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Registered number: OC308197









FUSION ASSET MANAGEMENT LLP









FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
FUSION ASSET MANAGEMENT LLP
 

INFORMATION



Designated Members
K Bobkova
A Ilinskaia
K Ilinski
T Rybak
Fusion Asset Management (Services) Limited

LLP registered number
OC308197

Registered office
2 Queen Anne's Gate Buildings
22 Dartmouth Street
London
SW1H 9BP

Independent auditors
Adler Shine LLP
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF


 
FUSION ASSET MANAGEMENT LLP
 

CONTENTS



Page
Members' report
 
1 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10 - 11
Reconciliation of members' interests
 
12
Statement of cash flows
 
13
Notes to the financial statements
 
14 - 22


 
FUSION ASSET MANAGEMENT LLP
 
  
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The members present their annual report together with the audited financial statements of Fusion Asset Management LLP (the "LLP") for the year ended 31 May 2024
 

Principal activities
 
 
The principal activity of the LLP continued to be that of the provision of authorised and regulated investment management services.
 
 
Designated Members
 
 
K Bobkova, A Ilinskaia, K Ilinski, T Rybak and Fusion Asset Management (Services) Limited were designated members of the LLP throughout the period.
 

 
Members' capital and interests
 
 
Each member's subscription to the capital of the LLP is determined by their share of the profit and is repayable following retirement from the LLP.
 
 
Details of changes in members' capital in the ended 31 May 2024 are set out in the reconciliation of members' interests.
 
 
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 after finalisation of the financial statements. 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.
 

Market Risk
 
 
Market risk is the risk that the value of, or income arising from, the LLP's assets and liabilities varies as a result of changes in the market price of financial assets, changes in exchange rates or changes in interest rates. The LLP acts as a broker or advisor and does not take proprietary trading risk. The only market risk that the LLP faces is currency risk in that a small element of its income and expenditure are denominated in currencies other than sterling.
 
 
Credit risk
 
 
Credit risk refers to the potential risk that customers fail to meet their obligations as they fall due.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Before the LLP agrees to transact with the counterparty an internal assessment is made. The LLP is also exposed to the credit risk of its bankers. The LLP assessses those risks on a continuous basis but does not believe that they are significant. 
 
 
Liquidity risk
 
 
The LLP's liquidity policy is to maintain sufficient liquid resources to cover fluctuations in income received. The LLP maintains cash balances at its bankers to cover liquidity risk.
 
Operational risk
 
 
Operational risk is the risk of loss arising from failed or inadequate internal processes or systems, human, error or other factors. The risk is managed by the members who have responsibility for putting in place appropriate controls for the business.
 
Page 1

 
FUSION ASSET MANAGEMENT LLP
 
 
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
 
 
Business risk
 
 
Business risk is the risk that the LLP may not be able to carry out its business plan and could therefore suffer losses if its income falls. This is a risk that all businesses face. 
The members continuously monitor income and expenditure levels and adjust their plans accordingly.

Concentration risk
 
 
Concentration risk is the risk that the LLP is overly dependent upon any one customer or any one group of connected customers either in terms of income dependency or in terms of credit risk. The Members receive a management information report on a regular basis which enables them to review the concentration risk.  The LLP is not dependent for its income on any one customer or group of connected customers.
 
Going concern
Having reviewed the LLP’s results for the period, its financial forecasts and expected future cash flows, the members are of the opinion the LLP has adequate resources available to it to continue in operational existence for the foreseeable future. Accordingly, the members continue to adopt the going concern basis in preparing the financial statements for the period ended 31 May 2024.
 
Section 172 statement
 
 
This section serves as the members' section 172 statement which requires designated members to take into
consideration the interests of stakeholders in their decision making.
The designated members continue to have regard to the interests of the LLP's stakeholders, including the impact of its activities on the community, suppliers, customers, the environment and the LLP's reputation, when making decisions. Acting in good faith and fairly between members, the designated members consider what is most likely to promote the success of the LLP in the long term, including:
As an LLP regulated by the FCA, investor interests and the interest of others, such as suppliers, are also important to the designated members.
When making decisions on the LLP's strategies and operations, the designated members also consider the impact of these decisions on the community environment.
As the LLP grows the designated members are aware of the importance of its reputation and ensure that management operates the LLP in a reasonable manner with integrity. The designated members seek to ensure that this culture is understood and shared across the LLP.
 
