Registration number:
Hempsons LLP
Annual Report and Financial Statements
for the Year Ended 30 June 2024
Hempsons LLP
Contents
Limited liability partnership information |
|
Members' Report |
|
Statement of Members' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Members’ Interests |
|
Cash Flow Statement |
|
Notes to the Financial Statements |
Hempsons LLP
Limited liability partnership information
Designated members |
|
Members |
P C Roe |
Registered office |
|
Bankers |
|
Auditors |
Hazlewoods LLP |
Hempsons LLP
Members' Report for the Year Ended 30 June 2024
The members present their report and the financial statements for the year ended 30 June 2024.
Firm structure
The LLP is a limited liability partnership registered in England and Wales. A list of designated members’ names is available for inspection at the LLP’s registered office at 3 Dorset Rise, London, EC4Y 8EN. For more information please visit our website www.hempsons.co.uk.
Principal activity
The principal activity of the LLP is the provision of legal services.
Review of the business and future developments
The fee income for the year was £24,252,366, which was up 1.8% on 2023 (£23,814,995).
The profit for the financial year before members' remuneration was £1,920,460 (2023 - £1,823,774).
The results for the year and financial position of the LLP are as shown in the annexed financial statements.
Position of the business
The LLP has tangible fixed assets, including improvements to leasehold property, fixtures and fittings, and computer equipment valued in the financial statements at £473,589 (2023 - £878,873), cash and cash equivalents of £812,446 (2023 - £40), and trade debtors of £3,597,273 (2023 - £3,837,583). The LLP has bank loans and overdrafts of £292,980 (2023 - £1,296,942) and trade creditors of £2,106,291 (2023 - £1,952,964) .
Financial risk
Price risk, credit risk, liquidity risk and cash flow risk
The management of the LLP and the execution of the LLP’s strategy are subject to a number of risks. The key
business risks and uncertainties affecting the LLP are considered to relate to competition from other legal
practices and changes in the legal industry.
The LLP has sufficient financial resources available and is currently trading profitably. The members have prepared forecasts for the next 12 months that indicate that this trend will continue. The members believe that the entity has sufficient resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.
Key performance indicators
Given the straight forward nature of the LLP, the LLP’s members are of the opinion that analysis using key
performance indicators is not necessary for users of the financial statements to understand the development,
performance or position of the practice.
Designated members
The members who held office during the year were as follows:
Hempsons LLP
Members' Report for the Year Ended 30 June 2024
Disclosure of information to the auditors
Each member has taken steps that they ought to have taken as a member in order to make themselves aware of any relevant audit information and to establish that the limited liability partnership's auditors are aware of that information. The members confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the members on
23 January 2025
and signed on their behalf by:
.........................................
G J Lea
Designated member
Hempsons LLP
Statement of Members' Responsibilities for the Year Ended 30 June 2024
The members are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
The Limited Liability Partnerships (Accounts & Audit) (Application of Companies Act 2006) Regulations 2008 require 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 to LLPs 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 year. In preparing these financial statements, the members are required to:
• |
select suitable accounting policies and then apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business. |
The members are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the Companies Act 2006, as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, and in accordance with the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships (issued July 2014). 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.
These responsibilities are exercised by the designated members on behalf of the members.
Hempsons LLP
Independent Auditor's Report to the Members of Hempsons LLP for the Year Ended 30 June 2024
Opinion
We have audited the financial statements of Hempsons LLP (the ‘LLP’) for the year ended 30 June 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Members’ Interests, Cash Flow Statement, and Notes to the Financial Statements, including a summary of 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).
Opinion on the financial statements
In our opinion the financial statements:
• |
give a true and fair view of the state of the LLP's affairs as at 30 June 2024 and of its profit for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006, as applied to LLPs. |
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 LLP 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 entity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements are authorised for issue.
Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.
Other information
The members are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Hempsons LLP
Independent Auditor's Report to the Members of Hempsons LLP for the Year Ended 30 June 2024
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept by the LLP, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the LLP 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. |
Responsibilities of members
As explained more fully in the Statement of Members' Responsibilities [set out on page 4], 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.
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.
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
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:
1. We obtained an understanding of the legal and regulatory requirements applicable to the LLP's financial statements or that had a fundamental effect on the operations of the LLP. We determined that the most significant laws and regulations included UK GAAP, UK Companies Act 2006 and taxation laws.
2. We understood how the LLP is complying with those legal and regulatory frameworks by making inquiries of management, and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minutes.
3. We assessed the susceptibility of the LLP’s financial statements to material misstatement including how fraud might occur. Audit procedures performed by the engagement team included:
- identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- understanding how those charged with governance considered and addresses the potential for override of controls or other inappropriate influence over the financial reporting process;
- challenging assumptions and judgements made by management in its significant accounting estimates; and
- identifying and testing journal entries, in particular, any journal entries posted with unusual characteristics.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Hempsons LLP
Independent Auditor's Report to the Members of Hempsons LLP for the Year Ended 30 June 2024
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 to limited liability partnerships by the Limited Liability Partnerships (Accounts & 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Hempsons LLP
Profit and Loss Account for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
Profit for the year before members' remuneration and profit shares |
|
|
|
Members' remuneration charged as an expense |
(1,920,460) |
(1,823,774) |
|
Profit/(loss) for the year available for discretionary division among members |
- |
- |
Turnover and operating profit derive wholly from continuing operations.
