Limited Liability Partnership registration number SO300647 (Scotland)
Macnabs LLP
Annual report and Unaudited financial statements
For the period ended 31 March 2024
Pages for filing with registrar
Macnabs LLP
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
Macnabs LLP
Balance sheet
as at 31 March 2024
- 1 -
31 March 2024
31 August 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
116,207
127,514
Current assets
Debtors
4
979,899
930,399
Cash at bank and in hand
5,877
1,641
985,776
932,040
Creditors: amounts falling due within one year
5
(379,864)
(540,534)
Net current assets
605,912
391,506
Total assets less current liabilities
722,119
519,020
Creditors: amounts falling due after more than one year
6
(104,925)
(132,079)
Net assets attributable to members
617,194
386,941
Represented by:
Loans and other debts due to members within one year
Other amounts
293,194
153,191
Members' other interests
Members' capital classified as equity
324,000
233,750
617,194
386,941

The members of the limited liability partnership have elected not to include a copy of the profit and loss account within the financial statements.

For the financial period ended 31 March 2024 the limited liability partnership was entitled to exemption from audit under section 477 of the Companies Act 2006 (as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) relating to small limited liability partnerships.

The members acknowledge their responsibilities for complying with the requirements of the Act (as applied to limited liability partnerships) with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

Macnabs LLP
Balance sheet (continued)
as at 31 March 2024
- 2 -
The financial statements were approved by the members and authorised for issue on 14 January 2025 and are signed on their behalf by:
14 January 2025
Ms R C Croman
Designated member
Limited Liability Partnership registration number SO300647 (Scotland)
Macnabs LLP
Notes to the financial statements
for the period ended 31 March 2024
- 3 -
1
Accounting policies
Limited liability partnership information

Macnabs LLP is a limited liability partnership incorporated in Scotland. The registered office is 10 Barossa Place, Perth, PH1 5JX.

 

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

1.1
Reporting period

The financial year end of the company was shortened from 31 August to 31 March due to the basis period reforms, and as a result the comparative figures are not comparable.

1.2
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together with Section 1A of 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Going concern

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.

1.4
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.

Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.

 

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

 

Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.

Macnabs LLP
Notes to the financial statements (continued)
for the period ended 31 March 2024
1
Accounting policies (continued)
- 4 -

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.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10% on reducing balance
Office equipment
25% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
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.

Macnabs LLP
Notes to the financial statements (continued)
for the period ended 31 March 2024
1
Accounting policies (continued)
- 5 -
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.

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 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 payments 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.

Macnabs LLP
Notes to the financial statements (continued)
for the period ended 31 March 2024
1
Accounting policies (continued)
- 6 -
1.8
Employee benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.9
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Employees

The average number of persons (excluding members) employed by the partnership during the period was:

2024
2023
Number
Number
Total
38
32
3
Tangible fixed assets
Leasehold improvements
Office equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023 and 31 March 2024
137,452
186,076
16,808
340,336
Depreciation and impairment
At 1 September 2023
54,163
149,534
9,125
212,822
Depreciation charged in the period
4,859
5,328
1,120
11,307
At 31 March 2024
59,022
154,862
10,245
224,129
Carrying amount
At 31 March 2024
78,430
31,214
6,563
116,207
At 31 August 2023
83,289
36,542
7,683
127,514
Macnabs LLP
Notes to the financial statements (continued)
for the period ended 31 March 2024
3
Tangible fixed assets (continued)
- 7 -

The net book value of tangible fixed assets includes £6,563 (2023 - £7,683) in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £1,120 (2023 - £2,559) for the year.

4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
409,160
293,117
Amounts recoverable on contracts
485,831
519,988
Other debtors
58,884
99,895
Prepayments and accrued income
26,024
17,399
979,899
930,399
5
Creditors: amounts falling due within one year
Restated
2024
2023
£
£
Bank loans and overdrafts
121,895
185,028
Obligations under finance leases
526
6,996
Other borrowings
56,903
161,116
Trade creditors
28,457
40,380
Other taxation and social security
110,578
128,949
Other creditors
46,384
5,974
Accruals and deferred income
15,121
12,091
379,864
540,534

Obligations under finance leases and hire purchase contracts are secured over the related assets. Bank borrowings are secured with a bond and floating charge over the assets of the LLP.

6
Creditors: amounts falling due after more than one year
Restated
2024
2023
Notes
£
£
Bank loans and overdrafts
104,925
130,919
Obligations under finance leases
-
1,160
104,925
132,079
Macnabs LLP
Notes to the financial statements (continued)
for the period ended 31 March 2024
- 8 -
7
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
115,100
80,711
Between two and five years
121,793
146,621
In over five years
60,000
73,333
296,893
300,665
8
Loans and other debts due to members

In the event of a winding up the amounts included in "loans and other debts due to members" will rank equally with unsecured creditors.

9
Pension committment

The company operate a defined contribution pension scheme. the assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost and charge represents contributions payable by the company to the fund and amounted to £25,315 (2023: £47,883). At the 31 March 2024 contributions amounting to £6,534 (31 August 2023: £5,974) were payable to the fund.

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