Registration number:
TWM Solicitors LLP
Annual Report and Audited Financial Statements
for the Year Ended 31 July 2024
TWM Solicitors 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 |
TWM Solicitors LLP
Limited liability partnership information
Designated members |
|
Registered office |
|
Bankers |
|
Auditors |
Hazlewoods LLP |
TWM Solicitors LLP
Members' Report for the Year Ended 31 July 2024
The members present their report and the financial statements for the year ended 31 July 2024.
Firm structure
TWM Solicitors LLP (''us'', ''we'', ''the LLP'' or ''the Firm'') is a limited liability partnership registered in England & Wales with number OC304375. A list of Partners is available for inspection at the LLP’s registered office at 65 Woodbridge Road, Guildford, Surrey GU1 4RD. The firm has offices in London, Epsom, Leatherhead, Cranleigh, Reigate, Wimbledon and Guildford. For more information please visit our website www.twmsolicitors.com.
Principal activity
The principal activity of the LLP in the period under review was that of the provision of legal services as Solicitors and Public Notaries, provided from offices in England. All the LLP’s activities are continuing.
Fair review of the business
The fee income for the year was £16,663,836, which was down 7.7% on 2023 (£18,045,785).
The profit for the financial year before members' remuneration was £3,871,036 (2023 - £4,922,319).
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 £62,340 (2023 - £72,532), cash and cash equivalents of £1,849,657 (2023 - £2,234,183), and trade debtors of £2,460,840 (2023 - £3,055,610). The LLP has bank loans of £1,028,676 (2023 - £1,407,446) and trade creditors of £2,159,315 (2023 - £2,191,881).
Financial risk
Price risk, credit risk, liquidity risk and cash flow risk
The members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the forseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
The LLP's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance business operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through use of overdrafts at floating rates of interest. All of the LLP's cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors
Future outlook
The members are confident that TWM Solicitors LLP will continue to perform well.
Corporate responsibility
Dementia First has been the main focus of the Firm’s charitable endeavours during the year. A wide variety of fundraising events have taken place, with the Firm raising £2,484 for the charity. In addition, the Firm provides pro bono legal advice in local CABs and at Surrey Law Centre, and has established a free legal helpline for young entrepreneurs at the University of Surrey.
Transactions with Members
Members are remunerated from the profits of the Firm and profits are shared among the members in proportions agreed in advance.
On-account drawings are made to members each calendar month, with additional drawings based on estimated profit. Payments are made subject to the availability of funds. Amounts are retained in respect of members’ estimated tax liabilities and paid out to members when their tax liability falls due for payment.
Members’ subscriptions to capital are governed by the Limited Liability Partnership Agreement. The LLP agreement also governs the capital contribution requirements of new members joining the partnership and repayment of capital to members retiring from the Firm.
Policy on payment of creditors
The Firm's policy is to make payments to suppliers in accordance with agreed credit terms.
TWM Solicitors LLP
Members' Report for the Year Ended 31 July 2024
Designated members
The members who held office during the year were as follows:
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:
.........................................
J M Berry
Designated member
.........................................
A P Hayes
Designated member
TWM Solicitors LLP
Statement of Members' Responsibilities for the Year Ended 31 July 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 board on behalf of the members.
TWM Solicitors LLP
Independent Auditor's Report to the Members of TWM Solicitors LLP
for the Year Ended 31 July 2024
Opinion
We have audited the financial statements of TWM Solicitors LLP (the ‘LLP’) for the year ended 31 July 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 31 July 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.
Auditor 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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).
In identifying and assessing risks of material misstatement in respect of fraud, including irregularities and non-compliance with laws and regulations, our procedures included the following:
• 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 addressed the potential for override of controls or other inappropriate influence over the financial reporting process. Detailed analysis of journals posted through the accounting system during the year to 31 July 2024 has been undertaken;
• Understanding the controls in place to prevent and detect fraud. Reliance was not placed on controls for the entirety of the audit, instead taking a substantive testing approach, however controls were in place to prevent fraud, and they appeared to be working effectively;
• Challenging assumptions and judgements made by management in its significant accounting estimates.
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.
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.
TWM Solicitors LLP
Independent Auditor's Report to the Members of TWM Solicitors LLP
for the Year Ended 31 July 2024
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.
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.
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.
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.
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. |
......................................
