Limited Liability Partnership Registration No. OC390920 (England and Wales)
LendNet LLP
Annual report and financial statements
for the year ended 31 March 2024
LendNet LLP
Limited liability partnership information
Designated members
Generations Navigator LLP
Triple Point Advancr Leasing plc
Triple Point Navigator Partners LLP
Limited liability partnership number
OC390920
Registered office
1 King William Street
London
EC4N 7AF
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
LendNet LLP
Contents
Page
Members' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Reconciliation of members' interests
8 - 9
Statement of cash flows
10
Notes to the financial statements
11 - 20
LendNet LLP
Members' report
For the year ended 31 March 2024
1

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

Principal activities

The principal activity of the limited liability partnership continued to be that of providing loan finance to SME's.

Members' drawings, contributions and repayments

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

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

Designated members

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

Generations Navigator LLP
Triple Point Advancr Leasing plc
Triple Point LLP
(Resigned 1 April 2024)
Triple Point Navigator Partners LLP
Auditor

Saffery LLP were appointed as auditor to the limited liability partnership and have expressed their willingness to remain in office.

Statement of members' responsibilities

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

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

 

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

 

LendNet LLP
Members' report (continued)
For the year ended 31 March 2024
2
Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

Approved by the members on 15 October 2024 and signed on behalf by:
15 October 2024
Toby Furnivall
on behalf of Triple Point Advancr Leasing plc, Designated Member
LendNet LLP
Independent auditor's report
To the members of LendNet LLP
3
Opinion

We have audited the financial statements of LendNet LLP (the 'limited liability partnership') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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.

 

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.

LendNet LLP
Independent auditor's report (continued)
To the members of LendNet LLP
4
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

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

 

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

Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the limited liability partnership’s financial statements to material misstatement and how fraud might occur, including through discussions with the members, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the limited liability partnership by discussions with members and by updating our understanding of the sector in which the limited liability partnership operates.

 

Laws and regulations of direct significance in the context of the limited liability partnership include The Companies Act 2006 as applied to limited liability partnerships and UK Tax legislation.

LendNet LLP
Independent auditor's report (continued)
To the members of LendNet LLP
5

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the limited liability partnership's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the limited liability partnership's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

 

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied to limited liability partnerships. 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.

Michael Di Leto
Senior Statutory Auditor
For and on behalf of Saffery LLP
15 October 2024
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
LendNet LLP
Statement of comprehensive income
For the year ended 31 March 2024
6
2024
2023
Notes
£
£
Turnover
3
31,340,066
23,063,409
Cost of sales
(396,000)
(464,229)
Gross profit
30,944,066
22,599,180
Administrative expenses
(5,483,253)
(1,324,953)
Operating profit
4
25,460,813
21,274,227
Investment income
7
974
89,575
Interest payable and similar expenses
8
(387,548)
-
Other gains and losses
9
821,377
(40,808)
Profit for the financial year before members' remuneration and profit shares available for discretionary division among members
25,895,616
21,322,994

