Limited Liability Partnership registration number OC342356 (England and Wales)
TRETHOWANS LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TRETHOWANS LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Mr A J Mercer
Mr C L Whiteley
Mr M W Watson
LLP registration number
OC342356
Registered office
1 London Road Office Park
London Road
Salisbury
Wiltshire
SP1 3HP
Auditor
Fiander Tovell Limited
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
TRETHOWANS LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 5
Profit and loss account
6
Balance sheet
7
Reconciliation of members' interests
8 - 9
Statement of cash flows
10
Notes to the financial statements
11 - 22
TRETHOWANS 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 the provision of legal services.

Fair review of the business

The results for the year and financial position at the year end were considered satisfactory by the members, who expect continued growth in the foreseeable future.

 

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:

Mr A J Mercer
Mr C L Whiteley
Mr M W Watson
Future developments

Outside the continuing course of business, the members do not have any additional plans. The members expect growth in the long term.

Auditor

Fiander Tovell Limited were appointed as auditor to the limited liability partnership and in accordance with section 485 of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), a resolution proposing that they be re-appointed will be put at a general meeting.

TRETHOWANS LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
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. 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.

Statement of disclosure to auditor

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

 

Chaitable donations

During the year the LLP made the following charitable donation payments £19,873 (2023 - £16,559).

Approved by the members on 9 August 2024 and signed on behalf by:
09 August 2024
Mr C L Whiteley
Designated Member
TRETHOWANS LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRETHOWANS LLP
- 3 -
Opinion

We have audited the financial statements of Trethowans LLP (the 'limited liability partnership') for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet, 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. 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.

TRETHOWANS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRETHOWANS 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

TRETHOWANS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRETHOWANS LLP
- 5 -
Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the SRA Standards and Regulations. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these regulations and inspected correspondence with the Solicitors Regulation Authority.

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Adam Buse FCA
Senior Statutory Auditor
For and on behalf of Fiander Tovell Limited
9 August 2024
Chartered Accountants
Statutory Auditor
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
TRETHOWANS LLP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
Notes
£
£
Turnover
3
25,895,047
25,236,832
Administrative expenses
(15,335,725)
(14,959,970)
Other operating income
303,358
316,035
Operating profit
4
10,862,680
10,592,897
Interest receivable and similar income
7
898,979
310,451
Interest payable and similar expenses
8
(113,956)
(133,159)
Profit for the financial year before members' remuneration and profit shares
11,647,703
10,770,189
Members' remuneration charged as an expense
6
(11,647,703)
(10,770,189)
Result for the financial year available for discretionary division among members
-
-

