Caseware UK (AP4) 2023.0.135 2023.0.135 No description of principal activity2023-04-01false1111truefalsefalse OC397832 2023-04-01 2024-03-31 OC397832 2022-04-01 2023-03-31 OC397832 2024-03-31 OC397832 2023-03-31 OC397832 2022-04-01 OC397832 1 2023-04-01 2024-03-31 OC397832 1 2022-04-01 2023-03-31 OC397832 8 2023-04-01 2024-03-31 OC397832 8 2022-04-01 2023-03-31 OC397832 10 2023-04-01 2024-03-31 OC397832 10 2022-04-01 2023-03-31 OC397832 d:Buildings d:ShortLeaseholdAssets 2023-04-01 2024-03-31 OC397832 d:Buildings d:ShortLeaseholdAssets 2024-03-31 OC397832 d:Buildings d:ShortLeaseholdAssets 2023-03-31 OC397832 d:OfficeEquipment 2023-04-01 2024-03-31 OC397832 d:OfficeEquipment 2024-03-31 OC397832 d:OfficeEquipment 2023-03-31 OC397832 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 OC397832 d:ComputerEquipment 2023-04-01 2024-03-31 OC397832 d:ComputerEquipment 2024-03-31 OC397832 d:ComputerEquipment 2023-03-31 OC397832 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 OC397832 d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 OC397832 d:CurrentFinancialInstruments 2024-03-31 OC397832 d:CurrentFinancialInstruments 2023-03-31 OC397832 d:Non-currentFinancialInstruments 2024-03-31 OC397832 d:Non-currentFinancialInstruments 2023-03-31 OC397832 d:CurrentFinancialInstruments d:WithinOneYear 2024-03-31 OC397832 d:CurrentFinancialInstruments d:WithinOneYear 2023-03-31 OC397832 d:ReportableOperatingSegment1 2023-04-01 2024-03-31 OC397832 d:ReportableOperatingSegment1 2022-04-01 2023-03-31 OC397832 d:ReportableOperatingSegment2 2023-04-01 2024-03-31 OC397832 d:ReportableOperatingSegment2 2022-04-01 2023-03-31 OC397832 e:RestEuropeOutsideUK 2023-04-01 2024-03-31 OC397832 e:RestEuropeOutsideUK 2022-04-01 2023-03-31 OC397832 e:RestWorldOutsideUK 2023-04-01 2024-03-31 OC397832 e:RestWorldOutsideUK 2022-04-01 2023-03-31 OC397832 f:FRS102 2023-04-01 2024-03-31 OC397832 f:Audited 2023-04-01 2024-03-31 OC397832 f:FullAccounts 2023-04-01 2024-03-31 OC397832 f:LimitedLiabilityPartnershipLLP 2023-04-01 2024-03-31 OC397832 d:WithinOneYear 2024-03-31 OC397832 d:WithinOneYear 2023-03-31 OC397832 d:BetweenOneFiveYears 2024-03-31 OC397832 d:BetweenOneFiveYears 2023-03-31 OC397832 12 2023-04-01 2024-03-31 OC397832 12 2022-04-01 2023-03-31 OC397832 2 2023-04-01 2024-03-31 OC397832 f:PartnerLLP1 2023-04-01 2024-03-31 OC397832 f:PartnerLLP2 2023-04-01 2024-03-31 OC397832 f:PartnerLLP3 2023-04-01 2024-03-31 OC397832 f:PartnerLLP4 2023-04-01 2024-03-31 OC397832 f:PartnerLLP5 2023-04-01 2024-03-31 OC397832 f:PartnerLLP6 2023-04-01 2024-03-31 OC397832 f:PartnerLLP7 2023-04-01 2024-03-31 OC397832 f:PartnerLLP8 2023-04-01 2024-03-31 OC397832 f:PartnerLLP9 2023-04-01 2024-03-31 OC397832 f:PartnerLLP10 2023-04-01 2024-03-31 OC397832 f:PartnerLLP11 2023-04-01 2024-03-31 OC397832 f:PartnerLLP12 2023-04-01 2024-03-31 OC397832 d:OtherCapitalInstrumentsClassifiedAsEquity 2024-03-31 OC397832 d:OtherCapitalInstrumentsClassifiedAsEquity 2023-03-31 OC397832 g:PoundSterling 2023-04-01 2024-03-31 iso4217:GBP xbrli:pure