The LLP has no recognised gains or losses for the year other than the results above.
Hempsons LLP
(Registration number: OC441646)
Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash and short-term deposits |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Provisions for liabilities |
|||
Other provisions |
( |
( |
|
Net assets attributable to members |
|
|
|
Represented by: |
|||
Loans and other debts due to members |
|||
Members' capital classified as a liability |
2,092,500 |
1,518,750 |
|
Other amounts |
2,323,206 |
1,814,259 |
|
4,415,706 |
3,333,009 |
||
4,415,706 |
3,333,009 |
||
Total members' interests |
|||
Loans and other debts due to members |
4,415,706 |
3,333,009 |
|
4,415,706 |
3,333,009 |
The members acknowledge their responsibilities for complying with the requirements of the Act, 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 Hempsons LLP (registered number OC441646) were approved by the
They were signed on behalf of the LLP by:
.........................................
G J Lea
Designated member
Hempsons LLP
Statement of Changes in Members’ Interests
At 30 June 2024
Loans and other debts due to/(from) members |
|||
Members' capital classified as a liability |
Members' other amounts |
Total |
|
Members' interest at 1 July 2023 |
1,518,750 |
1,814,259 |
3,333,009 |
Members' remuneration charged as an expense |
- |
1,920,460 |
1,920,460 |
Members' interests after total comprehensive income |
1,518,750 |
3,734,719 |
5,253,469 |
Members’ capital introduced |
573,750 |
- |
573,750 |
Drawings (including tax payments) |
- |
(1,411,513) |
(1,411,513) |
At 30 June 2024 |
2,092,500 |
2,323,206 |
4,415,706 |
Loans and other debts due to/(from) members |
|||
Members' capital classified as a liability |
Members' other amounts |
Total |
|
Members' interest at 1 July 2022 |
1,710,000 |
1,974,827 |
3,684,827 |
Members' remuneration charged as an expense |
- |
1,823,774 |
1,823,774 |
Members' interests after profit for the year |
1,710,000 |
3,798,601 |
5,508,601 |
Members’ capital introduced |
33,750 |
- |
33,750 |
Drawings (including tax payments) |
- |
(1,639,979) |
(1,639,979) |
Transfer of capital to former members’ balances |
(225,000) |
(344,363) |
(569,363) |
At 30 June 2023 |
1,518,750 |
1,814,259 |
3,333,009 |
Hempsons LLP
Cash Flow Statement for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Net cash inflow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Purchase of tangible fixed assets |
( |
( |
|
Interest received |
|
|
|
Interest paid |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Repayment of loans and borrowings |
( |
( |
|
Value of new loans obtained during the period |
|
|
|
Payments to or on behalf of members |
( |
( |
|
Capital contributions by members |
|
|
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 July |
( |
( |
|
Cash and cash equivalents at 30 June |
|
( |
2024 |
2023 |
|
Reconciliation to cash at bank and in hand: |
||
Cash on hand |
|
|
Cash at bank |
|
- |
Bank overdrafts |
- |
(677,595) |
|
( |
Hempsons LLP
Notes to the Financial Statements for the Year Ended 30 June 2024
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
General information and basis of accounting
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.
Judgements
In the application of the LLP's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Key sources of estimation uncertainty
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 £200,360 (2023 - £156,206).
Amounts recoverable on contracts - The process of assessing amounts recoverable on contracts requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the amounts recoverable on contracts estimate. A year end report of time on all assignments is circulated to fee earners to identify likely recoverable amounts. The carrying amount is £3,107,622 (2023 - £3,358,542).
Provision for client claims - the provision is based on a review of potential claims and an assessment of any potential settlements that are considered likely as a result of these. The carrying amount is £186,000 (2023 - £186,000).
Dilapidations provision – a provision for dilapidations on the offices is being built up each year based on the
amount expected to be payable per square foot of office space on termination of the relevant leases. The
carrying amount is The carrying amount is £461,854 (2023 - £409,744).
Pension surplus - a historical defined benefit pension is owned by the LLP. There have been no payments into this scheme during the year and the intention is for this to be sold by the end of the next financial year. Within other debtors a surplus is recognised which is calculated using a report prepared by an actuary. This surplus is calculated by totalling the assets of the scheme and deducting off the liabilities to its beneficiaries, estimated future expenses to extract the scheme and 35% effective tax. The carrying amount is £533,000 (2023 - £433,000).
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.
Hempsons LLP
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Disbursements
Disbursements are not included in income or expenses, but are netted against each other.
Members' remuneration and division of profits
A Member's share in the profit and loss for the period is accounted for as an allocation of profits. Unallocated profits and losses are included within other reserves.
Payments on account are made each month to Members and additional drawings are made based on estimated profit and the availability of funds. Amounts are retained in respect of Members’ tax liabilities and paid out in two half yearly instalments.
