Limited Liability Partnership registration number OC312266 (England and Wales)
INTRINSIC CAPITAL LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
INTRINSIC CAPITAL LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
M Horrocks
B Adams
Intrinsic Capital Services Limited
Limited liability partnership number
OC312266
Registered office
73 Cornhill
London
EC3V 3QQ
EC3V 3QQ
Auditors
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
London
EC3V 3QQ
Bankers
Virgin Money Plc
30 St. Vincent Place
Glasgow
G1 2HL
INTRINSIC CAPITAL LLP
CONTENTS
Page
Members' report
1 - 3
Independent auditors' report
3 - 6
Statement of total comprehensive income
8
Balance sheet
9
Reconciliation of members' interests
10 - 11
Statement of cash flows
12
Notes to the financial statements
12 - 17
Unaudited appendix
18
INTRINSIC CAPITAL LLP
MEMBERS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 1 -

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

Principal activities

The principal activity of the limited liability partnership in the period under review was the provision of investment management services to High Net Worth & Professional investors. The members do not anticipate any material change in the nature of this activity going forward.

Fair review of the business

We believe that during the coming financial year we will implement an improved infrastructure and begin to provide other Fund management services to allow the business to grow and develop. Our aim is to continue to grow our Assets under Administration whilst maintaining an exceptional relationship with our clients.

Principal risks and uncertainties

The members of the limited liability partnership meet at least once a year to consider its risk appetite by taking into account the strategic objectives to grow & develop the business. The members believe that the principle risk areas to manage are: credit risk, operational risk, regulatory risk, strategic risk & reputational risk, all of which the senior management of the firm feel can be suitably mitigated. As a business we have a low appetite for risk.

Key performance indicators

Given the straightforward nature of the business, the members are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business.

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 period and up to the date of signature of the financial statements were as follows:

M Horrocks
B Adams
Intrinsic Capital Services Limited
Financial Risk Management

The LLP operates systems and controls to mitigate any adverse effects across the range of risks that it faces. The LLP has no significant exposure to price, credit or interest rate risk.

UK Stewardship Code

Details of Intrinsic Capital LLP's UK stewardship code disclosure, as required by COBS 2.2.3 — Disclosure of commitments to the Financial Reporting Council's Stewardship Code are available in the Appendix at the end of the financial statements.

Going Concern

In light of the ongoing global economic uncertainty, the members have considered the impact that this could have on the LLP's future prospects. However having considered this and the nature of the LLP’s activities, the members do not believe it to pose a significant risk to the long-term trading and profitability of the business.

INTRINSIC CAPITAL LLP
MEMBERS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
The members have indicated their willingness to continue to provide the LLP with any financial support that may be necessary for the foreseeable future. As a result, there is a reasonable expectation that the LLP has adequate resources available to it in order to continue in operational existence for the foreseeable future and for at least 12 months from the date of signing these financial statements. Accordingly, the members continue to adopt the going concern basis in preparing these financial statements.
Post reporting date events

On 13 December 2023 the members of the LLP established a new limited company, Intrinsic Capital London Limited, as a related entity to the LLP. The limited company was inactive for the period from its incorporation to the LLP's period end.

 

Subsequent to the period end, the members have determined that it is their intention to transfer the LLP's regulated activity and most of its other trading activity to the limited company by the end of 2024. However, the members confirm that the LLP will continue to operate after finalising this transfer of activity.

Auditors

The auditors, Gerald Edelman LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

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:

Public disclosure

The LLP's Public disclosure can be found on the LLP's website (www.intrinsic.london).

INTRINSIC CAPITAL LLP
MEMBERS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
On behalf of the members
M Horrocks
Designated Member
23 July 2024
INTRINSIC CAPITAL LLP
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF INTRINSIC CAPITAL LLP
- 4 -
Opinion

We have audited the financial statements of Intrinsic Capital 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).

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 Auditors' 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 auditors' 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.

 

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

INTRINSIC CAPITAL LLP
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF INTRINSIC CAPITAL LLP
- 5 -
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.

Auditors' 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 auditors' 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.

