Limited Liability Partnership registration number OC407203 (England and Wales)
LACY SCOTT & KNIGHT LLP
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
LACY SCOTT & KNIGHT LLP
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
LACY SCOTT & KNIGHT LLP
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
31 March 2024
31 December 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
149,442
201,589
Current assets
Stocks
-
20,610
Debtors
5
415,782
362,063
Cash at bank and in hand
363,229
969,193
779,011
1,351,866
Creditors: amounts falling due within one year
6
(213,993)
(449,809)
Net current assets
565,018
902,057
Total assets less current liabilities
714,460
1,103,646
Creditors: amounts falling due after more than one year
7
(159,048)
(183,762)
Net assets attributable to members
555,412
919,884
Represented by:
Loans and other debts due to members within one year
8
Amounts due in respect of profits
280,412
669,884
Members' other interests
8
Members' capital classified as equity
275,000
250,000
555,412
919,884
LACY SCOTT & KNIGHT LLP
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 2 -

For the financial period ended 31 March 2024 the limited liability partnership was entitled to exemption from audit under section 477 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to small limited liability partnerships.

The members acknowledge their responsibilities for complying with the requirements of the Act as applied to limited liability partnerships with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

The members of the limited liability partnership have elected not to include a copy of the profit and loss account within the financial statements.

The financial statements were approved by the members and authorised for issue on 30 September 2024 and are signed on their behalf by:
30 September 2024
Mr G F Smith
Mr R G Swiney
Designated member
Designated Member
Mr A G Turner
Mr G Ford
Designated Member
Designated Member
Limited Liability Partnership registration number OC407203 (England and Wales)
LACY SCOTT & KNIGHT LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Limited liability partnership information

Lacy Scott & Knight LLP is a limited liability partnership incorporated in England and Wales. The registered office is Lacy Scott & Knight LLP, 10 Risbygate Street, Bury St Edmunds, IP33 3AA.

 

The limited liability partnerships'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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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
Reporting period

Then entity’s reporting period has been changed and the annual financial statements are presented for a period longer one year, being 15 months. The reason for using a longer period is to comply with basis period changes for tax purposes which have been introduced by HM Revenue & Customs. Due to this change, comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

 

1.3
Turnover

Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

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

LACY SCOTT & KNIGHT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.4
Members' participating interests

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

 

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

 

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

 

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

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Property improvements
10% straight line
Antiques
Not depreciated on the basis that these are appreciating assets
Fixtures and fittings
20% reducing balance or 3 years straight line as appropriate
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Impairment of fixed assets

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

1.7
Stocks

Stocks represents Work in Progress.

 

Where no right to consideration has been obtained, the costs to date are recognised in Work in Progress. This comprises direct staff costs and a share of overheads appropriate to the relevant state of completion of the work. The overheads attributable to all time incurred by members and included within work in progress is included within the valuation.

LACY SCOTT & KNIGHT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.8
Cash at bank and in hand

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

1.9
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.

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.

LACY SCOTT & KNIGHT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
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.

1.11
Employee benefits

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

 

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

 

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

 

 

 

 

 

 

 

 

 

 

 

LACY SCOTT & KNIGHT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 7 -
1.12
Retirement benefits and post retirement payments to members

In the event of a retirement from the LLP, the LLP shall pay to an Outgoing Member (other than on the liquidation of the LLP):

 

(a) his Capital in four equal instalments at intervals of three months, the first of which shall be three months after the Outgoing Date; and

 

(b) the balance of his undrawn profits shall be paid in four equal instalments at the same time as the payments of Capital (less reserves for tax), provided that if such balance is not agreed at the time for payment then an amount equal to the Designated Members’ best estimate of such amount shall be paid and a balancing payment shall be made by the Outgoing Member or the LLP (as the case may be).

2
Employees

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

2024
2022
Number
Number
Total
46
44
3
Members' remuneration
2024
2022
Number
Number
Average number of members during the period
4
4
2024
2022
£
£
Profit attributable to the member with the highest entitlement
114,639
243,305
LACY SCOTT & KNIGHT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 8 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
389,479
128,771
518,250
Additions
7,504
7,975
15,479
Disposals
-
(16,117)
(16,117)
At 31 March 2024
396,983
120,629
517,612
Depreciation and impairment
At 1 January 2023
233,804
82,857
316,661
Depreciation charged in the period
49,572
16,846
66,418
Eliminated in respect of disposals
-
(14,909)
(14,909)
At 31 March 2024
283,376
84,794
368,170
Carrying amount
At 31 March 2024
113,607
35,835
149,442
At 31 December 2022
155,675
45,914
201,589
5
Debtors
2024
2022
Amounts falling due within one year:
£
£
Trade debtors
368,517
307,207
Other debtors
47,265
54,856
415,782
362,063
6
Creditors: amounts falling due within one year
2024
2022
£
£
Trade creditors
98,847
266,069
Taxation and social security
77,380
135,324
Other creditors
37,766
48,416
213,993
449,809

'Other Creditors' includes £19,871 (2022: £18,801) with respect to a long-term business loan secured by personal guarantees from the members.

LACY SCOTT & KNIGHT LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 9 -
7
Creditors: amounts falling due after more than one year
2024
2022
£
£
Other creditors
159,048
183,762
Creditors which fall due after five years are as follows:
2024
2022
£
£
Payable by instalments
69,521
99,285

'Other Creditors' represents a long-term business loan secured by personal guarantees from the members of £159,048 (2022: £183,762).

8
Reconciliation of Members' Interests
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other amounts
Total
Total
2024
£
£
£
£
Members' interests at 1 January 2023
250,000
669,884
669,884
919,884
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
423,870
423,870
423,870
Profit for the period available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the period
250,000
1,093,754
1,093,754
1,343,754
Introduced by members
105,000
80,000
80,000
185,000
Repayments of capital
(80,000)
-
-
(80,000)
Drawings on account and distributions of profit
-
(367,535)
(367,535)
(367,535)
Taxation
-
(525,807)
(525,807)
(525,807)
Members' interests at 31 March 2024
275,000
280,412
280,412
555,412
9
Loans and other debts due to members

Under the terms of the members' agreement loans and other debts due to members are potentially repayable within one year.

 

In the event of a winding up of the LLP, undrawn profits, loans due to members and capital subscribed by members ranks after sums due to unsecured creditors.

 

No restrictions or limitations exist on the ability of the members to reduce the amounts of 'Members' other interests'.

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