Limited Liability Partnership Registration No. OC335371 (England and Wales)
THE HEAD PARTNERSHIP SOLICITORS LLP
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
THE HEAD PARTNERSHIP SOLICITORS LLP
CONTENTS
Page
Balance sheet
1 - 2
Reconciliation of members' interests
3 - 4
Notes to the financial statements
5 - 11
THE HEAD PARTNERSHIP SOLICITORS LLP
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
-
86,662
Current assets
Accrued income
-
563,073
Debtors
6
-
714,238
Cash at bank and in hand
-
647,607
-
1,924,918
Creditors: amounts falling due within one year
7
-
(343,434)
Net current assets
-
1,581,484
Total assets less current liabilities
-
1,668,146
Creditors: amounts falling due after more than one year
8
-
(115,493)
Net assets attributable to members
-
1,552,653
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
411,585
1,583,403
Other amounts
(411,585)
(501,267)
-
1,082,136
Members' other interests
Members' capital classified as equity
-
470,517
-
1,552,653
THE HEAD PARTNERSHIP SOLICITORS LLP
BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024
30 April 2024
- 2 -

For the financial year ended 30 April 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.

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

The financial statements were approved by the members and authorised for issue on 28 January 2025 and are signed on their behalf by:
28 January 2025
Mr R  Rodway
Ms R  Gaylor
Designated member
Designated Member
Ms F  Watts
Ms J  Drury
Member
Member
Limited Liability Partnership registration number OC335371 (England and Wales)
THE HEAD PARTNERSHIP SOLICITORS LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 30 APRIL 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 May 2023
470,517
-
470,517
1,082,136
1,082,136
1,552,653
Profit for the financial year available for discretionary division among members
-
910,883
910,883
-
-
910,883
Members' interests after profit for the year
470,517
910,883
1,381,400
1,082,136
1,082,136
2,463,536
Allocation of profit for the financial year
-
(910,883)
(910,883)
910,883
910,883
-
Introduced by members
(1,521,012)
-
(1,521,012)
-
-
(1,521,012)
Reclassifications
1,050,495
-
1,050,495
(1,050,495)
(1,050,495)
-
Drawings on account and distributions of profit
-
-
-
(530,939)
(530,939)
(530,939)
Tax payments
-
-
-
(411,585)
(411,585)
(411,585)
Members' interests at 30 April 2024
-
-
-
-
-
-
THE HEAD PARTNERSHIP SOLICITORS LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 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 May 2022
537,388
-
537,388
1,020,008
1,020,008
1,557,396
Profit for the financial year available for discretionary division among members
-
1,274,052
1,274,052
-
-
1,274,052
Members' interests after profit for the year
537,388
1,274,052
1,811,440
1,020,008
1,020,008
2,831,448
Allocation of profit for the financial year
-
(1,274,052)
(1,274,052)
1,274,052
1,274,052
-
Introduced by members
51,798
-
51,798
-
-
51,798
Repayments of capital
(118,669)
-
(118,669)
-
-
(118,669)
Drawings on account and distributions of profit
-
-
-
(710,657)
(710,657)
(710,657)
Tax payments
-
-
-
(501,267)
(501,267)
(501,267)
Members' interests at 30 April 2023
470,517
-
470,517
1,082,136
1,082,136
1,552,653
THE HEAD PARTNERSHIP SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
1
Accounting policies
Limited liability partnership information

The Head Partnership Solicitors LLP is a limited liability partnership incorporated in England and Wales. The registered office is 9 Chalfont Court, Lower Earley, Reading, RG6 5SY.

 

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 £.

1.2
Going concern

The members decided to cease trade on 30 April 2024 and take steps to transfer the business operations to a newly incorporated limited company, THP Solicitors Limited from 1 May 2024. The carrying value of any assets and liabilities have been reviewed by the members and transferred to the limited company.

1.3
Turnover

Turnover represents the fair value of services provided during the period on client assignments. Turnover is recognised as legal services are undertaken and the right to consideration is earned. Fair value reflects the amount expected to be recoverable from clients and is based on the time spent, skills and expertise provided and expenses incurred. Turnover excludes Value Added Tax.

Turnover in respect of contingent fee assignments (over and above any agreed minimum fee which is recognised as above) is recognised in the period when the contingent event occurs and the collectability of the fee is assured. Unbilled turnover on individual client assignments is included 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.

THE HEAD PARTNERSHIP SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 6 -

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
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Profit and loss account over its useful economic life.

1.6
Tangible fixed assets

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

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

Leasehold improvements
10% straight line
Fixtures and fittings
15% reducing balance
Office equipment
15% reducing balance

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

1.7
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible and intangible 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.

THE HEAD PARTNERSHIP SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 7 -
1.8
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.

1.9
Financial instruments
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.

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.

1.10
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.

THE HEAD PARTNERSHIP SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 8 -
1.11
Retirement benefits and post retirement payments to members

The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid the LLP has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the LLP in independently administered funds.

1.12
Leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

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.

3
Employees

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

2024
2023
Number
Number
Total
47
41
THE HEAD PARTNERSHIP SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023
2,250,000
Disposals
(2,250,000)
At 30 April 2024
-
Amortisation and impairment
At 1 May 2023
2,250,000
Disposals
(2,250,000)
At 30 April 2024
-
Carrying amount
At 30 April 2024
-
At 30 April 2023
-
5
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Office equipment
Total
£
£
£
£
Cost
At 1 May 2023
127,264
99,133
212,872
439,269
Additions
-
828
29,700
30,528
Disposals
(127,264)
(99,961)
(242,572)
(469,797)
At 30 April 2024
-
-
-
-
Depreciation and impairment
At 1 May 2023
120,055
86,713
145,839
352,607
Depreciation charged in the year
(30,791)
(50,220)
(50,661)
(131,672)
Eliminated in respect of disposals
(89,264)
(36,493)
(95,178)
(220,935)
At 30 April 2024
-
-
-
-
Carrying amount
At 30 April 2024
-
-
-
-
At 30 April 2023
7,209
12,420
67,033
86,662

During the year, adjustments were made to the depreciation charge on tangible fixed assets to reflect a correction in their carrying values following the transfer of the LLP's trade and assets to a limited company on 30 April 2024. The adjustment does not affect the overall financial position of the LLP, as it aligns the carrying values of the assets with their fair value upon transfer.

 

The adjustments included a reversal of excess depreciation previously charged, resulting in a net negative depreciation adjustment of £131,672. This adjustment ensures that the net book value of the assets accurately reflects their recoverable amounts at the time of transfer.

THE HEAD PARTNERSHIP SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
331,310
Other debtors
-
382,928
-
714,238
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
-
47,525
Trade creditors
-
12,874
Taxation and social security
-
238,488
Other creditors
-
44,547
-
343,434
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
-
115,493

The long-term loans are secured by fixed and floating charges over the assets of the LLP.

9
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.

10
Pension commitments

The entity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the entity in an independently administered fund. The pension cost charge represents contributions payable by the entity to the fund and amounted to £109,557 (2023 - £92,970). Contributions totalling £16,191 (2023 - £7,975) were payable to the fund at the balance sheet date.

THE HEAD PARTNERSHIP SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
11
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
£
£
250,590
258,883
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