INTRINSIC CAPITAL LLP
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF INTRINSIC CAPITAL LLP
- 6 -

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

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 are not limited to:

 

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the further removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

INTRINSIC CAPITAL LLP
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF INTRINSIC CAPITAL LLP
- 7 -

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 auditors' 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.

Hemen Doshi FCCA (Senior Statutory Auditor)
For and on behalf of Gerald Edelman LLP
23 July 2024
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
London
EC3V 3QQ
INTRINSIC CAPITAL LLP
STATEMENT OF TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024
- 8 -
Period
ended
31 March
30 April
2024
2023
Notes
£
£
Turnover
3
285,768
523,716
Cost of sales
(41,069)
(171,924)
Gross profit
244,699
351,792
Administrative expenses
(186,144)
(71,537)
Operating profit
5
58,555
280,255
Interest receivable and similar income
6
833
7
Fair value gains and losses on investments
(31,381)
(365,248)
Profit/(loss) for the financial period before members' remuneration and profit shares
28,007
(84,986)
Profit/(loss) for the financial period before members' remuneration and profit shares
28,007
(84,986)
Members' remuneration charged as an expense
-
-
Profit/(loss) for the financial period available for discretionary division among members
28,007
(84,986)
Other comprehensive income
-
-
Total comprehensive income for the period
28,007
(84,986)

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

INTRINSIC CAPITAL LLP
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
31 March 2024
30 April 2023
as restated
Notes
£
£
£
£
Fixed assets
Investments
7
326,357
305,738
Current assets
Debtors
9
133,781
134,291
Cash at bank and in hand
28,757
102,480
162,538
236,771
Creditors: amounts falling due within one year
10
(64,647)
(60,986)
Net current assets
97,891
175,785
Total assets less current liabilities and net assets attributable to members
424,248
481,523
Represented by:
Loans and other debts due to members within one year
Other amounts
257,451
283,345
Members' other interests
Members' capital classified as equity
160,000
160,000
Revaluation reserve
6,797
38,178
424,248
481,523
The financial statements were approved by the members and authorised for issue on
23 July 2024
23 July 2024
and are signed on their behalf by:
23 July 2024
M Horrocks
Designated member
Limited Liability Partnership registration number OC312266 (England and Wales)
INTRINSIC CAPITAL LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 10 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Revaluation
reserve
Total
Other amounts
Total
Total
2024
£
£
£
£
£
£
Amounts due to members
283,345
Members' interests at 1 May 2023
160,000
38,178
198,178
283,345
283,345
481,523
Result for the period
-
(31,381)
(31,381)
59,388
59,388
28,007
Members' interests after loss for the period
160,000
6,797
166,797
342,733
342,733
509,530
Drawings
-
-
-
(40,000)
(40,000)
(40,000)
Other movements
-
-
-
(45,282)
(45,282)
(45,282)
Members' interests at 31 March 2024
160,000
6,797
166,797
257,451
257,451
424,248
INTRINSIC CAPITAL LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 11 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Revaluation
reserve
Total
Other amounts
Total
Total
2023
£
£
£
£
£
£
As restated for the year ended 30 April 2022:
Amounts due to members
(193,393)
Prior year adjustment (see note 13)
191,695
Members' interests at 1 May 2022 as restated
160,000
403,426
563,426
(1,698)
(1,698)
561,728
Result for the period
-
(365,248)
(365,248)
280,262
280,262
(84,986)
Members' interests after loss for the year
160,000
38,178
198,178
278,564
278,564
476,742
Drawings
-
-
-
(79,000)
(79,000)
(79,000)
Other movements
-
-
-
83,781
83,781
83,781
Members' interests at 30 April 2023 as restated
160,000
38,178
198,178
283,345
283,345
481,523
INTRINSIC CAPITAL LLP
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
14
62,726
107,656
Investing activities
Purchase of other investments
(52,000)
(12,532)
Interest received
833
7
Financing activities
Capital introduced by members (classified as debt or equity)
-
83,781
Reclassification of members' loans
(85,282)
(79,000)
Net cash (used in)/generated from financing activities
(85,282)
4,781
Net (decrease)/increase in cash and cash equivalents
(73,723)
99,912
Cash and cash equivalents at beginning of period
102,480
2,568
Cash and cash equivalents at end of period
28,757
102,480
INTRINSIC CAPITAL LLP
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 13 -
1
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.