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TRETHOWANS LLP
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 7 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
448,801
718,063
Investments
10
250,015
250,015
698,816
968,078
Current assets
Debtors
12
14,792,473
12,915,813
Cash at bank and in hand
5,359,649
3,648,645
20,152,122
16,564,458
Creditors: amounts falling due within one year
13
(6,759,030)
(4,911,927)
Net current assets
13,393,092
11,652,531
Total assets less current liabilities
14,091,908
12,620,609
Creditors: amounts falling due after more than one year
14
(37,819)
(293,980)
Provisions for liabilities
Provisions
16
(670,000)
(725,000)
Net assets attributable to members
13,384,089
11,601,629
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
4,234,000
3,741,000
Other amounts
9,150,089
7,860,629
13,384,089
11,601,629
Total members' interests
Loans and other debts due to members
13,384,089
11,601,629
13,384,089
11,601,629
The financial statements were approved by the members and authorised for issue on 9 August 2024 and are signed on their behalf by:
09 August 2024
Mr C L Whiteley
Designated member
Limited Liability Partnership Registration No. OC342356
TRETHOWANS LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Current financial year
DEBT
TOTAL
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 April 2023
3,741,000
7,860,629
11,601,629
11,601,629
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
11,647,703
11,647,703
11,647,703
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
3,741,000
19,508,332
23,249,332
23,249,332
Introduced by members
686,000
-
686,000
686,000
Repayment of debt (including members' capital classified as a liability)
(193,000)
-
(193,000)
(193,000)
Drawings on account and distributions of profit
-
(10,358,243)
(10,358,243)
(10,358,243)
Members' interests at 31 March 2024
4,234,000
9,150,089
13,384,089
13,384,089
Members' capital is treated as a liability hence there is no equity and no separate Statement of Changes in Equity is therefore presented.
TRETHOWANS LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Prior financial year
DEBT
TOTAL
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other amounts
Total
Total
2023
£
£
£
Members' interests at 1 April 2022
4,190,646
6,272,947
10,463,593
10,463,593
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
10,770,189
10,770,189
10,770,189
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
4,190,646
17,043,136
21,233,782
21,233,782
Introduced by members
219,000
-
219,000
219,000
Repayment of debt (including members' capital classified as a liability)
(668,646)
-
(668,646)
(668,646)
Drawings on account and distributions of profit
-
(9,182,507)
(9,182,507)
(9,182,507)
Members' interests at 31 March 2023
3,741,000
7,860,629
11,601,629
11,601,629
TRETHOWANS 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
22
11,043,545
10,614,038
Interest paid
(113,956)
(133,159)
Net cash inflow from operating activities
10,929,589
10,480,879
Investing activities
Purchase of tangible fixed assets
-
(70,804)
Purchase of subsidiaries
-
(250,000)
Interest received
898,979
310,451
Net cash generated from/(used in) investing activities
898,979
(10,353)
Financing activities
Capital introduced by members (classified as debt or equity)
686,000
219,000
Repayment of capital or debt to members
(193,000)
(668,646)
Payments to members
(10,358,243)
(9,182,507)
Proceeds from new bank loans
-
99,998
Repayment of bank loans
(252,321)
(768,139)
Net cash used in financing activities
(10,117,564)
(10,300,294)
Net increase in cash and cash equivalents
1,711,004
170,232
Cash and cash equivalents at beginning of year
3,648,645
3,478,413
Cash and cash equivalents at end of year
5,359,649
3,648,645
TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Limited liability partnership information

Trethowans LLP is a limited liability partnership incorporated in England and Wales. The registered office is 1 London Road Office Park, London Road, Salisbury, Wiltshire, SP1 3HP.

 

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.

The financial statements present information about the LLP as an individual entity and not about its group. The LLP has not prepared consolidated accounts as its subsidiaries are immaterial both individually and collectively.

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, which is state net of value added tax, represents the value of professional services provided to clients during the year.

 

Turnover from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates, as a proportion of total costs. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

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.

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.

TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -

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:

Leasehold improvements
10-25% straight line on cost
Fixtures, fittings and equipment
10-33% straight line on cost
Motor vehicles
25% straight line on cost

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the limited liability partnership. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

 

TRETHOWANS 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 and cash and bank balances, 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.

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.

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.

Derecognition of financial liabilities

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

1.10
Taxation

The taxation payable on the profits of the limited liability partnership is solely the personal liability of the members during the period. Consequently neither the partnership taxation, nor related deferred taxation arising in respect of the partnership are accounted for in these financial statements.

TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.11
Provisions

Provisions are recognised when the limited liability partnership has a legal or constructive present obligation as a result of a past event, it is probable that the limited liability partnership will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

 

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value the unwinding of the discount is recognised within interest payable in the period it arises.

Professional indemnity claims

Any claims notified to the firm are assessed on their merits and, where it is considered likely that liability will be determined, a provision is recognised,

 

Lease dilapidations

Provisions are made to cover the cost of returning leased premises to their original condition once the period of tenancy ceases.

1.12
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.

