DF Legal LLP OC312315 false 2023-05-01 2024-04-30 2024-04-30 The principal activity of the company is the provision of legal services. Digita Accounts Production Advanced 6.30.9574.0 Software OC312315 2023-05-01 2024-04-30 OC312315 2024-04-30 OC312315 core:CurrentFinancialInstruments 2024-04-30 OC312315 core:Non-currentFinancialInstruments 2024-04-30 OC312315 core:Goodwill 2024-04-30 OC312315 core:FurnitureFittings 2024-04-30 OC312315 core:OfficeEquipment 2024-04-30 OC312315 bus:SmallEntities 2023-05-01 2024-04-30 OC312315 bus:AuditExemptWithAccountantsReport 2023-05-01 2024-04-30 OC312315 bus:FullAccounts 2023-05-01 2024-04-30 OC312315 bus:RegisteredOffice 2023-05-01 2024-04-30 OC312315 bus:PartnerLLP2 2023-05-01 2024-04-30 OC312315 bus:PartnerLLP3 2023-05-01 2024-04-30 OC312315 bus:LimitedLiabilityPartnershipLLP 2023-05-01 2024-04-30 OC312315 bus:Agent1 2023-05-01 2024-04-30 OC312315 core:Goodwill 2023-05-01 2024-04-30 OC312315 core:ComputerEquipment 2023-05-01 2024-04-30 OC312315 core:FurnitureFittings 2023-05-01 2024-04-30 OC312315 core:OfficeEquipment 2023-05-01 2024-04-30 OC312315 countries:AllCountries 2023-05-01 2024-04-30 OC312315 2023-04-30 OC312315 core:Goodwill 2023-04-30 OC312315 core:FurnitureFittings 2023-04-30 OC312315 core:OfficeEquipment 2023-04-30 OC312315 2022-05-01 2023-04-30 OC312315 2023-04-30 OC312315 core:CurrentFinancialInstruments 2023-04-30 OC312315 core:Non-currentFinancialInstruments 2023-04-30 OC312315 core:FurnitureFittings 2023-04-30 OC312315 core:OfficeEquipment 2023-04-30 iso4217:GBP xbrli:pure

Registration number: OC312315

DF Legal LLP

Annual Report and Unaudited Financial Statements

for the Year Ended 30 April 2024

 

DF Legal LLP

Contents

Limited liability partnership information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 9

 

DF Legal LLP

Limited liability partnership information

Designated members

D J Ferraby

N Thorpe
 

Registered office

63 High Street
Tewkesbury

GL20 5BJ

Bankers

Barclays Bank Plc
134 High Street
Tewkesbury
GL20 5JS

Accountants

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

DF Legal LLP

(Registration number: OC312315)
Balance Sheet as at 30 April 2024

Note

2024
 £

2023
 £

Fixed assets

 

Tangible assets

5

15,470

17,552

Investments

6

80

80

 

15,550

17,632

Current assets

 

Debtors

7

381,442

470,591

Cash and short-term deposits

 

7,303

25,232

 

388,745

495,823

Creditors: Amounts falling due within one year

8

(356,587)

(434,121)

Net current assets

 

32,158

61,702

Total assets less current liabilities

 

47,708

79,334

Creditors: Amounts falling due after more than one year

9

(27,708)

(20,414)

Provisions for liabilities

10

(20,000)

(58,920)

Net assets/(liabilities) attributable to members

 

-

-

Represented by:

 

Total members' interests

 

Amounts due from members

 

(105,612)

(185,552)

   

(105,612)

(185,552)

For the year ending 30 April 2024 the LLP was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied to LLPs, relating to small entities.

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

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

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

The financial statements of DF Legal LLP (registered number OC312315) were approved by the members and authorised for issue on 29 January 2025. They were signed on behalf of the LLP by:

.........................................
D J Ferraby
Designated member

 

DF Legal LLP

Notes to the Financial Statements for the Year Ended 30 April 2024

1

General information

The place of registration of the LLP is the United Kingdom under the Limited Liability Partnership Act 2000.

The address of the registered office is:
63 High Street
Tewkesbury
GL20 5BJ

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

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

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

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 £21,886 (2023 - £9,134).