2
Accounting policies
Limited liability partnership information

Intrinsic Capital LLP is a limited liability partnership incorporated in England and Wales. The registered office is 73 Cornhill, London, EC3V 3QQ.

 

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

2.1
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.

2.2
Going concern

Having considered the nature of the LLP's activities, the members do not believe it to pose a significant risk to the long-term trading and profitability of the business.

 

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.

2.3
Reporting period

The LLP changed its accounting period to 31 March 2024. As such these accounts are for the eleven months period to 31 March 2024. The comparative period is for the twelve month period to 30 April 2023.

2.4
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, revenue accounted for will only be equal to the relevant costs incurred up to the balance sheet date.

INTRINSIC CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 14 -
2.5
Members' Participation Rights - Introduction

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.

2.6
Members' participation rights - Profits

Profits are divided only after a decision by the LLP or its representative, so the LLP has an unconditional right to refuse payment. Such profits are classed as equity rather than as liabilities. They are therefore shown as a residual amount available for discretionary division among members in arriving at the result for the year and are shown as appropriations of equity when they are allocated.

2.7
Members' participation rights - Losses

Whilst other than for a priority profit share clause in respect of income profits, the members’ agreement does not differentiate between profits and losses for profit sharing purposes, it does stipulate that the LLP cannot demand additional contributions from members, and as a result the LLP does not have an unconditional right to demand payment from members for losses. Therefore, to the extent that losses exceed the balance on capital and current accounts, they are not recognised as a recoverable asset and so remain within equity until such time as profits are generated to set them against.

2.8
Members' participation rights - Unallocated profits and losses

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

2.9
Members' participation rights - Discounting of liabilities to members

The members’ participation rights that are classified as liabilities are repayable upon demand, or at short notice (e.g. upon termination of membership), and as such whilst they are financing transactions, the effect of discounting is considered immaterial and so they are not discounted to present value.

2.10
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.

INTRINSIC CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 15 -
2.11
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.

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.

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.

INTRINSIC CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 16 -
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 trade and other 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 receipts 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

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.

2.12
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.

2.13
Foreign exchange

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 profit or loss.

3
Turnover

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

2024
2023
£
£
Turnover
Commissions
92,827
136,692
Management fees
192,942
387,024
285,768
523,716
INTRINSIC CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
3
Turnover
(Continued)
- 17 -
Other significant revenue
Interest income
833
7
4
Auditor's remuneration
2024
2023
Fees payable to the LLP's auditor and associates:
£
£
For audit services
Audit of the financial statements of the LLP
12,000
10,600
5
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses
240
-
0
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
833
7
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
833
7
7
Fixed asset investments
2024
2023
£
£
Listed investments
326,357
305,738
INTRINSIC CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
7
Fixed asset investments
(Continued)
- 18 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 May 2023
305,738
Additions
52,000
Valuation changes
(31,381)
At 31 March 2024
326,357
Carrying amount
At 31 March 2024
326,357
At 30 April 2023
305,738
8
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,066
6,348
Instruments measured at fair value through profit or loss
326,357
305,738
Carrying amount of financial liabilities
Measured at amortised cost
262,710
45,899
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
2,400
Other debtors
2,066
3,948
Prepayments and accrued income
131,715
127,943
133,781
134,291
10
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
28,675
24,538
Other taxation and social security
-
18,170
Other creditors
20,972
-
Accruals and deferred income
15,000
18,278
64,647
60,986
INTRINSIC CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 19 -
11
Events after the reporting date

On 13 December 2023 the members of the LLP established a new limited company, Intrinsic Capital London Limited, as a related entity to the LLP. The limited company was inactive for the period from its incorporation to the LLP's period end.