Registered number: OC397832










Selwood Asset Management LLP










Financial statements

For the Year Ended 31 March 2024

 
Selwood Asset Management LLP
 

Information




Designated Members

Selwood Capital Services (UK) Limited
S Gharred
M Butler

Members

B Daoud
C Veillet-Lavallee
P Hughes
H Barnes
E Perronnet
A Bana
W Dia
R Nethercot (resigned 22 December 2023)
K Moussalem (appointed 1 December 2023)

LLP registered number
OC397832

Registered office

15 Stratford PlaceLondonW1C 1BE

Independent auditors

Haysmacintyre LLP10 Queen Street PlaceLondonEC4R 1AG

Accountants

Kreston Reeves LLP2nd Floor168 Shoreditch High StreetLondonE1 6RA


 
Selwood Asset Management LLP
 

Contents



Page
Members' report
 
 
1 - 3
Independent auditors' report
 
 
4 - 6
Statement of Comprehensive Income
 
 
7
Statement of Financial Position
 
 
8
Reconciliation of Members' Interests
 
 
9
Statement of Cash Flows
 
 
10
Notes to the financial statements
 
 
11 - 19

 
Selwood Asset Management LLP
 

Members' report
For the Year Ended 31 March 2024

The Members present their annual report together with the audited financial statements of Selwood Asset Management LLP ("the LLP") for the year ended 31 March 2024
 

Principal activities
 
 
The principal object of the LLP continued to be that of investment management, regulated by the Financial Conduct Authority ("the FCA").
Results and allocations to Members
The profit for the year before Members' remuneration and profit shares available for discretionary division among Members amounted to £16,718,344 (2023: £5,989,062).
The amount drawn by Members during the year amounted to £13,667,087 (2023: £4,934,482).
Total Members' interests at 31 March 2024 amounted to £7,985,252 (2023: £5,128,448).
Going Concern 
Trading for the year to 31 March 2024 realised many of the gains coming from the high rate of embedded carry at the start of the period, in line with the expectations of the Members.  As at 31 March 2024 the Members feel the LLP is sufficiently capitalised to meet all financial and regulatory obligations. The LLP, as Investment Manager, trades at the Investment Grade end of the credit market where defaults have been virtually zero. The LLP tracks CDS, and other data, on the names in the index and can hedge (by individual name or the index) when there’s any significant widening.  There is no change in this underlying strategic approach to the portfolio. The tail issues from last year, (interest rates, inflation, recession and disrupted supply chains) and continued geo-political turbulence from Russia/Ukraine, and now the Middle East, leave a cautious trading environment with the added factor of there also being several key elections taking place over the period.  
 
The main traded fund is showing very stable returns, reinforced by stable double digit carry and high levels of unencumbered cash.  The trading platform can run back-testing, scenario analysis (changes in rates) and specific crisis event analysis to demonstrate anticipated returns.  This stable approach to portfolio management has generated at the time of writing 20 continuous months of positive performance.  At current levels of AUM the business remains profitable and performance makes it attractive for further investment.  Accordingly, the Members therefore consider it appropriate, against a more optimistic trading environment, to prepare the financial statements on the going concern basis.
 
 
Designated Members
 
 
Selwood Capital Services (UK) Limited, S Gharred and M Butler were Designated Members of the LLP throughout the year.
 

Members


B Daoud, C Veillet-Lavallee, P Hughes, H Barnes, A Bana, E Perronnet, W Dia, R Nethercot and K Moussalem were Members of the LLP during the year.
 
Members' capital and interests
 
 
Each Members' subscription to the capital of the LLP is determined by their share of the profit and is repayable following retirement from the LLP.
 
 
Details of changes in Members' capital in the ended 31 March 2024 are set out in the Reconciliation of Members' interests.
 
