Limited Liability Partnership Registration No. OC418586 (England and Wales)
Encore Surrey LLP
Annual report and financial statements
for the year ended 31 January 2024
Encore Surrey LLP
Limited liability partnership information
Designated members
Encore Care Homes Holdings Limited
Affordable Housing and Healthcare Group Limited
LLP registration number
OC418586
Registered office
Third Floor, Tringham House
Deansleigh Road
Bournemouth
England
BH7 7DT
Independent auditor
Saffery LLP
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
Encore Surrey LLP
Contents
Page
Members' report
1
Members' responsibilities statement
2
Independent auditor's report
3 - 6
Income statement
7
Statement of financial position
8
Reconciliation of members' interests
9
Notes to the financial statements
10-12
Encore Surrey LLP
Members' report
For the year ended 31 January 2024
1

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

Principal activities

The principal activity of the limited liability partnership is continued to be that of the development of a care home.

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:

Encore Care Homes Holdings Limited
Affordable Housing and Healthcare Group Limited
Auditor

In accordance with the limited liability partnership's membership agreement, a notice proposing that Saffery LLP be reappointed as auditor of the limited liability partnership will be put at a members meeting.

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 31 October 2024 and signed on behalf by:
31 October 2024
Julian Shaffer on behalf of
Affordable Housing and Healthcare Group Limited
Designated member
Encore Surrey LLP
Members' responsibilities statement
For the year ended 31 January 2024
2

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.

Encore Surrey LLP
Independent auditor's report
To the members of Encore Surrey LLP
3
Opinion

We have audited the financial statements of Encore Surrey LLP (the 'limited liability partnership') for the year ended 31 January 2024 which comprise the income statement, the statement of financial position, the reconciliation of members' interests 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 members' 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.

Encore Surrey LLP
Independent auditor's report (continued)
To the members of Encore Surrey 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.

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

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.

 

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.

Encore Surrey LLP
Independent auditor's report (continued)
To the members of Encore Surrey LLP
6
Jamie Lane
Senior Statutory Auditor
For and on behalf of Saffery LLP
31 October 2024
Statutory Auditors
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
Encore Surrey LLP
Income statement
For the year ended 31 January 2024
7
2024
2023
Notes
£
£
Turnover
-
440,929
Cost of sales
(1,000)
(1,046,433)
Gross loss
(1,000)
(605,504)
Administrative expenses
(19,422)
(76,704)
Operating loss
2
(20,422)
(682,208)
Interest receivable and similar income
138
-
Loss for the financial year before members' remuneration and profit shares
(20,284)
(682,208)
Members' remuneration charged as an expense
20,284
682,208
Result for the financial year available for discretionary division among members
-
-

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

Encore Surrey LLP
Statement of financial position
As at 31 January 2024
8
2024
2023
Notes
£
£
£
£
Current assets
Debtors
4
1,561,360
1,589,940
Cash at bank and in hand
18,348
103,882
1,579,708
1,693,822
Creditors: amounts falling due within one year
5
(72,892)
(304,872)
Net current assets and net assets attributable to members
1,506,816
1,388,950
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
69,209
89,494
Other amounts
1,437,607
1,299,456
1,506,816
1,388,950

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

The financial statements were approved by the members and authorised for issue on 31 October 2024 and are signed on their behalf by:
31 October 2024
Julian Shaffer on behalf of
Affordable Housing and Healthcare Group Limited
Designated member
Limited Liability Partnership Registration No. OC418586
Encore Surrey LLP
Reconciliation of members' interests
For the year ended 31 January 2024
9
Current financial year
Debt
Total
Loans and other debts due to members less any amounts due from members in debtors
Members' interests
Other amounts
Total
Total
2024
£
£
£
Members' interests at 1 February 2023
1,388,950
1,388,950
1,388,950
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
(20,284)
(20,284)
(20,284)
Members' interests after loss and remuneration for the year
1,368,666
1,368,666
1,368,666
Introduced by members
138,150
138,150
138,150
Members' interests at 31 January 2024
1,506,816
1,506,816
1,506,816
Prior financial year
Debt
Total
Loans and other debts due to members less any amounts due from members in debtors
Members' interests
Other amounts
Total
Total
2023
£
£
£
Members' interests at 1 February 2022
1,826,331
1,826,331
1,826,331
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
(682,208)
(682,208)
(682,208)
Members' interests after loss and remuneration for the year
1,144,123
1,144,123
1,144,123
Introduced by members
244,827
244,827
244,827
Members' interests at 31 January 2023
1,388,950
1,388,950
1,388,950
Encore Surrey LLP
Notes to the financial statements
For the year ended 31 January 2024
10
1
Accounting policies
Limited liability partnership information

Encore Surrey LLP is a limited liability partnership incorporated in England and Wales. The registered office is Third Floor, Tringham House, Deansleigh Road, Bournemouth, England, BH7 7DT.

 

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 January 2017, 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 LLPs subject to the small LLPs 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
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 is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

 

The company's turnover comprises income from sale of property development services. Income from property development services is recognised when the services are provided.

1.4
Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Encore Surrey LLP
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies (continued)
11
1.6
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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including 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.

2
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Fees payable to the LLP's auditor for the audit of the LLP's annual financial statements
5,450
5,175
Encore Surrey LLP
Notes to the financial statements (continued)
For the year ended 31 January 2024
12
3
Employees
2024
2023
Number
Number
Total
-
0
-
0
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
164,152
55,200
Other debtors
1,397,208
1,534,740
1,561,360
1,589,940
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
6,510
-
Taxation and social security
14,339
116,650
Other creditors
52,043
188,222
72,892
304,872
6
Loans and other debts due to members

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

7
Financial commitments, guarantees and contingent liabilities

There are currently no fixed or floating charges over the entity's cash and bank assets. No further guarantees are in place.

8
Parent company

The Limited Liability Partnership's immediate parent was Affordable Housing and Healthcare Group Limited during the year. The ultimate parent company continued to be Quantum Group Holdings Ltd, which prepares group financial statements. The registered office of both companies is Third Floor, Tringham House, Deansleigh Road, Bournemouth, BH7 7DT.

The ultimate controlling party is Julian Shaffer.

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