 

Subsequent to the period end, the members have determined that it is their intention to transfer the LLP's regulated activity and most of its other trading activity to the limited company by the end of 2024. However, the members confirm that the LLP will continue to operate after finalising this transfer of activity.

12
Related party transactions

During the period, Intrinsic Capital Services Limited, a designated member of the LLP, continued to incur operating expenditure in relation to the LLP, in accordance with the LLP agreement. During the year such amounts incurred by Intrinsic Capital Services Limited totalled £113,372 (2023: £86,476) and the LLP received income of £nil (2023: £nil) under the agreement.

Additionally, there were other intercompany transactions between the LLP and Intrinsic Capital Services Limited during the period. As a result, at the balance sheet date Intrinsic Capital Services Limited owed £294,289 to the LLP (2023: £223,486 owed from Intrinsic Capital Services Limited to the LLP).

At the balance sheet date the LLP owed £138,874 (2022: £113,874 owed by the LLP) to designated member, Mark Horrocks.

During the period payments totalling £40,000 were made to Brendan Adams, a designated member, as a discretionary division of profits.    

As at the period end the amounts available for discretionary division among members, included within Loans and other debts due to members less any amounts due from members in debtors, amounted to £432,898 (2023: £413,510).

There are no terms of repayment or interest attached to any of these amounts.

13
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment at 1 May 2022
Mvements to 30 Apr 2023
As restated at 30 Apr 2023
£
£
£
£
Net assets
561,728
-
(80,205)
481,523
Loans and other debts due to members
Other amounts
(193,393)
191,695
285,043
283,345
Members' other interests:
Members' capital classified as equity
160,000
-
-
160,000
Revaluation reserve
-
403,426
(365,248)
38,178
Other reserves classified as equity
595,121
(595,121)
-
-
Total members' interests
561,728
-
(80,205)
481,523
INTRINSIC CAPITAL LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
13
Prior period adjustment
(Continued)
- 20 -
Notes to reconciliation
Reclassification of profits available for discretionary division among members

Intrinsic Capital LLP previously recognised all profits, including those available to be divided among the members, within Other Reserves within the Members' Other Interests. The members have agreed that profits available to be divided among them should instead have been included within Loans and other debts due to members as Debt rather than in Other Reserves as Equity.

 

The incorrect classification resulted in Equity being overstated, and Loans and other debts due to members as Debt being understated, by £191,695 at 1 May 2022 and by £392,957 at 30 April 2023. These have now been reclassified with the only profits/losses now recognised in Equity being gains/losses on the fair value of the Investments. This had no impact on the profit or loss for any period.

14
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the period
28,007
(84,986)
Adjustments for:
Investment income recognised in profit or loss
(833)
(7)
Fair value gains and losses on foreign exchange contracts and investments
31,381
365,248
Movements in working capital:
Decrease/(increase) in debtors
510
(121,458)
Increase/(decrease) in creditors
3,661
(51,141)
Cash generated from operations
62,726
107,656
INTRINSIC CAPITAL LLP
UNAUDITED APPENDIX
FOR THE PERIOD ENDED 31 MARCH 2024
- 21 -

Stewardship Code Disclosure

 

Introduction

The Stewardship Code (“the Code”) was published by the Financial Reporting Council (“FRC”), the UK’s independent regulator responsible for promoting high quality corporate governance and reporting in order to foster investment. The Code sets out good practice for institutional investors in their dealings with the companies in which they have invested.

 

Disclosure obligations

The Financial Conduct Authority’s (“FCA”) regulations outline a firm’s obligations in relation to the Code and for firms who manage assets for corporate professional clients to disclose to these clients the nature of their commitment to the Code or, where it does not commit to the Code, its alternate business model.

 

Although the firm recognises the aims and benefits of the Code, the firm’s investment strategy is such that it does not engage directly with companies and therefore the Code does not apply in the context of the firm’s investment strategy and the firm does not consider that its clients expect such engagement. It is however important to note that the firm’s investment strategy is specifically structured to maximise investment gains and enhance shareholder value and that it constantly monitors investments, would act collectively with other institutional investors where appropriate and has developed internal policies and procedures for managing conflicts of interest.

 

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