For and on behalf of Hazlewoods LLP, Statutory Auditor
Windsor House
Bayshill Road
Cheltenham
GL50 3AT
TWM Solicitors LLP
Profit and Loss Account for the Year Ended 31 July 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
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 |
(3,976,036) |
(4,922,319) |
|
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.
TWM Solicitors LLP
(Registration number: OC304375)
Balance Sheet as at 31 July 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
- |
- |
|
Tangible assets |
62,340 |
72,532 |
|
Investments |
12,964 |
18,994 |
|
75,304 |
91,526 |
||
Current assets |
|||
Debtors |
7,281,002 |
8,408,076 |
|
Cash and short-term deposits |
1,849,657 |
2,234,183 |
|
9,130,659 |
10,642,259 |
||
Creditors: Amounts falling due within one year |
(4,547,630) |
(4,928,941) |
|
Net current assets |
4,583,029 |
5,713,318 |
|
Total assets less current liabilities |
4,658,333 |
5,804,844 |
|
Creditors: Amounts falling due after more than one year |
(245,354) |
(513,418) |
|
Provisions for liabilities |
(583,280) |
(483,233) |
|
Net assets attributable to members |
3,829,699 |
4,808,193 |
|
Represented by: |
|||
Loans and other debts due to members |
|||
Members' capital classified as a liability |
1,777,947 |
1,814,931 |
|
Other amounts |
2,051,752 |
2,993,262 |
|
3,829,699 |
4,808,193 |
||
Total members' interests |
|||
Loans and other debts due to members |
3,829,699 |
4,808,193 |
|
3,829,699 |
4,808,193 |
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 TWM Solicitors LLP (registered number OC304375) were approved by the
They were signed on behalf of the LLP by:
.........................................
J M Berry
Designated member
TWM Solicitors LLP
Statement of Changes in Members’ Interests
At 31 July 2024
Loans and other debts due to/(from) members |
|||
Members' capital classified as a liability |
Members' other amounts |
Total |
|
Members' interest at 1 August 2023 |
1,783,557 |
3,024,636 |
4,808,193 |
Members' remuneration charged as an expense |
- |
3,976,036 |
3,976,036 |
Members' interests after profit for the year |
1,783,557 |
7,000,672 |
8,784,229 |
Members’ capital introduced |
33,600 |
(33,600) |
- |
Members' capital repaid |
(39,210) |
- |
(39,210) |
Drawings (including tax payments) |
- |
(4,555,259) |
(4,555,259) |
Amounts transferred to former members |
(72,790) |
(287,271) |
(360,061) |
At 31 July 2024 |
1,705,157 |
2,124,542 |
3,829,699 |
Loans and other debts due to members would rank pari passu with other unsecured creditors in the event of a winding up.
Loans and other debts due to/(from) members |
|||
Members' capital classified as a liability |
Members' other amounts |
Total |
|
Members' interest at 1 August 2022 |
1,882,229 |
4,041,194 |
5,923,423 |
Members' remuneration charged as an expense |
- |
4,922,319 |
4,922,319 |
Members' interests after profit for the year |
1,882,229 |
8,963,513 |
10,845,742 |
Members’ capital introduced |
44,800 |
- |
44,800 |
Other amounts introduced by members |
(70,695) |
31,472 |
(39,223) |
Drawings (including tax payments) |
- |
(5,656,155) |
(5,656,155) |
Amounts transferred to former members |
(72,777) |
(314,194) |
(386,971) |
At 31 July 2023 |
1,783,557 |
3,024,636 |
4,808,193 |
Loans and other debts due to members would rank pari passu with other unsecured creditors in the event of a winding up.
TWM Solicitors LLP
Cash Flow Statement for the Year Ended 31 July 2024
Note |
2024 |
2023 |
|
Net cash inflow from operating activities |
2,998,108 |
4,579,421 |
|
Cash flows from investing activities |
|||
Purchase of tangible fixed assets |
(26,296) |
(43,191) |
|
Interest received |
3,373,370 |
2,142,792 |
|
Interest paid |
(1,402,438) |
(626,279) |
|
Revaluation of trading investments |
6,030 |
(6,549) |
|
Net cash flows from investing activities |
1,950,666 |
1,466,773 |
|
Cash flows from financing activities |
|||
Repayment of loans and borrowings |
(1,088,454) |
(1,004,307) |
|
Value of new loans obtained during the period |
709,684 |
764,349 |
|
Payments to or on behalf of members |
(4,988,130) |
(6,082,349) |
|
Capital contributions by members |
33,600 |
44,800 |
|
Net cash flows from financing activities |
(5,333,300) |
(6,277,507) |
|
Net decrease in cash and cash equivalents |
(384,526) |
(231,313) |
|
Cash and cash equivalents at 1 August 2023 |
2,234,183 |
2,465,496 |
|
Cash and cash equivalents at 31 July 2024 |
1,849,657 |
2,234,183 |
2024 |
2023 |
|
Reconciliation to cash at bank and in hand: |
||
Cash at bank |
|
|
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 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 under the historical cost convention except for, where disclosed in these accounting policies, certain items 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.
