The members of the limited liability partnership have elected not to include a copy of the profit and loss account within the financial statements.
Chrystal Capital Partners LLP is a limited liability partnership incorporated in England and Wales. The registered office is The Grain Store, 10d Drove Orchards, Thornham Road, Hunstanton, Norfolk, PE36 3LS.
The limited liability partnership's principal activities are disclosed in the Members' Report.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue comprises gross commissions and fees earned net of value added tax. Corporate finance transaction fees are recognised once a transaction is regarded as substantially complete. Where such fees are contingent on the outcome of a critical event, revenue is not recognised until that event occurs. Corporate finance retainer fees are recognised on an accruals basis.
Revenue also includes, to the extent that such transactions occur, the fair value of non-cash consideration received in respect of services provided.
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.
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.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments are initially recognised at transaction price or fair value where a reliable value is obtainable. At each reporting date, these investments are measured at fair value where a reliable value is obtainable. In the case of listed investments, the fair value represents the quoted bid price of the investment at the balance sheet date. Where equity instruments are neither listed or readily marketable, the members review evidence as to whether there has been a change in the fair value of the investments. Those investments in shares, or options related to shares, which are not listed or where their fair value cannot otherwise be measured reliably, are measured at cost less impairment. Where shares or options are not yet legally owned by the firm, changes in value are accounted for through turnover. Once legal possession has passed to the firm, any changes in value are accounted for through revaluations or impairments.
Gains and losses on re-measurement are recognised in profit or loss for the period.
At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
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.
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.
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.
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.
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.
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.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
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 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 the profit and loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the LLP in independently administered funds.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
The LLP's functional and presentational currency is GBP.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Exceptional items
Exceptional items are transactions that fall within the ordinary activities of the LLP but are presented separately due to their size or incidence.
In the process of applying its accounting policies, the LLP is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of revenues and expenses recognised during reporting periods presented.
On an ongoing basis, the LLP evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known.
The key sources of accounting judgement and estimation uncertainty are;
We have audited the financial statements of Chrystal Capital Partners LLP (the 'limited liability partnership') for the year ended 30 April 2024 which comprise, the balance sheet, the reconciliation of members' interests and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In the 2016 financial year, the LLP exercised options in an unlisted company for consideration of $1.5 million, equivalent to £967,043 using the exchange rate ruling on the date the shares were acquired. The members estimate the fair value of these to be £Nil as at 30 April 2024 based on information obtained from the most recent set of financial statements, and a recent investment report.
The shares were acquired by the LLP through a promissory note (detailed in note 17 to the accounts) which is secured on the shares in the unlisted investment. Under the terms of the Pledge and Security agreement relating to the loan, the LLP is not liable for any deficiency in the event that the proceeds of the sale or realisation of the shares is insufficient to repay the full liability under the promissory note, which includes capital and interest due.
FRS 102 paragraph 11.21 requires the LLP to assess whether there is objective evidence of impairment of any financial assets that are measured at cost. Shares in unlisted companies are inherently difficult to value and their eventual value is dependent on future events and circumstances. The members have taken appropriate steps to consider whether there is any such evidence based on information available to them and have concluded that the investment should be impaired to £Nil, with a corresponding and equal impairment of the promissory note at the balance sheet date.
In line with the accounting policy in note 1.7, all unlisted investments have been revalued where an accurate market value could be obtained. Investments in ordinary shares and share options totalling £1,561,399 have been valued based upon subscription prices from share issues in the period.
The LLP often receives share options, warrants and other investments as part of its remuneration for services undertaken on behalf of clients. When these options and warrants relate to unlisted entities and a reliable value can be obtained, they are measured at fair value. Where a valuation cannot be measured reliably then the instrument is measured at cost less impairment. In the event that the instrument has no market and where the members consider that the conditions reflect that they expect no income to be generated by the instrument before the end of the exercise period, then the instruments are considered to have no value.
The average number of persons (excluding members) employed by the partnership during the year was:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £74,381 (2023 - £74,381) for the year.
A promissory note is repayable on demand of the lender, with an original principal value of $1.5m and a coupon rate of 15 percent. This note was secured on the LLP's holding in an unlisted company purchased for $1.5 million. Under the terms of the Pledge and Security agreement relating to the loan the LLP was not liable for any deficiency in the event that the proceeds of the sale or realisation of the shares is insufficient to repay the full liability under the promissory note. In the year, the members valued the investment at £Nil (2023: £Nil), and reflected this the value of the promissory loan by valuing the liability at £Nil (2023: £Nil). Had the investment not been fully impaired, the full liability of the loan, inclusive of interest would have been £3,636,779 (2023: £3,148,535).
We confirm that the rights associated to the D Shares share with equal ranking on any surplus distribution of assets.
See note 2 for further details on the members assessment.
The promissory note creditor is secured against an unlisted investment.
The obligations under finance lease and hire purchase contracts are secured against the respective assets that the LLP acquired.
Finance lease payments represent rentals payable by the limited liability partnership for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is [X] years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.
The adjustments arising on acquisition were in respect of the following:
(a) [Enter information]
(b) lEnter information] etc
The auditor's report was unqualified.
At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the limited liability partnership entered into the following transactions with related parties:
During the year the company earned turnover of £327,999 (2023: £615,633) from companies in which the wife of a member of the firm is a director.
As at the year end there was a loan outstanding of £300,000 (2023: £300,000) due to family relations of the members of the LLP. This amount is guaranteed by the members. Interest of £30,000 (2023: £11,250) was charged on the loan.