Limited Liability Partnership registration number OC425715 (England and Wales)
SEDDONS LAW LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
SEDDONS LAW LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Mr S P Jacobs
Mr A M Miller
Mr S A G Ross
LLP registration number
OC425715
Registered office
120 New Cavendish Street
London
W1W 6XX
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
E1 8FA
SEDDONS LAW LLP
CONTENTS
Page
Members' report
1
Independent auditor's report
2 - 4
Profit and loss account
5
Balance sheet
6
Reconciliation of members' interests
7 - 8
Statement of cash flows
9
Notes to the financial statements
10 - 19
SEDDONS LAW LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The members present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity continues to be that of a law firm.

Members' drawings, contributions and repayments

Profits are allocated and divided between members after finalisation of the financial statements.  Members draw a proportion of their profit share monthly during the year in which the profit is made, with the balance of profits being distributed after the year end, subject to the cash requirements of the business.

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

Ms R K Arnold
(Resigned 30 April 2024)
Mr S P Jacobs
Mr A M Miller
Mr S A G Ross
Statement of members' responsibilities

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the members on 19 December 2024 and signed on behalf by:
19 December 2024
Mr S A G Ross
Designated Member
SEDDONS LAW LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEDDONS LAW LLP
- 2 -
Opinion

We have audited the financial statements of Seddons Law LLP (the 'limited liability partnership') for the year ended 30 April 2024 which comprise the profit and loss account, the balance sheet, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the limited liability partnership’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

SEDDONS LAW LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEDDONS LAW LLP
- 3 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the members are responsible for assessing the limited liability partnership's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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.

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:

 

SEDDONS LAW LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEDDONS LAW LLP
- 4 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

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 directors 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 misrepresentation 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 is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Filiz Zekia FCCA
Senior Statutory Auditor
For and on behalf of
19 December 2024
Chartered Accountants
Statutory Auditor
SEDDONS LAW LLP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
2024
2023
Notes
£
£
Turnover
3
14,404,045
13,490,910
Administrative expenses
(9,081,830)
(7,788,305)
Other operating income
394,198
-
Operating profit
4
5,716,413
5,702,605
Interest receivable and similar income
7
373,872
63,233
Interest payable and similar expenses
8
(177,930)
(83,637)
Profit for the financial year before members' remuneration and profit shares available for discretionary division among members
5,912,355
5,682,201

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SEDDONS LAW LLP
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 6 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
394,486
440,875
Current assets
Debtors
10
6,358,218
6,092,193
Cash at bank and in hand
38,164
61,729
6,396,382
6,153,922
Creditors: amounts falling due within one year
12
(3,234,590)
(3,366,494)
Net current assets
3,161,792
2,787,428
Total assets less current liabilities
3,556,278
3,228,303
Creditors: amounts falling due after more than one year
13
(186,340)
(300,042)
Net assets attributable to members
3,369,938
2,928,261
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
1,096,937
805,259
Members' other interests
Members' capital classified as equity
2,273,001
2,123,002
3,369,938
2,928,261
The financial statements were approved by the members and authorised for issue on 19 December 2024 and are signed on their behalf by:
19 December 2024
Mr S A G Ross
Mr S P Jacobs
Designated member
Designated member
Limited Liability Partnership registration number OC425715
SEDDONS LAW LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other reserves
Total
Members' capital
Total
Total
2024
£
£
£
£
£
Members' interests at 1 May 2023 as restated
2,123,002
-
2,123,002
805,259
805,259
2,928,256
Profit for the financial year available for discretionary division among members
-
5,912,355
5,912,355
-
-
5,912,355
Members' interests after profit for the year
2,123,002
5,912,355
8,035,357
805,259
805,259
8,840,611
Introduced by members
255,000
-
255,000
-
-
255,000
Repayments of capital
(105,001)
-
(105,001)
-
-
(105,001)
Repayment of debt (including members' capital classified as a liability)
-
-
-
(5,620,672)
(5,620,672)
(5,620,672)
Other movements
-
(5,912,355)
(5,912,355)
5,912,355
5,912,355
-
Members' interests at 30 April 2024
2,273,001
-
2,273,001
1,096,942
1,096,942
3,369,938
SEDDONS LAW LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other reserves
Total
Members' capital
Total
Total 2023 as restated
£
£
£
£
£
Members' interests at 1 May 2022
1,998,002
-
1,998,002
957,098
957,098
2,955,100
Profit for the financial year available for discretionary division among members
-
5,682,201
5,682,201
-
-
5,682,201
Members' interests after profit for the year
1,998,002
5,682,201
7,680,203
957,098
957,098
8,637,301
Introduced by members
345,000
-
345,000
-
-
345,000
Repayment of debt (including members' capital classified as a liability)
-
-
-
(5,834,040)
(5,834,040)
(5,834,040)
Other movements
(220,000)
(5,682,201)
(5,902,201)
5,682,201
5,682,201
(220,000)
Members' interests at 30 April 2023
2,123,002
-
2,123,002
805,259
805,259
2,928,261
SEDDONS LAW LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
6,198,100
4,650,193
Interest paid
(177,930)
(138,570)
Net cash inflow from operating activities
6,020,170
4,511,623
Investing activities
Purchase of tangible fixed assets
(83,160)
(94,628)
Proceeds from disposal of tangible fixed assets
-
645
Interest received
373,872
58,799
Net cash generated from/(used in) investing activities
290,712
(35,184)
Financing activities
Capital introduced by members (classified as debt or equity)
255,000
345,000
Repayment of capital or debt to members
(105,001)
-
Payments to members
(5,912,355)
(6,054,686)
Proceeds from new bank loans
-
300,042
Repayment of bank loans
(128,190)
(171,852)
Repayment/(payment) of finance leases obligations
(120,019)
107,609
Net cash used in financing activities
(6,010,565)
(5,473,887)
Net increase/(decrease) in cash and cash equivalents
300,317
(997,448)
Cash and cash equivalents at beginning of year
(262,153)
744,751
Cash and cash equivalents at end of year
38,164
(252,697)
SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
1
Accounting policies
Limited liability partnership information

Seddons Law LLP is a limited liability partnership incorporated in England and Wales. The registered office is 120 New Cavendish Street, London, W1W 6XX.