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

LendNet LLP
Statement of financial position
As at 31 March 2024
7
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
68,378
31,485
Investments
11
6,535,805
4,995,643
6,604,183
5,027,128
Current assets
Debtors
12
387,654,836
324,678,707
Cash at bank and in hand
3,834,517
10,742,355
391,489,353
335,421,062
Creditors: amounts falling due within one year
13
(14,452,643)
(2,115,176)
Net current assets
377,036,710
333,305,886
Total assets less current liabilities and net assets attributable to members
383,640,893
338,333,014
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
15
94,974,967
69,079,351
Members' other interests
Members' capital classified as equity
288,665,926
269,253,663
383,640,893
338,333,014
The financial statements were approved by the members and authorised for issue on 15 October 2024 and are signed on their behalf by:
15 October 2024
Toby Furnivall
on behalf of Triple Point Advanct Leasing plc, Designated Member
Limited Liability Partnership Registration No. OC390920
LendNet LLP
Reconciliation of members' interests
For the year ended 31 March 2024
8
Current financial year
Equity
Debt
Total
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
members' interests
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2024
£
£
£
£
£
£
Amounts due to members
69,079,351
Members' interests at 1 April 2023
269,253,663
-
269,253,663
69,079,351
69,079,351
338,333,014
Profit for the financial year available for discretionary division among members
-
25,895,616
25,895,616
-
-
25,895,616
Members' interests after profit for the year
269,253,663
25,895,616
295,149,279
69,079,351
69,079,351
364,228,630
Allocation of profit for the financial year
-
(25,895,616)
(25,895,616)
25,895,616
25,895,616
-
Introduced by members
56,308,032
-
56,308,032
-
-
56,308,032
Repayments of capital
(36,895,769)
-
(36,895,769)
-
-
(36,895,769)
Members' interests at 31 March 2024
288,665,926
-
288,665,926
94,974,967
94,974,967
383,640,893
LendNet LLP
Reconciliation of members' interests (continued)
For the year ended 31 March 2024
9
Prior financial year
Equity
Debt
Total
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
members' interests
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
Amounts due to members
47,756,357
Members' interests at 1 April 2022
188,853,663
-
188,853,663
47,756,357
47,756,357
236,610,020
Profit for the financial year available for discretionary division among members
-
21,322,994
21,322,994
-
-
21,322,994
Members' interests after profit for the year
188,853,663
21,322,994
210,176,657
47,756,357
47,756,357
257,933,014
Allocation of profit for the financial year
-
(21,322,994)
(21,322,994)
21,322,994
21,322,994
-
Introduced by members
85,498,350
-
85,498,350
-
-
85,498,350
Repayments of capital
(5,098,350)
-
(5,098,350)
-
-
(5,098,350)
Members' interests at 31 March 2023
269,253,663
-
269,253,663
69,079,351
69,079,351
338,333,014
LendNet LLP
Statement of cash flows
For the year ended 31 March 2024
10
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
19,326,133
15,506,474
Interest paid
(387,548)
-
Net cash inflow from operating activities
18,938,585
15,506,474
Investing activities
Purchase of intangible assets
(47,388)
(52,474)
Net loan advances
(57,556,729)
(121,854,977)
Investment in membership interests
(758,396)
(773,712)
Distribution from membership interests
102,853
-
Interest received
974
89,575
Net cash used in investing activities
(58,258,686)
(122,591,588)
Financing activities
Capital introduced by members
(classified as debt or equity)
56,308,032
85,498,350
Repayment of capital or debt to members
(36,895,769)
(5,098,350)
New bank loan
13,000,000
-
Net cash generated from financing activities
32,412,263
80,400,000
Net decrease in cash and cash equivalents
(6,907,838)
(26,685,114)
Cash and cash equivalents at beginning of year
10,742,355
37,427,469
Cash and cash equivalents at end of year
3,834,517
10,742,355
LendNet LLP
Notes to the financial statements
For the year ended 31 March 2024
11
1
Accounting policies
Limited liability partnership information

LendNet LLP is a limited liability partnership incorporated in England and Wales. The registered office is 1 King William Street, London, EC4N 7AF.

 

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

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents interest earnings from loans and similar advances, and arrangement fee income.

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

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

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

 

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

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

LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
12
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20% straight line
1.6
Fixed asset investments

Interests in mutually controlled entities are initially measured at cost less impairment, and subsequently remeasured to fair market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit or loss for the period.

1.7
Impairment of fixed assets

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

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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

 

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

1.8
Cash and cash equivalents

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

LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
13
1.9
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
14
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the limited liability partnership.

LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
15
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The key assumptions or estimation uncertainties at the statement of financial position date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.

 

(i) Recoverability of assets

Determining whether loan balances are fully recoverable requires an estimation of the value of the future cash flows against carrying balance of the debt. At the year end the partnership assesses recoverability of each balance through the access of available information. This may include discounted cashflow modelling and latest management accounts.

 

(ii) Investment fair value

The investments in the accounts are recorded at fair market value at the year end date, this can involve an element subjectivity. At the year end, the partnership remeasurement the investments based upon third party valuation reports.

