||
|
|
|
|
The bank overdraft of £402,327 (2022: £2,401,384) is secured by a fixed and floating charge over the assets of the LLP and its group arising now or in the future.
Details of leasing arrangements are provided in note 13.
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
12 Creditors: amounts falling due after more than one year
Group
| 2023 | 2022 |
| £ | £ |
|
|
|
Finance leases | 73,086 | 281,654 |
|
|
|
| 73,086 | 281,654 |
LLP
| 2023 | 2022 |
| £ | £ |
|
|
|
Finance leases | ||
|
|
|
|
Details of leasing arrangements are provided in note 13.
13 Financial Commitments
Group
a) Finance leases - lessee
Finance leases relate to hire purchase arrangements for equipment and financing of professional indemnity insurance premiums. Total future minimum finance lease payments are as follows:
| 2023 | 2022 |
| £ | £ |
|
|
|
Not later than one year | 541,585 | 529,157 |
Later than one and not later than two years | 73,086 | 281,654 |
Later than two and not later than five years | - | - |
|
|
|
| 614,671 | 810,811 |
b) Operating leases – lessee
Total future minimum lease payments under non-cancellable operating leases are as follows:
| 2023 | 2022 |
| £ | £ |
|
|
|
Not later than one year | 1,575,216 | 1,193,271 |
Later than one and not later than five years | - | 1,491,589 |
|
|
|
| 1,575,216 | 2,684,860 |
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
13 Financial Commitments (continued)
c) Defined contribution pension plans
Total pensions commitments which are included in the balance sheet amount to £34,815 (2022 - £91,154).
LLP
a) Finance leases - lessee
Finance leases relate to hire purchase arrangements for equipment. Total future minimum finance lease payments are as follows:
| 2023 | 2022 |
| £ | £ |
|
|
|
Not later than one year | ||
Later than one and not later than two years | ||
Later than two and not later than five years | - | - |
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b) Operating leases – lessee
Total future minimum lease payments under non-cancellable operating leases are as follows:
| 2023 | 2022 |
| £ | £ |
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Not later than one year | ||
Later than one and not later than five years | - | |
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c) Defined contribution pension plans
Total pensions commitments which are included in the balance sheet amount to £
14 Analysis of loans and other debts due to members
Group & LLP
| 2023 | 2022 |
| £ | £ |
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Undrawn profits | ||
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In the event of winding up, amounts in ‘Loans and other debts due to members' would rank equally in relation to other creditors who are unsecured.
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
15 Reconciliation of profit to cash flow from operating activities
| 2023 | 2022 |
| £ | £ |
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Profit / (loss) for the year / period | (154,953) | 2,849 |
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Members' remuneration charged as an expense | 2,446,474 | 3,304,192 |
Income from shares and similar undertakings | - | - |
Interest receivable and similar income | (8,499) | (3,273) |
Interest payable and similar charges | 33,685 | 42,707 |
Tax on profit in corporate subsidiaries | 74,255 | 87,465 |
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Operating profit | 2,390,962 | 3,433,940 |
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Depreciation and impairment of tangible fixed assets | 534,605 | 622,270 |
(Profit) / loss on disposal of tangible fixed assets | - | - |
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Tax paid | (52,734) | (186,379) |
(Increase)/decrease in debtors | 823,858 | (2,357,452) |
Increase in creditors | 3,621,401 | (57,114) |
Foreign exchange effects | (21,602) | 90,907 |
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Cash flow from operating activities | 7,296,490 | 1,546,172 |
15A Analysis of changes in net debt
| 2022 | Cash flows | Finance | Non-cash | 2023 |
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| leases | movements |
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| £ | £ | £ | £ | £ |
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Cash at bank | 1,421,343 | 642,734 | - | - | 2,064,077 |
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Bank overdrafts | (2,401,384) | 1,999,057 | - | - | (402,327) |
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Net cash/(debt) | (980,041) | 2,641,791 | - | - | 1,661,750 |
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Long-term | (281,654) | 208,568 | - | - | (73,086) |
borrowings |
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Short-term | (529,157) | 482,112 | (494,540) | - | (541,585) |
borrowings |
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Total net cash/(debt) | (1,790,852) | 3,332,471 | (494,540) | - | 1,047,079 |
RSHP LLP
Notes to the Financial Statements
Year Ended 31 December 2023
16 Contingent liabilities
A cross guarantee has been given to HSBC Bank plc regarding the banking facilities provided to the LLP and the following entities, RSHP Group Limited, RSHP Architects Limited and RSHP Holdings Limited.
A guarantee has been given to Eidgenossiche Steuruerwaltung by HSBC Bank plc on behalf of the LLP for CHF 490,000 in respect of potential future tax liabilities arising with the LLP's subsidiary undertaking, RSHP Switzerland GmbH, as required by the Swiss tax authorities.
The liabilities arising from these guarantees are secured by fixed and floating charges over each of the above named entities. The net contingent liability at 31 December 2023 was £nil (2022: £nil).
17 Related party transactions
The immediate parent of the LLP is
Information about related party transactions and outstanding balances is outlined below:
| Sales | Purchases | Debtors | Creditors |
| £ | £ | £ | £ |
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influence over the LLP |
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At 31 December 2023 | ||||
At 31 December 2022 | - | |||
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At 31 December 2023 | ||||
At 31 December 2022 | - |
Outstanding balances due to and from the LLP are unsecured, interest free and repayable on demand.
The Group's and LLP's key management are the members of the LLP. No remuneration is paid to them under contracts of employment.
18 Financial instruments
The group and LLP have no financial instruments recognised at fair value through profit and loss.
19 Events after the Balance Sheet date