 
Members are remunerated from the profits of the LLP and are required to make their own provision for pensions and other benefits. Profits are allocated and divided between members after finalisation of the financial statements. Members draw a proportion of their profit shares periodically during the year in which it is made, with 
Page 1

 
Selwood Asset Management LLP
 

Members' report (continued)
For the Year Ended 31 March 2024

the balance of profits being distributed after the year, subject to the cash requirements of the business.
 

Regulatory Reporting
 
 
The LLP is authorised and regulated by the Financial Conduct Authority (Reference number: 715071) and is subject to the requirements under MIFIDPRU and IPRU-INV to provide certain disclosures regarding the firm's capital and liquidity requirements and remuneration to key staff. Details of these disclosures will be made available on Selwoodam.com. These disclosures are unaudited.  
 
 
Members' responsibilities statement
 
 
The Members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
 
 
Company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), requires the Members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. 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 LLP and of the profit or loss of the LLP for that period.

In preparing these financial statements, the Members are required to:
 
select suitable accounting policies and then apply them consistently;
 
make judgments 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 LLP will continue in business.
 

The Members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to 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 the Companies Act 2006) Regulations 2008)They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
 
Disclosure of information to auditors
 
 
Each of the persons who are Members at the time when this Members' report is approved has confirmed that:

so far as that Member is aware, there is no relevant audit information of which the LLP's auditors are unaware, and

that Member has taken all the steps that ought to have been taken as a Member in order to be aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.
 
Page 2

 
Selwood Asset Management LLP
 

Members' report (continued)
For the Year Ended 31 March 2024

Auditors
 
 
The auditorsHaysmacintyre LLPhave indicated their willingness to continue in office. The Designated Members will propose a motion re-appointing the auditors at a meeting of the Members.
 

This report was approved by the Members on 19 July 2024 and signed on their behalf by:
 
 




M Butler
Designated Member

Page 3

 
Selwood Asset Management LLP
 

 
Independent auditors' report to the members of Selwood Asset Management LLP
 

Opinion
 

We have audited the financial statements of Selwood Asset Management LLP ("the LLP") for the year ended 31 March 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Reconciliation of Members' interests and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the LLP's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006, as applied to limited liability partnerships.


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 LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 LLP'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 Auditors' report thereon. The Members are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and 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.


Page 4

 
Selwood Asset Management LLP
 

 
Independent auditors' report to the members of Selwood Asset Management LLP (continued)


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or 
certain disclosures of members’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of members
 

As explained more fully in the Members' responsibilities statement set out on page 1, 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 LLP'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 LLP 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.


Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the Investment advisory business and the regulations of the Financial Conduct Authority (FCA), and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, payroll tax and sales tax.
 
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
- Inspecting correspondence with the FCA and HMRC; 
- Discussions with management including consideration of known or suspected instances of non-compliance with                                                                   laws and regulation and fraud; 
 
Page 5

 
Selwood Asset Management LLP
 

 
Independent auditors' report to the members of Selwood Asset Management LLP (continued)


- Evaluating management’s controls designed to prevent and detect irregularities; 
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk
increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.


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

This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006, as applied to limited liability partnerships. Our audit work has been undertaken so that we
might state to the LLP'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 LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we
have formed.





Karen Allan (Senior Statutory Auditor)
for and on behalf of
Haysmacintyre LLP, Statutory Auditors
10 Queen Street Place
London
EC4R 1AG

22 July 2024
Page 6

 
Selwood Asset Management LLP
 

Statement of Comprehensive Income
For the Year Ended 31 March 2024

2024
As restated 2023
Note
£
£

  

Turnover
 4 
21,259,788
9,985,686

Cost of sales
 5 
(660,896)
(397,231)

Gross profit
  
 
20,598,892
 
9,588,455

Administrative expenses
  
(3,960,134)
(3,599,393)

Operating profit
 6 
 
16,638,758
 
5,989,062

Interest receivable and similar income
  
79,586
-

Profit for the year before members' remuneration and profit shares available for discretionary division among members
  
 
16,718,344
 
5,989,062

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 11 to 19 form part of these financial statements.
Page 7

 
Selwood Asset Management LLP
Registered number: OC397832

Statement of Financial Position
As at 31 March 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
7,171
9,268

