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Registered number: OC330487










ENFRANCHISEMENT INVESTMENT PROPERTIES LLP










FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

INFORMATION





Designated Members

A N Lyndon-Skeggs
D Spiro
Sunterra Property Limited


LLP registered number

OC330487

Registered office

12th Floor
Aldgate Tower
2 Leman Street
London
E1W 9US

Independent auditors

Gravita II LLP
Chartered Accountants
Aldgate Tower
2 Leman Street
London
E1 8FA


 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

CONTENTS



Page
Members' Report
 
1 - 2
Independent Auditors' Report
 
3 - 6
Statement of Comprehensive Income
 
7
Statement of Financial Position
 
8 - 9
Reconciliation of Members' Interests
 
10
Notes to the Financial Statements
 
11 - 16


 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

MEMBERS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The members present their annual report together with the audited financial statements of Enfranchisement Investment Properties LLP (the "LLP") for the year ended 30 April 2024
 

PRINCIPAL ACTIVITIES
The principal activity of the LLP is property investment.
 
 
DESIGNATED MEMBERS
A N Lyndon-Skeggs, D Spiro and Sunterra Property Limited were designated members of the LLP throughout the year.
 

 
MEMBERS' CAPITAL AND INTERESTS
Each member's 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 year ended 30 April 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 monthly during the year in which it is made, with the balance of profits being distributed after the year, subject to the cash requirements of the business.
 

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). 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.
 

Page 1

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

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.
 
This report was approved by the members and signed on their behalf by: 




A N Lyndon-Skeggs
Designated member
Date: 20 December 2024
Page 2

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

OPINION
 

We have audited the financial statements of Enfranchisement Investment Properties LLP (the 'LLP') for the year ended 30 April 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 30 April 2024 and of its results 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 by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.


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. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.


Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.


Page 3

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENFRANCHISEMENT INVESTMENT PROPERTIES LLP (CONTINUED)


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.


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
we have not received all the information and explanations we require for our audit; or
the members were not entitled to prepare the financial statements in accordance with the small limited liability partnerships regime.


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.


Page 4

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENFRANCHISEMENT INVESTMENT PROPERTIES LLP (CONTINUED)


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. However, the primary responsibility for the prevention and detection of fraud rests with both those
charged with governance of the entity and management.

The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the LLP through discussions with members and other management, and from our commercial knowledge and experience of the property sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the LLP including, but not limited to, the Companies Act 2006, and taxation legislation.
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
 
We assessed the susceptibility of the LLP’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 
understanding the business model as part of the control and business environment;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we:
 
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
 






Page 5

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENFRANCHISEMENT INVESTMENT PROPERTIES LLP (CONTINUED)



In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
 
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence and enquiring with the LLP of actual and potential non-compliance with laws and regulations; and
reading the minutes of meetings of those charged with governance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the members and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentations or through  collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.


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 by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008Our 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.






Ian Hughes ACA (Senior Statutory Auditor)
for and on behalf of
Gravita II LLP
Chartered Accountants
Statutory Auditors
Aldgate Tower
2 Leman Street
London
E1 8FA

24 December 2024

Page 6

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
Note
£
£

  

Turnover
 3 
15,673
10,743

Cost of sales
  
(1,292)
(13)

GROSS PROFIT
  
 
14,381
 
10,730

Administrative expenses
  
(16,380)
(17,808)

Profit/(Loss) on sale of investment properties
      7 
114,720
(5,524)

Fair value movements on investment properties
 8 
(1,690,500)
(291,955)

OPERATING LOSS
  
 
(1,577,779)
 
(304,557)

Interest receivable and similar income
  
11,819
-

LOSS FOR THE YEAR BEFORE MEMBERS' REMUNERATION AND LOSS SHARES
  
 
(1,565,960)
 
(304,557)

Loss for the year before members' remuneration and loss shares
  
(1,565,960)
(304,557)

Members' remuneration charged as an expense
  
1,565,960
304,557

RESULTS FOR THE YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS
  
 
-
 
-

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 16 form part of these financial statements.

Page 7

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
REGISTERED NUMBER: OC330487

STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024

2024
2023
Note
£
£

FIXED ASSETS
  

Investment property
 8 
3,108,500
5,699,501

  
3,108,500
5,699,501

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 9 
5,849
5,332

Cash at bank and in hand
  
332,685
108,961

  
338,534
114,293

Creditors: Amounts Falling Due Within One Year
 10 
(19,667)
(20,467)

NET CURRENT ASSETS
  
 
 
318,867
 
 
93,826

TOTAL ASSETS LESS CURRENT LIABILITIES
  
3,427,367
5,793,327

  

NET ASSETS
  
3,427,367
5,793,327


REPRESENTED BY:
  

LOANS AND OTHER DEBTS DUE TO MEMBERS WITHIN ONE YEAR
  

Other amounts
 11 
1,997,264
2,047,518

MEMBERS' OTHER INTERESTS
  

Members' capital classified as equity
  
1,000
1,000

Other reserves classified as equity
  
1,429,103
3,744,809

  
3,427,367
5,793,327


TOTAL MEMBERS' INTERESTS
  

Loans and other debts due to members
 11 
1,997,264
2,047,518

Members' other interests
  
1,430,103
3,745,809

  
3,427,367
5,793,327


Page 8

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
REGISTERED NUMBER: OC330487

STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 APRIL 2024

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small LLPs regime.

The financial statements were approved and authorised for issue by the members and were signed on their behalf on 20 December 2024.





A N Lyndon-Skeggs
Designated member

The notes on pages 11 to 16 form part of these financial statements.