Page 2

 
FUSION ASSET MANAGEMENT LLP
 
 
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
 
 
Members' responsibilities statement
 
 
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
 
 
Company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and of the profit or loss of the LLP for that period.

In preparing these financial statements, the members are required to:
 
select suitable accounting policies and then apply them consistently;
 
make judgments and accounting estimates that are reasonable and prudent;
 
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
 
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of the Companies Act 2006) Regulations 2008)They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
 
Disclosure of information to auditors
 
 
Each of the persons who are members at the time when this members' report is approved has confirmed that:

so far as that member is aware, there is no relevant audit information of which the LLP's auditors are unaware, and

that member has taken all the steps that ought to have been taken as a member in order to be aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.
 

Page 3

 
FUSION ASSET MANAGEMENT LLP
 
 
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
 
 
Auditors
 
 
The auditorsAdler Shine LLPhave indicated their willingness to continue in office. The Designated members will propose a motion re-appointing the auditors at a meeting of the members.  
                                                                                                                                                                                  
 

This report was approved by the members and signed on their behalf by: 



K Bobkova
Designated member


Date: 22 September 2024

22 September 2024
Page 4

 
FUSION ASSET MANAGEMENT LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FUSION ASSET MANAGEMENT LLP
 

Opinion
 

We have audited the financial statements of Fusion Asset Management LLP (the 'LLP') for the year ended 31 May 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of cash flows, the reconciliation of members' interests and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the LLP's affairs as at 31 May 2024 and of its loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern
 

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


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


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


Page 5

 
FUSION ASSET MANAGEMENT LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FUSION ASSET MANAGEMENT LLP (CONTINUED)


Other information
 

The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The members are responsible for the other information contained within the annual reportOur opinion on the financial statements does not cover the other information and 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.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.


Responsibilities of members
 

As explained more fully in the members' responsibilities statement set out on page 1, 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 LLP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.


Page 6

 
FUSION ASSET MANAGEMENT LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FUSION ASSET MANAGEMENT LLP (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. 
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have: 
• considered the nature of the industry and sectors, control environment and business performance; 
• made enquires of management about their own identification and assessment of the risk of irregularities;  • performed audit work over the risk of management override of controls, including testing of journal entries 
          and other adjustments for appropriateness and reviewing accounting estimates for bias; 
• reviewed minutes of meetings;
• undertaken appropriate sample based testing of bank transactions; 
• identified and evaluated compliance with relevant laws and regulations and made enquiries of any    instances of non-compliance. The key laws and regulations we considered in this context included UK    Companies Act, data protection, anti-bribery, employment law, health and safety, Money Laundering Act    and  FCA regulations.
• discussed matters among the audit engagement team regarding how and where fraud might occur in the   financial statements and potential indicators of fraud. 
Due to 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. 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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Page 7

 
FUSION ASSET MANAGEMENT LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FUSION ASSET MANAGEMENT LLP (CONTINUED)


Use of our report
 

This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Christopher Taylor FCA (senior statutory auditor)
for and on behalf of
Adler Shine LLP
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF

23 September 2024
Page 8

 
FUSION ASSET MANAGEMENT LLP
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
56,784
133,341

Gross profit
  
 
56,784
 
133,341

Administrative expenses
  
(114,580)
(108,334)

Operating (loss)/profit
 5 
 
(57,796)
 
25,007

Interest receivable and similar income
 9 
489
245

Interest payable and similar expenses
 10 
(1,408)
(1,904)

(Loss)/profit before tax
  
 
(58,715)
 
23,348

(Loss)/profit for the year before members' remuneration and profit shares available for discretionary division among members
  
 
(58,715)
 
23,348

There was no other comprehensive income for 2024(2023:£NIL).

The notes on pages 14 to 22 form part of these financial statements.