Going concern
The members have prepared detailed financial forecasts and are satisfied that loans and capital provided by them, together with negotiated bank facilities, are sufficient to fund ongoing operations. The LLP therefore continues to adopt the going concern basis in preparing its financial statements.
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 at the year end where debts are assessed and provided against when the recoverability of these balances is considered to be uncertain. The carrying amount is £133,571 (2023 - £203,028).
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 estimates. A year end report of time on all assignments is circulated to fee earners to identify likely irrecoverable amounts. The carrying amount is £3,302,636 (2023 - £3,799,977).
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 £199,000 (2023 - £100,000).
Dilapidations provision – a provision for dilapidations on the offices is included based on the amount expected to be payable at the cessation of the leases. This is considered to give a reasonable estimate of the costs which would be due at the balance sheet date. The carrying amount is £384,280 (2023 - £383,233).
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
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 exclude VAT. Income is recognised as contract activity progresses and the right to consideration is secured, except 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.
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 partnership on behalf of its members. Consequently, neither partnership 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.
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 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 software |
25% on cost |
Computer servers |
15% on cost |
Computer equipment |
33% on cost |
Short Leasehold |
over the period of the lease |
Fixtures and fittings |
20% on cost |
Mobile phones |
50% on cost |
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
Trade debtors
Trade debtors are amounts due from clients for services performed in the ordinary course of business.
Trade debtors are recognised initially at transaction price. All trade debtors are repayable within one year and hence are included at the discounted 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 and services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if the LLP does not have an unconditional right, at the end of the reporting period, to defer the 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.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at the amortised cost, with the difference between the proceeds, net of the 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.
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
Members' capital is repayable on retirement of the member and is therefore classified as a liability. Members may retire with less than one year's notice and their capital is repaid in accordance with the LLP agreement.
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
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 finance 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.
Financial assets and liabilities are only offset in the balance sheet when there exists a legally enforceable right to set off the recognised amounts and the limited liability partnership intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
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.
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
Turnover |
The total turnover of the LLP for the current year and prior year has been derived from its principal activity wholly undertaken in the United Kingdom.
2024 |
2023 |
|
Rendering of services |
16,663,836 |
18,045,785 |
Operating profit |
Operating profit is stated after charging /(crediting):
2024 |
2023 |
|
Operating leases - rent of land & buildings |
721,322 |
806,971 |
Operating leases - other assets |
67,239 |
58,966 |
(Profit)/loss on sale of tangible fixed assets |
(9,500) |
83,307 |
Depreciation of owned assets |
45,988 |
66,779 |
Auditor's remuneration |
26,000 |
24,530 |
- Non audit services |
13,366 |
19,765 |
Other interest receivable and similar income |
2024 |
2023 |
|
Other interest receivable and similar income |
3,373,370 |
2,142,792 |
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 during the year was
Staff costs are borne by TWM Trust Corporation Limited, a related party, and are therefore not included within these financial statements.
Members' remuneration |
2024 |
2023 |
|
Average number of members during the year |
15 |
16 |
The profit attributable to the member with the largest entitlement was £265,070 (2023: £313,524).