 

 

3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Interest income
30,727,893
20,712,995
Arrangement fees
548,931
2,110,692
Profit share from partnership investment
63,242
239,722
31,340,066
23,063,409
LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
16
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
-
14,811
Provision for bad and doubtful debts
3,818,050
367,263
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
25,200
19,150
Amortisation of intangible assets
10,495
20,989
5
Employees

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

2024
2023
Number
Number
Total
-
0
-
0
6
Information in relation to members
2024
2023
Number
Number
Average number of members during the year
4
4
2024
2023
£
£
Profit attributable to the member with the highest entitlement
21,447,661
17,801,924
7
Interest receivable and similar income
2024
2023
£
£
Investment income
Interest on bank deposits
974
89,575
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
387,548
-
LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
17
9
Other gains and losses
2024
2023
£
£
Changes in the fair value of investments
821,377
(40,808)
10
Intangible fixed assets
Software
£
Cost
At 1 April 2023
52,474
Additions
47,388
At 31 March 2024
99,862
Amortisation and impairment
At 1 April 2023
20,989
Amortisation charged for the year
10,495
At 31 March 2024
31,484
Carrying amount
At 31 March 2024
68,378
At 31 March 2023
31,485
11
Fixed asset investments
2024
2023
£
£
Membership interests
5,836,429
4,995,643
Other investments
699,376
-
6,535,805
4,995,643
LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
11
Fixed asset investments (continued)
18
Movements in fixed asset investments
Membership Interests
Other Investments
Total
£
£
£
Cost or valuation
At 1 April 2023
4,995,643
-
4,995,643
Additions and drawdowns
758,396
-
758,396
Valuation changes
122,001
699,376
821,377
Profit share
63,242
-
63,242
Distributions
(102,853)
-
(102,853)
At 31 March 2024
5,836,429
699,376
6,535,805
Carrying amount
At 31 March 2024
5,836,429
699,376
6,535,805
At 31 March 2023
4,995,643
-
4,995,643

The membership interests represent interests in Triple Point IGF LLP and Triple Point IGF 2 LLP, both limited liability partnerships registered in England and Wales. The registered office of these partnerships is 1 King William Street, London, EC4N 7AF.

 

Other investments represents a minority equity interest in Assured Underwriting Group Limited.

 

12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Loans advanced
15,944,792
27,707,219
Other debtors
6,984,165
2,448,388
Prepayments and accrued income
4,518,935
3,635,312
27,447,892
33,790,919
2024
2023
Amounts falling due after more than one year:
£
£
Loans advanced
360,206,944
290,887,788
Total debtors
387,654,836
324,678,707
LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
19
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
13,000,000
-
Trade creditors
562,860
53,455
Other creditors
800,000
1,843,019
Accruals and deferred income
89,783
218,702
14,452,643
2,115,176
14
Loans and overdrafts
2024
2023
£
£
Bank loans
13,000,000
-
Payable within one year
13,000,000
-

On 18 October 2023, a revolving loan facility of £35,000,000 was agreed. Interest is charge on this based on a margin of 2.25% plus SONIA per annum. This loan is due to expire in October 2026. A £13m loan drawdown was taken out in the year.

15
Loans and other debts due to members
2024
2023
£
£
Analysis of loans
Amounts falling due within one year
94,974,967
69,079,351

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

16
Related party transactions
Transactions with related parties

During the year the limited liability partnership was charged £847,840 (2023: £298,198) by other related parties under common control.

 

As at 31 March 2024 the limited liability partnership owed £564,872 (2023: £28,918) to other related parties under common control.

 

As at 31 March 2024 the limited liability partnership was owed £3,114,115 (2023: £Nil) from other related parties under common control.

17
Ultimate controlling party

The members do not consider there to be any one ultimate controlling party.

LendNet LLP
Notes to the financial statements (continued)
For the year ended 31 March 2024
20
18
Cash generated from operations
2024
2023
£
£
Profit for the year
25,895,616
21,322,994
Adjustments for:
Finance costs recognised in profit or loss
387,548
-
Investment income recognised in profit or loss
(974)
(89,575)
Amortisation and impairment of intangible assets
10,495
20,989
Other gains and losses
(821,377)
40,808
Profit share from partnerhsip interest
(63,242)
(247,034)
Decrease in provisions
-
(928,625)
Movements in working capital:
Increase in debtors
(5,419,400)
(5,613,910)
(Decrease)/increase in creditors
(662,533)
1,000,827
Cash generated from operations
19,326,133
15,506,474
19
Analysis of changes in net funds/(debt)
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
10,742,355
(6,907,838)
3,834,517
Borrowings excluding overdrafts
-
(13,000,000)
(13,000,000)
Balances before members' debt
10,742,355
(19,907,838)
(9,165,483)
Loans and other debts due to members:
- Other amounts due to members
(69,079,351)
(25,895,616)
(94,974,967)
Balances including members' debt
(58,336,996)
(45,803,454)
(104,140,450)
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