Current assets
  

Debtors: amounts falling due after more than one year
 12 
255,502
243,389

Debtors: amounts falling due within one year
 12 
1,230,221
2,782,479

Cash at bank and in hand
 13 
7,663,895
3,025,124

  
9,149,618
6,050,992

Creditors: amounts falling due within one year
 14 
(1,171,537)
(931,812)

Net current assets
  
 
 
7,978,081
 
 
5,119,180

  

Net assets
  
7,985,252
5,128,448


Represented by:
  

Loans and other debts due to members within one year
  

Other amounts
 15 
7,585,252
4,728,448

Members' other interests
  

Members' capital classified as equity
  
400,000
400,000

  
7,985,252
5,128,448


Total members' interests
  

Loans and other debts due to members
 15 
7,585,252
4,728,448

Members' other interests
  
400,000
400,000

  
7,985,252
5,128,448


The financial statements were approved and authorised for issue by the Members and were signed on their behalf on 19 July 2024.



M Butler
Designated Member

The notes on pages 11 to 19 form part of these financial statements.
Page 8

 
Selwood Asset Management LLP
 

Reconciliation of Members' Interests
For the Year Ended 31 March 2024






Equity
Members' other interests
Debt
Loans and other debts due to members less any amounts due from members in debtors
Total members' interests
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total

£
£
£
£
£

Amounts due to members 
3,700,372


Amounts due from members 

(26,504)


Balance at 1 April 2022 
400,000
-
400,000
3,673,868
4,073,868

Profit for the year available for discretionary division among members
 
-
5,989,062
5,989,062
-
5,989,062

Members' interests after profit for the year
400,000
5,989,062
6,389,062
3,673,868
10,062,930

Allocation of profit
-
(5,989,062)
(5,989,062)
5,989,062
-

Conversion of members' capital to debt
-
-
-
111,948
111,948

Drawings on account and distribution of profit
 
-
-
-
(5,046,430)
(5,046,430)

Amounts due to members
 



4,728,448


Balance at 31 March 2023
400,000
-
400,000
4,728,448
5,128,448

Profit for the year available for discretionary division among members
 
-
16,718,344
16,718,344
-
16,718,344

Members' interests after profit for the year
400,000
16,718,344
17,118,344
4,728,448
21,846,792

Allocation of profit
-
(16,718,344)
(16,718,344)
16,718,344
-

Capital introduced
8,000
-
8,000
-
8,000

Repayment of capital
(16,000)
-
(16,000)
-
(16,000)

Other transactions with members
8,000
-
8,000
(194,453)
(186,453)

Drawings on account and distribution of profit
 
-
-
-
(13,667,087)
(13,667,087)

Amounts due to members
 



7,585,252


Balance at 31 March 2024 
400,000
-
400,000
7,585,252
7,985,252

Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.

Page 9

 
Selwood Asset Management LLP
 

Statement of cash flows
For the Year Ended 31 March 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
16,718,344
5,989,062

Adjustments for:

Depreciation of tangible assets
4,097
8,313

Interest received
(79,586)
-

Decrease in debtors
1,655,149
752,133

(Increase)/decrease in amounts owed by groups
(103,004)
16,216

Decrease in creditors
(44,054)
(526,004)

Increase/(decrease) in amounts owed to groups
283,779
(668,546)

Decrease in amounts due from members
-
26,504

Net cash generated from operating activities before transactions with members

18,434,725
5,597,678


Cash flows from investing activities

Purchase of tangible fixed assets
(2,000)
(5,716)

Interest received
79,586
-

Net cash generated from investing activities

77,586
(5,716)

Cash flows from financing activities

Members' capital repaid
(12,000)
-

Distribution paid to members
(13,667,087)
(4,960,986)

Other transactions with members
(194,453)
-

Net cash used in financing activities
(13,873,540)
(4,960,986)

Net increase in cash and cash equivalents
4,638,771
630,976

Cash and cash equivalents at beginning of year
3,025,124
2,394,148

Cash and cash equivalents at the end of year
7,663,895
3,025,124


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
7,663,895
3,025,124

7,663,895
3,025,124


The notes on pages 11 to 19 form part of these financial statements.

Page 10

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

1.