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
Intangible fixed assets |
Goodwill |
|
Cost |
|
At 1 August 2023 and at 31 July 2024 |
50,000 |
Amortisation |
|
At 1 August 2023 and at 31 July 2024 |
50,000 |
Net book value |
|
At 31 July 2023 and at 31 July 2024 |
- |
Tangible fixed assets |
Short leasehold |
Fixtures and fittings |
Computer equipment, software and servers |
Total |
|
Cost |
||||
At 1 August 2023 |
343,913 |
431,511 |
873,204 |
1,648,628 |
Additions |
- |
10,579 |
15,717 |
26,296 |
Disposals |
- |
- |
(383,917) |
(383,917) |
At 31 July 2024 |
343,913 |
442,090 |
505,004 |
1,291,007 |
Depreciation |
||||
At 1 August 2023 |
340,904 |
398,997 |
836,195 |
1,576,096 |
Charge for the year |
303 |
11,662 |
34,023 |
45,988 |
Eliminated on disposals |
- |
- |
(393,417) |
(393,417) |
At 31 July 2024 |
341,207 |
410,659 |
476,801 |
1,228,667 |
Net book value |
||||
At 31 July 2024 |
2,706 |
31,431 |
28,203 |
62,340 |
At 31 July 2023 |
3,009 |
32,514 |
37,009 |
72,532 |
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
Investments held as fixed assets |
2024 |
2023 |
|
Other investments |
|
|
Other investments
Other investments |
|
Cost |
|
At 1 August 2023 |
18,994 |
Revaluation |
(6,030) |
At 31 July 2024 |
12,964 |
Net book value |
|
At 31 July 2024 |
12,964 |
At 31 July 2023 |
18,994 |
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Amounts recoverable on contracts |
3,302,636 |
3,799,977 |
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
Creditors: Amounts falling due within one year |
2024 |
2023 |
|
Bank loans |
|
|
Trade creditors |
|
|
Amounts due to related parties |
|
|
Amounts due to former members |
|
|
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 loans |
254,646 |
259,309 |
Bank loans are secured by fixed and floating charges over the undertaking and all property and assets, present and future.
Creditors: Amounts falling due after more than one year |
Creditors amounts falling due after more than one year includes the following liabilities, on which security has been given by the LLP:
2024 |
2023 |
|
Bank loans |
245,354 |
513,418 |
Bank loans are secured by fixed and floating charges over the undertaking and all property and assets, present and future.
Obligations under 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 |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £788,561 (2023 - £865,937).
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
Provisions |
Client claims |
Dilapidations |
Total |
|
At 1 August 2023 |
100,000 |
383,233 |
483,233 |
Increase in existing provisions |
99,000 |
106,047 |
205,047 |
Unused provision reversed |
- |
(105,000) |
(105,000) |
At 31 July 2024 |
199,000 |
384,280 |
583,280 |
|
The provision brought forward and carried forward represents claims against the LLP and dilapidation costs on the LLP's premises, which are payable under the terms of the lease on those premises.
Cash flow statement |
2024 |
2023 |
|
Operating profit |
2,005,104 |
3,405,806 |
Depreciation, amortisation and impairment charges |
45,988 |
66,779 |
(Profit)/loss on disposal of fixed assets |
(9,500) |
83,307 |
Decrease in debtors |
1,127,074 |
651,518 |
Decrease in creditors |
(307,234) |
(73,193) |
Increase in provisions |
100,047 |
58,233 |
(Decrease)/Increase in amounts owed to former members |
(36,629) |
386,971 |
Cash generated by operations |
2,924,850 |
4,579,421 |
Net cash inflow from operating activities |
2,924,850 |
4,579,421 |
Analysis of changes in net debt |
At 1 August 2023 |
Financing cash flows |
Other non-cash changes |
At 31 July 2024 |
|
Cash at bank |
2,234,183 |
(384,526) |
- |
1,849,657 |
Bank borrowings (less than one year) |
(894,028) |
110,706 |
- |
(783,322) |
Bank borrowings (more than one year) |
(513,418) |
268,064 |
- |
(245,354) |
Net debt (before members’ debt) |
826,737 |
(5,756) |
- |
820,981 |
Loans and other debts due to members |
||||
Members’ capital |
(1,783,557) |
78,400 |
- |
(1,705,157) |
Other amounts due to members |
(3,024,636) |
4,876,130 |
(3,976,036) |
(2,124,542) |
Net debt |
( |
|
( |
( |
|
TWM Solicitors LLP
Notes to the Financial Statements for the Year Ended 31 July 2024
Related party transactions |
The following members are partners of entities which owe properties occupied by the LLP:
P D Stewart and M C Truelove are partners in the Wilkinsons Property Partnership, which owns the freeholds of the Cranleigh and Wimbledon offices. Annual rentals for these two properties are £23,750 and £105,530 respectively (2023 - £23,750 and £105,530 respectively).
During the year, the LLP was invoiced £9,711,927 (2023 - £9,662,006) in relation to the supply of staff and related services by TWM Trust Corporation Limited, a company whose directors are all equity members of the LLP. At the year end, the LLP owed TWM Trust Corporation Limited £1,623,514 (2023 - £2,148,324).
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.