Page 9

 
FUSION ASSET MANAGEMENT LLP
REGISTERED NUMBER: OC308197

BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

  

Current assets
  

Debtors: amounts falling due within one year
 11 
282,193
318,394

Cash at bank and in hand
 12 
22,923
72,218

  
305,116
390,612

Creditors: Amounts Falling Due Within One Year
 13 
(42,009)
(35,385)

Net current assets
  
 
 
263,107
 
 
355,227

Total assets less current liabilities
  
263,107
355,227

Creditors: amounts falling due after more than one year
 14 
(18,214)
(28,271)

  
244,893
326,956

  

Net assets
  
244,893
326,956


Represented by:
  

Loans and other debts due to members within one year
  

Members' other interests
  

Members' capital classified as equity
  
303,608
303,608

Other reserves classified as equity
  
(58,715)
23,348

  
 
244,893
 
326,956

  
244,893
326,956


Total members' interests
  

Amounts due from members (included in debtors)
 11 
(116,530)
(98,726)

Members' other interests
  
244,893
326,956

  
128,363
228,230


Page 10

 
FUSION ASSET MANAGEMENT LLP
REGISTERED NUMBER: OC308197
    
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024

The financial statements were approved and authorised for issue by the members and were signed on their behalf by: 




K Bobkova
Designated member

Date: 22 September 2024

The notes on pages 14 to 22 form part of these financial statements.

Page 11

 
FUSION ASSET MANAGEMENT LLP
 

RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MAY 2024






Equity
Members' other interests
Debt

Total members' interests
Members' capital (classified as equity)
Other reserves
Total
Loans and other debts due to members less any amounts due from members in debtors
Total

£
£
£
£
£

Amounts due from members 

(104,319)


Balance at 1 June 2022 
303,608
20,180
323,788
(104,319)
219,469

Profit for the year available for discretionary division among members
 
-
23,348
23,348
-
23,348

Members' interests after profit for the year
303,608
43,528
347,136
(104,319)
242,817

Other division of profits
-
(20,180)
(20,180)
20,180
-

Amounts introduced by members
-
-
-
55,426
55,426

Conversion of members' capital to debt
-
-
-
-
-

Drawings on account and distribution of profit
-
-
-
(70,013)
(70,013)

Amounts due from members
 



(98,726)


Balance at 31 May 2023
303,608
23,348
326,956
(98,726)
228,230

Loss for the year available for discretionary division among members
 
-
(58,715)
(58,715)
-
(58,715)

Members' interests after profit for the year
303,608
(35,367)
268,241
(98,726)
169,515

Other division of losses
-
(23,348)
(23,348)
23,348
-

Amounts introduced by members
-
-
-
6,924
6,924

Drawings on account and distribution of profit
-
-
-
(48,076)
(48,076)

Amounts due from members
 



(116,530)


Balance at 31 May 2024 
303,608
(58,715)
244,893
(116,530)
128,363

The notes on pages 14 to 22 form part of these financial statements.

There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.

Page 12

 
FUSION ASSET MANAGEMENT LLP
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(58,715)
23,348

Adjustments for:

Interest paid
1,408
1,904

Interest received
(489)
(245)

(Increase) in debtors
(22,875)
(90,155)

Increase in creditors
6,376
6,318

Net cash generated from operating activities before transactions with members

(74,295)
(58,830)


Cash flows from investing activities

Repayment of loans advanced
76,880
125,000

Interest received
489
245

Net cash from investing activities

77,369
125,245

Cash flows from financing activities

Repayment of loans
(9,809)
(9,566)

Interest paid
(1,408)
(1,904)

Amounts introduced by members
6,924
55,426

Distribution paid to members
(48,076)
(70,013)

Net cash used in financing activities
(52,369)
(26,057)

Net (decrease)/increase in cash and cash equivalents
(49,295)
40,358

Cash and cash equivalents at beginning of year
72,218
31,860

Cash and cash equivalents at the end of year
22,923
72,218


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
22,923
72,218


The notes on pages 14 to 22 form part of these financial statements.

Page 13

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Fusion Asset Management LLP is a limited liability partnership registered in England and Wales. Its registered office address and principal place of business is 2 Queen Anne's Gate Buildings, 22 Dartmouth Street, London, SW1H 9BP.
The the LLP’s principal activities are that of investment management services.
The financial statements are presented in Sterling (£), rounded to the nearest £1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the LLP's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

During the year, the LLP had a loss of £58,715 (2023-£23,348 profit) and net assets of £244,893 (2023-£326,956). Despite the loss and after making enquiries, the designated members have a reasonable expectation that the LLP has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The LLP's functional and presentational currency is GBP.

Transactions and balances

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.

Page 14

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the LLP 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:

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 LLP will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss 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.