General information

Selwood Asset Management LLP ("the LLP") is a limited liability partnership incorporated and domiciled in England & Wales. The address of its registered office and principal place of business is disclosed on the LLP information page. The principal activity of the LLP is that of investment management.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".

The following principal accounting policies have been applied:

 
2.2

Going concern

Management has considered the performance of the LLP during the year and it’s financial resources at the year end in their assessment of the business as a going concern. The LLP generated profit for discretionary division among members of £16,718,344 (2023: £5,989,062) and had net assets at 31 March 2024 of £7,985,252 (2023: £5,128,448 ) of which £7,663,895 (2023: £3,025,124) relates to cash. The LLP's business activities, together with the factors likely to affect its future development and position are set out in the Members' Report. Having performed stress testing in line with the regulatory reporting requirements of ICARA and a review of expected AUM, management believes regulatory capital requirements will continue to be met, that the LLP continues to have sufficient liquidity to discharge its liabilities for a period of at least 12 months from the date of these financial statements. On the basis management do not believe that there are any uncertanties relating to going concern and consequently the members have prepared the financial statements on a going concern basis.

 
2.3

Foreign currency translation

Functional and presentation currency

The LLP's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 11

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

2.Accounting policies (continued)

 
2.4

Turnover

Turnover comprises revenue recognised by the LLP in respect of investment management services supplied during the year, exclusive of VAT, to certain AIFs and UCITS funds under a discretionary mandate, subject to any contractual restrictions set out in the relevant investment management agreements and any investment restrictions described in the offering memorandum for any relevant fund. Performance related fees are recognised as and when they are crystallised and therefore no longer subject to any adjustment with reference to the results of the relevant fund.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the LLP and the turnover can be reliably measured.

 
2.5

Cost of sales

Cost of sales comprises commisions payable on investment managment services supplied during the year. These costs are recognised in line with the revenue to which they relate.

 
2.6

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Pensions

Defined contribution pension plan

The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid the LLP has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the LLP in independently administered funds.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property improvements
-
Straight Line over the term of the lease
Office equipment
-
Straight Line over 4 years
Computer equipment
-
Straight Line over 4 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours and cash equivalents represented by money market fixed term deposits maturing after 30 days.

 
2.12

Creditors

Short term creditors are measured at the transaction price.

 
2.13

Financial instruments

The LLP only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Page 13

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the year-end date and the
amounts reported for revenues and expenses during the year.
Management's judgements, estimates and assumptions are based on the best and most reliable evidence
available at the time when the decisions are made, and are based on historical experience and other
factors that are considered to be applicable. Due to the inherent subjectivity involved in making such
judgments, estimates and assumptions, the actual result and outcomes may differ.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting
estimates are recognised in the year in which the estimate is revised, if the revision
affects only that year, or in the year of the revision and future years, if the revision affects both current and
future years.

Recoverability of debtors - the members make judgements based on experience on the level of provision required to account for potential unpaid debtors. As at the balance sheet date the members assess that there is no provision required in respect of bad debts.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Management fees
7,669,788
7,706,637

Performance fees
13,590,000
2,279,049

21,259,788
9,985,686


Analysis of turnover by country of destination:

2024
2023
£
£

Europe
5,668,368
2,924,700

Rest of the world
15,591,420
7,060,986

21,259,788
9,985,686



5.


Cost of sales

2024
2023
£
£



Commission
660,896
397,231

Page 14

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
14,761
19,368

Other operating lease rentals
343,353
314,110


7.


Auditors' remuneration

During the year, the LLP obtained the following services from the LLP's auditors:


2024
2023
£
£

Fees payable to the LLP's auditors for the audit of the LLP's financial statements
17,500
16,250

FCA limited assurance report
3,000
2,400

8.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
1,519,595
1,111,811

Social security costs
194,413
119,434

Cost of defined contribution scheme
40,288
32,572

1,754,296
1,263,817


The average monthly number of persons employed during the year was as follows:


        2024
        2023
            No.
            No.







Employees
11
11


9.


Information in relation to members

The average number of members during the year was 11 (2023: 11) including the corporate member.

The amount of profit attributable to the member with the largest entitlement was £8,161,495 (2023: £2,587,404).