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 £89,988 (2023 - £119,674).

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 £20,000 (2023 - £58,920).

 

DF Legal LLP

Notes to the Financial Statements for the Year Ended 30 April 2024

Revenue recognition

Turnover 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. Fees are recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.

Fee 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 fee income on individual assignments is included as amounts recoverable on contracts within current assets.

Members' remuneration and division of profits

The profits of the LLP are automatically divided among the members in accordance with the agreed profit share arrangements.

A member's share of the profit or loss is accounted for as an allocation of profits.

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.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets

Intangible assets are stated in the balance sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives.

Tangible fixed assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Amortisation

Goodwill was acquired on the purchase of two separate legal practices, and is being amortised over a period of five years. The period is considered by members to be its useful economic life.

Asset class

Amortisation method and rate

Goodwill

Straight line over five years

 

DF Legal LLP

Notes to the Financial Statements for the Year Ended 30 April 2024

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual balance, over their expected useful economic life as follows:

Asset class

Depreciation method and rate

Furniture, fixtures & fittings

20% of written down value per annum

Computer equipment

25% of cost per annum

Trade debtors

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

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the limited liability partnership will not be able to collect all amounts due according to the original terms of the receivables.

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.

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

Provisions are recognised when the limited liability partnership has an obligation at the reporting date as a result of a past event, it is probable that the limited liability partnership will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

DF Legal LLP

Notes to the Financial Statements for the Year Ended 30 April 2024

Hire purchase and leasing

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term.

Financial instruments

Classification

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

Recognition and Measurement

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

Impairment of financial assets

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

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

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

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

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

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

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

3

Particulars of employees

The average number of persons employed by the LLP during the year was 32 (2023 - 36).

 

DF Legal LLP

Notes to the Financial Statements for the Year Ended 30 April 2024

4

Intangible fixed assets

Goodwill
£

Cost and amortisation

At 1 May 2023 and at 30 April 2024

50,000

Net book value

At 1 May 2023 and at 30 April 2024

-

5

Tangible fixed assets

Furniture, fixtures and fittings
£

Computer equipment
£

Total
£

Cost

At 1 May 2023

47,440

27,866

75,306

Additions

-

1,695

1,695

Disposals

(2,661)

(1,648)

(4,309)

At 30 April 2024

44,779

27,913

72,692

Depreciation

At 1 May 2023

35,125

22,629

57,754

Charge for the year

2,441

439

2,880

Eliminated on disposals

(2,554)

(858)

(3,412)

At 30 April 2024

35,012

22,210

57,222

Net book value

At 30 April 2024

9,767

5,703

15,470

At 30 April 2023

12,315

5,237

17,552

 

DF Legal LLP

Notes to the Financial Statements for the Year Ended 30 April 2024

6

Investments held as fixed assets

2024
£

2023
£

Other investments

80

80

Details of undertakings

Details of the investments in which the limited liability partnership holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Country of incorporation

Holding

Proportion of voting rights and shares held

Principal activity

Significant holdings

DFL Conveyancing Limited

United Kingdom

Ordinary

80%

Conveyancing

7

Debtors

2024
 £

2023
 £

Trade debtors

76,662

65,491

Amounts recoverable on contracts

89,987

119,674

Other debtors

3,468

2,421

Prepayments and accrued income

105,713

97,453

Amounts due from members

105,612

185,552

381,442

470,591

8

Creditors: Amounts falling due within one year

2024
 £

2023
 £

Bank loans

110,367

166,122

Trade creditors

64,772

89,373

Other creditors

38,987

55,803

Accruals

94,393

64,096

Taxation and social security

48,068

58,727

356,587

434,121

 

DF Legal LLP

Notes to the Financial Statements for the Year Ended 30 April 2024

9

Creditors: Amounts falling due after more than one year

2024
 £

2023
 £

Bank loans

27,708

20,414

10

Provisions

Client claims provision
£

At 1 May 2023

58,920

Additional provisions

20,000

Decrease in existing provisions

(58,920)

At 30 April 2024

20,000

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £154,325 (2023 - £144,356).