The members present their annual report and financial statements for the period ended 31 March 2024.
The principal activity of the LLP in the period under review was that of golf course operations.
The loss for the period before members' remuneration and profit shares was £1,760,342 (2023: £4,550,153).
Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such drawings is set at the beginning of each financial year, taking into account the anticipated cash needs of the LLP.
New members are required to subscribe a minimum level of capital and in subsequent years members are invited to subscribe for further capital, the amounts of which is determined by the performance and seniority of those members. On retirement, capital is repaid to members.
The designated members who held office during the period and up to the date of signature of the financial statements were as follows:
The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business.
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.
We have audited the financial statements of The Renaissance Club At Archerfield, LLP (the 'limited liability partnership') for the period ended 31 March 2024 which comprise the statement of comprehensive income, 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).
Basis for opinion
Material uncertainty related to going concern
In forming our opinion, which is not qualified, we have considered the adequacy of the disclosures made in note 1.2 to the financial statements concerning the LLP's ability to continue as a going concern. The LLP incurred a net loss of £1,760,342 during the period ended 31 March 2024 (2023: £4,550,153). The LLP meets its day to day working capital requirements through support from its Members. These conditions, along with the other matters explained in note 1.2 to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the LLP's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the LLP was unable to continue as a going concern.
Other information
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 ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the LLP through discussions with members and management and from our knowledge of the regulatory environment relevant to the LLP.
We assessed the extent of compliance with laws and regulations through making enquiries of management and inspecting legal correspondence
We assessed the susceptibility of the LLP's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.
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.
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 12 to 19 form part of these financial statements.
The notes on pages 12 to 19 form part of these financial statements.
The notes on pages 12 to 19 form part of these financial statements.
The notes on pages 12 to 19 form part of these financial statements.
The notes on pages 12 to 19 form part of these financial statements.
The Renaissance Club At Archerfield, LLP is a limited liability partnership incorporated in Scotland. The registered office is Cowden Hill Drive, Dirleton, East Lothian, Scotland, EH39 5HS.
The limited liability partnership's principal activities are disclosed in the Members' Report.
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.
During the period as the LLP continued the operation of the golf course and related facilities, the LLP incurred a loss of £1,760,342 (2023: £4,550,153). The LLP meets its day to day working capital requirements through support of its Members.
Invest Archerfield LLP (IALLP) is the majority partner of The Renaissance Club at Archerfield LLP (TRC) and IALLP has provided substantial financial support to TRC since it's inception in 2006. IALLP will continue financially supporting TRC enabling it to meet its financial obligations as they become due for at least another 12 months from the date of the signing of the financial statements. The Members therefore believe it appropriate that the financial statements should be prepared on a going concern basis.
If the LLP were unable to continue in operational existence for the foreseeable future, adjustments would have to be made to amend the balance sheet value of assets and their recoverable amounts and to provide for further liabilities which might arise. The financial statements do not include the adjustments that would result if the LLP was unable to continue as a going concern.
The current period figures cover the 5 month period to 31 March 2024. The comparative figures cover the 12 month period to 31 October 2023.
The turnover shown in the Statement of Comprehensive Income represents amounts relating to membership subscriptions for the year and other income generated from the clubhouse and course in the year, exclusive of Value Added Tax. Sales are recognised at the point at which the LLP has fulfilled its contractual obligations and the risks and rewards attaching to the product, such as obsolescence, have been transferred to the customer.
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
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:
Tangible fixed assets are stated at cost less depreciation. Cost represents purchase price together with any incidental costs of acquisition.
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Costs represents the purchase price of goods.
The LLP has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial instruments are classified and accounted for as financial assets, financial liabilities or as part of Members' Interests according to the substance of the contractual arrangement.
Financial instruments which are assets or reported as part of Members' Interests are stated at cost less any provision for impairment. Financial liabilities are stated at principal capital amounts outstanding at the period end. Issue costs relating to financial liabilities are deducted from the outstanding balance and are amortised over the period to the due date for repayment of the financial liability.
Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor, are charged against profits on a straight line basis over the period of the lease.
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value, and are depreciated in accordance with the above depreciation policies.
Future instalments payable under such agreements, net of finance charges, are included within creditors. Rentals payable are apportioned between the capital element, which reduces the outstanding obligation included within creditors, and the finance element, which is charged to the Statement of Comprehensive Income on a straight line basis.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit and loss account.
Members' participation rights
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).
Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.
Where profits or losses are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment, the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the Income Statement in the relevant year. To the extent that they remain unpaid at the year end, they are shown as liabilities in the Balance Sheet.
All amounts due to members that are classified as liabilities are presented in the Balance Sheet within 'Loans and other debts due to members' and are charged to the Income Statement within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the Balance Sheet within 'Members' other interests'.
Pension costs
The LLP operates a defined contribution pension scheme and the pension charge represents the amounts payable by the LLP to the fund in respect of the year. The assets of the schemes are held separately from those of the LLP in an independently administered fund.
Preparation of the financial statements requires management to make significant judgements and estimates. In preparing the financial statements the directors have made the following judgements:
Determine whether leases entered into by the LLP as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Determine whether there are indicators of impairment of the LLP's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.
The average number of persons (excluding members) employed by the partnership during the period was:
Their aggregate remuneration comprised:
Included within the net book value of £20,578,450 is £461,245 (2023: £492,968) relating to assets held under hire purchase agreements. The depreciation charged to the financial statements in the period in respect of such assets amounted to £31,723 (2023: £113,110).
Loans and other debts due to members attract interest at 0.75% and 1.5% per annum and are repayable at various dates the latest of which is in 2025.
Hire purchase agreements are secured over the assets to which they relate.
Included within loans and other debts due to members of £32,964,135 (2023: £27,837,435), are amounts of £32,284,329 (2023: £27,009,102) which are secured over the other assets of the LLP.
The entity has an operating lease for the land at Archerfield estate which expires in 91 years. The current annual commitment in relation to this lease is £171,588 (2023: £163,936).
During the period the limited liability partnership entered into the following transactions with related parties:
Other information
No further transactions with related parties were undertaken such as are required to be disclosed under the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".