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Registration number: OC314066

Prepared for the registrar

K22 Services LLP

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2023

 

K22 Services LLP

(Registration number: OC314066)
Balance Sheet as at 31 August 2023

Note

2023
 £

2022
 £

Fixed assets

 

Tangible assets

4

-

8,619

Current assets

 

Debtors

5

265,809

2,753,664

Cash and short-term deposits

 

3,806,367

266,362

 

4,072,176

3,020,026

Creditors: Amounts falling due within one year

6

(2,866,359)

(1,009,398)

Net current assets

 

1,205,817

2,010,628

Net assets attributable to members

 

1,205,817

2,019,247

Represented by:

 

Loans and other debts due to members

 

Other amounts

7

1,205,817

2,019,247

   

1,205,817

2,019,247

Total members' interests

 

Loans and other debts due to members

 

1,205,817

2,019,247

   

1,205,817

2,019,247

For the year ending 31 August 2023 the LLP was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied to LLPs, relating to small entities.

These financial statements have been prepared in accordance with the special provisions relating to LLPs subject to the small LLPs regime within Part 15 of the Companies Act 2006, as applied to LLPs.

These financial statements have been delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime, as applied to LLPs, and the option not to file the Profit and Loss Account has been taken.

The members acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 with respect to accounting records and the preparation of accounts.

The financial statements of K22 Services LLP (registered number OC314066) were approved by the members and authorised for issue on



28 November 2024.

They were signed on behalf of the LLP by:

.........................................
R A Hughes Limited
Designated member

 

K22 Services LLP

Notes to the Financial Statements for the Year Ended 31 August 2023

1

General information

The place of registration of the LLP is England and Wales under the Limited Liability Partnership Act 2000.

The address of the registered office is:
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is pounds sterling, being the functional currency of the primary economic environment in which the LLP operates. Monetary amounts in these financial statements are rounded to the nearest pound.

Going concern

After reviewing the LLP's forecasts and projections, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. The LLP therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements

These financial statements do not contain any significant judgements. There is estimation uncertainty on the provision of bad debts.

Key sources of estimation uncertainty

Amounts recoverable on contracts - The process of assessing work in progress requires various estimates and judgements to be made. At the year end the members review the time spent on client assignments, along with the level of fixed fee work, and this is used as the basis of the calculation. The carrying amount is £- (2022 - £240,262).

Bad debt provision - due to the nature of the business, there are high levels of trade debtors at the year end, and therefore a risk that some of these balances may be irrecoverable. A bad debt review is carried out, where debts are assessed and provided against when the recoverability of these balances is considered to be uncertain. The carrying amount is £- (2022 - £4,823).

Revenue recognition

Fee income represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and excludes VAT. Income is recognised as contract activity progresses and the right to consideration is secured, expect where the final outcome cannot be assessed with reasonable certainty.

Income in respect of contingent fee assignments is recognised in the period when the contingent event occurs and collectability of the fee is assured.

Unbilled income on individual client assignments is included as amounts recoverable on contracts within debtors.

 

K22 Services LLP

Notes to the Financial Statements for the Year Ended 31 August 2023

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Members' remuneration and division of profits

A member's share of the profit and loss for the year is accounted for as an allocation of profits. Unallocated profits and losses are included within 'other reserves'.

Taxation

The taxation payable on the LLP's profits is the personal liability of the members, although payment of such liabilities is administered by the LLP on behalf of its members. Consequently, neither LLP taxation nor related deferred taxation is accounted for in these financial statements. Sums set aside in respect of members' tax obligations are included in the balance sheet within loans and other debts due to members, or are set against amounts due from members as appropriate.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Asset class

Depreciation method and rate

Computer equipment

33.3% of cost per annum

Fixtures, fittings and equipment

33.3% of cost per annum

Trade debtors

Trade debtors are amounts due from clients for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the LLP does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Members' interests

Amounts due to members after more than one year comprise provisions for annuities to current members and certain loans from members which are not repayable within twelve months of the balance sheet date.

 

K22 Services LLP

Notes to the Financial Statements for the Year Ended 31 August 2023

Financial instruments

Classification

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the LLP after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the LLP is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and Measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment of financial assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Particulars of employees

The average number of persons employed by the LLP during the year was 6 (2022 - 26).

 

K22 Services LLP

Notes to the Financial Statements for the Year Ended 31 August 2023

4

Tangible fixed assets

Computer equipment
£

Total
£

Cost

At 1 September 2022

72,093

72,093

Additions

2,087

2,087

Disposals

(74,180)

(74,180)

At 31 August 2023

-

-

Depreciation

At 1 September 2022

63,474

63,474

Charge for the year

1,328

1,328

Eliminated on disposals

(64,802)

(64,802)

At 31 August 2023

-

-

Net book value

At 31 August 2023

-

-

At 31 August 2022

8,619

8,619

5

Debtors

2023
 £

2022
 £

Trade debtors

-

2,149,386

Amounts owed by group undertakings

-

396,657

Other debtors

265,809

21,400

Prepayments and accrued income

-

186,221

265,809

2,753,664

6

Creditors: Amounts falling due within one year

2023
 £

2022
 £

Trade creditors

-

479,215

Taxation and social security

-

257,959

Other creditors

2,861,359

11,593

Accruals and deferred income

5,000

260,631

2,866,359

1,009,398

 

K22 Services LLP

Notes to the Financial Statements for the Year Ended 31 August 2023

7

Analysis of other amounts

2023
£

2022
£

Money owed to members by the LLP in respect of profits

1,205,817

2,019,247

Loans and other debts due to members are unsecured and would rank pari passu with other unsecured creditors in the event of a winding up.

8

Related party transactions

Summary of transactions with other related parties

During the year the LLP paid £Nil (2022 : £315,577) of administration charges to KO2 Limited and made consultancy charges of £Nil (2022 : £335,984).
 

9

Disposal of trade and assets

On 30 November 2022 the LLP sold its trade and assets.