Page 9

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 30 APRIL 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)
Investment property revaluation reserve
Total
Other amounts
Total

£
£
£
£
£

Amounts due to members 

2,449,491


BALANCE AT 1 MAY 2022 
1,000
4,147,393
4,148,393
2,449,491
6,597,884

Members' remuneration charged as an expense
 
-
-
-
(304,557)
(304,557)

MEMBERS' INTERESTS AFTER LOSS FOR THE YEAR
1,000
4,147,393
4,148,393
2,144,934
6,293,327

Allocation of unrealised revaluation
reserves of investment properties
-
(291,955)
(291,955)
291,955
-

Movement in revaluation reserves
of investment properties
-
(110,629)
(110,629)
-
(110,629)

Drawings
-
-
-
(500,000)
(500,000)

Allocation of realised revaluation reserves of investment properties
 
-
-
-
110,629
110,629

Amounts due to members
 



2,047,518


BALANCE AT 30 APRIL 2023
1,000
3,744,809
3,745,809
2,047,518
5,793,327

Members' remuneration charged as an expense
 
-
-
-
(1,565,960)
(1,565,960)

MEMBERS' INTERESTS AFTER LOSS FOR THE YEAR
1,000
3,744,809
3,745,809
481,558
4,227,367

Allocation of unrealised revaluation
reserves of investment properties
-
(1,598,340)
(1,598,340)
1,598,340
-

Movement in revaluation reserves
of investment properties
-
(717,366)
(717,366)
-
(717,366)

Drawings
-
-
-
(800,000)
(800,000)

Allocation of realised revaluation reserves of investment properties
 
-
-
-
717,366
717,366

Amounts due to members
 



1,997,264


BALANCE AT 30 APRIL 2024 
1,000
1,429,103
1,430,103
1,997,264
3,427,367

The notes on pages 11 to 16 form part of these financial statements.

There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.

Page 10

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


GENERAL INFORMATION

Enfranchisement Investment Properties LLP is a limited liability partnership incorporated in England and Wales. The registered office is 12th Floor, Aldgate Tower, 2 Leman Street, London E1W 9US. The principal place of business is Haskell House, 152 West End Lane, London, NW6 1SD.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the LLP's accounting policies.

The LLP's functional and presentational currency is GBP and rounded to the nearest £1.

The following principal accounting policies have been applied:

 
2.2

GOING CONCERN

At the time of approving the financial statements, the members have a reasonable expectation that the LLP 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 these financial statements.

  
2.3

TURNOVER

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. Turnover is measured as the fair value of the rents receivable.

  
2.4

INVESTMENT PROPERTY

Investment property is carried at fair value determined annually by the members and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

 
2.5

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.6

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 11

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.7

FINANCIAL INSTRUMENTS

The LLP has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the LLP's Statement of Financial Position when the LLP becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The LLP's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the LLP after the deduction of all its liabilities.
 
Page 12

 
ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.ACCOUNTING POLICIES (CONTINUED)


2.7
FINANCIAL INSTRUMENTS (CONTINUED)


Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.8

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.9

DIVISION AND DISTRIBUTION OF PROFITS

A division of profits is the mechanism by which the profits of an LLP become a debt due to members. A division may be automatic or discretionary, may relate to some or all of the profits for a financial period and may take place during or after the end of a financial period.

An automatic division of profits is one where the LLP does not have an unconditional right to avoid making a division of an amount of profits based on the members' agreement in force at the time, whereas a discretionary division of profits requires a decision to be made by the LLP, which it has the unconditional right to avoid making.

The LLP divides profits automatically. Automatic divisions of profits are recognised as 'Members' remuneration charged as an expense in the Statement of Comprehensive Income.

In the event of the LLP making losses, the loss is recognised as a credit amount of 'Members' remuneration charged as an expense where it is automatically divided or as a debit within equity under 'Other reserves' if not divided automatically.

 
2.10

INTEREST INCOME

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

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ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

3.


TURNOVER

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


2024
2023
£
£

Ground rent receivable
15,673
10,743


All turnover arose within the United Kingdom.


4.


ALLOCATED LOSS

2024
2023
£
£



Loss for the year
1,565,960
304,557


5.


AUDITORS' REMUNERATION

2024
2023
£
£

Fees payable to the LLP's auditors for the audit of the LLP's financial statements
4,380
3,990

6.


EMPLOYEES

The average monthly number of members during the year was 2 (2023 - 2).


The entity has no employees.




7.


PROFIT/(LOSS) ON SALE OF INVESTMENT PROPERTIES

2024
2023
£
£

Sale of investment properties
1,015,221
135,000

Historical cost
(183,135)
(29,895)

832,086
105,105


Prior years revaluation surplus realised
(717,366)
(110,629)

114,720
(5,524)



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ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

8.


INVESTMENT PROPERTY


Freehold investment property

£



VALUATION


At 1 May 2023
5,699,501


Disposals
(900,501)


Fair value movements
(1,690,500)



AT 30 APRIL 2024
3,108,500

The 2024 valuations were made by the members, on an open market value for existing use basis.




2024
2023
£
£


Historic cost
1,771,557
1,954,692

Impairments
(92,160)
-

1,679,397
1,954,692


9.


DEBTORS

2024
2023
£
£


Trade debtors
5,849
5,332



10.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024
2023
£
£

Accruals and deferred income
19,667
20,467


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ENFRANCHISEMENT INVESTMENT PROPERTIES LLP
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

11.


LOANS AND OTHER DEBTS DUE TO MEMBERS


2024
2023
£
£



Other amounts due to members
1,997,264
2,047,518

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

2024
2023
£
£



Falling due after more than one year
1,997,264
2,047,518

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


12.


CONTROLLING PARTY

Sunterra Property Limited, a company registered in The British Virgin Islands, has the controlling interest  in the LLP.


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