1.13
Retirement benefits and post retirement payments to members

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as other creditors.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2
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.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Dilapidations provisions

The members have assessed the condition of leased buildings and have estimated the cost of dilapidations based on this. The carrying amount of this at year-end is £340,000 (2023: £290,000)

Professional Indemnity provision

The members have estimated the provision by considering claims in progress and in their professional judgement the likely liability of the LLP taking into account insurance cover in place. The carrying amount of this at year-end is £330,000 (2023: £435,000)

WIP valuation

Only recoverable work in progress is valued by the members based on their professional judgement. Amounts recoverable from clients in respect of unbilled work is valued taking into account the estimated recoverability rates by line of work for the realisation of the unbilled time charges.

Personal Injury Income

Only cases which can be reliably estimated and the LLP are more than likely to win will be recognised. This is recognised at the recoverable rate. These decisions are made based on the members professional judgement.

 

Disbursements relating to PI claims are a liability to the LLP, however inline with industry practice these are not recognised, as they will only become payable on conclusion of the case. Any disbursements not recognised will either be recoverable on successful completion of the case or through insurance, which the LLP takes out on each case. The judgement therefore results in a nil balance sheet impact.

Bad debt provision

The members have assessed the trade debtors balance at the year end to determine whether any balances require a bad debt provision. The carrying amount of this at year-end is £418,061 (2023: £339,277)

 

Interest accrual

Like all firms regulated by the Solicitors Regulation Authority, the LLP has a policy on when interest should be paid to its clients in respect of the balances held on their behalf in our client accounts. This policy is explained in full to our clients and is part of our client engagement paperwork.

The firms' accounting policy is to accrue the full amount of any interest that could become due on the balances we hold on behalf of our clients under the stated interest policy. This accrual is retained, less any amounts actually paid, until the file is completed and archived. At this point, any accrued balances that have not been paid are reviewed and appropriate payments made, with any balances that are not to be paid, reversed through the profit and loss account.

The firm believes that this approach is prudent and also appropriate, given that the interest policy is considered to create a contractual obligation to make payment to the clients in respect of balances held.

TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Professional services
25,895,047
25,236,832
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
25,585,705
24,997,207
Europe
238,270
238,495
Rest of the World
71,072
1,130
25,895,047
25,236,832
2024
2023
£
£
Other significant revenue
Interest income
898,979
310,451
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
18,900
18,000
Depreciation of owned tangible fixed assets
269,262
328,306
Operating lease charges
893,809
926,314
5
Employees

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

2024
2023
Number
Number
Fee Earners
92
88
Support Staff
120
126
Total
212
214
TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,987,360
7,495,558
Social security costs
792,431
683,666
Pension costs
311,680
303,028
9,091,471
8,482,252
6
Members' remuneration
2024
2023
Number
Number
Average number of members during the year
50
48
2024
2023
£
£
Profit attributable to the member with the highest entitlement
918,798
993,924
918,798
993,924
2024
2023
Members' remuneration comprises:
£
£
Remuneration under participation rights
11,647,703
10,770,189
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
898,979
310,451
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
898,979
310,451
TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
113,956
133,159
9
Tangible fixed assets
Leasehold improvements
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023 and 31 March 2024
1,563,728
509,475
40,220
2,113,423
Depreciation and impairment
At 1 April 2023
1,162,869
192,271
40,220
1,395,360
Depreciation charged in the year
155,662
113,600
-
269,262
At 31 March 2024
1,318,531
305,871
40,220
1,664,622
Carrying amount
At 31 March 2024
245,197
203,604
-
448,801
At 31 March 2023
400,859
317,204
-
718,063
10
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
11
250,015
250,015
TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Subsidiaries

These financial statements are separate limited liability partnership financial statements for Trethowans LLP.