 
2.7

Division and distribution of profits

A division of profits is the mechanism by which the profits of an LLP become a debt due to members. A division may be automatic or discretionary, may relate to some or all of the profits for a financial period and may take place during or after the end of a financial period.

An automatic division of profits is one where the LLP does not have an unconditional right to avoid making a division of an amount of profits based on the members' agreement in force at the time, whereas a discretionary division of profits requires a decision to be made by the LLP, which it has the unconditional right to avoid making.

The LLP divides profits discretionarily. Discretionary divisions of profits are recognised as amounts due to members, although may be used to offset amounts which have been drawn by members, which are recognised as loan assets repayable.

The LLP classifies distributions of profits as financing cash flows in the statement of cash flows, as they are considered to be distributions of profits to the owners.

Page 15

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.8

Debtors

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.

 
2.9

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 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 LLP's cash management.

 
2.10

Creditors

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.

 
2.11

Financial instruments

The LLP has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the LLP's balance sheet when the LLP becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The LLP's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Page 16

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.11
Financial instruments (continued)


Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the LLP after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the LLP transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the LLP will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the LLP's contractual obligations expire or are discharged or cancelled.

Page 17

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with FRS 102 requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amounts, events or actions, actual results ultimately may differ from these estimates.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Advisory fees
-
78,500

AR service fees
40,000
40,000

DFM fees
16,784
14,841

56,784
133,341


All turnover arose within the United Kingdom.


5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2023
£
£

Exchange differences
(1,237)
1,971


6.


Auditors' remuneration

During the year, the LLP obtained the following services from the LLP's auditors and their associates:


2024
2023
£
£

Fees payable to the LLP's auditors and their associates for the audit of the LLP's financial statements
9,500
9,500
Page 18

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

7.


Employees



The entity has no employees.


8.


Information in relation to members

2024
2023
Number
Number


The average number of members during the year was
5
5

                                           2024
2023
£
£







The amount of profit attributable to the member with the largest entitlement was
12,570
12,570



9.


Interest receivable

2024
2023
£
£


Other interest receivable
489
245

Page 19

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
1,408
1,904


11.


Debtors

2024
2023
£
£


Trade debtors
162,896
136,726

Other debtors
-
76,880

Prepayments and accrued income
2,767
6,062

Amounts due from members
116,530
98,726

282,193
318,394



12.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
22,923
72,218



13.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
10,056
9,808

Trade creditors
19,970
13,847

Other taxation and social security
1,385
1,152

Accruals and deferred income
10,598
10,578

42,009
35,385


Page 20

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
18,214
28,271



15.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
10,056
9,808

Amounts falling due 1-2 years

Bank loans
10,310
10,057

Amounts falling due 2-5 years

Bank loans
7,904
18,214


28,270
38,079


The above is in regard to a loan with monthly repayments and APR 2.52%.

Page 21

 
FUSION ASSET MANAGEMENT LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


Analysis of net debt




At 1 June 2023
Arising from cash flows
At 31 May 2024
£

£

£

Cash at bank and in hand

72,218

(49,295)

22,923

Borrowings due within 1 year

(9,808)

(248)

(10,056)

Borrowings due after 1 year

(28,271)

10,057

(18,214)

Net debt (before members' debt)
34,139
(39,486)
(5,347)

Loans and other debts due to members




Net debt


34,139
(39,486)
(5,347)


17.


Transactions with members

Included within administrative expenses is an amount of £Nil (2023: £4,500) charged by Fusion Asset Management (Services) Limited for expenses incurred on behalf of the LLP.
Included in amounts due from members are the following balances:
K Ilinski:      £41,460   (2023: £52,080)
K Bobkova:      £3,036     (2023: £8,397)
A Ilinskaia:      £5,094     (2023: £4,644)
Fusion Asset Management (Services) Limited: £63,904   (2023: £20,570)
T Rybak:      £3,036     (2023: £13,036)

All transactions with members are also related party transactions.


18.


Related party transactions

Included within turnover is an amount of £45,778 (2023: £110,719) for services provided to companies under common control. Included in debtors is the amount of £162,896 (2023: £212,984), due from a company under common control. 
Included within administrative expenses is an amount of £10,197 (2023: £10,343) charged by companies under common control for expenses incurred on behalf of the LLP. Included in trade creditors is the amount of £19,340 (2023: £12,411) due to a company under common control.

 
Page 22