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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Asset class |
Depreciation method and rate |
Computer equipment |
10% - 33% on cost |
Fixtures and fittings |
number of years of the lease |
Office furniture and other equipment |
10% - 20% on cost |
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.
Hempsons LLP
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the LLP has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Borrowing costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those assets. The commencement of capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.
Provisions
Provision is made in the financial statements for all claims where costs are likely to be incurred and represents
the cost of defending and concluding claims. The LLP carries professional indemnity insurance and does not
disclose the cost of claims covered by insurance.
Provision is made for dilapidations in respect of property leases which require the premises to be returned to their original state, prior to the conclusion of the lease term.
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.
Pensions and other post retirement obligations
Contributions payable to the defined contribution pension scheme and employees' personal pension plans are charged to the profit and loss account in the period to which they relate.
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.
Hempsons LLP
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
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.
Turnover |
The total turnover of the LLP for the current year has been derived from its principal activity wholly
undertaken in the United Kingdom.
2024 |
2023 |
|
Rendering of services |
|
|
Operating profit |
Operating profit is stated after charging /(crediting):
2024 |
2023 |
|
Depreciation of owned assets |
|
|
Auditors remuneration |
|
|
Other interest receivable and similar income |
2024 |
2023 |
|
Other interest receivable and similar income |
|
|
83,715 |
40,562 |
Hempsons LLP
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Interest payable and similar charges |
2024 |
2023 |
|
Interest on bank borrowings and overdrafts |
|
|
Other interest payable |
|
|
|
|
Particulars of employees |
The average number of persons employed by the LLP (including members) during the year, analysed by category was as follows:
2024 |
2023 |
|
Fee earners |
|
|
Administrative and support staff |
|
|
|
|
|
|
The aggregate payroll costs were as follows:
2024 |
2023 |
|
Wages and salaries |
13,688,983 |
13,730,394 |
Social security costs |
1,314,573 |
1,356,042 |
Pension costs |
573,973 |
571,492 |
15,577,529 |
15,657,928 |
|
|
Members' remuneration |
2024 |
2023 |
|
Average number of members during the year |
10 |
8 |
The profit attributable to the member with the largest entitlement was £241,519 (2023: £242,666).
Auditor's remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
|
Hempsons LLP
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Tangible fixed assets |
Plant and machinery |
Fixtures and fittings |
Office equipment |
Total |
|
Cost |
||||
At 1 July 2023 |
|
|
|
|
Additions |
|
- |
- |
|
Disposals |
( |
( |
( |
( |
At 30 June 2024 |
|
|
|
|
Depreciation |
||||
At 1 July 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposals |
( |
( |
( |
( |
At 30 June 2024 |
|
|
|
|
Net book value |
||||
At 30 June 2024 |
|
- |
|
|
At 30 June 2023 |
|
|
|
|
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Amounts recoverable on contracts |
3,107,622 |
3,358,542 |
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
Creditors: Amounts falling due within one year |
2024 |
2023 |
|
Bank loans and overdrafts |
|
|
Trade creditors |
|
|
Other taxes and social security |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
Creditors amounts falling due within one year includes the following liabilities, on which security has been given by the LLP:
2024 |
2023 |
|
Bank Overdraft |
- |
677,595 |
Fixed and floating charge over the assets of the LLP
Hempsons LLP
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Creditors: Amounts falling due after more than one year |
2024 |
2023 |
|
Bank loans and overdrafts |
- |
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Provisions |
Client claims provision |
Dilapidations provision |
Total |
|
At 1 July 2023 |
|
|
|
Increase (decrease) in existing provisions |
- |
|
|
Provisions used |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
Analysis of other amounts |
2024 |
2023 |
|
Money advanced to the LLP by the members by way of loan |
2,323,206 |
1,814,259 |
Cash flow statement |
2024 |
2023 |
|
Operating profit |
|
|
Depreciation, amortisation and impairment charges |
|
|
Decrease in debtors |
|
|
Decrease in creditors |
( |
( |
Increase in provisions |
|
|
Cash generated by operations |
|
|
Net cash inflow from operating activities |
|
|
Hempsons LLP
Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)
Analysis of changes in net debt |
At 1 July 2023 |
Financing cash flows |
At 30 June 2024 |
|
Cash at bank |
40 |
812,406 |
812,446 |
Overdrafts |
(677,595) |
677,595 |
- |
Bank borrowings (less than one year) |
(492,669) |
199,689 |
(292,980) |
Bank borrowings (more than one year) |
(126,678) |
126,678 |
- |
Net debt (before members’ debt) |
(1,296,902) |
1,816,368 |
519,466 |
Loans and other debts due to members |
|||
Members’ capital |
(1,518,750) |
(573,750) |
(2,092,500) |
Other amounts due to members |
(1,814,259) |
(508,947) |
(2,323,206) |
Net debt |
( |
|
( |
|
Control |
The members are the controlling party by virtue of their controlling interest in the limited liability partnership. The ultimate controlling party is the same as the controlling party.