Details of the limited liability partnership's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Trethowans Trust Corporation Limited
London Road, Salisbury, Wiltshire, United Kingdom, SP1 3HP
Dormant
Ordinary
100.00
-
Sacredground Limited
The Pavilion, Botleigh Grange Business Park, Hedge End, Southampton, SO30 2AF
Dormant
Ordinary
100.00
-
Trethowans Services Limited
The Pavilion, Botleigh Grange Business Park, Hedge End, Southampton, SO30 2AF
Dormant
Ordinary
100.00
-
Trethowans Services (no.2) Limited
The Pavilion, Botleigh Grange Business Park, Hedge End, Southampton, SO30 2AF
Dormant
Ordinary
-
100.00
United Law Limited
The Pavilion, Botleigh Grange Business Park, Hedge End, Southampton, SO30 2AF
Dormant
Ordinary
100.00
-
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,924,119
4,366,694
Gross amounts recoverable on contracts
9,835,746
7,922,840
Prepayments and accrued income
1,032,608
626,279
14,792,473
12,915,813

The total value of debtors written off in the year is £193,840 (2023 - £256,768)

13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
354,468
350,628
Trade creditors
1,491,795
1,291,550
Amounts owed to group undertakings
150,000
150,000
Other taxation and social security
377,981
386,745
Accruals and deferred income
4,384,786
2,733,004
6,759,030
4,911,927
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
37,819
293,980
TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Loans and overdrafts
2024
2023
£
£
Bank loans
392,287
644,608
Payable within one year
354,468
350,628
Payable after one year
37,819
293,980

The long-term loans are secured by fixed and floating charge over all the LLP's assets. Of borrowing's £292,288 (2023: £544,610) relates to external loans. Interest on these loans are charged at 2.45% above the Bank's Base Rate.

16
Provisions for liabilities
2024
2023
£
£
Other provisions
340,000
290,000
Professional indemnity claims
330,000
435,000
670,000
725,000
Movements on provisions:
Other provisions
Professional indemnity claims
Total
£
£
£
At 1 April 2023
290,000
435,000
725,000
Additional provisions in the year
50,000
30,000
80,000
Reversal of provision
-
(135,000)
(135,000)
At 31 March 2024
340,000
330,000
670,000

Professional indemnity claims

The professional indemnity provision relates to the expected cost of defending claims, and where appropriate the estimated cost of settling claims where such claims are not covered by insurance.

Other provisions

Other provisions include provisions for dilapidations across a portfolio of properties, which have been calculated by the members based on their best estimate at the balance sheet date.

 

TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
311,680
303,028

The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.

Contributions totalling £nil (2023: £nil) were payable to the funds at the year end.

18
Loans and other debts due to members
2024
2023
£
£
Analysis of loans
Amounts falling due within one year
13,384,089
11,601,629

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

19
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
933,674
632,065
Between two and five years
3,414,274
710,774
In over five years
1,691,880
293,890
6,039,828
1,636,729
20
Related party transactions

The LLP has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities.

 

During the year, the LLP made purchases of £nil (2023 - £nil) from companies of which one of the LLP's partners are a trustee.

 

During the year, them LLP made sales of £248,943 (2023 - £20,533) to members of key management and companies of which one of the LLP's partners is either a director or a trustee,

21
Ultimate controlling party

The LLP is controlled by its members as delegated to the board and as such there is no one controlling party.

TRETHOWANS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
22
Cash generated from operations
2024
2023
£
£
Profit for the year
11,647,703
10,770,189
Adjustments for:
Finance costs recognised in profit or loss
113,956
133,159
Investment income recognised in profit or loss
(898,979)
(310,451)
Depreciation and impairment of tangible fixed assets
269,262
328,306
(Decrease)/increase in provisions
(55,000)
10,000
Movements in working capital:
Decrease in stocks
-
953,996
Increase in debtors
(1,876,660)
(2,509,356)
Increase in creditors
1,843,263
1,238,195
Cash generated from operations
11,043,545
10,614,038
23
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
3,648,645
1,711,004
5,359,649
Borrowings excluding overdrafts
(644,608)
252,321
(392,287)
Balances before members' debt
3,004,037
1,963,325
4,967,362
Loans and other debts due to members:
- Members' capital
(3,741,000)
(493,000)
(4,234,000)
- Other amounts due to members
(7,860,629)
(1,289,460)
(9,150,089)
Balances including members' debt
(8,597,592)
180,865
(8,416,727)
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