The total remuneration to key management personnel in the year was £9,363,670 (2023: £2,978,866 ).

Page 15

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
79,586
-


11.


Tangible fixed assets





Short-term leasehold property improvements
Office equipment
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 April 2023
49,802
40,225
36,220
126,247


Additions
-
-
2,000
2,000



At 31 March 2024

49,802
40,225
38,220
128,247



Depreciation


At 1 April 2023
49,802
40,225
26,952
116,979


Charge for the year on owned assets
-
-
4,097
4,097



At 31 March 2024

49,802
40,225
31,049
121,076



Net book value



At 31 March 2024
-
-
7,171
7,171



At 31 March 2023
-
-
9,268
9,268
Page 16

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

12.


Debtors

2024
2023
£
£

Due after more than one year

Other debtors
255,502
243,389


2024
2023
£
£

Due within one year

Trade debtors
256,151
612,004

Amounts owed by group undertakings
335,214
232,210

Other debtors
201,913
229,429

Prepayments and accrued income
436,943
1,708,836

1,230,221
2,782,479


Other debtors due after more than one year relates to a rent deposit on the office at 15 Stratford Place.


13.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
7,663,895
3,025,124



14.


Creditors: amounts falling due within one year

2024
2023
£
£

Trade creditors
42,409
148,645

Amounts owed to group undertakings
283,779
-

Other taxation and social security
173,004
36,561

Other creditors
10
-

Accruals
672,335
746,606

1,171,537
931,812


Page 17

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

15.


Loans and other debts due to members


2024
2023
£
£



Other amounts due to members
7,585,252
4,728,448

Loans and other debts due to members may be further analysed as follows:

2024
2023
£
£



Falling due within one year
7,585,252
4,728,448

Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.


16.


Analysis of net debt





At 1 April 2023
Arising from cash flows
Other non-cash changes
At 31 March 2024
£

£

£

£

Cash at bank and in hand

3,025,124

4,638,771

-

7,663,895

Net debt (before members' debt)
3,025,124
4,638,771
-
7,663,895

Loans and other debts due to members





Other amounts due to members
(4,728,448)

13,861,540

(16,718,344)

(7,585,252)

Net debt


(1,703,324)
18,500,311
(16,718,344)
78,643



17.


Prior year adjustment

The prior year adjustment relates to sales commisions payable, these were incorrectly recognised as administrative expenses and have been reclassified as cost of sales with no net effect on the profit and loss reserves. Included in the table is a summary of the impact of the adjustment and the areas impacted

Balance pre adjustment
Adjustment
Balance post Adjustmnet
        £
        £
        £

Administrative expenses

3,996,624

(397,231)

3,599,393
 
Cost of sales

-

397,231

397,231
 

Page 18

 
Selwood Asset Management LLP
 

 
Notes to the financial statements
For the Year Ended 31 March 2024

18.


Pension commitments

The entity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the entity  in an independently administered fund. The pension cost charge represents contributions payable by the entity  to the fund and amounted to £40,288 (2023: £32,572). Contributions totalling £Nil (2023: £Nil) were payable to the fund at the reporting date and are included in Creditors.


19.


Commitments under operating leases

At 31 March 2024 the LLP had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
203,595
203,595

Later than 1 year and not later than 5 years
373,258
576,853

576,853
780,448


20.


Related party transactions

During the year the LLP charged fees of £15,480,095 (2023: £5,781,739) to Selwood Asset Management (Cayman) Limited, a company under common control and received or recognised amounts of £15,371,769 (2023: £6,223,397). The amount due from Selwood Asset Management (Cayman) Limited at 31 March 2024 was £335,214 (2023: £226,888).
During the year the LLP was charged support fees from Selwood Asset Management France (SAS) of £205,626 (2023: £554,668) and received amounts of £73,649 (2023: paid £546,470).  The amount due to Selwood Asset Management (France) SAS at 31 March 2024 was £283,799 (2023: due from £4,524).
During the year the LLP paid expenses on behalf of Selwood Limited, a company under common control, of £Nil (2023: £798). The amount due from Selwood Limited at 31 March 2024 was £Nil (2023: £798)


21.


Controlling party

The LLP is under the control of its designated members.



Page 19