 

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

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

1.2
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.

1.3
Turnover

Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

If, at the balance sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the Limited Liability Partnership), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the balance sheet date are carried forward as work in progress.

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

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.

SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 11 -

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

1.5
Tangible fixed assets

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

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

Fixtures and fittings
5 years straight line
Computers
5 years straight line

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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.8
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.

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.

SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
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.

SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Work in progress

The valuation of work in progress is assessed with reference to the expected level of recovery post year end.  These estimates are based on a detailed assessment of historic trends together with the level of actual recoverability in the period subsequent to the year end.

3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Fee income
14,404,045
13,490,910
2024
2023
£
£
Turnover analysed by geographical market
UK
14,404,045
13,490,910
2024
2023
£
£
Other significant revenue
Interest income
373,872
63,233
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
28,000
21,375
Depreciation of owned tangible fixed assets
129,549
42,318
Operating lease charges
388,401
542,760
SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
5
Employees

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

2024
2023
Number
Number
63
58

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,737,824
4,099,164
6
Information in relation to members
2024
2023
Number
Number
Average number of members during the year
34
33
2024
2023
£
£
Profit attributable to the member with the highest entitlement
307,390
263,254
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
373,872
63,233
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
373,872
63,233
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,306
-
Other interest
173,624
83,637
177,930
83,637
SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
9
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 May 2023
326,802
239,624
566,426
Additions
10,689
72,471
83,160
At 30 April 2024
337,491
312,095
649,586
Depreciation and impairment
At 1 May 2023
2,320
123,231
125,551
Depreciation charged in the year
67,498
62,051
129,549
At 30 April 2024
69,818
185,282
255,100
Carrying amount
At 30 April 2024
267,673
126,813
394,486
At 30 April 2023
324,482
116,393
440,875

Included in fixed assets are assets held under hire purchase agreements. At the year end, the net book value of these items amounted to £292,065 (2023: £326,611).

10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,538,213
2,763,464
Other debtors
411,250
3,552
Prepayments and accrued income
3,408,755
3,325,177
6,358,218
6,092,193
11
Loans and overdrafts
2024
2023
£
£
Bank loans
-
128,190
Bank overdrafts
-
195,692
-
323,882
Payable within one year
-
323,882
SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
11
-
323,882
Obligations under finance leases
14
86,004
92,321
Trade creditors
772,842
820,475
Other taxation and social security
727,401
575,202
Other creditors
1,319,134
1,390,860
Accruals and deferred income
329,209
163,754
3,234,590
3,366,494

Bank loans and overdrafts are secured by way of a fixed and floating charge over the leasehold property known as the second floor, 120 New Cavendish Street, London.

13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
14
186,340
300,042
14
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
86,004
92,321
Within two and five years
186,340
300,042
272,344
392,363
15
Loans and other debts due to members
2024
2023
£
£
Analysis of loans
Amounts falling due within one year
1,096,937
805,259

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

SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
16
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, which fall due as follows:

2024
2023
£
£
Within one year
380,175
126,725
Between two and five years
849,924
1,230,099
1,230,099
1,356,824
17
Cash generated from operations
2024
2023
£
£
Profit for the year
5,912,355
5,682,201
Adjustments for:
Finance costs recognised in profit or loss
177,930
83,637
Investment income recognised in profit or loss
(373,872)
(63,233)
Depreciation and impairment of tangible fixed assets
129,549
42,318
Movements in working capital:
Increase in debtors
(266,025)
(361,228)
Increase/(decrease) in creditors
618,163
(733,502)
Cash generated from operations
6,198,100
4,650,193
18
Analysis of changes in net debt
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
61,729
(23,565)
38,164
Bank overdrafts
(195,692)
195,692
-
(133,963)
172,127
38,164
Borrowings excluding overdrafts
(128,190)
128,190
-
Obligations under finance leases
(392,363)
120,019
(272,344)
Balances before members' debt
(654,516)
420,336
(234,180)
Loans and other debts due to members:
- Members' capital
(805,259)
(291,678)
(1,096,937)
Balances including members' debt
(1,459,775)
128,658
(1,331,117)
SEDDONS LAW LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
19
Prior period adjustment

Goodwill with a book value of £257,056, which had originated many years ago, had not been amortised in prior years' accounts. By 1 May 2022, this balance should have been written off in full and, consequently, this has been written off and adjusted via the opening reserves of the business as at 1 May 2023. As this adjustment has been made to correct the comparative period opening reserves, there is no impact on the current year or comparative year profit as previously reported.

Reconciliation of changes in equity
1 May
30 April
2022
2023
£
£
Adjustments to prior year
Goodwill write off
(257,056)
(257,056)
Equity as previously reported
3,212,156
3,185,312
Equity as adjusted
2,955,100
2,928,256
Reconciliation of changes in profit for the previous financial period
2023
£
Total adjustments
-
Profit as previously reported
5,682,201
Profit as adjusted
5,682,201
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