Limited Liability Partnership registration number OC380609 (England and Wales)
FARRELLS (LONDON) LLP
FINANCIAL STATEMENTS
for the year ended
31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
FARRELLS (LONDON) LLP
CONTENTS
Page
Balance sheet
1 - 2
Reconciliation of members' interests
3 - 4
Notes to the financial statements
5 - 10
FARRELLS (LONDON) LLP
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
60,683
72,991
Investments
4
-
1
60,683
72,992
Current assets
Debtors
5
665,351
748,891
Cash at bank and in hand
77
129
665,428
749,020
Creditors: amounts falling due within one year
6
(871,668)
(1,205,818)
Net current liabilities
(206,240)
(456,798)
Total assets less current liabilities
(145,557)
(383,806)
Creditors: amounts falling due after more than one year
7
(222,793)
(27,500)
Net liabilities attributable to members
(368,350)
(411,306)
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
235,956
191,089
Members' other interests
Members' capital classified as equity
2,032,545
2,034,456
Other reserves classified as equity
(2,636,851)
(2,636,851)
(368,350)
(411,306)

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

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

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

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

FARRELLS (LONDON) LLP
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 2 -
The financial statements were approved by the members and authorised for issue on 24 January 2025 and are signed on their behalf by:
24 January 2025
Mr M Stowell
Designated member
Limited Liability Partnership registration number OC380609 (England and Wales)
FARRELLS (LONDON) LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
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
Other amounts
Total
Total
2024
£
£
£
£
£
£
Members' interests at 1 April 2023
2,034,456
(2,636,851)
(602,395)
191,089
191,089
(411,306)
Profit for the financial year available for discretionary division among members
-
134,673
134,673
-
-
134,673
Members' interests after profit for the year
2,034,456
(2,502,178)
(467,722)
191,089
191,089
(276,633)
Allocation of profit for the financial year
-
(134,673)
(134,673)
134,673
134,673
-
Repayments of capital
(1,911)
-
(1,911)
-
-
(1,911)
Drawings on account and distributions of profit
-
-
-
(89,806)
(89,806)
(89,806)
Members' interests at 31 March 2024
2,032,545
(2,636,851)
(604,306)
235,956
235,956
(368,350)
FARRELLS (LONDON) LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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
Other amounts
Total
Total
2023
£
£
£
£
£
£
Members' interests at 1 April 2022
1,063,616
(2,636,851)
(1,573,235)
706,761
706,761
(866,474)
Profit for the financial year available for discretionary division among members
-
240,326
240,326
-
-
240,326
Members' interests after profit for the year
1,063,616
(2,396,525)
(1,332,909)
706,761
706,761
(626,148)
Allocation of profit for the financial year
-
(240,326)
(240,326)
240,326
240,326
-
Introduced by members
982,524
-
982,524
-
-
982,524
Repayments of capital
(6,707)
-
(6,707)
-
-
(6,707)
Reclassifications
(4,977)
-
(4,977)
(667,340)
(667,340)
(672,317)
Drawings on account and distributions of profit
-
-
-
(88,658)
(88,658)
(88,658)
Members' interests at 31 March 2023
2,034,456
(2,636,851)
(602,395)
191,089
191,089
(411,306)
FARRELLS (LONDON) LLP
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
1
Accounting policies
Limited liability partnership information

Farrells (London) LLP is a limited liability partnership incorporated in England and Wales. The registered office is 9 Hatton Street, London, NW8 8PL.

 

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The 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. The principal accounting policies adopted are set out below.

The limited liability partnership has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the limited liability partnership as an individual entity and not about its group.

1.2
Turnover

Turnover, which is stated net of value added tax, represents amounts invoiced to third parties. Long-term and short-term contracts are included in turnover on the basis of the sales value of work performed during the year by reference to the total sales value and stage of completion of their respective contracts.

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.

1.3
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.

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.

FARRELLS (LONDON) LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
1.4
Tangible fixed assets

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

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

Land and buildings Leasehold
Straight line over 15 years/15% Reducing balance
Fixtures, fittings & equipment
15% Reducing balance
Computer equipment
25% 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.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the limited liability partnership. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

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

1.7
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.

1.8
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

FARRELLS (LONDON) LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 7 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the limited liability partnership after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the limited liability partnership.

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
Retirement benefits and post retirement payments to members
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

FARRELLS (LONDON) LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2
Employees

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

2024
2023
Number
Number
Total
22
27
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
48,800
749,906
798,706
Depreciation and impairment
At 1 April 2023
35,638
690,077
725,715
Depreciation charged in the year
2,052
10,256
12,308
At 31 March 2024
37,690
700,333
738,023
Carrying amount
At 31 March 2024
11,110
49,573
60,683
At 31 March 2023
13,162
59,829
72,991
4
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
-
1
FARRELLS (LONDON) LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
4
Fixed asset investments
(Continued)
- 9 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
1
Dissolved
(1)
At 31 March 2024
-
Carrying amount
At 31 March 2024
-
At 31 March 2023
1

During the year, Farrells Employment Limited, a wholly owned subsidiary of Farrells (London) LLP, was dissolved on 6th June 2023.

5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
365,524
392,451
Amounts owed by group undertakings
747
1,625
Other debtors
299,080
354,815
665,351
748,891
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
292,944
298,045
Trade creditors
307,729
396,729
Taxation and social security
207,524
416,859
Other creditors
63,471
94,185
871,668
1,205,818
FARRELLS (LONDON) LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
7
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17,500
27,500
Other borrowings
205,293
-
222,793
27,500

The bank loan is unsecured and bears interest at 2.5%. The term of the loan is 6 years, but the loan can be paid back at anytime with no early repayment charges. The loan is subject to 60 instalments of £833.33 per month and the repayments started from January 2022.

 

 

8
Loans and other debts due to members

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

9
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
246,521
247,197
Between two and five years
224,034
470,555
Total
470,555
717,752
10
Related party transactions

During the year the LLP was invoiced for rent charges (excluding service charge) of £199,000 (2023: £199,000) by Terry Farrell & Partners Limited.

 

Farrells (London) LLP had recovered a total fee income of £204,491 (2023: £321,296) from Terry Farrell & Partners Limited by way of management charges during the year.

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